Manhattan Railway Company

The Manhattan Railway Company was a nineteenth-century elevated-railway company serving Manhattan and the Bronx in New York City. It was chartered on December 29, 1875, during a period when several private companies were building and operating elevated railway lines above Manhattan's streets. The company became the dominant corporate operator of the city's principal elevated routes after leasing the Metropolitan Elevated Railway and the New York Elevated Railroad on May 20, 1879. Those arrangements brought the Sixth Avenue, Third Avenue, and Ninth Avenue services under a common corporate structure, while the company also controlled development and operation associated with the Second Avenue route. The resulting system consisted of four principal lines: the Second Avenue Line, Third Avenue Line, Sixth Avenue Line, and Ninth Avenue Line. The elevated railway network provided frequent urban transportation before New York's subway system was built, and some services operated continuously. From 1881, the Third Avenue and Sixth Avenue lines ran around the clock, illustrating the company's role in the city's increasingly intensive commuter and street-level transportation system. The company was also associated with the financial and political controversies that accompanied the consolidation of urban railways in the Gilded Age. The New York State Legislature's Hepburn Committee investigated the company's affairs and exposed business practices involving complex leasing arrangements and substantial stock watering. The nominal value of the company's stock was reportedly increased from $2 million to $15 million. The investigation contributed to proposed legislation aimed at restricting fictitious ownership structures and stock manipulation involving railroad leases. Corporate consolidation continued during the 1890s. The Suburban Rapid Transit Company, which operated the Third Avenue elevated line in the Bronx, was leased to Manhattan Railway on June 4, 1891. The related elevated-railway companies were ultimately brought together under the Manhattan Railway structure in February 1890, although the system continued to function through a succession of corporate, operating, and jurisdictional arrangements. The company also became involved in a notable political dispute in 1899. Richard Croker, the Tammany Hall leader, sought to have compressed-air pipes attached to the elevated railway structures, an arrangement that could have benefited the New York Auto-Truck Company in which he held shares. George Jay Gould, then president of Manhattan Railway, rejected the proposal. The dispute was followed by city requirements concerning drip pans beneath elevated structures at street crossings and a rule requiring trains to run at five-minute intervals, with a stated penalty for violations. The decisive transition came in 1903. The Interborough Rapid Transit Company, established to operate New York's first subway line, took a 999-year lease of the Manhattan Railway lines on April 1, 1903. The elevated routes subsequently operated primarily within the IRT system, while the original Manhattan Railway corporate identity faded from active public use. Elevated service was gradually reduced as subway transportation expanded. The Sixth Avenue Line closed in 1938; portions of the Ninth Avenue and Second Avenue lines followed in 1940, with the final Second Avenue service ending in 1942. Manhattan service on the Third Avenue Line was phased out in the early 1950s and ended in 1955. A Bronx remnant continued until 1973, marking the end of the former Manhattan elevated network. The company's infrastructure also left a surviving architectural and technological legacy. Substation 7, built around 1898 to convert alternating current into direct current for railway use, remains at 1782 Third Avenue near East 99th Street and is listed on the National Register of Historic Places. The former elevated railway system helped shape New York's urban development, even th…

New York's elevated railways emerged in the nineteenth century as a response to severe street congestion and the absence of a rapid underground transit system. By the late 1870s, important elevated routes were controlled by the Metropolitan Elevated Railway and the New York Elevated Railroad. The Manhattan Railway Company was chartered on December 29, 1875, and expanded its influence by leasing both companies on May 20, 1879. This created a consolidated operating structure for the Sixth Avenue, Third Avenue, and Ninth Avenue routes, while the company also became associated with the Second Avenue elevated line. The consolidated network was one of the most important mass-transit systems in pre-subway New York. It eventually operated four principal lines: Second Avenue, Third Avenue, Sixth Avenue, and Ninth Avenue. Service could be intensive; the Third Avenue and Sixth Avenue lines operated continuously from 1881. The system served both Manhattan and the Bronx, and its elevated structures became a defining feature of the city's streetscape. The company's corporate methods attracted legislative scrutiny. The Hepburn Committee of the New York State Legislature investigated leasing arrangements and financial practices connected with Manhattan Railway. The investigation highlighted what contemporaries regarded as barely lawful business techniques and large-scale stock watering, including an increase in nominal stock value from $2 million to $15 million. The controversy helped inspire proposals to prevent railroad companies from using leases and related share structures to create fictitious or indirect ownership. Consolidation proceeded despite the controversy. The Suburban Rapid Transit Company, which operated the Bronx section of the Third Avenue route, was leased on June 4, 1891. The related companies were eventually merged into the Manhattan Railway structure in February 1890, although the historical record reflects a complicated succession of leases, operating companies, and jurisdictions rather than a simple modern corporate integration. In 1899, the company became part of a political and regulatory conflict involving Richard Croker, a powerful Tammany Hall figure. Croker wanted compressed-air pipes installed on the elevated structures, an arrangement that could have benefited the New York Auto-Truck Company, in which he owned shares. George Jay Gould, the company's president, refused. The resulting political pressure was associated with new requirements for drip pans at street crossings and a five-minute maximum interval between trains, backed by monetary penalties for noncompliance. The arrival of the subway changed the company's strategic position. The Interborough Rapid Transit Company was incorporated in April 1902 to operate New York's first subway line and signed a 999-year lease for the Manhattan Railway elevated lines on April 1, 1903. The routes then operated principally under the IRT umbrella. As subway routes expanded and older elevated infrastructure became less central to the city's transit strategy, closures proceeded over several decades. The Sixth Avenue Line closed in 1938. In 1940, the Ninth Avenue Line south of 155th Street and the Second Avenue Line north of 59th Street were closed; the upper Ninth Avenue segment continued as the Polo Grounds Shuttle until 1958. The remaining Second Avenue service ended in 1942. Manhattan service on the Third Avenue Line was withdrawn in stages during the early 1950s and ended in 1955, while the Bronx portion survived until 1973. The final closure ended more than six decades of service associated with the elevated system. Although the railway itself disappeared, portions of its technical infrastructure survived. Substation 7, constructed around 1898 to convert alternating current to direct current, remains at 1782 Third Avenue near East 99th Street and is listed on the National Register of Historic Places. The Manhattan Railway Company is therefore significant both as an early mass-transit operator and as a participant in the corporate consolidation, political controversies, and technological development that preceded New York's modern subway network.

1. 1973Last elevated section closes

   The Bronx section of the Third Avenue Line, the final surviving section of the former system, closed.

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2. 1955Manhattan Third Avenue service ends

   Service on the Manhattan section of the Third Avenue Line ended after a phased withdrawal.

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3. 1942Second Avenue Line closes completely

   The final remaining section of the Second Avenue elevated line ceased service.

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4. 1938Sixth Avenue Line closes

   Service on the Sixth Avenue elevated line ended.

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5. 1903IRT takes a 999-year lease

   The Interborough Rapid Transit Company leased the Manhattan Railway lines on April 1.

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6. 1898Substation 7 constructed

   The company built a substation around this period to convert alternating current into direct current for railway operations.

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7. 1891Bronx operator leased

   The Suburban Rapid Transit Company was leased on June 4, extending the system's control in the Bronx.

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8. 1890Elevated railway companies consolidated

   The related elevated railway companies were ultimately merged into the Manhattan Railway structure.

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9. 1881Continuous service begins on two lines

   The Third Avenue and Sixth Avenue lines began operating around the clock.

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10. 1879Major elevated companies leased

    On May 20, the company leased the Metropolitan Elevated Railway and the New York Elevated Railroad.

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11. 1875Company chartered

    The Manhattan Railway Company was chartered in New York on December 29.

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A high-frequency, privately operated elevated-railway network serving New York City's Manhattan and Bronx districts before and during the transition to subway transportation.

• Second Avenue LineElevated railway line

  The Second Avenue Line was one of the four principal elevated routes associated with Manhattan Railway. It served Manhattan along Second Avenue and was progressively curtailed as subway infrastructure expanded. The portion north of 59th Street closed in 1940, and the remaining service ended in 1942.

• Third Avenue LineElevated railway line

  The Third Avenue Line was a major north-south elevated route serving Manhattan and the Bronx. Manhattan Railway operated the line through its consolidated system, while the Bronx segment was connected with the Suburban Rapid Transit Company lease. Manhattan service ended in 1955, but a Bronx section continued until 1973.

• Sixth Avenue LineElevated railway line

  The Sixth Avenue Line originated with the Metropolitan Elevated Railway and became part of the Manhattan Railway network after the 1879 lease. It was among the company's continuously operated routes from 1881 and was the first principal Manhattan Railway line to close, ending service in 1938.

• Ninth Avenue LineElevated railway line

  The Ninth Avenue Line was one of the routes brought under Manhattan Railway control through the lease of the New York Elevated Railroad. Most Manhattan service ended in 1940. A northern remnant continued as the Polo Grounds Shuttle until 1958.

• Substation 7Railway electrical infrastructure1898

  Substation 7 was built around 1898 to convert alternating current into direct current for railway use. The structure survives at 1782 Third Avenue near East 99th Street and is listed on the National Register of Historic Places.

• 1903Long-term lease to Interborough Rapid TransitStrategy

  The opening of New York's first subway was changing the competitive and operational environment for elevated railways.

  What changed. The Interborough Rapid Transit Company signed a 999-year lease for the Manhattan Railway lines on April 1.

  Aftermath. The elevated routes entered the IRT operating system, while the Manhattan Railway identity ceased to be the principal public-facing operator.

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• 1891Lease of Suburban Rapid Transit CompanyM&A

  The Bronx portion of the Third Avenue elevated route was operated by the Suburban Rapid Transit Company.

  What changed. Manhattan Railway leased the Suburban Rapid Transit Company on June 4.

  Aftermath. The lease expanded Manhattan Railway's operating reach into the Bronx.

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• 1879Lease of Metropolitan Elevated and New York ElevatedM&A

  Multiple companies operated Manhattan's elevated railways, creating fragmented ownership and management.

  What changed. Manhattan Railway leased both companies on May 20, bringing major Sixth, Third, and Ninth Avenue operations under common control.

  Aftermath. The transaction established Manhattan Railway as the leading elevated-railway operator in Manhattan.

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• 1899Croker elevated-structure disputeControversy

  Richard Croker's effort to attach compressed-air pipes to Manhattan Railway structures was rejected by president George Jay Gould. Because Croker held shares in the New York Auto-Truck Company, which could have benefited from the arrangement, the dispute became a prominent example of the company's intersection with New York political influence and private business interests.

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• Hepburn Committee stock-watering investigationControversy

  The New York State Legislature's Hepburn Committee investigated Manhattan Railway's leasing and financial practices. The inquiry exposed complex arrangements and substantial stock watering, including an increase in nominal stock value from $2 million to $15 million, and helped prompt proposed legislation against fictitious railroad ownership through leases and related share schemes.

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• 1973Final Bronx remnant of the Third Avenue Line closes

  The last remaining section of the former elevated system, a Bronx portion of the Third Avenue Line, ceased operation.

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• 1938Sixth Avenue elevated service ends

  The Sixth Avenue Line became the first of the principal former Manhattan Railway routes to close.

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• 1903Interborough Rapid Transit signs long-term lease

  The Interborough Rapid Transit Company signed a 999-year lease for the Manhattan Railway lines on April 1, transferring their operation into the emerging subway-era system.

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• 1891Suburban Rapid Transit Company is leased

  Manhattan Railway leased the Suburban Rapid Transit Company on June 4, extending its elevated railway presence into the Bronx.

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• 1879Manhattan Railway leases two major elevated operators

  On May 20, Manhattan Railway leased the Metropolitan Elevated Railway and the New York Elevated Railroad, gaining control of important Sixth, Third, and Ninth Avenue operations.

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• 1875Manhattan Railway Company is chartered

  The company received its charter on December 29, establishing the corporate vehicle that would consolidate major elevated railway operations in Manhattan.

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1. Manhattan Railway Company