A private streetcar monopoly the city eventually took back by force of expiry

The Toronto Railway Company

A private company ran Toronto's streetcars from 1891 to 1921 under a 30-year franchise, refusing to extend lines into new suburbs it couldn't profit from — a fight that led the city to take transit public.

Toronto skyline
Toronto skyline, 2012 — Wikimedia Commons, CC BY 2.0

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The Toronto Railway Company took over the city's streetcar system in 1891 under a 30-year municipal franchise, electrifying a network that had previously run on horse-drawn cars. The franchise agreement fixed the company's fares and obligations for its full term, an arrangement that worked reasonably well in the network's early years but became a serious problem as Toronto's population grew and expanded into new suburbs the company had no contractual obligation, and often no financial interest, in serving.

A franchise the city let expire

By the 1910s the company was widely criticized for refusing to extend lines into newly developed neighbourhoods on the city's edges, arguing correctly that low ridership there wouldn't cover costs under its fixed fare structure, while continuing to profit from its already-built core routes. Rather than renegotiate, the city let the franchise expire in 1921 and created the Toronto Transportation Commission, a public body, to take over the network entirely, ending three decades of private streetcar ownership and setting the template for the publicly owned system that became today's TTC.

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