These city lines failed to earn enough to pay operating expenses and were all conveyed back to the Cedar Rapids and Marion Railway Co. on February 9, 1891. For the year ending June 30, 1884, the number of employes of the company was twenty, the annual wages $11,667.44. In 1889 the number of employes averaged twenty-eight and the annual wages $15,878.00.
During the years 1886 to 1890, the west side lines had been gradually abandoned, so that on December 1, 1890, there was only remaining the one on First street and across the Third avenue bridge to Third street, and thence on Third street southwesterly to Seventh avenue.
The entire equipment at that date consisted of two steam motors, two 28-foot coaches, one open trail car, 20 feet long, one baggage car, one 18-foot, six 12-foot, and eleven 10-foot horse cars, two snow plows, two flat cars and nineteen horses and mules, with the necessary harness and fixtures.
In the autumn of 1890 it came to the knowledge of Mr. J. S. Ely that non-resident parties were investigating the situation with a view of acquiring the property of the Cedar Rapids and Marion Railway, together with the city lines then owned by the Cedar Rapids Street Railway. Mr. Ely believing that it would be best for the interests of the city of Cedar Rapids that control of the transportation facilities be in the hands of resident property owners, who would have a greater interest in a more extensive system and better service, than those seeking merely financial profit, obtained options on a controlling interest in the capital stock of both of the companies. After which Mr. Ely and Mr. Henry V. Ferguson organized a syndicate consisting of Messrs. A. T. Averill, James L. Bever, Chas. H. Clark, Geo. B. Douglas, Walter D. Douglas, C. J. Ives, C. Magnus, P. E. Hall, J. S. Ely, and Henry V. Ferguson, who on December 15, 1890, purchased two-thirds of the entire capital stock of the two companies (the C. R. & M. Ry. and the C. R. Street Ry.) buying out all of the old stockholders except Frances R. Greene, C. G. Greene, S. C. Bever, Geo. W. Bever, and U. C. Blake. Immediately after this change of control, the stockholders paid in money enough to clear up all the floating debt of the companies, and put them on a good financial basis. The stockholders addressed the following communication to the mayor and city council of Cedar Rapids:
"To the Honorable Mayor and City Council of the City of Cedar Rapids, Iowa:
"The undersigned stockholders in the Cedar Rapids and Marion Railway, and in the Cedar Rapids Street Railway Company, respectfully represent to your honorable body that they are the absolute owners of all the stock of the corporations, and all are resident tax payers in said city, largely interested in its general progress and prosperity; that it is their purpose and intention to reconstruct, improve and extend the properties now operated by the said companies and to run the cars on said lines by electric power as soon as the necessary authority and the additional rights and franchises required are granted, and on the granting of the same, we pledge ourselves to take immediate steps toward putting on electric service, and to rebuild, maintain and operate, and from time to time extend the lines in said city to the full extent that ordinary business prudence will warrant.
"We, therefore, petition your honorable body to grant said corporations the necessary authority, rights and franchises to enable them to enter upon and make the changes and improvements above mentioned.
"P. E. Hall, A. T. Averill, Henry V. Ferguson, C. G. Greene, Walter D. Douglas, Jno. S. Ely, Chas. H. Clark, C. J. Ives, Jas. L. Bever, G. B. Douglas, C. Magnus, F. R. Greene, Geo. W. Bever, S. C. Bever, U. C. Blake.
"Dated December 31, 1890."
The franchise asked for by these stockholders was for twenty-five years.