Although the above application was warmly supported by the leading newspapers of Cedar Rapids, the city council refused the franchise so asked for, but instead on May 1, 1891, granted to the Thomson-Houston Electric Co. a franchise for fifty years, for lines covering substantially the same territory on the east side of the river as that served by the horse cars, and also for three miles of new lines on the west side of the river, to be afterwards located.
So these gentlemen who had put up their money to save the city of Cedar Rapids from non-resident ownership of transportation lines, found their purpose frustrated and with a fair prospect of losing their entire investment. Rather than suffer this, a majority decided to acquire this new franchise at the best price obtainable, and then go ahead with construction according to its terms. After this decision Mr. Ives and Mr. Magnus retired from the enterprise and took back their money. Previously, during the negotiation for the franchise, Mr. S. C. Bever and Mr. U. C. Blake had sold out. On the organization of the new company to take over the Thomson-Houston franchise, Mrs. Frances R. Greene, C. G. Greene and Geo. W. Bever sold their interests to the remaining stockholders.
Neither the Cedar Rapids and Marion Railway nor the Cedar Rapids Street Railway ever paid a dividend, so that all of the stockholders who had invested their money in these enterprises went out with entire loss of income, and most of them with considerable loss of principal.
J. P. Messer was superintendent from January 1, 1881, to February 22, 1883, when he resigned and was succeeded by Wm. Elsom, who remained superintendent until after the system had been changed into an electric railway.
CEDAR RAPIDS AND MARION CITY RAILWAY COMPANY
The Cedar Rapids and Marion City Railway Company was organized May 14, 1891, and immediately thereafter purchased the franchise for electric railways in Cedar Rapids recently granted to the Thomson-Houston Electric Co., and also took over all the rights, property and franchises of the Cedar Rapids and Marion Railway. A franchise for twenty-five years for an electric line from the terminal point in the city of Marion to the southwesterly city limits of Marion was granted to this company at about that time. The first officers were: Jas. L. Bever, president; Walter D. Douglas, vice-president; Chas. H. Clark, treasurer; Glenn M. Averill, secretary.
Within a few months Jas. L. Bever and A. T. Averill sold out and retired from the enterprise. After the reorganization resulting from this change in ownership, the officers were: P. E. Hall, president; W. D. Douglas, vice-president; Chas. H. Clark, treasurer; John S. Ely, secretary.
The stockholders were: Chas. H. Clark, Geo. B. Douglas, John S. Ely, J. S. Cook, Walter D. Douglas, Henry V. Ferguson, and P. E. Hall, of Cedar Rapids, Horace Williams, of Clinton, Iowa, J. E. Ainsworth, of Council Bluffs, Iowa, now of Williamstown, Vt., David P. Kimball and L. C. Kimball, of Boston, Mass., and J. Van Deventer, of Knoxville, Tenn.
No change of ownership except through division of estates of deceased stockholders has taken place up to the present time.
The work of construction and reconstruction was begun at once and vigorously pushed during the season of 1891.