Matters having progressed thus far a meeting of the directors was held on November 5th, 1861, when the Company’s stock books were ordered closed, 2,500 shares having been subscribed for at $50 a share, representing a capital of $125,000. Another meeting was held on the next day, when the following were appointed directors: Thomas Morland, E.M. Hopkins, G.W. Weaver, E.S. Freer and John Ostell. Thomas Morland was elected president.
In the following year construction work was continued, and by June 10th, 1862, a line had been completed from Place D’Armes on Notre Dame Street westward, connecting with St. Joseph Street. This was equipped with three horse cars.
On this same day the Company declared its first dividend, at the encouraging rate of 12% per annum for the first year.
On July 4th, 1862, the Company terminated the lease with the contractor, and took over the actual operation of the road, with considerable profit, the earnings far exceeding the lease price.
At this time the head office of the Company was in a small building at the corner of Craig and Place d’Armes, owned by Rev. Mr. Toupin, but in 1863 the Company moved to Hochelaga. But shortly afterwards the head office of the Company was again at Place d’Armes Hill and Craig Street and remained there until 1894 when the present Street Railway Chambers were erected. Thus it may be said that the head office of the Company has been situated at the corner of Place d’Armes Hill and Craig Street since the incorporation of the Company. The terminus of the line was then Hochelaga and the Company spent $300 on an omnibus to connect the cars with the convent. The service in the city was, of course, only a day one, and the cars were pretty far apart. But even then the demands of the service on Craig and St. Antoine streets was such that improvements to the tracks were needed so as to permit of a more frequent service on these streets.
The advantage of the car line was so much appreciated by the public that in this year, 1863, the Company applied to the city for power to build lines on the following streets:—
Commencing at Papineau Avenue, along St. Catherine to Mountain Street with a line in St. Lawrence Street to the Toll Gate to connect with that now constructed on Craig Street, also commencing at St. Joseph Street along McGill Street to Wellington, to the Bridge and possibly to Point St. Charles.
During 1863 the Company carried 1,066,845 passengers, scarcely 1 per cent of the number carried to-day. It was regarded, however, as an excellent showing, and the Company started to build six miles more track, along Wellington, St. Catherine and St. Lawrence streets. The contract for this work was let to Messrs. Plunkett and Brady.
By May 1864 the St. Catherine line was finished, and opened, while eleven additional cars had to be placed on the Notre Dame Street route. Even the track difficulties were felt, and the line on McGill Street had to be renewed.
By the end of 1864 St. Catherine, St. Lawrence and Wellington street lines, comprising 5¾ miles, had been opened, and all proved revenue producers except the last. During that year 1,485,725 passengers had been carried, an increase of about a half a million for the year. In view of the progress made it was decided to issue more stock at par to the old shareholders. At this time the capital stock of the Company was $200,000.