The first formal meeting of the directors was held at the
Omaha National Bank on May 1, 1867. In the years following the founding of the company through the mid-1870s a boon period presided in Omaha, bringing the foundation of several businesses important to the city's growth, including the Horse Railway. The city expanded from to 24 within 15 years, and the Horse Railway struggled to keep up with it. The company switched from
horses to
mules and painted their cars yellow in an attempt to strengthen their image. By the late 1870s the line had of track, 10 cars, 70 horses, 20 employees and 495,000 passengers annually. After the company hit hard times in the mid to late 1870s, William W. Marsh purchased a controlling interest in the company from
A.J. Hanscom. His purchase was effective January 1, 1879. In 1887 the Omaha Cable Tramway Company was founded, leaving the Horse Railway with a competitor. The companies merged in 1889. In 1888 the Horse Railway Company took the Cable Tramway Company and the
City of Omaha to court on the grounds they violated the Horse Railway's exclusive 50-year franchise allotted to them by the Territorial Legislature. The City of Omaha held a public vote that gave the Cable Tramway the ability to compete, in violation of the Legislature's act. The courts found for the Cable Tramway Company, allowing them to share the streets; however, they did order the Cable Tramway Company repay the Horse Railway for losses due to intrusion upon that company's lines. The case was exceptional because the courts ruled that the exclusivity clause granted the rights to the company operating
horse railways, not
cable cars. This interpretation allowed for competition in a formerly monopolized market, and was credited with changing the economic landscape of American
public transportation thereafter. By 1902 the company that was formed became the
Omaha and Council Bluffs Railway and Bridge Company, after the consolidation of several competitors in the previous 20 years. ==Routes==