The line was incorporated as two companies on August 30, 1884; the
Pelham Park Railroad Company and the
City Island Railroad. The two would connect end to end at Marshall's Corner on
Rodman's Neck, just short of the bridge to City Island. At the time the territory to be traversed lay entirely within the
Town of Pelham in
Westchester County. The Pelham Park Railroad Company, with
Samuel McMillan as president, was designated as the operator of the system. The
narrow gauge track was constructed of
30 lb rail and was equipped with 16 horses, 9 horse cars, and 2 freight cars. The line opened from the
Cass Gilbert-designed
Bartow station to Marshall's Corner on May 20, 1887. Five days later operations were extended across the bridge to City Island and along City Island Avenue to Brown's Hotel. By 1892 the line had reached Belden's Point, its final terminal. The length of the combined system was . On April 8, 1889, an accident occurred. Several hundred passengers had taken the Harlem River Branch Railroad to Bartow station, where they transferred to horse-drawn cars for the trip to City Island; six passenger cars were augmented by two horse-drawn flatbed freight cars, on which 50–60 of the passengers were conveyed, many of them standing. The lead car overturned on a sharp curve approaching the City Island Bridge, resulting in many injuries, some of them severe. There were reports that the driver was intoxicated; officials of the railroad denied that, but stated that he might have been guilty of reckless driving. In 1895, New York City annexed what is now the
East Bronx, including the area through which the horsecars ran. The same year, City Island resident Richard S. Williams filed a complaint with the Board of State Railroad Commissioners that the two companies were unlawfully double-charging passengers. Mr. Williams contends that as the two companies were "practically one railroad line", they should be charging a single 5-cent fare, instead of the 5 cents being individually charged by each. In 1897, the Pelham Park Railroad Company applied for a franchise to operate a railroad line through
Pelham Bay Park, along Shore Road, and across the Pelham Bridge. The line would connect
New Rochelle in
Westchester County, New York, to the Bronx's existing trolley network, which included lines to
Harlem in
Manhattan. Residents of the surrounding area opposed the franchise because a new rail line on that route would require tearing up Shore Road's pavement. On November 30, 1897, the
New York City Board of Aldermen voted to grant a 25-year franchise on a vote of 25 to 3. The granting of the franchise did not necessarily entitle the railroad to operate the line later. New York City's mayor at the time,
William L. Strong, indicated he would veto the franchise. On December 8, the
New York Supreme Court placed an injunction to prevent the franchise from being sold to the Pelham Bay Railroad. On March 14, 1902 (two years before it began operating
the first line of the
New York City Subway), the
Interborough Rapid Transit Company (IRT) took control of the two companies.
August Belmont Jr., the IRT's operator, had paid $32,000 for the City Island Railroad, which the IRT then acquired for $4.5 million. The City Island Railroad was to be expanded to the planned New York and Port Chester Railroad, as well as the then-under-construction IRT subway line. As such, the Crawford Real Estate and Building Company sold some land in 1902 for an expansion of the City Island Railroad. A mortgage was recorded in December 1902 for $27,750 () for a 1-year term. == Monorail ==