By 1892, the city hosted three incompatible street railroads. The Pacific Avenue Street Railroad ran from the beach to the Pope House on gauge rails. The East Santa Cruz Street Railway ran on gauge rails from the junction of the Pacific Avenue line at the Lower Plaza to East Santa Cruz and Twin Lakes Park, running through the town of Seabright. The Pacific Avenue Street Railroad would go on to electrify its line the following year, but it shortly was absorbed into the Santa Cruz, Garfield Park and Capitola. The two companies merged as Santa Cruz Electric Railway. Work progressed on rebuilding lines for electric traction, though unseasonable rains in early 1893 led to some new lines being temporarily laid with a
dual gauge, allowing horsecars to provide service during construction. The beachfront line was completed in April along with a spur to the train depot. Following the crash of 1893 and the Santa Cruz fire the next year, some expansion plans were put on hold, though the beachfront line was extended to the San Lorenzo River in 1895. Swanton organized a new power company and built a dam to supply power to the electric railway. Some lines were abandoned in the late 1890s. As Swanton and Smith diversified their investitures, they encountered new capital. A syndicate headed by John M. Gardiner and based in Los Angeles had recently begun consolidating utilities in Gilroy and Salinas, and even purchased the
streetcar system of Monterey with plans to eventually form an electric railway running the length of the coast from
San Francisco. Swanson had acquired the old East Santa Cruz Street Railway rights to run a line east to
Capitola and sold his stake in the light company to participate. Thus a new entity, the Santa Cruz, Capitola and Watsonville Railway, was formed with a charter to run between those cities. Support for the line was strong until the company requested franchise rights to Pacific Avenue, which would bring it into direct competition with the Santa Cruz Electric. After attempting to dubiously ease the statutory franchising process, the company was taken to court to halt construction of the line, but were found compliant and allowed to build. Swanton and Smith's relationship at this time was unclear. The Santa Cruz Electric promptly improved service, with 15-minute headways, improved tracks, and reopening of lines which had previously closed. The Santa Cruz, Capitola and Watsonville began service in June 1904, running from Soquel and Pacific Avenues to the beach, with the line to Twin Lakes opening two days later. Construction was ongoing at Capitola and the Arana Gulch branch. The company installed a switch on Pacific Avenue and tested it about 75 minutes after their restraining order was lifted on July 17 in regards to operating on the street. The Opal extension quickly followed, opening on July25.
Union Traction Company of the Seabright Hotel, Seabright station, and a Union Traction Company streetcar, postmarked 1910 Several acquisitions and sales followed in quick succession. F.S. Granger, developer of the San Jose Los Gatos Interurban Company (eventual
Peninsular Railway), moved to Santa Cruz in June 1904 and proceeded to acquire the Santa Cruz Electric. Simultaneously, the Union Traction Company of Santa Cruz was incorporated to take over both of the city's streetcar companies. October4 was the first run to Capitola as well as the day the merger was announced. Granger fell out with the company and sold his shares. Following a severe storm in January 1905, the company rebuilt several lines and constructed a new car barn on Pacific Avenue to house new rolling stock, all at a cost of $70,000. It also discontinued some lines. Gardiner entered negotiation with
Henry E. Huntington, head of Southern Pacific, as well as promoters of the planned electrified
Ocean Shore Railway to establish the future of the streetcar system and potential
interurban connections to the neighboring railroads, though these meetings did not yield promising results. With future expansion off the table, Gardiner and several other officers divested. The Ocean Shore would go on to purchase Union Traction, though the
1906 San Francisco Earthquake proved disastrous for the company. After payments to stockholders ceased, ownership of the streetcar operation was reverted to the previous owners. The Ocean Shore acquired a franchise for its own streetcar line in 1907, though never exorcised this plan. New ownership brought new expansion plans with the reassurance of established headways and fares. Plans were unveiled to convert all tracks to
standard gauge (from the old ) and to double track the system. Conversion on the beach line was completed in September 1907, the Vue de l'eau line later in the month, and the full Capitola line on November14. All expansion plans were canceled following the
panic of 1907 except the line to North Santa Cruz, which could be readily developed into a profitable
streetcar suburb. The Water Street bridge was completed with cars running over it on October 4, 1908, eventually running to Martin Boulevard and a stub horsecar line. The system's financials collapsed in 1918, with diminished ridership and poor farebox showings. Fares were raised to 6¢ (from the longtime cost of 5¢), some cars were converted to one-man operation, and staff was cut to reduce operating costs. Fare increases continued into the 1920s, though deferred maintenance set in and cash flow remained a problem for the railroad. The Laveaga Park line was discontinued and the Capitola line truncated on December8, 1924 as new buses arrived. More bus conversions occurred that week. Attempts to abandon the Ocean Cliffs line were countered by the city with an ultimatum to either pave the streets on which the current lines operated or discontinue all service outright. Union Traction elected to end service. The last streetcar ran just after midnight on January 15, 1925, and buses took over the following morning. ==Remnants==