Electric trolleys first appeared in Los Angeles in 1887.
In 1895 the Pasadena & Pacific Railway was created from a merger of the Pasadena and Los Angeles Railway and the Los Angeles Pacific Railway (to Santa Monica.)
The Pasadena & Pacific Railway boosted Southern California tourism, living up to its motto "from the mountains to the sea."

The Pacific Electric Railway was created in 1901 by railroad executive Henry E. Huntington and banker Isaias W. Hellman.
 As a Vice President of the Southern Pacific Railroad (SP), operated by his uncle, Collis P. Huntington, Huntington had a background in electric trolley lines in San Francisco where he oversaw SP's effort to consolidate many smaller street railroads into one organized network.
Hellman, the President of the Nevada Bank, San Francisco's largest, became one of the largest bond holders for these lines and he and the younger Huntington developed a close business relationship.
The success of their San Francisco trolley adventure and Hellman's experience in financing some early Los Angeles trolley lines led them to invest in the purchase of some existing downtown Los Angeles lines which they began to standardize and organize into one network called the Los Angeles Railway.
When uncle Collis died, Henry lost a boardroom battle for control of the Southern Pacific to Union Pacific President E. H. Harriman.
 Huntington then decided to focus his energies on Southern California.

In May 1901, Hellman, who had been Southern California's leading banker for almost three decades (and owned much property down there), wrote Huntington that "the time is at hand when we should commence building suburban railroads out of the city."
Hellman added that he had already tasked engineer Epes Randolph to survey and lay out the company's first line which would be to Long Beach.
In that same year, Huntington and Hellman incorporated a new entity, the Pacific Electric Railway of California, formed to construct new electric rail lines to connect Los Angeles with surrounding cities.
Hellman and his group of investors owned the controlling majority of stock (double that of Huntington's) and the newspapers of the time referred to it as the Huntington-Hellman syndicate.
Using surrogates, the syndicate began purchasing property and right-of-ways.
The new company's first main project, the line to Long Beach, opened July 4, 1902.

Huntington experienced periods of opposition from organized labor with the construction of the new railways.
Tensions between union leaders and like-minded Los Angeles businessmen were high from the early 1900s up through the 1920s.
Strikes and boycotts troubled the Pacific Electric throughout those years until they reached the height of violence in the 1919 Streetcar Strike of Los Angeles.
The efforts of organized labor simmered with the onset of World War I. 
Railroads were one part of the enterprise.
Revenue from passenger traffic rarely generated a profit, unlike freight.
The real money for the investors was in supplying electric power to new communities and in developing and selling real estate.
To get the railways and electricity to their towns, local groups offered the Huntington interest opportunities in local land.
Soon Huntington and his partners had significant holdings in the land companies developing Naples, Bay City (Seal Beach), Huntington Beach, Newport Beach and Redondo Beach.

Harriman, who controlled the powerful Southern Pacific Railroad, was concerned with the competition that these new electric lines gave his steam railroad traffic, and had been prodding Huntington for joint ownership of the lines but Huntington refused to negotiate.
In early 1903, Harriman proposed a franchise plan with three-cent fare plan to the Los Angeles City Council, a plan which, if accepted, would have handicapped the other railways severely.
Huntington countered with a ticket book which gave the rider 500 miles of travel for $6.25, which undercut the Harriman strategy.
The Council vetoed the franchise idea, unable to believe adequate service could be provided for such a low fare.
Then,
Electric trolleys first appeared in Los Angeles in 1887. In 1895 the Pasadena & Pacific Railway was created from a merger of the Pasadena and Los Angeles Railway and the Los Angeles Pacific Railway (to Santa Monica.) The Pasadena & Pacific Railway boosted Southern California tourism, living up to its motto "from the mountains to the sea."
The Pacific Electric Railway was created in 1901 by railroad executive Henry E. Huntington and banker Isaias W. Hellman.  As a Vice President of the Southern Pacific Railroad (SP), operated by his uncle, Collis P. Huntington, Huntington had a background in electric trolley lines in San Francisco where he oversaw SP's effort to consolidate many smaller street railroads into one organized network. Hellman, the President of the Nevada Bank, San Francisco's largest, became one of the largest bond holders for these lines and he and the younger Huntington developed a close business relationship. The success of their San Francisco trolley adventure and Hellman's experience in financing some early Los Angeles trolley lines led them to invest in the purchase of some existing downtown Los Angeles lines which they began to standardize and organize into one network called the Los Angeles Railway. When uncle Collis died, Henry lost a boardroom battle for control of the Southern Pacific to Union Pacific President E. H. Harriman.  Huntington then decided to focus his energies on Southern California.
In May 1901, Hellman, who had been Southern California's leading banker for almost three decades (and owned much property down there), wrote Huntington that "the time is at hand when we should commence building suburban railroads out of the city." Hellman added that he had already tasked engineer Epes Randolph to survey and lay out the company's first line which would be to Long Beach. In that same year, Huntington and Hellman incorporated a new entity, the Pacific Electric Railway of California, formed to construct new electric rail lines to connect Los Angeles with surrounding cities. Hellman and his group of investors owned the controlling majority of stock (double that of Huntington's) and the newspapers of the time referred to it as the Huntington-Hellman syndicate. Using surrogates, the syndicate began purchasing property and right-of-ways. The new company's first main project, the line to Long Beach, opened July 4, 1902.
Huntington experienced periods of opposition from organized labor with the construction of the new railways. Tensions between union leaders and like-minded Los Angeles businessmen were high from the early 1900s up through the 1920s. Strikes and boycotts troubled the Pacific Electric throughout those years until they reached the height of violence in the 1919 Streetcar Strike of Los Angeles. The efforts of organized labor simmered with the onset of World War I. 
Railroads were one part of the enterprise. Revenue from passenger traffic rarely generated a profit, unlike freight. The real money for the investors was in supplying electric power to new communities and in developing and selling real estate. To get the railways and electricity to their towns, local groups offered the Huntington interest opportunities in local land. Soon Huntington and his partners had significant holdings in the land companies developing Naples, Bay City (Seal Beach), Huntington Beach, Newport Beach and Redondo Beach.
Harriman, who controlled the powerful Southern Pacific Railroad, was concerned with the competition that these new electric lines gave his steam railroad traffic, and had been prodding Huntington for joint ownership of the lines but Huntington refused to negotiate. In early 1903, Harriman proposed a franchise plan with three-cent fare plan to the Los Angeles City Council, a plan which, if accepted, would have handicapped the other railways severely. Huntington countered with a ticket book which gave the rider 500 miles of travel for $6.25, which undercut the Harriman strategy. The Council vetoed the franchise idea, unable to believe adequate service could be provided for such a low fare.Then, 
Pacific Electric