On June 6, 1903, Huntington created the Los Angeles Inter-Urban Railway, capitalized at $10,000,000, with plans to extend lines to Santa Ana, Newport Beach, the San Fernando Valley, La Habra, Redlands and Riverside, with branches to Colton and San Bernardino.
He simultaneously created the Los Angeles Land Company.
Huntington owned almost all the stock in the companies, with token amounts allotted to company directors.
Although the company allowed Huntington to proceed with construction plans unencumbered by outside interference, the poor state of the bond market meant that he had to turn to stockholders to finance expansion.
In 1904 he acquired and finished the Los Angeles and Glendale Railway.
 In June, LAIU assumed control of the Riverside and Arlington Railway and the Santa Ana and Orange Motor Railway, and soon after, PE and LAIU finished their extension to Huntington Beach and began building a line to Covina.

Huntington continued to expand and not declare profits.
On December 7, 1904, the Hellman group sold the rest of their shares and bonds in PE and LAIU to Huntington and Harriman for $1.2 million.
Huntington and Harriman were now equal partners in ownership of the Pacific Electric.
The Hellman syndicate retained their 45% interest in the Los Angeles Railway, which they thought would eventually declare dividends.

By 1905, the Newport and Santa Ana lines were completed.
In 1906, the Newport line was extended to Balboa, and in late 1906, lines to Sierra Madre and Oak Knoll in Pasadena were finished.
The two firms controlled 449 miles of track, with the Pacific Electric at 197 miles and the LAIU, 252 miles.
Huntington purchased the Los Angeles and Redondo Railway in July 1905, along with the Redondo Land Company, which owned 90% of the land in the beach community.
This announcement precipitated a land boom in the area which resulted in a quick return of Huntington‘s entire investment in the area and in the railway.

On March 19, 1906, an agreement was reached to sell control of the Los Angeles Pacific Railroad lines, owned by Moses Sherman and Eli P. Clark, for a reported $6 million to Harriman; this turned over all the lines in downtown Los Angeles to Santa Monica and down the coast to Redondo Beach to the Southern Pacific.
In January 1907, the Hellman syndicate, after seeing that Huntington ran the Los Angeles Railway similarly to PE, continually expanding and not declaring dividends, sold their 45% stake in the Los Angeles Railway to Harriman and the Southern Pacific.

 
The Covina line was completed in 1907, as well as a line from Monrovia to Glendora.
The system reached La Habra in 1908.
 By 1910 PE operated nearly 900 miles of track.
Routes had been built into or passed through areas just beginning to grow.

1905 was the Pacific Electric’s most profitable year, when the road made $90,711.
Profits from the Huntington Land and Improvement Company made up for the poor earnings of the interurban system, with profits of $151,000 in 1905 rising to $402,000 in 1907.
 However, in 1909, earnings were only $75,000.

Huntington had begun long negotiations with Harriman about consolidating the Los Angeles electric railways beginning in 1907.
There had always been a difference between the two men as to the purpose of the railway, with Huntington seeing the PE as a means to facilitate his real estate efforts, and Harriman seeing it as part of the Southern Pacific’s overall transportation system in Southern California.
Harriman left Huntington alone until 1910, when the former refused to allow the latter to run a line to San Diego that would have interfered with a competitive arrangement Harriman had worked out with the Santa Fe Railway.

In June 1908, Huntington leased all the lines of the Los Angeles Inter-Urban Railway to Harriman.
In 1909 he sold the systems in Fresno and Santa Clara County to the Southern Pacific.
 Talks paused after the death of Harriman on September 9, 1909, but resumed in early 1910.
On September 27, 1910, Huntington and Southern Pacific management came to a final agreement.
 In a complicated stock and b
On June 6, 1903, Huntington created the Los Angeles Inter-Urban Railway, capitalized at $10,000,000, with plans to extend lines to Santa Ana, Newport Beach, the San Fernando Valley, La Habra, Redlands and Riverside, with branches to Colton and San Bernardino. He simultaneously created the Los Angeles Land Company. Huntington owned almost all the stock in the companies, with token amounts allotted to company directors. Although the company allowed Huntington to proceed with construction plans unencumbered by outside interference, the poor state of the bond market meant that he had to turn to stockholders to finance expansion. In 1904 he acquired and finished the Los Angeles and Glendale Railway.  In June, LAIU assumed control of the Riverside and Arlington Railway and the Santa Ana and Orange Motor Railway, and soon after, PE and LAIU finished their extension to Huntington Beach and began building a line to Covina.
Huntington continued to expand and not declare profits. On December 7, 1904, the Hellman group sold the rest of their shares and bonds in PE and LAIU to Huntington and Harriman for $1.2 million. Huntington and Harriman were now equal partners in ownership of the Pacific Electric. The Hellman syndicate retained their 45% interest in the Los Angeles Railway, which they thought would eventually declare dividends. 
By 1905, the Newport and Santa Ana lines were completed. In 1906, the Newport line was extended to Balboa, and in late 1906, lines to Sierra Madre and Oak Knoll in Pasadena were finished. The two firms controlled 449 miles of track, with the Pacific Electric at 197 miles and the LAIU, 252 miles. Huntington purchased the Los Angeles and Redondo Railway in July 1905, along with the Redondo Land Company, which owned 90% of the land in the beach community. This announcement precipitated a land boom in the area which resulted in a quick return of Huntington‘s entire investment in the area and in the railway. 
On March 19, 1906, an agreement was reached to sell control of the Los Angeles Pacific Railroad lines, owned by Moses Sherman and Eli P. Clark, for a reported $6 million to Harriman; this turned over all the lines in downtown Los Angeles to Santa Monica and down the coast to Redondo Beach to the Southern Pacific. In January 1907, the Hellman syndicate, after seeing that Huntington ran the Los Angeles Railway similarly to PE, continually expanding and not declaring dividends, sold their 45% stake in the Los Angeles Railway to Harriman and the Southern Pacific.
 
The Covina line was completed in 1907, as well as a line from Monrovia to Glendora. The system reached La Habra in 1908.  By 1910 PE operated nearly 900 miles of track. Routes had been built into or passed through areas just beginning to grow.
1905 was the Pacific Electric’s most profitable year, when the road made $90,711. Profits from the Huntington Land and Improvement Company made up for the poor earnings of the interurban system, with profits of $151,000 in 1905 rising to $402,000 in 1907.  However, in 1909, earnings were only $75,000.
Huntington had begun long negotiations with Harriman about consolidating the Los Angeles electric railways beginning in 1907. There had always been a difference between the two men as to the purpose of the railway, with Huntington seeing the PE as a means to facilitate his real estate efforts, and Harriman seeing it as part of the Southern Pacific’s overall transportation system in Southern California. Harriman left Huntington alone until 1910, when the former refused to allow the latter to run a line to San Diego that would have interfered with a competitive arrangement Harriman had worked out with the Santa Fe Railway.
In June 1908, Huntington leased all the lines of the Los Angeles Inter-Urban Railway to Harriman. In 1909 he sold the systems in Fresno and Santa Clara County to the Southern Pacific.  Talks paused after the death of Harriman on September 9, 1909, but resumed in early 1910. On September 27, 1910, Huntington and Southern Pacific management came to a final agreement.  In a complicated stock and b
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