Streetcars: Peninsular Railway Company

Some railroad projects evolve naturally out of either local initiatives or corporate planning. The Peninsular Railway, however, was the closest thing to a covert takeover that ever happened with local railroad schemes. In April 1904, James W. Rea, leader of the San Jose & Los Gatos Interurban Railway Company, convinced the company's board of directors to sell their shares to a local banker and investor, O. A. Hale. Hale became president on April 9 and, a month later, rumors began to circulate that Hale was in fact a secret agent for the Southern Pacific Railroad. Yet nothing came of this speculation at first—Hale continued the expansion of the interurban's routes and unsubstantiated gossip continued throughout 1904 and 1905. Then, without much notice, Hale incorporated the Peninsular Railway Company on December 21, 1905, and the scheme began to reveal itself.

Peninsular Railway interurban car #102 at Saratoga, ca 1930. [Palo Alto Historical Association – colorized using DeOldify]

On the surface, this new electric interurban railroad—which was linked with but separate from the San Jose & Los Gatos Interurban—was intended to connect San José to San Francisco via a new interurban line. Yet from almost the beginning it was clear that Hale intended to merge the older interurban into his new company. Lines were projected to extend to Los Gatos, Big Basin, Oakland, and Alum Rock, the first two of which were either already on the existing line or anticipated future stops. But the company's first project was to construct a double-lane track to the most unlikely of places: Vasona, a freight-loading station on the San Jose to Santa Cruz route of the Southern Pacific Railroad.

Peninsular Railway ballast train in Los Gatos, 1910. [Clarence Hamsher Collection, History Los Gatos – colorized using DeOldify]

The San Jose & Los Gatos Interurban Railway funded construction, which was suspicious in itself. Speculators also suspected that only one of the tracks, if any, would be used by the Peninsular because it was a dead end on the southeast: there was nothing at there except the Southern Pacific tracks and prune orchards. But Southern Pacific wanted to build a new San José bypass route that would more directly link Santa Cruz to San Francisco. This proposed route passed directly through the interurban's territory, so the Peninsular Railway was formed initially to build this route and disperse the legal and fiscal liability of such a venture.

Promotional map of the route of the Peninsular Railway, ca 1914. [History San José]

Construction began on the route in June 1906. The first section was in the north, between Mayfield (Palo Alto) and Cupertino. Hale died on July 20, 1907, while construction was ongoing. His successor was Jere T. Burke, a lawyer for Southern Pacific. The section opened on November 5, 1907 while the Los Altos Branch of the Southern Pacific—more commonly the Mayfield Cut-Off—opened on April 19, 1908. Indeed, no interurban track was installed south of Congress Junction and this section to Vasona remained simply a Southern Pacific right-of-way. Immediately after completion, the Peninsular Railway double-tracked its Stevens Creek/San Carlos section while Southern Pacific shifted to repairing and upgrading its tracks to Santa Cruz, which were narrow-gauge and had been damaged in the 1906 San Francisco Earthquake.

Peninsular Railway station at Palo Alto, ca 1920s. [History San Jose – colorized using DeOldify]

While the tracks were upgraded, the interurbans continued to operate under the name San Jose & Los Gatos Interurban Railway. The company was only consolidated into the Peninsular Railway on June 30, 1909, about the same time that through traffic resumed along the Santa Cruz line. The San Jose & Santa Clara Railway was also consolidated into the Peninsular, and it became abundantly clear by this time that the Peninsular was a Southern Pacific entity, with most of its directors shared with other Southern Pacific subsidiaries. The curtain was drawn back and Southern Pacific was revealed as the owners of all South Bay railroad and interurban trackage.

Map of the complete Peninsular Railway network, 1915.

The Mayfield Cut-off was primarily an expressway with the Peninsular catering to intermediate stops. Close coordination of schedules was required to facilitate two-way traffic on mostly one-track sections, some of which were scheduled to sync with Southern Pacific trains. Indeed, there was some shared trackage between the Peninsular and Southern Pacific in Campbell, while freight trains occasionally accessed locations along the Peninsular line, specifically in the Saratoga area.

Peninsular Railway interurban car #58, ca 1920. [History San José – colorized using DeOldify]

The Peninsular maintained its carbarn close to the Southern Pacific tracks at the corner of San Carlos Street and Meridian Avenue. This allowed the two railroads to exchange rolling stock as needed. Electrical power stations were located in San José, north San José, Saratoga, and Los Altos. The rolling stock was decorated in a deep red color, which earned the cars the nickname "Big Red" by many riders. Most of the cars also featured large windows, including ones along the roof, that let in a generous amount of light.

Peninsular Railway interurban cars on all three sides of Saratoga station, ca 1910. [History San José – colorized using DeOldify]

For nearly thirty years, the Peninsular served the people of the western portion of the South Bay. Fares were reasonable at 50¢ a ride between Palo Alto and San José or 10¢ between adjacent stations. Interurbans ran once hourly in each direction. Popular stops along the line included the picnic grounds at Congress Springs, the stadium at Stanford University, and the trails and campgrounds at Alum Rock. Limited freight traffic catered to a quarry on the Congress Springs branch, various customers near Alum Rock, as well as several seasonal fruit growers across the network. The Peninsular also acted as a common carrier for parcels to several of its stations.

Peninsular Railway interurban car #108 parked on a stretch of double-track just beyond the company's repair car, ca 1920. [History San José – colorized using DeOldify]

The financial situation in the late 1900s made it difficult for the Peninsular to begin its proposed expansion projects, while increased supply costs during World War I further slowed any growth prospects. At the time of its incorporation and in the first years after, Peninsular management announced plans to built a route beyond Palo Alto to Menlo Park, where it would have connected with the Market Street Railway for a continuous run between San José or Los Gatos to San Francisco. The interurban also hoped to revive the Dunbarton Bridge and use it to connect San José to Oakland. The most ambitious plan was to build a branch to the top of Mt. Hamilton, which would have required revolutionary technologies to overcome the steep gradient of the mountain. Unfortunately, the rapid expansion of automobile technology following the war rapidly reduced the annual revenue of the Peninsular, rendering all of its ambitious plans infeasible.

Peninsular Railway interurban car on Santa Cruz Avenue in Los Gatos, ca 1932. [Los Gatos Public Library – colorized using DeOldify]

By the middle of the 1920s, it was clear that the Peninsular Railway would not survive the rise of the automobile. Road-building projects across the South Bay were encroaching on rights-of-way and in 1929, Palo Alto petitioned the Peninsular to abandon its track between Mayfield and Palo Alto Depot. While the Los Altos Branch of the Southern Pacific Railroad was allowed to continue to Palo Alto, the Peninsular had lost an important corner of its network—Palo Alto was now a dead end and Stanford was cut off. Los Gatos soon began demanding more space on its roads, too, including down Santa Cruz Avenue and along the Los Gatos-Saratoga road. To make matters worse, the Peerless Stage Company was given permission to run buses along many of the routes catered to by the interurban. Whereas the interurbans had to maintain their own rights-of-way and pay property taxes, the buses only had to pay a fuel tax.

Peninsular Railway conductors beside an interurban car, ca 1930 [History San José – colorized using DeOldify]

The Great Depression was the final nail in the coffin, with far fewer people commuting to work due to a lack of jobs. Southern Pacific took the opportunity to end many of its branch lines and in the Bay Area including all of its streetcar routes in the Oakland area and the southern of the two New Almaden Branches in 1933. On September 30, 1934, the last Peninsular Railway interurban car made its run from Los Gatos to Saratoga and then to San José. The second New Almaden Branch, from Campbell, with which the Peninsular shared trackage, was abandoned in 1937.

Peninsular Railway #52 at the Western Railway Museum in Suisun City. Photo by Jay Cross. [Wikipedia]

Because much of the trackage was in or along roads, most of which have since been widened, almost nothing survives today of this important network. Several of the interurban cars were shipped to Los Angeles, where they were used by the Pacific Electric Railroad, another Southern Pacific subsidiary interurban system, until 1963. The Western Railway Museum in Suisun City, California, holds a still-operation Peninsular Railway #52 as well as an inoperative #61 trailer car in its collection.

Citations & Credits:

• Chapman, Robin. "Santa Clara Valley Lives: The Peninsular Railroad - technology ahead of its time." Los Altos Town Crier, 2021.
• Cosyn, Ray. "The Peninsular Interurban – Saratoga's Railroad," Saratoga Historical Foundation.

Streetcars: San Jose and Los Gatos Interurban Railway Company

The Santa Clara Valley at the turn of the twentieth century had surprisingly poor roads and connections between its many towns. Although the Southern Pacific Railroad maintained the narrow-gauge South Pacific Coast Railway route from Santa Clara through Los Gatos, Los Gatos had no other rail infrastructure and all of its roads were still dirt. The nearest towns were Campbell to the north and Saratoga to the north. All three began life as rural industrial towns but were experiencing population growth as industry shifted to agriculture. These problems finally convinced local entrepreneurs F. S. Granger and James W. Rea to incorporate the San Jose, Saratoga & Los Gatos Electric Railway Company on October 17, 1902.

A San Jose–Los Gatos Interurban car at Meridian Corner, ca 1907. [History San José – Colorized using DeOldify]

Talk of an interurban line from Los Gatos to San José and Saratoga began in the late 1890s, when electric railway technology reached a point where it could be run affordably over long distances, such as between towns miles apart. Around 1897, rights-of-way for such a project were acquired by an unnamed Los Gatos firm, but nothing came of the plan. In the aftermath, a committee for the Los Gatos Electric Railroad was formed in late 1898 to investigate the possibility of such a line and found that one could be built for $50,000 with electricity provided for free from a San José company. As a result, the People's Electric Railway Company was founded on April 14, 1899 with a capital stock of $75,000 and 15,000 shares. This project was led by H. M. Barker, J. H. Becker, A. Malpas, P. H. Jordan, and H. T. Matthews and the estimated length of the railroad was to be ten miles. Yet nothing happened with this project, likely because it required fifty percent of the capital stock to be subscribed to before the directors could borrow from a bank.

Newspaper advertisement in the Los Gatos Mail for the new interurban railway, August 28, 1902.

Three years later, on August 22, 1902, Granger presented to the Los Gatos Town Board his plan for a new electric railroad that would connect Los Gatos to San José with a branch line to Saratoga. Moreover, the line would not cost any of the towns a cent with all revenue coming from subscribers. In order to prepare for the line, he incorporated the railroad in October alongside Rea. A. T. Herrmann was hired to survey the line and began work immediately, focusing first on the section between Los Gatos and Saratoga. On December 15, after receiving no counteroffers, the Town Board approved Granger's franchise for a railway line. The term of the contract was for fifty years and allowed for a single steel track of narrow or standard gauge to run from the town boundary at Saratoga-Los Gatos Road (Highway 9) down Santa Cruz Avenue to Broadway, where cars would be turned around. Granger immediately placed an order for equipment to build the line since construction was contracted to begin within three months of the contract and had to be completed by the end of the year. Ground was broken at Meridian Corners at the intersection of Stevens Creek Road and Saratoga Avenue in Santa Clara on January 6, 1903. The first stock of 70lbs. rails arrived in mid-February.

Recently completed gradework near Los Gatos along the San Jose–Los Gatos Interurban route, 1904. Photo by Andrew P. Hill. [History San José – Colorized using DeOldify]

Soon afterwards, Granger and Rea entered into a new arrangement with the San Jose & Santa Clara Railway Company. This earlier company was incorporated in October 1889 and quickly sold to J. H. Henry of Iowa. When it opened in 1890, it was one of the first interurban electric railways in California. Granger and Rea incorporated the Saratoga Construction Company to secure the right-of-way and construct the line on behalf of the electric railway. Later court proceedings suggest that they may have been less than honest in their dealings with contractors or with the San Jose & Santa Clara Railway. To compensate for delays, the company negotiated an extension of their completion date to March 1, 1904. However, on May 5, 1903, Granger and Rea reincorporated under the name San Jose and Los Gatos Interurban Railway Company, possibly to escape some liabilities they had amounted over the previous six months. The new company had an increased capital stock of $2,000,000 to account for an expanded vision of the line

San Jose–Los Gatos Interurban cars sitting outside the carbarn near San José, 1904. Photo by Andrew P. Hill. [History San José – Colorized using DeOldify]

A second groundbreaking ceremony for the expanded line occurred on the last week of May 1903, shortly after the company negotiated a new contract with the Los Gatos Town Board. It proceeded apace over the next month until eleven miles were graded and three miles of crossties laid in preparation of installing the rails. The 58,000 ties were purchased from I. T. Bloom of Boulder Creek. The first spike of the interurban railway was hammered by J. O. Hayes at a ceremony held on June 22 on San Carlos Street, just outside of San José. At the ceremony, Rea proclaimed his hope for the line to eventually extend in all directions from San José, including a line beyond Saratoga and Congress Springs to Big Basin, a dream many firms had over the years. Five miles of standard-gauge track were expected to be installed by July 1. Interurban cars were ordered from St. Louis, Missouri.

A Japanese-style cottage at Nippon Mura outside Los Gatos, ca 1904. Photo by Andrew P. Hill. [History San José – Colorized using DeOldify]

Construction of the line was relatively straightforward. The initial route connected San José to Saratoga via a track that ran down San Carlos and Stevens Creek Road, turning at Saratoga Avenue and continuing the length of that road to Saratoga, a total of 11 miles. This route was done around September. Another 4 miles of track extended along the Saratoga–Los Gatos Road to Los Gatos, turning at Santa Cruz Avenue to terminate at Broadway, across from the Southern Pacific Railroad station and beside the Hotel Lyndon. This section was due for completion no later than May 1904.

The Hotel Lyndon at the end-of-track of the San Jose–Los Gatos Interurban, ca 1904. Photo by Andrew P. Hill. [History San José – Colorized using DeOldify]

Fights with the San Jose and Santa Clara line, however, were inevitable. In September 1903, a dispute arose over access to Campbell. The interurban, as part of its next phase of expansion, had planned to build a reverse route up Santa Cruz Avenue to Winchester Boulevard through Campbell, and then continue in a relatively direct path back to San José, thereby creating a giant trapezoidal square. But the San José line also had plans for a route to Campbell. Meanwhile, access to the Southern Pacific depot in San José was vitally important. When the track down North Market Street was first installed in October, a third rail was placed so that the streetcars of the San Jose & Santa Clara Railway could operate. But on November 25, under pressure from its financier, Germania Trust Company of St. Louis, the interurban tore out the third rail and cemented the tracks. The matter appears to have been resolved out of court.

The Southern Pacific Railroad's main station on Market Street, 1907. [History San José – Colorized using DeOldify]

The initial interurban network opened for regularly scheduled service on March 19, 1904. The time to Los Gatos from San José via Saratoga was thirty minutes. The interurban line also supported a mail and express car, that ran daily. As an additional option, tourists to the Bay Area could take a special observation car, that ran passengers across 104 miles of track throughout the Santa Clara Valley, including the interurban line, for $1. During harvest season, interurban cars hauled leased boxcars out to orchards to haul out fruits to local canneries. The Los Gatos interurban intended to continue with its plans to build a route back to San José via Campbell, and also wanted to build a short extension to Congress Springs in the hills above Saratoga.

The San Jose–Los Gatos Interurban station at Saratoga, with the maintenance car parked beside it, 1904. [History San José – Colorized using DeOldify]

However, trouble arose on April 2, 1904, when it was revealed that the interurban had failed to pay its contractor, George W. Elder, and his crews for the last two months of construction. Following fisticuffs in San José, Elder led a boycott where his workers barred people from boarding the interurban cars. The interurban claimed that the funds were withheld for a set period of time to ensure the quality of the right-of-way. The matter did not distress Granger, who was pressing on with his plans to extend tracks to Campbell. Several miles of easements for the line were secured by the end of April and crossties for the grading work arrived on July 2. Meanwhile, on July 10, the branch line to Congress Springs opened to traffic.

Colorized postcard of a San Jose–Los Gatos Interurban car on the road to Congress Springs, 1906. [San José Public Library]

Behind all of this outward progress, backroom deals were being made that would fundamentally change the nature of the company. In early April 1904, Rea convinced the board of directors to sell their stock in the interurban company to local banker and investor O. A. Hale. Granger opposed the deal and was forced out. As a result, he moved to Santa Cruz to found the Union Traction Company. Hale, meanwhile, became president of the company on April 9. The first association between Hale and Southern Pacific was mentioned in the Stanislaus County Weekly News on May 12 and such occurrences became more frequent over the next year. While it seems clear that Southern Pacific did not directly purchase the interurban line, its agents were in control and coordinating its future with the railroad.

Colorized postcard of Rinconada station at Kennedy Road and Main Street on the Campbell line of the San Jose–Los Gatos Interurban, ca 1907.

Despite the corporate takeover and several unresolved legal issues, the interurban pressed on with its plans for a track to Campbell. Installation went smoothly down Main Street in Los Gatos and then Los Gatos Boulevard and Bascom Avenue. At Camden, the track turned northwest to cross Los Gatos Creek, before turning due north for Campbell. In October 1904, crews conducted a night installation of track through an orchard that paralleled the Southern Pacific Railroad's tracks between Camden Avenue (San Tomas Expressway) and Campbell Avenue. They were forced to do this when the property owner reneged on a right-of-way agreement. The tactic succeeded and interurban cars were running to Campbell from Los Gatos by November 24.

A San Jose–Los Gatos Interurban car running down Market Street in San José with mounted policemen in the foreground, 1907. [History San José – Colorized using DeOldify]

The war over downtown San José finally resolved on January 23, 1905 when the City Council voted in favor of the interurban line. It was granted a route around the city along San Carlos Street, Market Street, San Fernando Street, and Sunol Street. It was further granted permission for a line down Bird Avenue in order to connect with the tail of its Campbell route. Over the next several months, a zig-zagging line of track was completed between Campbell and San José, finally completing the intended circuit. The track paralleled the Southern Pacific track north to Campbell Avenue and then turned east until Union Avenue. At Union, it turned north to Hamilton Avenue and then east until Meridian Avenue. At Willow Street, the track turned east again and continue to Lincoln Avenue, turning north until Coe Avenue. It finally continued up Bird Avenue until meeting the other end of the line at San Carlos Street.

The complete San Jose and Los Gatos Interurban Railway network as of mid-1905. [Journal of Electricity, Power and Gas]

With the network complete, Hale made plans to expand out to the north and south. His next goal was to extend tracks north from Los Gatos to Cupertino, Mountain View, and ultimately Palo Alto where it could meet again with the Southern Pacific line near Stanford University. Meanwhile, he was also making plans to extend the interurban line south to Hollister and, eventually, Capitola, where it would connect to the Union Traction Company's streetcar network.

Colorized postcard of a San Jose–Los Gatos Interurban car on the only substantial bridge along the line, near Saratoga, ca 1904. [San José Public Library]

At this point, The Journal of Electricity, Power and Gas did a review of the line and provide several additional details highlighting the company just shortly after the end of its independence. It noted that the company owned nine passenger cars and two freight cars, all electric, as well as five unpowered passenger cars. The company's carbarn was located at the corner of Sunol and San Carlos Streets, on the Saratoga line. Cars that left San José at the hour went to Saratoga first, while cars that left on the half hour went to Campbell first. The interurban shared a short stretch of narrow-gauge track with the Almaden Branch of the South Pacific Coast Railway, a Southern Pacific subsidiary, between Bascom Avenue and Winchester Boulevard. This arrangement required cars to stop for up to ten minutes at either junction to ensure that the track was clear for the interurban car. Because the interurban line used existing roads for most of its route, it only required one substantial bridge, located along the Saratoga line. Smaller bridges, however, were necessary, especially on the Congress Springs branch.

A San Jose–Los Gatos Interurban work crew fixing a power line somewhere along the route, 1904. Photo by Andrew P. Hill. [History San José – Colorized using DeOldify]

The curtain was finally pulled back on the San Jose and Los Gatos Interurban Railway on December 21, 1905, when Hale founded the Peninsular Railroad Company. On the surface, this great scheme was intended to connect San José to San Francisco via an interurban railroad. Yet it is clear that Hale intended for the new company to absorb the Los Gatos interurban. Branch lines were intended to reach to Los Gatos, Big Basin, Oakland, and Alum Rock. In his grandest vision, Hale hoped his interurban cars would span the entirety of the South Bay. In reality, the Peninsular was a ploy to allow Southern Pacific interests into the domain of the Los Gatos interurban. The railroad wanted a cutoff between Vasona and Mayfield near Palo Alto, thereby bypassing San José entirely. But to do so required the outright annexation of the interurban railway.

Map of the route included with the weekly newspaper timetable showing the eleven official stops along the San Jose–Los Gatos Interurban line, 1908. [Los Gatos Mail]

Although now undeniably a part of the Southern Pacific machine, the Los Gatos interurban line continued to operate under its own name for several more years. Indeed, Southern Pacific used its franchise rights and separate liabilities to build the Mayfield Cutoff covertly as a double track interurban line, although it was an open secret that one of the tracks would be for trains rather than interurban cars. Construction on the new branch began in June 1906, two months after the San Francisco Earthquake. The first section built beginning in June was between Mayfield and Cupertino, which meant that the line began disconnected from the rest of the network. Construction progressed slowly. While construction was still ongoing, Hale died on July 20, 1907 from appendicitis. His successor as president of the interurban and the Peninsular Railroad, Jere T. Burke, worked as a lawyer for Southern Pacific.

A Southern Pacific passenger train approaching Vasona Junction from Los Gatos, March 11, 1939. Photo by Wilbur C. Whittaker. [Jim Vail – Colorized usind DeOldify]

By September 1907, work on the new branch line from Vasona to Mayfield was progressing rapidly. The new route, as well as the Mayfield Cut-Off, opened to regular traffic on November 5. Oddly, even though the interurban track was constructed under the auspices of the Los Gatos interurban, it was never added to its timetable and only ever ran as a part of the Peninsular Railroad. The company immediately shifted its focus to double-tracking the rest of the interurban network while Southern Pacific focused on repairing and upgrading the railroad route to Santa Cruz, which it hoped to use as a new thoroughfare in tandem with the Mayfield Cut-Off (officially the Los Altos Branch). A poor financial market from late 1907 through 1908, however, delayed all projects and may have suspended any proposed expansions to the interurban network.

A King's Daughters outing at Congress Springs with San Jose–Los Gatos Interurban cars, 1907. [De Anza College – Colorized using DeOldify]

On June 30, 1909, five years after Southern Pacific interests acquired the Los Gatos line, the San Jose and Los Gatos Interurban Railway Company and the San Jose & Santa Clara Railway were formally consolidated with the Peninsular Railroad. Burke remained president alongside other Southern Pacific shareholders and the capital stock of the newly-reincorporated company was set at $12,000,000. The last timetable under the name was published in the Los Gatos Mail on March 21, 1912, nearly three years after the company ceased to exist. After that date, the Los Gatos interurban faded into memory and the Peninsular Railroad went on to rule the South Bay for the next twenty years.

Citations & Credits:

• Cosyn, Ray. "The Peninsular Interurban – Saratoga's Railroad," Saratoga Historical Foundation.
• McCaleb, Charles S. Surf, Sand & Streetcars: A Mobile History of Santa Cruz, California. Second edition. Santa Cruz, CA: Museum of Art & History, 2005.
• "The San Jose and Los Gatos Interurban Railway Company," The Journal of Electricity, Power and Gas XV:7 (July 1905), 253-258.

Streetcars: Union Traction Company

Monopolism was in the air in the early 1900s and all the hip capitalists were trying their darnedest to become the next big thing. John D. Rockefeller's Standard Oil Company dominated the petroleum industry. E. I. du Pont de Nemours ruled over the explosives market. And E. H. Harriman had just accomplished the impossible by merging the Union Pacific Railroad with the Southern Pacific Railroad. Even the tiny county of Santa Cruz was not immune from the monopolistic fervour. Between 1881 and 1887, all of the county's railroads were consolidated into Southern Pacific, with their gauges finally unifying in 1909. But the rival streetcar systems were still a mess. Enter the Union Traction Company.

Union Traction #2 at the Santa Cruz Union Depot beside a Southern Pacific mail car, ca 1910. [University of California, Santa Cruz, Legacy Digital Collections – colorized using DeOldify]

Incorporated September 2, 1904, Union Traction was created with the specific purpose of consolidating the two electric streetcar systems that operated in downtown Santa Cruz. The older of the two firms, the Santa Cruz Electric Railway, had been running for just over a decade and for most of that time held a monopoly on motor transportation between the Lower Plaza at the northern end of Pacific Avenue and the Santa Cruz Beach, with additional trackage to the Upper Plaza, Garfield Park, and Vue de l'Eau. The younger company was the Santa Cruz, Capitola & Watsonville Railway, founded in 1902, which intended to connect the Santa Cruz Beach to Capitola via a line that clung to the coast. This company was well-funded and well-connected, which allowed it to gain trackage rights to Pacific Avenue and the beach, presenting a direct rival to the Santa Cruz Electric. The rivalry was never going to last long.

Two Santa Cruz Electric Railway streetcars on the esplanade outside the newly-opened Neptune Casino with the Santa Cruz, Capitola and Watsonville Railway tracks at far right with a car parked beside the casino in the distance, 1904. [UCSC Legacy Digital Collections — colorized using DeOldify]

Even as construction began on the new electric streetcar line to Capitola, backroom deals were being negotiated between the two companies and several related firms. Fred Swanton, who had a long-term interest in the Santa Cruz Electric but had jumped ship to the Capitola line, was investing heavily in his Neptune Casino and Tent City complex at the beach. He wanted a fluid, functional streetcar system to bring people to the beach from the Santa Cruz Union Depot and elsewhere.

An electric Monterey & Pacific Grove Railway Company car near Pacific Grove, ca 1902. [Mayo Hayes O'Donnell Library – colorized using DeOldify]

Meanwhile, John M. Gardiner, vice president and general manager of the Capitola line, was busy acquiring new properties for the company. His partners also owned the Monterey & Pacific Grove Railway and wanted to expand it. Meanwhile, they merged various power companies that they controlled to create the Monterey County Gas & Electric Company, thereby expanding their power and influence in the region. Together, Swanton and Gardiner wanted to extend the Capitola streetcar line over the San Lorenzo River to cut the distance to Capitola by around three miles.

One of three locally-built electric locomotives used by the Ocean Shore Railway in San Francisco, 1907. [Walter Rice Collection, Cable Car Guy – colorized using DeOldify]

At the same time that Swanton and Gardiner were advocating for new streetcar projects, the Ocean Shore Railway Company, led by Big Creek Power Company president John Q. Packard, was incorporated, with many speculating that it planned to take over either or both streetcar lines in order to build a railroad route across the Santa Cruz County. In June 1904, the company was granted by the Board of Supervisors for permission to build the line but no further action was taken at this time.

San Jose–Los Gatos Interurban Railway Company #2, ca 1902.

Rumors reached a fever pitch soon afterwards when it was revealed that F. S. Granger was moving to Santa Cruz. Granger had been responsible for building the San Jose–Los Gatos Interurban Company and had agitated for an interconnected network of streetcar and interurban lines spanning the breadth and width of the Santa Clara Valley, potentially connecting to existing lines south of San Francisco. However, in early 1904, the Southern Pacific Railroad announced plans to build a rival streetcar line and Granger sold his stake in the firm to the larger company to avoid competition. On June 22, the Santa Cruz Surf speculated that Granger would take over as president of the Santa Cruz Electric at the annual general meeting. The next day, the Santa Cruz Sentinel revealed that just such a thing had happened. Granger now controlled half of the electric streetcar lines in the county.

A Santa Cruz, Capitola & Watsonville streetcar on the Santa Cruz Electric track in front of the Tent City office on Beach Street, 1904. [UCSC Legacy Digital Collections – colorized using DeOldify]

The backroom deals shifted to even darker backrooms as little word was leaked of negotiations between Granger and the Capitola line's management. Speculation focused more on cooperation between the two lines, which Granger periodically touted even as several serious accidents and confrontations occurred in July and August. But an insider in late July revealed that more was happening and that the possibility of the two companies merging was increasingly likely, with Warren Porter, treasurer for the Capitola line, meeting with Granger frequently.

A Santa Cruz, Capitola & Watsonvile liveried streetcar outside the Hotel Capitola, ca 1905. [Randolph Brandt Collection, UCSC Legacy Digital Collections – colorized using DeOldify]

The ultimate merger of the two electric streetcar lines on September 2 did not come as a surprise, but it was not revealed to the public immediately. The Sentinel was still speculating about goings-on throughout September and the news only broke on October 4, the same day that the Santa Cruz, Capitola & Watsonville completed its route to Capitola. The board of the Union Traction Company was a composite of directors from the two companies, including Gardiner, Porter, Granger, and former Santa Cruz mayor and California lieutenant governor William T. Jeter. Swanton and other major stockholders in both firms retained a stake in the new company. Granger surprisingly sold his stock in the new company around November 27 and moved to San Luis Obispo to promote a new electric streetcar line there.

The new Union Traction carbarn on Sycamore and Pacific showing a streetcar and repair vehicle in two bays and the passenger waiting area and office at the corner, 1905. [Randolph Brandt Collection, UCSC Legacy Digital Collections – colorized using DeOldify]

Within weeks of consolidation, the two streetcar systems were unified and new timetables released to coordinate the various lines. The Santa Cruz Beach returned to having only a single streetcar track and cars to Capitola began at the corner of Soquel and Pacific Avenues. The entire system encompassed 18 miles of track with branch lines to Vue de l'Eau on the West Side and to Arana Gulch. Plans to build a track across the San Lorenzo River and a line up to the California Powder Works via the Ocean Street cemetery were both abandoned as being too costly. Meanwhile, the old and somewhat dilapidated Pacific Avenue Street Railroad carbarn at Pacific Avenue was demolished and replaced with a new structure to house the many cars of the system, provide a maintenance facility, and protect the network's electrical motors that powered the overhead wires.

Changing times—a Santa Cruz, Capitola and Watsonville Railway streetcar at Vue de l'Eau following its merger with the Santa Cruz Electric Railway, 1904. [Jim Vail – colorized using DeOldify]

By 1905, the dust had begun to settle on the politics around the consolidation and the board of directors began to take action on their long-term plans. Service along several of the small branches was cut back, including streetcars to the San Lorenzo River at the beach, up Arana Gulch, down Center Street, and up Walnut Avenue to Mission Street. The latter was reduced to Rincon (Chestnut) Street, where it could access the Park Street railroad station. Meanwhile, Martin V. McQuigg, a board member who represented the interests of the Monterey County Gas & Electric Company, began advocating for a connected service between Santa Cruz and Monterey, with an extension of the line to Salinas. Monterey County supported this plan by donating a 50-foot-wide right-of-way and $50,000 to build the line. However, McQuigg was not able to convince Gardiner and his faction, which were eager to sell the streetcar system to the Ocean Shore Railway.

The main streetcar track down Capitola Avenue to the Hotel Capitola, ca 1913.  [UCSC Legacy Digital Collections – colorized using DeOldify]

In September 1905, Gardiner entered negotiations with Henry Huntington of Los Angeles with the goal of eventually unifying all of the electric railroad systems from San Francisco to San Diego into one vast system. The immediate goal was to create a Santa Cruz-Monterey Counties network that could later be extended to Hollister to the east and linked to the Ocean Shore Railway to the north. Unfortunately for Gardiner, Huntington dropped out of negotiations and the plan fell apart. Gardiner and McQuigg decided that their futures were elsewhere and sold their stakes in Union Traction. This placed control of the company into the hands of James W. Forgeus, a former Capitola line stockholder who had not yet given up hope on an Ocean Shore deal.

Union Traction #2 with closed side panelling on the Vue de l'Eau line, ca 1910.  [UCSC Legacy Digital Collections – colorized using DeOldify]

Despite losing funding, the Ocean Shore Railway's directors decided to build its railroad anyway and grading began September 17, 1905 from Santa Cruz. This put Forgeus in an interesting position since he supported the railroad's plan but was aware of its potential for failure since the Ocean Shore was at least the sixteenth company to propose a route to San Francisco via the coast. In late 1905, Ocean Shore attempted to buy Union Traction outright in order to acquire its electrical plant and rights-of-way, but Forgeus rejected the offer. After further negotiations, however, the Ocean Shore purchased Union Traction on February 5, 1906 and began running a streetcar down Beach Street to the San Lorenzo River in order to secure a right to build a mainline track there at a later point in time. Ocean Shore control over Union Traction proved brief, however, when it stopped making payments shortly after the April 18, 1906 earthquake. Control of the streetcar company reverted back to its former directors around mid-June.

A Union Traction car on Garfield Avenue near Vue de l'Eau, September 1907. [UCSC Legacy Digital Collections – colorized using DeOldify]

Following the Neptune Casino fire on June 22, Forgeus approached a group of men planning to rebuild the casino and bath house complex at the Santa Cruz Main Beach. The leader of these men was John Martin, who co-founded Pacific Gas & Electric Company in October 1905 and had helped consolidate the Santa Cruz Electric Light & Gas Company and the Co-operative Electric Light Company into the Coast Counties Power Company. As an electric company itself, Union Traction had a mutual interest in working with Coast Counties and Martin. On July 7, Coast Counties bought Union Traction and most of the former board members resigned. Martin took over as president and moved the corporate offices to San Francisco.

The Union Traction maintenance-of-way vehicle with crew on Mission Street near Santa Cruz High School, ca 1915.  [UCSC Legacy Digital Collections – colorized using DeOldify]

Like the previous owners of Union Traction, Martin set out a grand plan for his streetcar network. One of his first stated goals was to extend new branches out to Big Trees near Felton, to Soquel, and even to Watsonville. In the meantime, though, he wanted better trackage rights along the Santa Cruz Beach, double track downtown, and new routes to the IOOF cemetery at the top of Ocean Street, to de Laveaga Heights, and across the San Lorenzo River to Seabright. In other words, he wanted to double the current trackage of Union Traction.

Passengers in a Union Traction open-air car on the Pacific Avenue double track, ca 1910. [UCSC Legacy Digital Collections – colorized using DeOldify]

For many of these proposed improvements, Martin hired S. Waldo Coleman, an electrical engineer who had worked in both the electricity and streetcar industries. Coleman had the vision but money was always an issue. The first thing he pushed for was standard-gauging the tracks and adding double track to Pacific Avenue. All of the Santa Cruz streetcar tracks had been narrow-gauge since the first horsecars began running in the 1870s. Standard-gauging would allow the cars to directly exchange with the Southern Pacific trackage, when necessary, and also would make acquiring parts easier. After receiving permission from the Santa Cruz Common Council in January 1907, Coleman set to work and began standard-gauging the line, double-tracking Pacific Avenue, and enlarging the carbarn on Sycamore Street to support the larger cars and increased power requirements. The route from the Lower Plaza to the beach re-opened on standard-gauge tracks on September 13—the line to Capitola re-opened on November 14.

The Union Traction's maintenance-of-way vehicle beside the Water Street bridge over the San Lorenzo River, ca 1910. [UCSC Legacy Digital Collections – colorized using DeOldify]

Despite endless announcements of new branches and ambitious plans for the future, the financial crisis of 1907-1908 ended the steady stream of East Coast capital that had flowed into California for the past sixty years. Without this money, Union Traction was unable to build its routes to Big Trees, the IOOF cemetery, and Soquel. However, Martin had enough funds for one last extension of Union Traction trackage. In August 1907, the Common Council approved the construction of a streetcar franchise from the Lower Plaza to de Laveaga Heights via Water Street, Morrissey Avenue, and Fairmount Avenue. This project required a new dedicated bridge over the San Lorenzo River beside the Water Street bridge. Grading and bridge construction began in early October but quickly stalled due to financial problems.

A Union Traction streetcar heading into de Laveaga park, February 1913. [Ron Pumphrey – colorized using DeOldify]

Reassessing their options, Martin and his partners decided to move forward with the North Santa Cruz Branch since they hoped to make back their investment quickly via property sales. In December, they founded the Laveaga Realty Company to facilitate the sales of property along the new streetcar line. After months of delays, work resumed on the line on August 17, 1908. A temporary horsecar line was instated between Martin Boulevard and Prospect Heights while construction continued. Permission was received from the Common Council to electrify this section two years later on June 10, 1910 and the first electric streetcar to Laveaga ran on July 2.

A Union Traction car parked outside the entrance to the Casa del Rey Hotel with a Southern Pacific locomotive passing in front of the Casino in the background, ca 1912. [UCSC Legacy Digital Collections – colorized using DeOldify]

Elsewhere, other minor changes were occurring to streamline the streetcar system and eliminate unprofitable routes. In 1909, the tracks on Walnut Avenue and Center Street were removed and the Arana Gulch branch beyond Cayuga Street was abandoned. In 1911, a short spur was added up Cliff Street to cater to patrons of the new Casa del Rey Hotel. For several years, a dedicated streetcar ran between the hotel and the Southern Pacific Union Depot. In 1913, the Front Street and Riverside Avenue tracks were removed.

Union Traction #17 at the corner of Water Street and Pacific Avenue, ca 1922. [UCSC Legacy Digital Collections – colorized using DeOldify]

With the completion of the major construction projects along the line, Union Traction became the accepted transportation system for mid-county. Tickets from Santa Cruz to Capitola cost 10¢ each way and each car could hold 30 customers—more if people squeezed. Streetcars were run by a motorman while a conductor took payment and managed customers. An average day on the main Capitola line brought an average of $80 to $100. In the summer, fifteen cars operated across the network with service to Capitola running every quarter hour. In winter, cars ran every half hour. On normal days, the streetcars were responsible for shuttling workers between various businesses and taking high schoolers from Capitola to Santa Cruz High.

Motorman Moody outside Union Traction #24, a Birney streetcar, at the end of Woodrow Avenue, January 1926. [UCSC Legacy Digital Collections – colorized using DeOldify]

Financial problems continued for the company throughout this time. The primary problem was that Santa Cruz's population was not growing—it had reached a height of 15,000 in 1906 but had stagnated. Yet costs continued to climb even as patronage did not. Coleman increased fares, cut routes and staff, and reduced the number of staff required to operate trains. Yet despite increased revenue by 1919, Union Traction was still not turning a profit and much of its equipment and right-of-way was falling into disrepair. Fares increased again in 1920 and 1921, and more efficient Birney Safety Cars were bought in 1922 to reduce long-term maintenance costs. 

Union Traction #22 leaving the Santa Cruz Beach Boardwalk for downtown, ca 1923. [UCSC Legacy Digital Collections – colorized using DeOldify]

Unsurprisingly, it was the automobile that eventually led to the demise of Union Traction, but not for the usual reasons. Rather than some shady backroom deals with auto companies, Union Traction began to fail because the city demanded it pave the roads through which its tracks passed. Despite petitions to various state boards and a public vote defending them, the city still required them to pay for the paving job, the money for which Union Traction simply did not have. In 1924, they received permission to abandon the Laveaga Branch and the Capitola Branch, replacing both with bus service. December 9 was the last day streetcars ran along either branch. The company also sold all but eight of its cars in November. People didn't seem to notice the change and praised the new buses. The removal of tracks began immediately, eliminating the company's fiscal responsibility to pave miles of roadways in East Santa Cruz.

Santa Cruz mayor John B. Maher standing beside Union Traction #23 and a new Union Traction bus on Pacific Avenue, late 1925. [UCSC Legacy Digital Collections]

Yet Coleman was not finished. In October, he had also petitioned to abandon the branch to Vue de l'Eau and Mission Street. The Common Council attempted to block him and demanded that Union Traction either retain the West Side trackage or abandon the system entirely. Coleman called their bluff and filed for abandonment in April 1925. After months of negotiations, the city, state, and Union Traction finally agreed to the abandonment of all streetcar service in the city of Santa Cruz in August, contingent upon Union Traction providing replacement bus service and removing all streetcar infrastructure from the city's streets. At midnight on January 15, 1926, the last Union Traction streetcar driven by Lee Baldwin departed from the Santa Cruz Beach and arrived at the Sycamore Street carbarn.

The Twin Lakes streetcar stop with a Model T Ford in the background, ca 1925. [UCSC Legacy Digital Collections – colorized using DeOldify]

No scheduled streetcar service has ever since operated in Santa Cruz County. Union Traction quickly sold their bus line to the Auto Transit Company in 1926, which in turn was sold to Pickwick Stages System in 1927. The company was run privately until the early 1940s, when it became the Santa Cruz Transit Company. After experiencing a financial collapse in the mid-1960s, it was finally bought out by the cities of Santa Cruz and Capitola to become the Santa Cruz Metropolitan Transit District on February 20, 1969—today's Santa Cruz Metro bus system.

Capitola Avenue at the end-of-track of the Union Traction line, 1920. [UCSC Legacy Digital Collections – colorized using DeOldify]

Few remnants of the streetcar system remain except the extra-wide Woodrow Avenue on the West Side of Santa Cruz and the equally wide Morrissey Avenue on the East Side. At very low tides, the pilings of the Twin Lakes Beach viaduct, originally built by the Santa Cruz, Capitola & Watsonville Railroad and later upgraded by Union Traction, are visible. The old Union Traction carbarn on Sycamore Street remained behind for decades to be used by Coast Counties Gas & Electric for various purposes, but it has since been demolished.

Citations & Credits:

• McCaleb, Charles S. Surf, Sand & Streetcars: A Mobile History of Santa Cruz, California. Second edition. Santa Cruz, CA: Museum of Art & Histo ry, 2005.