Prior to 1959, Montreal, Canada had an extensive streetcar system. The streetcar network had its beginnings with the horsecar era of the Montreal City Passenger Railway in 1861. The initial line was along Rue Notre Dame (Notre Dame St) from Rue du Havre (Harbor St) to Rue McGill (McGill St).
The City Passenger Railway became the Montreal Street Railway in 1886. The decision to use electricity instead of horses for propulsion was made in 1892. On September 21 of that same year, "The Rocket," Montreal's first electric streetcar made its maiden voyage. By 1894, the remaining horsecar lines had all been converted to accommodate the new electrically powered streetcars. The Montreal Street Railway was known as one of the most innovative and progressive in North America. One of its innovations was the introduction of the "Pay As You Enter" (P.A.Y.E.) system of fare collection in 1905. Prior to that time, conductors would walk through the car collecting fares meaning many passengers probably rode for free on very crowded cars. The P.A.Y.E. system was adopted worldwide by many other transit companies. The company also designed and built two open sightseeing (another two were built later) cars that were in service until the late 1950s. The designs of those sightseeing cars were sold to transit companies in Quebec City, Calgary and Vancouver, who all built their own versions of the car.
The Montreal Park and Island Railway was incorporated to run railway service in the suburbs of Montreal. They built lines to Lachine, St Laurent and Cartierville, and to Sault-au-Récollet. The company had an agreement with the Montreal Street Railway Co to allow MP&IR cars to run through to terminals in Montreal.
The company was formed on 1893-12-27 and was eventually consolidated with other companies to form the Montreal Tramways Company in 1911
In 1911 a new corporate entity, the Montreal Tramways Company was formed consolidating the city streetcar routes of the Montreal Street Railway and the suburban routes of the Montreal Park & Island Railway and the Montreal Terminal Railway. The Montreal Tramways Company would own and operate the transportation system until the system was taken over by the city-owned Montreal Transportation Commission in 1951.