How a private company built the foundation of New York City's massive subway network

Countries & Cities · Published 15 October 2026 Swipe more like this →

In short: Before New York City unified its transit, the Interborough Rapid Transit Company held a monopoly on Manhattan's underground and elevated travel. Founded in 1902, the IRT shaped the city's transit landscape for decades, locking in a five-cent fare that would eventually spark a battle all the way to the Supreme Court.

The Interborough Rapid Transit Company, or IRT, was established on May 6, 1902, by August Belmont, Jr. Its creation followed the success of the Rapid Transit Construction Company, led by Belmont and John B. McDonald, in securing the rights to build the city's first underground railway. By April 1, 1903, the IRT had leased the Manhattan Railway Company, effectively monopolizing rapid transit in Manhattan before its first subway line even opened on October 27, 1904. This initial route connected City Hall to 145th Street at Broadway, a project that emerged only after twenty years of intense public debate regarding the necessity of subways over existing elevated rail systems.

Expansion continued under the 1913 Dual Contracts, an agreement with the Brooklyn Rapid Transit company that facilitated significant growth while fixing the subway fare at five cents for forty-nine years. This price point became a point of contention; in 1929, the IRT attempted to raise the fare to seven cents, leading to a legal challenge that reached the United States Supreme Court. Despite its influence, the company's era as a private operator ended on June 12, 1940, when the City of New York acquired its properties and operations to consolidate the system into the modern New York City Subway.

Today, the legacy of the IRT persists as the A Division of the subway system, characterized by its numbered routes. While the original elevated lines have been dismantled, the underground infrastructure remains central to the city's movement. The system's evolution included complex adjustments, such as the 1942 loss of track connections for the Flushing Line and the 1949 shift in service arrangements. From the early construction of the Lexington Avenue Tunnel to the 2015 extension of the Flushing Line to 34th Street–Hudson Yards, the IRT's original footprint continues to define the daily commute for millions of New Yorkers.

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