A syndicate led by Howell purchased most of the company's assets, but McAdoo maintained control of several routes,[1] and the two filed suits and countersuits as they attempted to outposition the other.
[1] McAdoo reorganized Rapid Transit as the Citizens Railway Company, and focused on the untapped market of North Knoxville (then a separate city).
In September 1895, he attempted to build tracks over routes granted to Citizens Railway, but was stopped by the city after a long court battle.
When Citizens Railway attempted to build a line on Park Street in July 1896, Howell placed a streetcar in their path, and gave a security guard orders to shoot anyone who tried to move it.
[2] In October 1896, several Citizens employees were arrested when they attempted to install tracks on Depot Street to provide a vital link between the company's Broadway line and the Southern Terminal, and McAdoo sued the city.
[2] In the early hours of March 1, 1897, McAdoo, having obtained an injunction from the Knox County Chancery Court prohibiting the city from obstructing Citizens Railway's work on Depot Street, hired 200 laborers to begin laying tracks.
[2] One of the drenched workers, William Arnold, attacked the fire chief with a pick, and was in turn shot and mortally wounded by a police officer.
[2] With the crowd growing more defiant, McAdoo, who had been released, returned to the scene to a roaring applause, and delivered a rousing speech, blasting city authorities as "servants" of Howell, and vowing that his company would not be stopped.
[2] While these events were unfolding, Knoxville's city attorney had managed to secure an injunction ordering Citizens Railway to halt construction.