Alfred Ely Beach demonstrated a model of basic pneumatic subway system, in which air pressure in the tube pushed the cars, at the American Institute Exhibition in New York in 1867.

Funneled through a company he set up, Beach put up $350,000 ($8.01 million in 2023) of his own money to pay for the full-scale test project.

[5]: 12–13 [6] The exact location of the tubes was determined during construction by compass and survey as well as verified by driving jointed rods of iron up through the roof of the tunnel to the pavement.

It ran only a single car on its one-block-long track to a dead-end at its terminus, and passengers would simply ride out and back, to see what the proposed subway might be like.

[6][9][10] Although the public showed initial approval, Beach was delayed in getting permission to expand it due to official obstruction for various reasons.

By the time he finally gained permission in 1873, public and financial support had waned, and the subway was closed down within the year.

[14] The New-York Historical Society commissioned a plaque honoring Alfred Beach to be placed in the City Hall station.

The car could hold 22 people,[16] and the riders would enter the site at Devlin's Clothing Store, a well-known shop at 260 Broadway, on the southwest corner of Warren Street.