Cable haulage had been used in Britain since the 1830s in coal mines and on some short sections of passenger railways, but the grip system patented by Hallidie represented a major technical advance on these operations.

[1][2] In 1881 the Steep Grade Tramways & Works Company Ltd was incorporated, one of its directors being William Booth Scott, the Chief Surveyor for St. Pancras Borough Council.

[5] The engineers for the tramway's construction were Joseph Kincaid and an American, S. Bucknall Smith, who said the route was chosen as the one nearest London which could be used for demonstration purposes.

The moving cable, which had a speed of 6.5 miles per hour (10.5 km/h),[4] was powered by a large steam-powered stationary engine in the winding house, whose tall chimney was a feature of the Highgate skyline.

After a further change of company owner, on 14 August 1896 the line was sold to a new concern, the Highgate Hill Tramways Ltd, and was reopened on 19 April (Easter Monday) following year.