The Hornellsville Electric Railway Company was formed December 16, 1891; President was Charles Adsit, Secretary was Demerville Page, and Treasurer was George T.
[1]: 13 The Canisteo Valley Railway Company was formed on December 28, 1891, with plans to run a line to Jasper, Woodhull, and Addison; President was William T. Bailey and Vice-President William Potter.
[1]: 29 The Hornellsville & Canisteo Railway Company was formed May 12, 1892; President was Page, Secretary was Adsit, and Treasurer was Rehn.
[1]: 29 Both companies shared a depot and car barn at Adsit and Thacher Streets in Hornell.
[1]: 13, 72 Service began on August 4, 1892;[1]: 23 and was the occasion for a parade and speeches by local officials.
[8] The original equipment was five 18 feet (5.5 m) cars, "finished in cherry with double thick French plate glass", with electric heat.
The Erie, which charged 30¢ from Hornellsville to Canisteo,[11] saw the trolleys as competition (and was pressured to match their lower fare),[12] and their lack of cooperation, they having served the trolley company with an injunction,[13] ended up in court.
[14] That disagreement resolved in principle, a major problem was crossing the Erie tracks at the south end of Broad Street.
[15] The line connected the Erie Railroad depot in Canisteo with the center of the village, Four Corners.
It is not correct that the route entered Canisteo on Pine Street, using the bed of the unbuilt Rochester, Hornellsville, and Pine Creek Railroad, ending at Depot and Walnut Streets.
In order to make ridership grow, "Hornellsville & Canisteo electric railway people" in 1893 bought property in South Hornell, formerly belonging to Hendershott,[16] "about midway between the two towns", to create "a summer park and picnic ground".
At the first 4 July celebration there, with fireworks, "It seemed as if the entire population of both Canisteo and Hornellsville had been emptied into the glen....
"The inn, boat house and merry go-round [sic] did a land office business."
Nothing came of talk of extensions to Keuka Lake via Bath and Hammondsport, and through Arkport to Dansville, linking with service to Rochester.