The company was founded in 1867 by Omaha pioneers Ezra Millard, Andrew J. Hanscom and Augustus Kountze to provide horsecar service in the city.
On February 19 of that year the Nebraska Territory Legislature awarded the company a 50-year franchise and exclusive rights to run tracks on Omaha's streets in its closing session.
In the years following the founding of the company through the mid-1870s a boon period presided in Omaha, bringing the foundation of several businesses important to the city's growth, including the Horse Railway.
The City of Omaha held a public vote that gave the Cable Tramway the ability to compete, in violation of the Legislature's act.
[7] The case was exceptional because the courts ruled that the exclusivity clause granted the rights to the company operating horse railways, not cable cars.