[1] By the mid-1870s the railroad was successful enough to develop competition, and the Philadelphia and Atlantic City Railway was incorporated on March 24, 1876.

[2] The company opted for a 3 ft 6 in (1,067 mm) narrow gauge in the belief that it would be cheaper to build and operate.

Inauspiciously, the first train derailed, killing a brakeman and injuring ten passengers.

Its gauge limited its interchange opportunities, it had little online freight traffic, and its fortunes depended drawing off passengers from the parallel Camden and Atlantic.

[6] An attempt by the Camden and Atlantic to acquire its rival foundered on shareholder opposition.