The story
The Lake Street Elevated Railway Company was chartered on February 7, 1888, and granted a 25-year franchise by the city council to build an elevated railroad above Lake Street from Canal Street to the city limits. It was originally planned that the line would use a steam-powered monorail system that had been developed by Joe Meigs in Cambridge, Massachusetts, however the company eventually chose to use more traditional steam locomotives.
Construction of the line began in 1889. Potential investors found the franchise too restrictive and a new 40 year franchise was awarded by the city council in November 1890, that allowed the railroad to extend to Market Street in downtown Chicago. By 1892 the company had debts of $17 million (equivalent to $609 million in 2025). It was sold to new owners, renamed the Lake Street Elevated Railroad Company, and a new charter was granted on August 24, 1892.
The first section, running from the downtown terminal at Market Street and Madison to California Avenue opened to the public in October 1893. The line was completed to 52nd Avenue (Laramie)—a total length of 6.4 miles (10.3 km)—in April 1894. Service was extended to Austin Avenue in (what was then) the suburb of Austin via a section of track built at-grade in April 1899.
From Wikipedia’s article on Lake Street Elevated Railroad, shared under CC BY-SA 4.0.3