area for the rich. The wealthy were slow to change their habits and while a few of them visited the fledgling resort, Cape May held a strong attraction. Anyone with enough money for an overnight stay generally preferred to visit Cape May. As for the working class, whose numbers in Philadelphia and Camden were growing steadily, the cost of vacationing remained beyond their reach. The blue-collar masses couldn’t afford the price of both a train ticket and the cost of lodging. The few who visited arrived in the morning and returned home at night.
At first, the Camden-Atlantic Railroad was barely able to break even financially. As an early observer noted, “Unpropitious times, flooding and washing away of tracks, and depression of bonds threatened to overwhelm the enterprise at its beginning. For 16 years it was one continuous struggle against these difficulties.” The railroad was forced into bankruptcy during the Panic of 1857, and if not for cash from the Land Company, the train would have gone under. The financial uncertainty produced by the Civil War denied the new resort badly needed investors and retarded the town’s growth. By 1872 things began to look up. The quality of the ride had improved and the passenger cars were clean and comfortable; there was even glass in the windows. The railroad was carrying more than 400,000 passengers annually to the resort and was able to pay a dividend to its stockholders. The volume of passengers continued to grow, and by 1874 nearly 500,000 passengers were brought into Atlantic City by rail.
After 20 years, Atlantic City had finally gained a foothold. Pitney finished out his years living quietly in Absecon Village and passed away in 1869. But for the younger Samuel Richards, Atlantic City was still a long way from its potential. There remained hundreds of undeveloped acres and no new investors to inject sorely needed capital. The businesses that survived the first two decades were only marginally successful. Their owners returned to Philadelphia each fall, leaving the resort a ghost town. Samuel Richards realized that mass-oriented facilities had to be developed before Atlantic City could become a major resort and a permanent community. From Richards’ perspective, more working-class visitors from Philadelphia were needed to spur growth. These visitors would only come if railroad fares cost less.
For several years Samuel Richards tried, without success, to sell his ideas to the other shareholders of the Camden-Atlantic Railroad. He believed that greater profits could be made by reducing fares, which would increase the volume of patrons. A majority of the board of directors disagreed. Finally in 1875, Richards lost patience with his fellow directors. Together with three allies, Richards resigned from the board of directors of the Camden-Atlantic Railroad and formed a second railway company of his own. Richards’ railroad was to be an efficient and cheaper narrow gauge line. The roadbed for the narrow gauge was easier to build than that of the first railroad. It had a 3½-foot gauge instead of the standard 4 feet 8½ inches, so labor and material would cost less.
The prospect of a second railroad into Atlantic City divided the town. Jonathan Pitney had died six years earlier, but his dream of an exclusive watering hole persisted. Many didn’t want to see the type of development that Samuel Richards was encouraging, nor did they want to rub elbows with the working class of Philadelphia. A heated debate raged for months. Most of the residents were content with their island remaining a sleepy little beach village and wanted nothing to do with Philadelphia’s blue-collar tourists. But their opinions were irrelevant to Samuel Richards. As he had done 24 years earlier, Richards went to the state legislature and obtained another railroad charter.
The Philadelphia-Atlantic City Railway Company was chartered in March 1876. The directors of the Camden-Atlantic were bitter at the loss