However, (the old) Eizan Electric Railway, which was directly managed by Kyoto Dento, an electric power company (later Keifuku Electric Railroad Co., Ltd.) and Kurama Electric Railway (the present Kurama Line of Eizan Electric Railway), which was also effectively managed by Kyoto Dento, commenced operations in 1925 and 1928, respectively, and the company's business results declined due to fierce competition among those companies.
しかし1925年、京都電燈（株）（後の京福電気鉄道）直営の（旧）叡山電鉄、1928年傍系の鞍馬電鉄（株）（現・叡山電鉄叡山電鉄鞍馬線）の開通により両者間の競合が激しくなって営業成績が次第に不振となった。