Wooden carriages were originally hauled by steam locomotives leading to smoke-filled stations and carriages, unpopular with passengers. At the start of the 20th century the District and Metropolitan were seeing increased competition in central London from the new electric underground tube lines and trams, and conversion to electric traction was seen as the way forward. Experiments were carried out on the Earl's Court to High Street Kensington section, and a jointly-owned six-carriage train began passenger service in 1900. Following this an AC system was suggested, and this was accepted by both parties. However, the District was looking for a way to raise the finance needed and in 1901 found an investor, the American Charles Yerkes. He formed the Underground Electric Railways of London (UERL), and his experience in the United States led him to favour DC, with third-rail pick-up similar to that in use on the City & South London Railway and Central London Railway. After arbitration by the Board of Trade the DC system was taken up, and the railways began electrifying the routes, using multiple-unit stock.