The tramway's history as an independent company turned out to be relatively short. In June 1898, four months after the tramway opened, the Dyea-Klondike Transportation Company merged with both the Alaska Railroad and Transportation Company and Chilkoot Railroad and Transport Company (the other two substantial tram companies in operation) for a more cooperative and coordinated operation. In June 1899, one year after the merger, the conglomerate tram company was purchased by the White Pass and Yukon Route railroad to prevent competition and began to be scrapped in the fall of 1899.