The BMT was the successor in bankruptcy to the Brooklyn Rapid Transit Company. Both companies controlled subsidiaries which operated and supplied services for the great majority of the rapid transit and streetcar lines in Brooklyn, New York with extensions into Queens and Manhattan.

The BMT was a national leader in the transit industry, and was a proponent of advanced urban railways, participating in development of advanced streetcar designs, including the PCC car, whose design and advanced components influenced railcar design worldwide for decades. The company also sought to extend the art of rapid transit car design with such innovations as articulated (multi-jointed-body) cars, lightweight equipment, advanced control systems, and shared components with streetcar fleets.

Unlike the Interborough Rapid Transit Company (IRT), the other private operator of New York Subways, the BMT remained solvent throughout The Great Depression and showed a profit, albeit small in its last year, until the very end of its transit operations.

The BMT was pressed by the City administration of Mayor Fiorello LaGuardia to sell its operations to the City, which wanted to have all subway and elevated lines municipally owned and operated. The City had two powerful incentives to coerce the sale:

• the BMT was forced by provisions of the Dual Contracts to charge no more than a five-cent fare, an amount set in 1913, before the inflation of World War I; and

• the City had the right of "recapture" of those lines that had been built or improved with City participation under those Dual Contracts. This meant that, if the City forced the issue, the BMT could have been left with a fragmented system and City competition in many of its market areas.

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