Even before the advent of electric trolleys, attempts were made to develop workable
streetcars to replace the malodorous horse-drawn models in use since the 1830s in most U.S. cities.
One solution was a small steam locomotive designed to pull a four-wheeled car along
a track through city streets. But the steam locomotives terrified horses, and runaways
caused injuries and deaths. So the techies of the time contrived to cover the steam
locomotives with dummy shells designed to look like regular car bodies – and it worked!
Horses were calmed by the deception.
A steam dummy was a small steam locomotive completely enclosed in a

wooden body. The locomotives were thereby disguised to look like
streetcars. The theory was that they wouldn't scare the horses
that way when they ran on city streets.
The Trolley Lines were not the
first 'street RR's'. Many cities (tho not so many as later had electric lines)
had Horse car lines. In the street railway field, the 'dummy' evolved to
displace the horse, speed the traffic, allow handling of more cars. The
electric lines, by there success superseded most of the 'dummy lines'.
The name arose because the dummy engines were 'silent' [1] or, or, in the
parlance of the times (ca 1870) 'dumb'.