It was created by the demolition of a whole block of old buildings - three houses in the south of Malostranské Square and another four houses in Karmelitská Street near Tržiště (Marketplace). At this point Karmelitská Street ended (picture 93). It opened into the Square through a narrow dark footpath (picture 97). In line with the plan to connect Smíchov (at that time a Prague suburb) and Malostranské Square and also Holešovice by tram, it was decided to eliminate this wedge-shaped plug between the Square and Karmelitská Street.
The demolition of the above-mentioned block was carried out in three stages. In 1896 two houses in the square and two in Karmelitská Street were torn down (U Klíčů was the name of two demolished houses on the lot No. 270 - one in the square and the other in Karmelitská street). In this opening tram rails were laid down. In the first half of 1901 transportation was provided by a horse-tram and on June 17th it was replaced by an electric tram. In the second stage, in 1904, the renaissance Hrachovský’s House, No. 268, located in the square, was torn down despite public opposition. Probably in 1907 or even later, two remaining houses No. 299 and 300, were demolished. After their removal tram rails could be transferred to the western side of the opening and this tram route is still used.
Between 1912 and 1913 new houses were built on the site of the former block with the intention to adapt the end of Karmelitská Street in its intersection with Malostranské Square in order to make it as wide as the rest of the street (the fourth stage - see picture 99).
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