The extent of this work from 1880 and 1881 is shown on OpenStreetMap[0].
Atmospheric/pneumatic railways were still a popular idea in the mid 19th century. The Dalkey and Paris – St Germain atmospheric railways had each had over a decade of service before closure in the 20 years before Chalmers’ patent. They obviously had their own, considerable issues, but would have reduced the ventilation requirement.
(ofc the trouble is how to handle the next train coming in 15 minutes)
OTOH there are such a thing as 'fireless locomotives' which just load up on steam pressure from a stationary boiler and then operate for some miles without need for fuel or any exhaust more noxious than water vapor. But this scheme didn't come for some decades after 1861. I wonder if a cable car would have been feasible.
I would think no reasonably usable cable of that total length would work. But what if you could break it up into segments, with a car releasing the cable of one segment and coasting to grasp the cable of the next segment, and some other system (possibly massively thick cables, possibly some mechanism) underlying it and supplying power to the smaller loops.
https://www.theengineer.co.uk/content/in-depth/this-week-in-...
There are solutions for this today. They're widely used in rodless pneumatic cylinders.[1] The seal is flexible metal strip to metal, forced closed by the interior pressure of the cylinder. In the 1980s, there was a brief revival of the technology by Aeromovel, which built a few theme park and airport systems. None seem to be still running.