Tramways, and early electric railways, used dc supply and particularly dc motors because they were straightforward technology, which ac is not. What was that dynamo-powered (or even lemon powered) light bulb circuit we built from first principles for GCSE Physics in school? DC of course. Some early town public electricity supply was even DC at the start.
The highest power dc rail systems are 3,000 v, used by a number of countries which developed their systems in the 1930s. Belgium, Italy and Russia are among these, their trains have motors permanently in series. Britain at that time went for 1,500 v for several projects, as did France, Netherlands, and elsewhere. Most rail dc systems with overhead as opposed to conductor rail used these higher voltages.
750 v on tramways and 3rd rail suburban systems (it started at about 550 v and slowly crept up over the years) does have the advantage that it can be directly applied to straightforward motors. High voltage AC is not everything it's cracked up to be. You need less lineside substations, but instead you get substations in each train; a 12-car unit has three transformer/rectifier units (ie substations) in it. Tramways use overhead wires purely for safety reasons on public roads, if they are fully fenced (eg the DLR in London) they go for 3rd rail, easier to maintain.
Notably BART in San Francisco, a wide-ranging outer suburban system, which researched every engineering aspect when it was being designed from scratch in the 1960s, going for a non-standard wide 5'6" gauge for example (stupid; it means they can't hire in standard permanent way equipment etc) went for 1,000 v DC (another non-standard) third rail.
One system I've never understood is the 3-phase, as used in Germany, Austria, Switzerland, Scandinavia etc (at 15 Kv, 16 2/3 Hz). I don't understand how you can have three phase with only one supply wire, so if one of you electrical engineers here can explain, I would be grateful, also what are its benefits and disbenefits. As I understand it the current is supplied to the motors as AC and is not rectified. Some of the 3-phase systems like the Jungfraujoch mountain railway have two wires - I might understand three, but how do two give 3-phase, and why do they need a second one anyway. Incidetally, the Jungfrau is 1,125 v 3-phase AC, which is getting down to the AC voltage levels the original question started with. I suspect the fact that it's only 6 miles long and generates its own power so doesn't need lineside substations has something to do with it.