[2] The May 1893 stock market collapse and drop in the silver price[3] depressed the economy, which delayed construction and prompted the narrow gauge decision.
[11] The next month, disputes with the N&S, a Canadian Pacific Railway (CP) subsidiary, led to violent confrontations.
[12] Initially offering lower rates than the N&S, the K&S carried over 80 per cent of Slocan ore,[13] but the proximity of track to the mines determined the carrier in most instances.
The K&S bought the Rio Grande Southern Railroad (RGS) rotary snowplow #1 in February 1897,[17] and the Lucky Jim snowshed was erected in late 1899.
[18] However, slides comprising timber, mud, and rock, destroyed trestles and track throughout the life of the line.
[21] Consolidating related enterprises, the Kootenay Railway and Navigation Co. (KR&N), a new venture and GN subsidiary, acquired the K&S from the original investors that year.
[23] Declining traffic led to mixed trains by 1902,[24] the final year to achieve an operating profit.
The final commercial train ran from Sandon that November, making McGuigan the western terminal.
[28] In October 1909, temporary bridge repairs reopened the closed section to facilitate the removal of track and sundry infrastructure.
[29] In July 1910, a forest fire destroyed almost everything west of Sproule's, which became the revised western terminal.
At Parapet junction, east of Three Forks, the right-of-way doubled back before crossing Seaton Creek.
After a hiatus exceeding two years, the Lucky Jim Mine resumed shipping ore.
Damage from the 1955 floods on Carpenter Creek ended all traffic east of Denver Canyon.
The remainder stayed near level, negotiated Payne Bluff, over 800 feet (244 m) above the Three Forks confluence, and terminated at Sandon.
[43] The gradient of the revised route northeastward from Three Forks to Zincton was heavy, reaching 4.8 per cent.