It was launched with considerable enthusiasm by local interests, and was to build a 50-mile (80 km) network, but actual share subscription was weak, and the company over-reached its available financial resources.

It opened 19 miles (31 km) of route from Haughley to Laxfield in 1904 to goods traffic only, and income was poor, further worsening the company's financial situation.

The Board continued to harbour ambitions to complete the planned network, but crippling interest on loans and capital repayments falling due forced the company into receivership in 1906.

Enthusiasm for the scheme gathered pace, and soon 296 persons had contributed nearly £1,000 towards the legal costs, with amounts varying between a shilling and £1.

At a board meeting on 23 November 1901, the engineers explained that there was difficulty in making the line near the River Blyth at Halesworth, and a deviation was recommended.

The tone of the document made it clear that this was no rural backwater branch, but that the Company saw its line as an integral part of the long-distance network of the country.

S Pearson and Sons resigned from the contract at this stage, evidently frustrated at the lack of action by the Company, and S Jackson of London was appointed instead.

[1] The first sod was cut on 3 May 1902 in a field at Westerfield; "no expense was spared"[1] despite the company's financial problems; 600 guests attended for a sumptuous luncheon, many brought in by special trains; the 83-year-old Duke of Cambridge performed the ceremony.

[1][4][3] On 22 September 1902 Lord Kitchener, the hero of Khartoum, had received the Freedom of Ipswich and the following day he visited Mr Chevallier at Aspall Hall.

Steam railcars had been introduced by the London and South Western Railway and this system appeared to offer a major benefit in technical and business terms.

At the end of 1903 the Company's financial position was becoming obviously unsustainable, yet when the bankers stated that no further overdraft facility would be available, the directors were said to be surprised at the news.

Even then there was a dispute over the steep gradient on which train marshalling would have to take place, and interference between the MSLR and GER traffic during the process.

There was no ordinary goods traffic to convey, so the load was ballast wagons required by the contractor further down the line, although several packages were picked up at various stations on the return journey.

[1][2][4][3][6][5] The first of the company's own locomotives was delivered from Hudswell Clarke at the beginning of November 1904; it was an 0–6–0 tank engine, numbered 1 and named Haughley.

[1] Goods stations were located at Mendlesham, Aspall, Kenton, Horham and Stradbroke, and later at Old Newton, Brockford, Worlingworth and Wilby.

Notwithstanding the prohibition, a private passenger train was run in June 1905, when an Ipswich historical study society visited churches and large houses in the area.

More than one hundred members joined a Mid-Suffolk train formed of the company's new coaching stock at Haughley for a run to Kenton, and back after viewing buildings there.

The Company sold land at Westerfield, intended for the line there, to the Great Eastern Railway, and used the money to pay some of the debt down.

[1] The Board of Trade inspection necessary for passenger operation took place on 2 July 1905, when Lieutenant Colonel P. G. Von Donop visited.

After a short interregnum, J F R Daniel was brought in to be receiver; he had been successful in keeping the Weston, Clevedon and Portishead Light Railway in operation during its financial crises.

He was not entirely happy with the progress made, but subject to an undertaking to rectify a number of minor matters he approved the opening, and a passenger service started on 29 September 1908.

Even now the Directors, who of course were not in control of the Company as it was still in receivership, sought advice from the Railway Commissioners about reviving the extension to Halesworth.

The reply inevitably reminded them that they would have to purchase their line back from the receiver, and obtain the consent of the debenture and preference share holders; this was obviously an impossible task, and at length the directors accepted the reality that their scheme to cross the Mid-Suffolk area by rail was unachievable.

As far as is known, no coaches or locomotives of the Middy are still in existence, and the corrugated iron buildings were either left to rust or sold to become farm sheds.