A popular local tourist attraction, it operated for much of the 20th century, providing sweeping views of the Hudson River Valley.

The Otis Elevator Company and Mohawk Construction opened the 2,200' 3 ft (914 mm) gauge railway on Memorial Day, 1902.

The 75-mile (121 km) panoramic views from the summit of Beacon Mountain and natural setting would be the lures to get tourists to the doorstep of several profitable attractions the railway's backers built atop the mountain, including the Beaconcrest Hotel, a Casino, and a private cottage community following land sales.

Though they were rebuilt within a year, this proved the turning point in the rail's history, with the tourism-dampening Great Depression and World War II to follow.

A fire attributed to vandalism the next year completely destroyed the trackway and consumed the lower station, following which the only remaining structure at the top, the powerhouse, was razed.