There it connected with the west end of the newly constructed Tyrone and Lock Haven Railroad, which ran up the valley to Milesburg and then south to Bellefonte, and over which it had trackage rights.

[5] The railroad's operations began at Bellefonte, site of coal-hungry iron furnaces and the head of navigation on the Bald Eagle & Spring Creek canal.

The line continued climbing through Rhoads following the edges of the Jonathan Run and South Fork Beech Creek gorges, crossing the latter and winding through Fountain to reach Snow Shoe.

In 1863, it was completed south from Wingate to Vail, where it reached the PRR-controlled Tyrone and Clearfield Railroad, and in 1865, the line was finished from Milesburg to Lock Haven.

[7] In 1871, the directors resolved to construct a branch from Bellefonte to the vicinity of Oak Hall to connect with the Lewisburg, Centre and Spruce Creek Railroad when it reached that point.

A serious wreck occurred on the railroad on June 11, 1878, when the Miller's Spring Trestle collapsed under the southbound mixed train from Snow Shoe to Bellefonte and it fell 55 feet (17 m) into a ravine.

[9] The Bellefonte & Snow Shoe ended its independent operation in January 1881, when it was sold to the Bald Eagle Valley Railroad, long a subsidiary of the PRR.

[6][10] The Fountain Branch was built in 1903, 1.32 miles (2.12 km) in length,[6] crossing the Beech Creek Railroad to serve Lehigh Valley Coal Co. #14 Mine.