The Catskill Mountain Railway was a three-foot narrow gauge railroad, originally built to connect with steamboats on the Hudson River waterfront at the village of Catskill and running inland towards the Catskill Mountain House at the foot of the Wall of Manitou near Palenville. It connected with stage coaches at Palenville to the Catskill Mountain House, cutting a half a day of travel off the vacation trips of resort goers. (The Catskill Mountain was constructed on a portion of the ancient Canajoharie & Catskill between Catskill Village and South Cairo).
Service started to Lawrenceville on July 29, 1882 and was extended to Palenville in Spring, 1883. A branch from Cairo Junction to Cairo (formally known as the Cairo Railroad) opened for business in June, 1885. On August 4, 1892, the Otis Elevating Railway, a funicular, began operation between Otis Junction and a station at the summit serving the Catskill Mountain House. This eliminated the need for connecting stages at Mountain House Road.
Mounting financial losses, brought about by improved roads, forced the termination of service on the Catskill Mountain Railroad and the Cairo Railroad following the end of the 1918 tourist season.
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