Control of the company eventually came into the hands of Davis Knauer, a successful local entrepreneur in northern Chester County. In the spring of 1889, contracts were let for construction of a short portion of the route, between a connection with the Pickering Valley Railroad (a Reading subsidiary) near Kimberton, at a point called French Creek Junction, to St. Peters, where it connected with the Warwick Branch of the Wilmington and Northern Railroad.
The company's management was handed over to Davis Knauer, a successful local businessman in northern Chester County, in the spring of 1889.  A portion of the route between Kimberton and St. Peters was contracted for construction, linking it with the Pickering Valley Railroad (a Reading subsidiary) at French Creek Junction and the Warwick Branch of the Wilmington and Northern Railroad.