When gold was discovered in Cripple Creek and Victor in 1890, some of the Colorado Midland owners formed the Midland Terminal Railroad, a standard gauge spur line from Divide to Cripple Creek. This allowed for passenger travel to and from Cripple Creek, shipment of equipment into the area, and the transport of ore to processing mills in Colorado City beginning in 1895. It was the only standard gauge railroad into Cripple Creek and Victor, which made for easy transfer of material at the Divide junction with the Colorado Midland Railway.