Ten miles of track were laid in 1911 on a one percent grade down Evacuation Creek from Dragon, Utah, to the Rainbow Mine near Watson, Utah. A new 2-8-2 locomotive was built to pull freight trains between Watson and Wendella. The new locomotive was more efficient than Shay locomotives on that section of track, but it could not negotiate the steep grades and sharp curves over Baxter Pass between Wendella and Atchee. The railroad had operated passenger trains since 1905 consisting of a 0-6-2 tank locomotive pulling a single combine car between Mack and Dragon or Watson. This passenger train service was discontinued in 1921.