In 1903, the Craggy Lumber Company was launched, and it later evolved into the Bee Tree Lumber Company. The line was built in 1907. In November of 1910, the Craggy Lumber Company declared bankruptcy.

The assets were acquired in July of 1911 by a group of Pennsylvania investors, and by 1912 the logging business hit full speed. The line ran north from Swannanoa to the foot of the mountains which form the valley's northern rim. It connected with Southern Railway at Olivet.

In 1916, the great flood of western North Carolina hit, and it destroyed the Bee Tree mill. The company decided not to rebuild and it abandoned the line at the same time.

From the Ninth Annual Report of the North Carolina Corporation Commission, dated December 31, 1907, with Compilations of Railroad Returns for the Year Ending June 30, 1907:

President ............................................................... J.S. Bailey ............................. Swannanoa, NC
Vice President & General Manager ........................ S.F. Chapman ....................... Swannanoa, NC
Superintendent & Traffic Manager .......................... W. Granville Taylor ............... Swannanoa, NC

Property Operated - Swannanoa to Craggy Mountain ............................................ 6 miles

Towns on Route:

Swannanoa

Olivet

Bee Tree