The Peach River and Gulf Railway Company was chartered on October 31, 1904, with authority to connect Willis in Montgomery County with Beaumont in Jefferson County to the southeast. The railroad had capital stock of $100,000, and the principal place of business was Timber, Montgomery County. Members of the first board of directors were A. W. Miller, C. S. Victor, C. H. Moore, Maco Stewart, and B. I. Sparks, all of Galveston; James G. Berryhill of Des Moines, Iowa; and M. M. Riner of Timber. The Peach River and Gulf began about 1902 as a tram road for the purpose of supplying logs to the Miller-Victor Lumber Company mill at Timber. The line was gradually extended and reached Midline in May 1905. The Peach Pine Route, as the road called itself, also extended from Timber to Oaklawn and Midline to Bartle, a total distance of eleven miles. Connections were made with the Gulf, Colorado and Santa Fe Railway at Timber and with the Houston East and West Texas Railway at Midline. The Railroad Commission never recognized the Peach River and Gulf as a common carrier, and it resumed its original function as a facility of the lumber company in 1908 shortly after the Interstate Commerce Commission decision in the Tap Line Case.