The Texas State Railroad was built, beginning in 1893, by inmate labor to transport iron ore and wood products to prison-operated smelting furnaces in
Rusk. These supplied the state of Texas with iron products, including the columns and dome structure for the Capitol building in
Austin.
In 1909, the railroad reached its final destination of Palestine. The total cost was $573,724. Prison crews also ran a passenger service. After the prison iron furnace was shut down in 1913, the railroad was leased by various lines until 1969. Reconstruction was begun on the line, using state inmates once again. It was opened to the public on July 4, 1976.
Passengers may board the historic trains at either Rusk or Palestine. Both end of the line have turn-of-the-century style depots. The trip takes 1.5 hours.
