The Elkin and Alleghany Railway was incorporated in 1907 to link the Southern Railway line to Norfolk and Western Rail at Jefferson, North Carolina. The route allowed abundant natural resources to be carried from the mountains to foothills and piedmont markets. Chestnut tannin and lumber were the primary freight. Due to construction and financial difficulties, only 15 miles of rail were laid north to Veneer before the railway closed in 1931. The railway's office building originally belonged to the Elkin Manufacturing Company.