The Ballston Terminal Railroad was an electric-powered trolley line that served industries along the Kayaderosseras Creek in the Town of Milton, Saratoga County, New York State. It was a "terminal railroad," which means it had an interchange at one end (in Ballston Spa) but terminated without any other interchange.
The railroad's primary purpose was to serve the dozen water-powered paper mills and a large tool factory that were situated along the creek. It was unique for being one of the few trolley railroads in the country to have a primary function of hauling freight cars.
Construction started in 1896 when an investor group headed by Arthur B. Paine was granted a franchise by the Village of Ballston Spa. By 1902 the railroad reached its greatest extent of twelve miles. It served the villages and hamlets of Ballston Spa, Bloodville, Factory Village, Craneville, Milton Center, West Milton, Rock City Falls, and Middle Grove. A regular schedule was instituted to accommodate passengers.
The railroad was never a financial success. The Ballston Terminal Railroad Corporation declared bankruptcy in 1904, but a new corporation was formed called the Eastern New York Railroad, and operations continued uninterrupted. In 1918, another reorganization occurred when several paper mill owners banded together and purchased the ailing railroad. It was thereafter called the Kaydeross Railroad. This line operated until 1929, when it shut down for the last time. By then, only three paper mills had survived.
Source: The Ballston Terminal Railroad And Its Successors, by Timothy Starr, 2007.