The Ohio & Indiana Railway Company was incorporated in 1903.
 During the same year, a 3-mile (4.8 km) line was built from the New York Central Railroad station in the nearby city of Angola to the southern tip of Lake James.
Following difficulties in acquiring rolling stock, additional financial backers joined the company and renamed it the Angola Railway and Power Company—although the railroad was always known as the Lake James Electric Railway.
Rolling stock totaled only three pieces of equipment: two electric passenger cars and an open trailer.

Regular passenger service began on July 14, 1904.
The railroad closed during the winter months and typically provided service from April until November.
The line was lengthened by 0.75 miles (1.21 km) in 1904, connecting Angola's New York Central station with the heart of the business district.
The company also built a dance hall, hotel, and amusement park at Paltytown.

By 1914 Paltytown was described as "several cottages, a supply store, a photograph gallery and dancing pavilion, and the Lake James Hotel."
 Two piers were located at the beach, and boats were available for rent.
In many cases, people reached their cottages on the lake by taking a train to Angola and then taking the electric railway to the lake.
From Paltytown, they could reach their cottage by boat.

The Lake James Electric Railway was rarely profitable and never expanded after the 1904 extension.
A reorganized version of the company was renamed Indiana Utilities Company in 1912.
The last regularly-scheduled trip made by the railroad was on October 15, 1918.
The railroad was dismantled and its properties sold in 1919.
 The Paltytown properties were sold in 1922.
 Better roads and the automobile made the railroad obsolete, but it played a key role in the lake's development.
 In 1928 another group agreed to purchase the Paltytown properties, and the former resort became the Lake James Christian Assembly.
The Ohio & Indiana Railway Company was incorporated in 1903.  During the same year, a 3-mile (4.8 km) line was built from the New York Central Railroad station in the nearby city of Angola to the southern tip of Lake James. Following difficulties in acquiring rolling stock, additional financial backers joined the company and renamed it the Angola Railway and Power Company—although the railroad was always known as the Lake James Electric Railway. Rolling stock totaled only three pieces of equipment: two electric passenger cars and an open trailer.
Regular passenger service began on July 14, 1904. The railroad closed during the winter months and typically provided service from April until November. The line was lengthened by 0.75 miles (1.21 km) in 1904, connecting Angola's New York Central station with the heart of the business district. The company also built a dance hall, hotel, and amusement park at Paltytown.
By 1914 Paltytown was described as "several cottages, a supply store, a photograph gallery and dancing pavilion, and the Lake James Hotel."  Two piers were located at the beach, and boats were available for rent. In many cases, people reached their cottages on the lake by taking a train to Angola and then taking the electric railway to the lake. From Paltytown, they could reach their cottage by boat.
The Lake James Electric Railway was rarely profitable and never expanded after the 1904 extension. A reorganized version of the company was renamed Indiana Utilities Company in 1912. The last regularly-scheduled trip made by the railroad was on October 15, 1918. The railroad was dismantled and its properties sold in 1919.  The Paltytown properties were sold in 1922.  Better roads and the automobile made the railroad obsolete, but it played a key role in the lake's development.  In 1928 another group agreed to purchase the Paltytown properties, and the former resort became the Lake James Christian Assembly.
Lake James (Indiana)