The first segment was opened between Vestal in South Knoxville and Sevierville on December 20, 1909, bringing the line's total length to 27.8 miles.[3] At the end of 1937, the T&NC sold their shares of the Smoky Mountain Railroad to Midwest Steel, a company that dealt in scrap iron.The railroad's low speed (usually limited to 25 mph/40 kmph due to track conditions) made passenger service unprofitable once automobile ownership became widespread in the area, even though a custom self-propelled motorcar had been purchased in October 1922, for the then-huge sum of $16,000, and was used to make three daily runs between Sevierville and Knoxville.[4] World War II brought about the only notable period of profitability for the railroad, as the Tennessee Valley Authority initiated construction of Douglas Dam on the French Broad River a few miles north of Sevierville.In 1961 steam locomotives #107, a 2-8-0; and #206, a 2-6-0; were sold to "Rebel Railroad", a narrow gauge tourist train line built at nearby Pigeon Forge for static display.