Chief Engineer Thomas Wigglesworth had to scramble in unseemly haste to complete their surveys before contracts could be let. By July of 1886, the final engineering locations were made, and the contracting firm of Streator and McMurtrie placed over 1,000 men at work on the Eastern Division. The Midland had moved fast, much too fast. As a result of this haste, the road in many places was badly located, cost more to construct and afterwards was expensive to operate. The operating and mechanical headquarters was situated two miles west of the D&RG main line through Colorado Springs, opposite Colorado City.
Reasonably high construction standards for the middle 1880's were adopted. Steel rail weighing 60 pounds to the yard was to be laid in those portions of main line where grades and curves were severe, while 56 pound steel was to be used in sections of milder topography, on all branches and in many spurs and sidings. No tie plates were purchased which was to mean higher track maintenance costs. Native red spruce ties were to be laid on tangents with all heavy curves utilizing tough hardwood, principally oak. No ballast was purchased as natural ballast from the country traversed was considered adequate. Small and medium-sized bridges were to be of timber construction. They were trestles, for the most part, plus a few wood through-truss structures. Major bridges, and those crossing high rate of runoff watercourses were to be of iron.
By December, 1886, track was laid for three miles from the D&RG interchange past Colorado City shops and engine terminal to a point one and one-half miles east of Manitou Springs. Grading was completed as far as Lake George, 40 miles west. By March, 1887, track was down for 25 miles west of Colorado Springs, just 1.9 miles east of Hayden Divide summit, and the completed grade stretched all the way to Hilltop station (later Bath) at the summit of Trout Creek Pass, 84.7 miles west of Colorado Springs. The 300 man tracklaying crew was capable of laying ties and spiking down rail at a rate of one mile per day.
The first regular train service was inaugurated on July 13, 1887 after completion of the railroad to Buena Vista. In order to handle existing and future business, the Colorado Midland purchased the most modern equipment available. The first three locomotives, Nos. 1, 2, and 3, were delivered by the Schenectady Locomotive Works in 1886. The operating officers were aware that the Midland's heavy grades meant locomotives of unusual size and power for that era. Engines 1, 2 and 3, when delivered, were reputed to be the largest Consolidation types (2-8-0) in the world.
In 1887, Schenectady delivered 25 more locomotives. Seven were sister engines of the 1, 2, and 3 numbered 4 to 10. Locomotives 11 to 22 were big Ten-wheelers, the heaviest and most powerful 4-6-0's yet built. Engines 11 to 14 were designed for freight service while Engines 15 to 22 were designed for passenger service. The 23 to 25 were lighter passenger engines with three 0-6-0 switchers numbered 30, 31 and 32.
Passenger equipment consisted of open platform cars 55 feet long and included 12 baggage cars, two combination cars, 12 first class coaches, ten second class coaches and one suburban car. Most freight equipment was of the 50,000 pound capacity and included 215 wooden flat bottom gondolas, 25 stock cars and 325 box cars. There were also 110 flats of 40,000 pound capacity and 16 cabooses.
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