The South Dakota Central Railway ran between Sioux Falls and Watertown. The railroad was organized and operated by local businessmen. Sioux Falls lawyer Joe Kirby served as the railroad's vice president and attorney.
Construction of the line began in 1904. Nine new towns were created along the line, including Crooks, Lyons, Lake Norden and Hayti. Frederick Maytag invested in the railroad in 1904. At about the same time he established the Maytag Company which made washing machines.
The railroad suffered chronic financial difficulties. It went into receivership in 1908 and was sold in 1916 in accordance with a bankruptcy court order. It eventually came under the control of the Great Northern Railway.
Maytag lost money on his railroad investment, and even reimbursed friends who invested in the venture on his advice.