Rausch Gap was a center for mining and lumbering. A railroad machine shop was located here.
In 1850 the Dauphin and Susquehanna Coal Company constructed a railroad from Rausch Gap to the Pennsylvania Railroad at Rockville. This was the first railroad in Lebanon County.
In 1853 and 1854, the coal company built the railroad from Rausch Gap to Auburn on the Schuylkill River. It connected to the Philadelphia and Reading Railroad at Auburn. The stations were Auburn, Hummel's, White Horse, Starhope Furnace, Pine Grove, Swatara Furnace, Gold Mine, Rausch Gap, Cold Spring, Yellow Springs, Rattling Run, The Forge and Dauphin.
On April 28, 1859 the Schuylkill and Susquehanna Railroad was incorporated to take over the Dauphin and Susquehanna Coal Company. On July 12, 1860 control of the Schuylkill and Susquehanna passed to the Philadelphia and Reading Railroad. The formal merger took place on June 19, 1872.
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