With the opening of the Mount Washington Stage Road in 1861, North Conway and Jackson began sprouting new lodging establishments. Jackson already had the Jackson Falls House and the Forest Vale House, but a third hostelry opened up on the other side of the Ellis River, right beside the narrow lane that served as the main road. James Meserve, whose wife and mother were both related to the owner of the Jackson Falls House, may merely have opened a few rooms in his big farmhouse at the foot of Iron Mountain.

By the 1870s, it had become almost exclusively a hotel, advertised in Portland and Boston as the Iron Mountain House.

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