In 1853, this iron furnace was hewn out of a solid sandstone cliff by S. Baird and others for the Thompson, Lasley and Company. It was known as the Iron Valley Furnace. Reese Thompson was the president and primary owner, and S. Churchill was the manager at this point. Their company operated it up until 1858, when it was sold to the Iron Valley Furnace Company.

In 1861, the Iron Valley Furnace Company leased this iron furnace to William McGhee and William Ratcliff. In 1863, McGhee bought out Ratcliff's share and changed the name to the Lincoln Furnace. He later decided to change the name to the Cornelia Furnace to honor his only daughter, Cornelia McGhee. William McGhee successfully operated this iron furnace up until his death in 1871.

William McGhee's oldest son, J.M. McGhee, took over the operation after his death. J.M. McGhee operated this iron furnace until it blew out in 1884. McGhee already had financial problems at this point, so he was unable to pay for the repairs. Around 1885, a firm called the Cornelia Furnace Company purchased it. This iron furnace was placed back into blast for a few years after being repaired.

The Lincoln Furnace profited greatly during the Civil War. Under William McGhee's ownership, this iron furnace manufactured a special grade of iron for the Charle Kapp and company. They forged the iron into cannons that were used in battle. The iron was hauled by wagon to Wellston and then transported to Pennsylvania on the railroad.