The Beginnings of the Texas Railroad System. 
67 
Work was begun in the spring of 1858. During this year the line 
was partially graded between Houston and Liberty. In 1859 the 
name of the company was changed to the Texas & New Orleans. 33 
By the 1st of August, 1860, the road was completed between Orange 
and Liberty, a distance of sixty-six miles. 
During the year 1860 four loans were received from the school 
fund aggregating $430, 500. 34 The cost of the road was about $30,000 
a mile. 
27. Indianola Railroad. 
The spirit of rivalry for the trade of the interior which made 
Hopston and Galveston such bitter enemies, had its counterpart in 
the enmity between Lavaca and Indianola. When the San An- 
tonio & Mexican Gulf Railroad was chartered with its terminus at 
Port Lavaca, the citizens of Indianola undertook the construction 
of the Indianola Railroad. The company was chartered in 1858, to 
construct a road from Powder Horn Bayou t> Austin. By act of 
1860 the company was required to connect with the San Antonio & 
Mexican Gulf road within a year, and was authorized to sell to this 
company the roadbed then graded. The war put a stop to further 
operations. 
The report of the Indianola Railroad to the Comptroller for the 
year 1860, showed $28,485 paid on its capital stock. 
28. Mexican Gulf & Henderson Railroad. 
In 1852 the Henderson & Burkville Railroad was chartered to con- 
nect Henderson in Rusk County with Burkville in Newton County. 36 
This charter was amended in 1854 so as to allow the company to 
begin on the coast. 37 In 1856 its name was changed to the Mexican 
Gulf & Henderson Railroad. 38 
Work was begun in the spring of 1857 at Pine Island Bayou, 
eight miles north of Beaumont. The timber was cleared away and 
the roadbed grubbed for several miles. These operations were soon 
suspended. When the Eastern Texas Railroad was chartered it was 
required to pay $3000 to Ferguson, Alexander & Company for the 
work that had been done — a sad but typical commentary on the 
financial ability of these pioneer railway companies. 
29. Eastern Texas Railroad. 
The Mexican Gulf & Henderson Company was succeeded by the 
Eastern Texas Company. This road was chartered in 1858. to run 
from Sabine Pass to the northern counties of the State. 39 Fifty 
thousand dollars was required to be deposited by the company with 
the State Treasurer before any rights vested under the charter. 
