The Texas and New Orleans Railroad Company was a combination of 26 various rail companies, the oldest of which was the Galveston and Red River Railway established in 1848. The G&RRR eventually became the Houston and Texas Central (H&TC) in 1856

In 1856 Colonel A. M. Gentry formed the Sabine and Galveston Bay Railroad and Lumber Company at Houston, Texas. The objective of the company was to establish a route from Galveston through Houston to the rich forest lands of east Texas. During this time J. P. Morgan began building the Morgan's Louisiana and Texas Railroad and Steamship Company at New Orleans. The company would carry cargo from New Orleans to what is now Morgan City by rail, transfer to steamship, and cruise to Galveston for unloading. Colonel Gentry realized the potential for growth by linking his Houston based lines with Morgan's Louisiana lines and between 1858 and 1861 laid 104.72 miles of 5-Vz foot gauge rail from Houston to Orange, Texas.

On December 24, 1859 the Sabine and Galveston Bay Railroad and Lumber Company received a new charter and changed their name to Texas and New Orleans Railroad Company. During the growth of the T&NO several small lines began to form in the area and eventually became part of the T&NO rail system and contributed to its rapid expansion.

The line from Houston to New Orleans was completed in 1881 at an estimated cost of $30,000 per mile including depots, stations for wood and water, machine shops, fencing and labor. The rail was forged from the finest English iron available, crossties were made from oak and pine, and bridges were constructed of both wood and iron in the most scientific design of the times.

Shortly after its completion, the T&NO Railroad became affiliated with the Galveston, Harrisburgh and San Antonio Railway which was in the process of constructing its lines west across Texas to El Paso to connect with the Southern Pacific which was constructing lines east from the Pacific Coast. This connection was completed on January 12, 1883 giving Southern Pacific a transcontinential route across the United States and establishing the completion of what was referred to as the "Sunset Route", thus ending an era with the death of the Old Stage Route to San Diego from San Antonio.

Some of the other railroads which eventually became part of the T&NO were the Buffalo Bayou, Brazos and Colorado Railway Company chartered in 1850, the Burr's Ferry, Browndell and Chester Railway Company, the Columbus, San Antonio and Rio Grande Railroad, the Columbus Tap Railway Company, the San Antonio and Aransas Pass Railway Company, the Gulf, Western Texas and Pacific Railway Company, the New York, Texas and Mexican Railway Company, the San Antonio and Gulf Shore Railway Company, the Waxahachie Tap, the Austin and Northwestern Railroad Company, the Houston East and West Texas Railway Company to name just a few of the companies which eventually became the Texas and New Orleans Railroad Company.

Quote from the SP book "A Moment in Time".