The Clinton-Oklahoma-Western Railroad Company of Texas was chartered on July 30, 1927, to build a line from the Oklahoma state line in Hemphill County, Texas, to Pampa, in Gray County. The line was projected as the Texas extension of the Clinton and Oklahoma Western Railroad Company, which operated from Clinton, Oklahoma, to the Oklahoma-Texas line. The initial capital was $100,000, and the business office was originally located at Wichita Falls. Members of the first board of directors included Joe A. Fell of Vernon and Frank Kell, C. W. Cahoon, Jr., T. P. Duncan, L. N. Bassett, O. B. Womack, M. G. Scovell, Charles Crowell, Leslie Humphrey, and T. R. Boone, all of Wichita Falls. In June 1928 the Clinton and Oklahoma Western and the Clinton-Oklahoma-Western Railroad Company of Texas were acquired by the Atchison, Topeka and Santa Fe Railway Company. The fifty-six miles between Pampa and the state line was completed in 1929, and in 1931 an eleven mile branch was built from Heaton to Coltexo. Also, in 1931, the companies were leased to the Panhandle and Santa Fe Railway Company, which operated them until they were merged into the latter company on December 31, 1948.