The Denison, Bonham and New Orleans Railway Company was chartered on January 19, 1887, to connect Denison with Charleston in Delta County and a junction with the Marshall and Northwestern. "Nellie," as the Denison, Bonham and New Orleans Railway was nicknamed, originated as a project financed by a group of bankers and businessmen in Denison and Bonham. The capital was $200,000, and the principal place of business was Denison. Members of the first board of directors were W. B. Mumson, T. B. Harms, A. R. Collins, W. C. Tignor, and Saul Harma, all of Denison; and S. B. Allen, W. A. Nunnelee, John Sharger, and R. W. Campbell, all of Bonham. Although the promoters were able to begin construction, the project soon failed. A new company was incorporated as the Denison, Bonham and New Orleans Railroad Company on January 24, 1901. Capital stock was $100,000, and the projected route ran between Denison and Wolfe City. The Denison, Bonham and New Orleans Railroad Company acquired the partly graded roadbed of the Denison, Bonham and New Orleans Railway and in 1901 completed a twenty-four mile line between Bonham Junction and Bonham. Between Denison and Bonham Junction, the Denison, Bonham and New Orleans operated over the Missouri, Kansas and Texas Railway Company of Texas. The Katy operated the Denison, Bonham and New Orleans under contract and later leased the line. However, the Denison, Bonham and New Orleans was not included in the Katy reorganization of 1923. The company was operated by receivers from March 21, 1923, until February 6, 1925, when it was bought by several Bonham citizens. In 1926 the line reported passenger earnings of $300 and freight earnings of $45,000 and owned two locomotives and one car. Freight hauled included corn, cotton, cottonseed meal, watermelons, potatoes, and peanuts. In 1928 twelve employees received total pay of $15,500. Operations ceased on November 30, 1928, and the company was abandoned the following year.