The later Eastern Texas Railroad Company was chartered on November 8, 1900, to connect Lufkin in Angelina County with Crockett in Houston County. The capital stock was $150,000, and the principal place of business was Kennard. The members of the first board of directors were W. H. Carson and W. H. Welch, both of Texarkana; David Alexander Nunn and D. A. Nunn, Jr., both of Crockett; and R. H. Keith, J. C. Sherwood, and W. C. Perry, of Kansas City, Missouri. The railroad was built by the Texas-Louisiana Lumber Company to serve its mill at Ratcliff. This mill was one of the largest in the South at that time. During 1901–02 the railroad built twenty miles of track from Lufkin to Kennard. On November 1, 1906, the Eastern Texas was sold to the St. Louis Southwestern, but continued to operate as a separate railroad. In 1916 the Eastern Texas reported passenger earnings of $9,000 and freight earnings of $48,000 and owned one car. The mill closed in 1917, and the Eastern Texas discontinued service on May 1, 1921. However, the line was not abandoned until 1924, as the State of Texas appealed to the United States Supreme Court the Interstate Commerce Commission decision authorizing the closure.