The Louisiana Railway and Navigation Company of Texas was chartered on March 27, 1923, to acquire a line extending from McKinney to the Texas-Louisiana state line near Waskom. The railroad had capital stock of $200,000, and the principal office was Greenville. Members of the first board of directors were William Edenborn and E. A. Staman, both of New Orleans; Sam Brooks, R. R. Farmer, E. P. Twyman, and F. J. Phillips, all of Greenville; Paul Sippel and J. J. Tippin, both of Shreveport, Louisiana; and C. H. Morris of Winnsboro. The LR&NT was affiliated with the Louisiana Railway and Navigation Company, which operated a railroad between Shreveport and New Orleans. It was organized by Edenborn to acquire 181 miles of track between McKinney and the state line formerly operated by the Missouri, Kansas and Texas Railway Company of Texas. Operations of the LR&NT began on April 1, 1923. In 1926 the railroad owned fourteen locomotives and 323 cars and reported passenger earnings of $110,000 and freight earnings of $1,000,000. On April 14, 1930, it was renamed the Louisiana, Arkansas and Texas Railway Company.