The North Galveston, Houston and Kansas City Railroad Company was chartered on June 24, 1892. The railroad was planned to connect the Gulf Coast with Kansas City. According to the original articles of incorporation the railroad had a capital stock of $160,000. The principal place of business was North Galveston. The members of the first board of directors were M. C. McLemon, Walter Gresham, Robert B. Hawley, C. B. Lee, and A. R. Campbell, all of Galveston; and W. S. Stricter, L. F. Menage, S. M. Houghton, and J. F. Nadeau, all of Minneapolis, Minnesota. The Minnesotans financed most of the project. In 1893 the railroad built sixteen miles of track between Virginia Point and North Galveston. That year the railroad also went into receivership and was sold to Isaac Heffron on May 17, 1894. Heffron resold the line to some of the original stockholders on that same day. On January 30, 1895, the line became part of the Galveston, La Porte and Houston Railway Company.