The Oklahoma City and Texas Railroad Company was chartered on December 26, 1901, to build from a connection with the Oklahoma City and Western Railroad Company at the Texas-Oklahoma state line to Quanah, where the principal office was located. The capital was $500,000. Members of the first board of directors were C. G. Jones, D. C. Lewis, and J. L. Williams, all of Oklahoma City; and Duncan G. Smith, J. L. Elbert, L. Simpson, and D. D. Swearingen, all of Quanah. The nine-mile Oklahoma City and Texas was constructed as part of a through line from Oklahoma City to Quanah and opened on March 29, 1903. It was controlled by the St. Louis and San Francisco Railroad Company (Frisco). The road was built primarily to connect the Frisco with deposits of gypsum, a natural cement plaster, located around Quanah. Three plants at Acme, five miles from Quanah, with an annual capacity of 100,000 tons, prepared the gypsum for market. The plaster achieved a certain amount of fame when it was used for the building of the Columbia Exposition at Chicago in 1893 and the Louisiana Purchase Exposition at St. Louis in 1903. Between its opening and June 30, 1904, the Oklahoma City and Texas had operating revenues of $30,300. The company was sold to the St. Louis, San Francisco and Texas Railway Company on July 25, 1904, and later leased to the Quanah, Acme and Pacific Railway Company for operation.