The San Antonio and Gulf Railroad was chartered on March 31, 1897, to acquire the San Antonio and Gulf Shore Railway Company. The capital stock was $1,000,000, and the principal place of business was San Antonio. The members of the first board of directors were Oscar Bergstrom, Thomas H. Franklin, John R. Shook, George Dullnig, E. S. Carpenter, J. W. Graves, A. W. Hartung, George J. Dullnig, and H. O. Engelke, all of Bexar County. In 1897 the railroad acquired the twenty-nine miles of the San Antonio and Gulf Shore from Oscar Bergstrom and built another 2½ miles between Cibolo and Sutherland Springs. The following year the railroad extended the line six miles to Stockdale and one mile between Lavernia and the sand pits, which was removed in 1903. In 1903 the line owned two locomotives and eighteen cars and reported passenger earnings of $15,000 and freight earnings of $46,000. In August 1905 the San Antonio and Gulf was consolidated with the Galveston, Harrisburg, and San Antonio Railway Company.