The San Antonio and Gulf Shore Railway Company was chartered on December 22, 1893, to connect San Antonio in Bexar County with Velasco in Brazoria County, a distance of 200 miles. Velasco at that time promised to develop into a deepwater port. The capital stock was $2,000,000. The principal place of business was San Antonio. The members of the first board of directors were William Davis, William H. Brookes, Robert E. Sadler, John G. Davis, and H. E. Jones, all of San Antonio, and William M. Hanson, J. Brown King, Virgil B. Colley, and J. H. Montgomery, all of Gonzales County. In 1895 the San Antonio and Gulf Shore reported passenger earnings of $400 and freight earnings of $600 and owned two locomotives and sixteen cars. That year the railroad completed twenty-nine miles of track between San Antonio and Sutherland Springs. The road was sold at foreclosure to trustees on July 7, 1896, and operated by Oscar Bergstrom until May 29, 1897, when the property was conveyed to the San Antonio and Gulf Railroad. The San Antonio and Gulf was consolidated with the Galveston, Harrisburg and San Antonio Railway Company in 1905. The Texas legislature approved the consolidation on the conditioned that an extension of the road be built to Cuero; the forty-seven mile extension was completed on March 1, 1907.