The Texas and Northern Railroad was chartered on August 4, 1948, to acquire the existing private railroad of the Lone Star Steel Company. The railroad extended from Veal's Switch (now known as Daingerfield) on the Louisiana and Arkansas to the steel mill at Lone Star. The steel mill and railroad were originally built by the Defense Plant Corporation in 1942–43 and subsequently acquired by Lone Star Steel. The railroad had a capital stock of $550,000. The principal place of business was Lone Star. The members of the first board of directors were John D. McCall, Paul B. Horton, E. Wilson Germany, and J. B. Burleson, all of Dallas; and Jimmie D. Moore of Daingerfield. In 1953 the Texas and Northern reported total gross earnings of $1,341,000 and owned eight locomotives and 108 cars; it also rented a portion of its rolling stock. In 1972 it reported a total net income of $1,507,000 and owned fifteen locomotives and 888 cars. In 1990 its revenue range was under $5,000,000, and it had eight miles of track. By then the line primarily hauled waste and scrap, primary metals (i.e. pipe and other output of Lone Star Steel), and chemicals.