The Texas Mexican Northern Railway Company was chartered on February 22, 1882, to run from Laredo up the Rio Grande valley to a point at or near Eagle Pass. The capital stock was $100,000, and the principal place of business was Laredo. The members of the first board of directors were John Pratt, William Wagner, and Theodore H. Friend, all of New York City; and F. W. Getty, W. R. Chisholm, M. M. Reynolds, and A. R. Woolston, all of Laredo. In 1882 the railroad built nearly five miles of track from Laredo, but in 1885 more than three miles of rail was removed in order to make repairs. The 1¼ miles of track remaining between Laredo and Stock Pens was used as a spur track by the Texas Mexican Railway Company, which absorbed the smaller company in 1906.