The Timpson and Henderson Railway Company was chartered on February 16, 1901, as the Timpson and Northwestern Railway Company; its name was changed on June 29, 1909. At that time the company operated eight miles between Timpson in Shelby County and Ragley in Panola County. It purchased a line built by the Ragley Lumber Company extending 11½ miles from Ragley to Pine Hill in Rusk County and on November 21, 1909, opened a fourteen-mile extension from Pine Hill to Henderson. In 1916 the line owned two locomotives and seven cars and reported passenger earnings of $8,000 and freight earnings of $40,000. The company had trouble keeping its Railroad Commission recognition as a common carrier, and the entire thirty-four miles was abandoned in 1923.