The Tyler Southeastern Railway Company was chartered on January 12, 1891, to acquire and operate the Kansas and Gulf Short Line Railroad Company, which had been sold under foreclosure. The capital stock was $1,000,000, and the principal office was Tyler. Members of the first board of directors were Louis Fitzgerald, Victor Morowitz, and C. McKim, all of New York City; Willard Fisher and Frederick N. Read, both of Dallas; A. H. Swanson of Corsicana; and T. F. Murchison. The Tyler Southeastern acquired a ninety-mile-long narrow gauge railroad between Tyler and Lufkin, which it converted to standard gauge on September 1, 1895. In that year the company owned eight locomotives and 198 cars and reported passenger earnings of $38,000 and freight earnings of $86,000. On July 1, 1899, operations of the Tyler Southeastern were assumed by the St. Louis Southwestern Railway Company of Texas, which merged the company on October 6, 1899.