The Colorado Railroad Company was incorporated in 1906 by Denver investors through whom control of the Colorado Railroad Company passed to the Colorado & Southern. The original plan for the Colorado Railroad Company called for the construction of a rail network through the northern agricultural and coal lands, and into and through the mountains. I reality, Colorado Railroad track consisted mainly of spurs connected by Colorado and Southern routes.

The Colorado Railroad Company took over the Fort Collins Development Railroad (1907) and the Walsenburg & Western (18910) for the Colorado & Southern. In 1930 the railroad ceased to be operated under lease to the Colorado & Southern, and was merged with the Colorado and Southern.