The Denver and New Orleans Railroad was organized in January 1881. The railroad was created by John Evans, David Moffat, and associates, to link Denver with the Gulf of Mexico at Galveston, Texas. Their scheme involved three companies, 1). The Denver & New Orleans, which formed the northern section, 2). The Denver, Texas & Fort Worth, which formed the middle section, and 3). Grenville Dodge’s railroad, Fort Worth and Denver City, which formed the southern section. These companies linked together to form the Panhandle Route.

In 1885 the Denver & New Orleans became a railway for five days, after which time it became the Denver, Texas and Gulf. In 1887 the Denver, Texas & Gulf consolidated with the Fort Worth and Denver City to become the Denver, Texas & Fort Worth. Again, in 1890 the Denver, Texas and Fort Worth consolidated with eleven other companies to form the Union Pacific, Denver & Gulf, which became part of the Colorado & Southern in 1899.

The Denver & New Orleans Railway Constriction Company was also organized in January 1881, and was headed by Walter S. Cheesman.