Katy (M-K-T) Railroad History

The Missouri–Kansas–Texas Railroad was incorporated May 23, 1870.

Initially referred to as the MKT, which was the marking used to identify all rolling stock of the road.  It soon became known as “the Katy” because of its stock exchange symbol; "the K-T".  The actual on the ground railroad was created through the acquisition of the Union Pacific Railway, Southern Branch and 5 other small branch lines:

             Labette & Sedalia Railway Co

             Neosho Valley & Holden Railway Co.

             Tebo & Nosho Railroad Co

             St. Louis & Santa Fe Railroad Co.

             Hannibal & Central Missouri Railroad Co.

On Christmas Day 1872, The Katy became the first railroad to enter Texas when a regular train arrived at the site of present day Denison, Texas.  This was significant, because no Texas railroads connected outside of the state prior to this.

Jay Gould added the KATY to his large and expanding rail empire in 1880.  During the Gould era, expansion in Texas was a priority with reaching Houston and San Antonio the goals. Through the leasing of several railroads throughout Texas, the KATY operated more than 1,100 miles of track in Texas by 1914.

One of the most fascinating stories from the annals of the MKT is the “marketing” event orchestrated by William George Crush in 1896.   The KATY intentionally collided two trains head-on at a site that would become Crush, Texas.  40,000 people showed up to witness this spectacle; unfortunately the exploding locomotives killed 3 people.  

The high point of the line’s revenues occurred during World War 2.  This prosperity lasted until the mid-50’s when a confluence of events including the aftermath of a severe Texas drought brought it to the verge of bankruptcy.   The KATY continued to limp along, including a reported net loss in excess of $10 million in 1967.

On October 4, 1986, The Missouri-Kansas-Texas Railroad operated the final trains from Sedalia, Missouri to Machens, Missouri. On that day, after their passage, floodwater from the Missouri River severely damaged the track along the route. After experiencing many washouts in the past along this line, the railroad decided it would not repair. Trains were re-routed, and the right of way was to be abandoned.

The railroad industry in an attempt to survive went through merger mania in the 1980’s.  The Missouri Pacific Railroad purchased the MKT in 1989, thus bringing it into the Union Pacific Railroad system.  An ironic twist, since it was the MKT’s purchase of the Union Pacific’s Southern Branch, that basically put it into business 120 years earlier.  At the time of the merger the Katy served six mid-western states with more than 3,377 miles of track.  The asset of major interest to the Union Pacific was the short straight route from Kansas to Texas.

History of the KATY Trail State Park

Recommended reading before your KATY Bike Tour

KATY Trail Photo Album

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