Chili Line

[2][4]: 2, 109  As early as 1878 it was reasoned that such a route would not be possible, but Palmer did receive a concession in September 1880 from the Mexican government to build a different north-south line, the National Railroad of Mexico.

[6] Palmer's "dream of a road to Mexico City finally went glimmering" but the line along the Rio Grande became the exotic southern extent of the D&RGW's famous network in the Rocky Mountains.

[4]: 111, 115  Work on the link to Santa Fe was stalled for several years because of money problems and the line further south was not built.

With new management in place construction resumed in earnest in October 1886 and by January 1887 the narrow gauge tracks from Santa Fe to Española were complete.

[7][8] A line along the Rio Chama from Chamita to the D&RG's San Juan Extension was under construction, with a railbed built as far as Abiquiú.

[4]: 118, 122  In 1903 the D&RG and the New Mexico Central Railway opened Santa Fe Union Station on a site adjacent to the AT&SF's depot.

[4]: 122  The line struggled to turn a profit; road transportation began to outcompete the train, and the quality of the timber shipments was low.

One engineer reportedly would deliver a bone daily from an Alamosa butcher shop to Taos Junction for a "loyal newspaper delivery dog ('Minnie')".

[2] There was some dual-gauge track in the Santa Fe Railyard where the railroad shared a station with the 4 ft 8+1⁄2 in (1,435 mm) New Mexico Central Railway,[4]: 50  and also at the line's northern terminal.

The original terminal facilities in Santa Fe included a three-stall engine house and a coal shed on the tail of a wye opposite a two-story island depot.

Freight trains pulled by class C-19 2-8-0s[7] carried livestock, wool, fruit, chili, beans, sugar, flour, manufactured goods, timber[4]: 116 [9] coal, petroleum products, cement, minerals and ores.

Heavier rail was laid in 1928 so Rio Grande class K-28 2-8-2s could replace the older locomotives and eliminate need for helper engines.

[9] From Buckman, the line closely follows the easy grades of the Rio Grande north towards Embudo, through an iron truss bridge crossing the river at Otowi and passing through Santa Clara and Española.