After the Rock Island entered bankruptcy on March 17, 1975,[2] a judge determined on January 25, 1980 that the railroad should be liquidated because it could not be successfully reorganized, and on June 2, 1980 ordered a systemwide abandonment.
[3] But just before the latter action, Congress had on May 30, 1980 enacted the Rock Island Railroad Transition and Employee Assistance Act, one of the goals of which was to prevent cessation of rail service over lines for which purchasers were available, and to keep trains rolling until matters were settled.
[3] Against that background, the TXNW was formed on January 28, 1982, to purchase the Rock Island line running north-northwest from Stinnett, Texas to Hardesty, Oklahoma, about 97 miles.
[1][4] Also, the TXNW received temporary trackage rights to continue north from Hardesty on to Liberal, Kansas, an additional distance of approximately 33.15 miles.
[5] However, most of this original trackage was gone by 1987, including Morse to Hardesty, Pringle to Stinnett, and the temporary rights into Kansas.