The outcome of the excitement of the rivalry between the Missouri, Kansas and Texas Railroad and the Houston and Texas Central Railroad, was the aspiration of a railroad promoted by the citizens of Denison. By popular subscription in 1876, the Denison and Washita Valley Railroad was organized. The railway was to run between Denison and Denver, Colorado. The road between Denison, Texas to Coalgate, Oklahoma, crossing the Red River, was the only portion completed. The Denison and Washita Valley Railroad never operated as an independent rail line. In 1878, the MK&T took over its operation and extended to a location near Whitesboro where it connected with the MK&T line to Fort Worth.

The Denison Guide: Complied and written by the Federal Writer's Project of the Works progress Administration in the State of Texas Denison Chamber of Commerce, Cooperating Sponsor; Published by the Denison Chamber of Commerce, Denison, Texas 1939, pg13

The Denison and Washita Valley Railway Company was chartered on January 8, 1886. In that year five miles of track was built in Texas from Warner Junction to Ray, and in 1895 two more miles of yard and side tracks were added. A second division of the company operated fifteen miles from Atoka to Coalgate, Indian Territory. In 1895 the company owned one locomotive and 119 freight cars, and primarily served the coal mines in the Coalgate area. The road was owned by the Texas and Oklahoma Railroad Company, but was operated by the Missouri, Kansas and Texas until December 31, 1891. The Texas portion was then operated by the Missouri, Kansas and Texas Railway Company of Texas until it was sold to that company on May 13, 1903.

Source:
George C. Werner, "DENISON AND WASHITA VALLEY RAILWAY," Handbook of Texas Online (http://www.tshaonline.org/handbook/online/articles/eqd15), accessed December 03, 2014. Uploaded on June 12, 2010. Published by the Texas State Historical Association.

Denison & Washita Valley.—The meeting at Denison, Tex., last week resulted as follows: John Scullin, St. Louis, President; Ed. Perry, Vice-President; J. T. Munson, Treasurer; H. T. V. Perry, Secretary; Sam Hanna, J. B. McDougall, A. F. Platter, Sam Star, J. C. Feild, and A. R. Collins, board of directors.

Source: 1888 Railroad Gazette