The Texas Transportation Company was founded in 1887 as a private company. It was chartered on September 24, 1897. It served more than 20 customers at its peak, including the Lone Star Brewing Company and the Pearl Brewery. Gross annual operating revenue in 1956 was $80,000. It was designated a Common Carrier in 1932. By 1990, the line was one of only three "trolley freight" railroads still in operation in the United States, along with Iowa Traction Railroad and the East Troy Electric Railroad, but by that time, the Pearl Brewery was its sole remaining regular customer. Another customer, Samuel's Glass Company, called on TXTC to move a load of finished plate glass from its spur on Newell Street only "once in a great while". The railroad was operating on Mondays to Fridays as of 1990, with runs taking place at 6 a.m., 10 a.m. and, if needed, 2 p.m. The line included street running along Jones Street.
Locomotives
The railroad's first two locomotives were boxcabs that were "probably" built by the St. Louis Car Company. They were numbered 1 and 2, but TXTC reused those numbers more than once for locomotives acquired later, including for rolling stock acquired secondhand from the San AntonioPublic Service Company and converted to haul freight cars. The two locomotives in use in the railroad's final years were again numbered 1 and 2.
No. 2 was built in 1907 by the St. Louis Car Company, and TXTC acquired it in 1949 from the Texas Electric Railway. It was originally Texas Traction Company interurban car 4, becoming Texas Electric's No. 351 in 1917 and being rebuilt by TE in 1929 into a 35-ton locomotive, numbered 952.
TXTC's No. 1 was overhauled in the 1960s, and as of 1990 it was the railroad's main locomotive, with No. 2 being "used only occasionally".
From 1982 through 1985, a short section of TXTC track was used for a heritage streetcar service operated by the San Antonio Museum of Art. The service used original San Antonio streetcar No. 300, built in 1913 by the American Car Company and owned by the San Antonio Museums Associationever since the abandonment of the city's last streetcar lines in 1933. The new Art Museum was opened in 1981 in the former Lone Star Brewery complex, which had been one of TXTC's customers. The railroad's tracks still ran past the site, and the overhead trolley wires came close. In 1981–82, volunteers restored the streetcar, nicknamed "Old 300", to operating condition and reinstalled trolley wire on a TXTC spur behind the museum, unused since the 1950s. The city's former streetcar system had been so car 300 had to be modified for TXTC's tracks; this was accomplished by refitting the car with modified ex-New Orleanstrucks and using some parts from similar car 303. The museum's short streetcar line began operating in October 1982. The car ran twice a day on Tuesdays through Fridays and six times a day on weekends, but budget cuts and high insurance costs led to the service's being discontinued at the end of 1985.