The Panic of 1873 delayed the start of construction until 1881, when Grenville M. Dodge became interested in the project. As chief engineer for the Union Pacific Railroad, Dodge had played a large part in the construction of the First Transcontinental Railroad. Dodge organized the Texas and Colorado Railway Improvement Company in 1881 to build and equip the FW&DC in return for $20,000 in stock and $20,000 in bonds for each mile of track laid. In the same year, the FW&DC and the Denver and New Orleans Railroad Company, organized in Colorado, agreed to connect their systems at the Texas-New Mexico border. The FW&DC received no state subsidy other than the right-of-way easements to cross state-owned lands totaling .