The company was incorporated in the Colorado Territory as the "Denver, South Park and Pacific Railway" on October 2, 1872 with 2.5 million dollars in capital. Less than a year later, on June 16, 1873, it was reorganized by John Evans as the "Denver, South Park and Pacific Railroad" with an increased capitalization of 3.5 million dollars. Construction from Denver to Morrison began in August, 1873, by the Denver Railway Association, following approval by Arapahoe county voters who passed a $300,000 bond issue. On June 20, 1874, the tracks reached Morrison, and on July 3, scheduled service began between Denver and Morrison, with two 2 round-trip mixed trains per day. This branch would provide a healthy income from the start, shipping stone, lumber, and coal from Mt. Carbon. However, the financial panic in 1873, precipitated by Jay Cooke & Co. of Philadelphia (financiers of the Northern Pacific Railroad), caused a reduction in traffic, resulting in reduced construction until 1876. During this period, the Denver, South Park and Pacific Railroad struggled to remain solvent.