A little history of the Rio Grande & Eagle Pass Railway Company
(source: Handbook of Texas Online)

The Rio Grande and Eagle Pass Railway Company was chartered on May 29, 1885, to acquire the property of the Rio Grande and Pecos Railway Company (founded: 1882), which had been sold under foreclosure. Based in Laredo, the property consisted of twenty-seven miles of three-rail track from Laredo to the Santo Thomas Mines (coal). In 1892, the company owned twenty-seven freight cars, one company car, and three locomotives, and earned $2,527 in passenger revenue and $22,258 in freight revenue. Coal production from the mines peaked in 1915. In 1916, the railroad owned four locomotives, 130 freight cars, three passenger cars, and five company cars. Passenger service was discontinued in 1932. Output from the mines declined due to increased use of oil and natural gas, and the largest mine was closed in early 1939. With virtually no traffic, the line filed for abandonment in 1942. However, the building of the Laredo Flexible Gunnery School at Laredo Air Force Base extended the life of the company. The line was finally abandoned in stages during the period 1944-1947.

(full text of the article)