Even so, on March 27, 1927, the Cotton Belt inaugurated the Lone Star Limited, a new fast passenger train service from Fort Worth to Memphis. The Lone Star Limited passed west bound through Mt. Pleasant at 8:55 a.m. and east bound at 9:07 p.m. The Lone Star Limited was successful from the beginning. By coincidence, Conductor Blaine, Engineer Hobson, and Fireman Winn, the same crew that operated the train on its maiden run, also operated it on its first anniversary date and had worked on this run almost continuously since it started.
On January 13, 1928, St. Louis Southwestern Railroad Company President Daniel Upthegrove attended Tyler's Rotary Club meeting. He gave a short speech outlining nine outstanding achievements in this country during the year just closed.
Then he shocked the seventy-odd Rotarians at the meeting when he announced that the Cotton Belt planned to spend $2,900,000 to improve its Texas tracks. He announced that out of that sum, $1,900,000 (approximately $22,500,000 in 2007 dollars) would be spent to rebuild the line from Tyler to Mt. Pleasant, while the other million will be spent on the road from Sulphur Springs to Dallas.
Originally built as a narrow gauge railroad in the 1880s, it was not necessary to carefully engineer tracks to accommodate the smaller engines and cars. With advances in rolling stock and larger equipment, the Cotton Belt now found it almost impossible to operate on the tracks. Heavy trains of fifty cars or more from the north had to be broken into trains of not more than twenty-five cars at Mount Pleasant, almost doubling transportation costs along the seventy-five miles from Mount Pleasant to Tyler.
Mr. Upthegrove said that the present roadbed would be abandoned in many places and a new one built to eliminate the present track's many heavy grades and sharp curves. The tracks would be leveled all along the line, requiring cutting down many hills and filling in low places. The company also planned to lay new rails on the new line all the way to Tyler. When the project was complete, much heavier trains could be run over the line, saving about one-half on operating expenses.
Extensive improvements were being planned from Sulphur Springs to Dallas, where the roadbed was to be put into as good condition as it was from Mt. Pleasant to Sulphur Springs.
Area residents were elated because of the large number of men to be employed. Extension and enlargement of Cotton Belt's Tyler yards would probably be required.
Surveyors had already begun work making a construction profile for the project on January 11, 1928. St. Louis Southwestern Railway awarded Gifford-Hill Company of Dallas the construction contract on Tuesday, May 15, 1928. Machinery and equipment for the construction were unloaded at Big Sandy and other points between Tyler and Mount Pleasant, and work was to begin on Monday, May 21, 1928.
Gifford-Hill established its main office for the job in Mt. Pleasant, and the payroll was handled through this office so that they would be closer to Cotton Belt's engineers which were stationed here.
On February 25, 1928, the United States Interstate Commerce Commission issued a complaint charging the Kansas City Southern Railway with violating the Clayton anti-trust law in acquiring the stock of the Katy and Cotton Belt railroads. The complaint was practically a rejection of Kansas City Southern's merger plan by L. F. Loree which had been before the Commission for the past two years.
The commission claimed that the merger would substantially lessen competition between the railroads and would restrain commerce in certain area and communities. The Kansas City Southern was given until April 2 to show cause as to why an order should not be issued requiring it to divest itself of Katy and Cotton Belt stock, and the action appeared to almost entirely stop plans for the merger. Loree withdrew his application.
The withdrawal of Loree's application to merge the Cotton Belt and K.C.S. and the Katy was favorably seen by local Cotton Belt employees, and there was a rumor that Southern Pacific would soon apply to take over the Cotton Belt.
By October, 1928, the Mt. Pleasant Cotton Belt yard was handling more traffic than it had for many years. Extra crews had been added, and more trains were passing through Mt. Pleasant than ever before. It was not uncommon to see as many as seven or eight trains in the yards at once. The company had put into service as a "dodger" train between Mt. Pleasant and Pittsburg that also did switching in the Mt. Pleasant yards during the day. The night switching crew was often delayed in its work by the large number of trains in the yards. The telegraph force was ordered to work overtime an extra hour each day to handle their work load, and there was a possibility of adding an extra man. Every other department was also rushed.
Improved roads and highways had spawned bus and trucking services that were eating into the Cotton Belt's passenger and freight business. In response, the Cotton Belt introduced Southwestern Transportation Company in the latter 1920s. Southwestern Transportation Company was a wholly-owned passenger bus and trucking subsidiary that provided passenger motor coach and truck "Coordinated Road and Rail Service" in the Cotton Belt's service area. This bold and progressive move by the Cotton Belt no doubt hastened the railroad's decision to apply to the ICC for authority in 1937 to abandon what were plainly becoming unprofitable branch lines.
In latter 1928 Southwestern Transportation Company purchased the Nunnellee bus lines and later bought the Mt. Pleasant to Texarkana bus line from Mellie Rogers of Mt. Pleasant. On December 18, 1928, the Southwestern Transportation Company took over operation of the Mt. Pleasant-Texarkana bus line, giving it a continuous line from Tyler, Texas to Pine Bluff, Arkansas, as well as several branch lines between the places. Southwestern Transportation rearranged schedules and provided twice the service as before, with one bus leaving Mt. Pleasant and Texarkana in the morning and afternoon.
On June 24, 1929, Texas Cotton Belt Railway Superintendent K. M. Post met with the Mt. Pleasant Chamber of Commerce to ask them to endorse a Cotton Belt proposal to discontinue passenger trains Nos. 3 and 4 between Mt. Pleasant and Texarkana, and a consequent schedule change allowing the trains to connect with the Lone Star Limited at 8:25 a.m. and 9:07 p.m.
He said that it would mean that instead of running these local trains through to Texarkana, they would stop and start in Mt. Pleasant, causing a six-man train crew to stay here each night. He said it would also mean that Mt. Pleasant's employees and shop facilities would be enlarged to take care of the engines.
The Chamber of Commerce endorsed the change, which was expected to become effective within two weeks.
Superintendent Post returned to Mt. Pleasant on October 31 to announce that the Cotton Belt planned to discontinue the day passenger trains running from Mt. Pleasant to Tyler soon, and the Texas Railroad Commission had granted permission to remove them from the schedule.
Mr. Post said that the trains had been losing about $2,000 per month lately because of declining passengers. He said that mail service would be handled by company buses that operated parallel with the Cotton Belt almost all the way between Mt. Pleasant and Tyler. He said that almost all commercial travel between the towns was already being done by bus.
He went on to say that the company was also considering discontinuing local passenger trains between Greenville and Dallas, and that the train that now made that run would start at Greenville, come to Mt. Pleasant, and then return to Greenville the same day.