In 1931, the Panhandle and Santa Fe leased two separate companies: the Clinton and Oklahoma Western Railroad Company and the Clinton-Oklahoma-Western Railroad Company of Texas, which together serviced the track from Clinton, Oklahoma, west to Hemphill County, Texas, and southwest to Pampa, located northeast of the headquarters city of Amarillo in Gray County, Texas.
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Bledsoe was founded in 1925 as the terminus of the Panhandle and Santa Fe Railway, and named for Samuel T. Bledsoe, the line's president.