The Norfolk & Western Railway was established through a reorganization of the bankrupt Norfolk and Western Railroad in 1896, the latter company itself having arisen from the Atlantic, Mississippi & Ohio Railroad, a successor to the Norfolk and Petersburg Railroad. In order to raise capital to pay off debt, meet its payroll and other obligations, and make continued improvements to the line, the new company issued $23 million in preferred stock, $66 million in common stock, and $62.5 million gold bonds paying four percent, secured through a consolidated mortgage to the Mercantile Trust Company of New York.

Through expansion and various mergers, the company grew to become a major U.S. carrier, serving 14 states. The company manufactured steam locomotives at its own Roanoke Machine Works (established in Roanoke, Virginia in 1882), and among the railroad's affiliated holdings were several hotels. In 1982, the N&W combined with the Southern Railway to form Norfolk Southern Corporation.