Updated: Jun 30
According to this map filed by the Houston & Texas Railroad with the Texas General Land Office, their rail line was proposed to extend to the Red River in 1872. Their terminus would be an apparently large town called Red River City, which, according to the map, was even bigger than Denison (the city that the MKT built).
Alas, Red River City never became Houston & Texas Central's terminus. Prior to the railroads, Red River City was a place to buy liquor after crossing the river on Colbert's ferry (and was referred to Shawnee Town on land maps). When the H&TC finally came into Grayson County in 1873 (not 1872 as this map suggests), the line stopped in Denison to meet up with the MKT.
Red River City is no more, and never much was.