The City of New Orleans began life as the daytime companion train to the all-Pullman car Panama Limited that also traveled the IC's mailine from New Orleans, Louisiana to Chicago, Illinois. The daytime train was significantly cheaper. This train was a major part of the large migration of African Americans from the U.S. South during the early 20th century, as it was one of the cheaper transportation options available (wikipedia).Regarding the song-
City of New Orleans is a folk song written by Steve Goodman. Goodman got the idea while traveling on the eponymous train on a visit to his wife's family's house. He performed the song for Arlo Guthrie in the Quiet Knight, a bar in Chicago, and Guthrie agreed to add it to his repertoire. The song proved a hit for Guthrie in 1972, and is now more closely associated with him despite that Goodman performed it until his death in 1984 (wikipedia).Original Lyrics
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I'll try to get a copy of the original, but my source is currently trying to write a paper on some Spanish explorer and doesn't seem up for harassment right now.
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