Erie Lackawanna Railway – EL

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Erie Lackawanna: A Merger Out Of Financial Necessity

The Erie Lackawanna Railway (EL), formed from the 1960 merger of two historic railroads, represents a critical yet turbulent period in American railroading. Emerging amid industry consolidation, it aimed to survive economic pressures but ultimately succumbed to them. This overview examines its history, post-merger purpose, financial trajectory, merged routes across the Appalachian Mountains, and its enduring legacy today.

History

The EL’s roots trace to its predecessors: the Erie Railroad and the Delaware, Lackawanna & Western Railroad (DL&W). The Erie, chartered in 1832 as the New York & Erie Railroad, began operations in 1841 and grew into a major trunk line connecting New York to Chicago by the 1850s. Spanning six states—New Jersey, Pennsylvania, New York, Ohio, Indiana, and Illinois—it totaled over 2,200 miles and focused on freight like coal, iron, and general merchandise. The DL&W, formed in 1853, specialized in anthracite coal transport from Pennsylvania’s valleys to eastern markets, operating about 940 miles.

By the late 1950s, both faced declining revenues from competition with trucks, airlines, and pipelines, plus shifting energy sources away from coal. Merger talks began in 1956, culminating on October 17, 1960, when the Interstate Commerce Commission approved the union, creating the Erie Lackawanna Railroad (renamed Railway in 1968). The merger eliminated redundancies, such as parallel tracks in New Jersey and Pennsylvania, reducing the combined network to around 3,000 miles. Initial optimism faded as operational challenges persisted. Passenger services, including the famous Phoebe Snow train, continued briefly but ended in 1970 due to losses.

The EL’s fortunes worsened with Hurricane Agnes in June 1972, which devastated infrastructure in New York and Pennsylvania, causing washouts and bridge collapses. Bankruptcy followed on June 26, 1972. In 1976, the EL was absorbed into Conrail, a government-formed entity consolidating bankrupt northeastern railroads like Penn Central and Reading. This marked the end of independent operations, though liquidation continued into the 1980s via Erie Lackawanna Inc.

Purpose Post-Merger

Post-merger, the EL’s primary purpose was to achieve economies of scale and financial stability by integrating the Erie’s Midwestern reach with the DL&W’s efficient eastern coal routes. The combined system served as a bridge line, facilitating freight interchange between Chicago and New York/New Jersey ports, competing with giants like the New York Central and Pennsylvania Railroad. Freight dominated, with coal remaining key from Pennsylvania mines, supplemented by automotive parts, chemicals, and agricultural goods.

Operations focused on rationalization: abandoning duplicate lines, consolidating yards (e.g., in Scranton and Binghamton), and modernizing with diesel locomotives. Passenger services, though secondary, included commuter runs in New Jersey and long-distance trains like the Lake Cities from Chicago to Hoboken. The merger aimed to cut costs by $40 million annually through shared facilities and reduced workforce. However, integration proved challenging due to differing corporate cultures and infrastructure standards. By the late 1960s, the EL explored further mergers, including proposals with the Chesapeake & Ohio or Norfolk & Western, but none materialized before bankruptcy. Ultimately, its purpose shifted from growth to survival amid interstate highway expansion and deregulation pressures.

Financial History

The EL’s financial story is one of inherited woes and escalating crises. Pre-merger, the Erie had endured multiple bankruptcies (e.g., 1938), while the DL&W suffered from anthracite decline. The 1960 merger was a Hail Mary to stem losses, with combined debts exceeding $500 million. Initial years showed modest gains; revenues held steady in constant dollars until 1968, supported by freight traffic.

However, passenger deficits mounted, and freight competition intensified with the completion of Interstate 80 in 1971, diverting truckable goods. Annual losses averaged $15-20 million in the late 1960s. Hurricane Agnes inflicted $9.2 million in damages (equivalent to over $60 million today), destroying 200 miles of track and halting operations for weeks. This triggered bankruptcy in 1972, with debts over $300 million. Reorganization efforts failed amid the 1973 oil crisis and recession.

In 1976, Conrail absorbed viable assets, while non-rail properties were liquidated through Erie Lackawanna Inc. in 1982. The EL’s collapse highlighted systemic issues in northeastern railroading, including overregulation and underinvestment.

Merged Routes Across the Appalachian Mountains

The EL’s merged network ingeniously navigated the Appalachian Mountains, blending the Erie’s winding paths with the DL&W’s engineering feats. The Appalachians, encompassing ridges like the Poconos, Kittatinny, and Shawangunk Mountains, posed steep grades and valleys requiring tunnels, cuts, and viaducts.

From the east, the DL&W’s Lackawanna Cut-Off (1908-1911) crossed northwestern New Jersey’s Kittatinny Ridge with massive rock cuts over 100 feet deep and the 1,100-foot Paulinskill Viaduct. This 28-mile straightaway shortened routes by 11 miles, enabling 70 mph speeds across rugged terrain. Westward from Scranton, the Tunkhannock Viaduct (1915), the world’s largest concrete bridge at 2,375 feet long and 240 feet high, spanned the Endless Mountains.

The Erie’s contributions included the Otisville Tunnel through Shawangunk Mountain in New York (1847), one of the earliest Appalachian crossings. Post-merger, freight preferentially used the DL&W’s low-grade lines over the Erie’s Graham Line for efficiency. Routes paralleled rivers like the Chemung and Susquehanna, minimizing climbs to under 1% grades. These integrations allowed heavy coal trains to traverse from Pennsylvania mines to Midwestern markets, though post-1972 damage led to abandonments.

How It Exists Today

Though dissolved in 1976, the EL’s legacy persists through active rail lines, preservation, and historical societies. Conrail’s assets were split in 1999 between Norfolk Southern (NS) and CSX Transportation. NS operates much of the former mainline from Chicago to New York, including segments across the Appalachians for freight like intermodal and chemicals. East of Ohio, routes remain largely intact; west of Marion, Ohio, much has been abandoned or downgraded to local service.

NJ Transit runs commuter services on ex-EL tracks, such as the Morris & Essex and Boonton Lines to Hoboken. Short lines like the Delaware-Lackawanna in Scranton handle local freight on former DL&W trackage. Abandoned sections, including parts of the Lackawanna Cut-Off, are being restored for Amtrak or trails.

Preservation thrives via the Erie Lackawanna Historical Society, which archives documents and hosts events. Museums like Steamtown National Historic Site display EL artifacts. NJ Transit honors the heritage with locomotives in EL paint schemes. Today, the EL symbolizes the challenges of mid-20th-century railroading, with its infrastructure supporting modern logistics while educating on industrial history.

For More Information – Sources and Resources

The following are excellent resources for those of you wanting to explore and learn more about the history and operation of the Appalachian Railroads. These sources of information also serve as reference and historical materials for Appalachian-Railroads.org. Much of the collective railroad history data points on this website are verified across multiple sources.

3Cs Websites

Appalachian-Railroads.org | Clinchfield.org | Southern-Railroads.org