A Brief History of the

Delaware & Hudson Railway

excerpted from the book Delaware & Hudson: The Final Years, 1968 to 1991 and used here with permission and editorial assistance from author Rudy Garbely


Originally chartered on April 23, 1823, as “The President, Managers and Company of the Delaware and Hudson Canal Company,” the Delaware & Hudson was one of the most historic transportation companies in North America. Originally conceived to bring coal from northeastern Pennsylvania to tidewater on the Hudson River, the D&H Canal became an important transportation link that contributed to the economic and population growth of the regions it served. Construction on the canal began in Beatysburg, New York (later renamed Summitville) on July 13, 1825, and the full route from Rondout (just south of Kingston, New York) to Honesdale, Pennsylvania was opened to navigation on October 16, 1828.

Realizing that the canal’s survival depended on a reliable way to funnel traffic to its ports, the D&H chartered the 4’3” gauge Delaware & Hudson Gravity Railroad to bring anthracite coal from the mines near Carbondale, Pennsylvania to the canal at Honesdale. Construction was authorized on April 8, 1826, and on the first stretch of track built west from Honesdale, the Stourbridge Lion made the first run of a locomotive on rails in the United States on August 8, 1829. From Carbondale, the railroad was built westward in stages, reaching Scranton in 1863. Meanwhile, through a series of acquisitions of smaller roads and new construction to connect them, the first D&H standard gauge railroad line reached north from Carbondale to Albany, New York and opened on October 28, 1870. Additional mergers, acquisitions, and construction brought the northern terminus of the standard gauge line to the Canadian border at Rouses Point, New York on November 29, 1875.

The completion of the largely parallel New York & Erie Railroad on May 14, 1851, made the D&H Canal an obsolete transportation method just 23 years after its opening. After several decades of decline, the last boat traversed the D&H Canal on November 5, 1898, making the Delaware & Hudson Canal Company exclusively an operator of railroads. The gravity railroad that once fed the canal was reduced to passenger service only and it subsequently closed on January 3, 1899. By January 22nd, the former gravity railroad from Carbondale to Scranton had been converted to standard gauge to be used along with the rest of the system, and the D&H’s acquisition of trackage rights on the Lehigh & Susquehanna Railroad brought the southern end of the line to Wilkes-Barre, Pennsylvania. This created a total main line route of 744 miles from Wilkes-Barre to Rouses Point, not including branches or secondary lines. On April 28, 1899, the company name was changed to the Delaware & Hudson Company to reflect the lack of any remaining canal-related operations.

The D&H purchased the 31-mile Greenwich & Johnsonville Railway in 1906 and the 29-mile Napierville Junction Railway on April 9, 1907. The latter line gave the D&H a direct connection from the Canadian border at Rouses Point to St. Constant Junction in Delson, Quebec. This made the D&H the shortest and fastest route from Albany to Montreal, bringing in a significant amount of international bridge traffic to the railroad. Additional bridge traffic was routed via the D&H from points west to reach the Boston & Maine at the D&H interchange in Mechanicville, New York. The Wilkes-Barre Connecting Railroad, jointly chartered in 1912 by the D&H and the Pennsylvania Railroad, opened on March 29, 1915, to provide a new connection between the two lines that provided even more bridge traffic via nearly the entire length of the D&H. By the late 1930s, the company began branding itself as “the Bridge Line to New England and Canada”, reflecting the D&H’s status in the North American railroad network.

Due to its location roughly at the midpoint of the line, Albany had been selected as a logical home for the company as early as 1890, when a large D&H office building was constructed on the corner of North Pearl and Steuben Streets (which is still extant today). As the railroad and its staff grew, the D&H’s new (and now iconic) headquarters building was constructed along State Street between 1914 and 1918. Prosperity followed; ninety-seven new businesses located along the D&H in the railroad’s centennial year (1923). The railroad’s success led the D&H to consolidate its rail operations, incorporating the Delaware & Hudson Railroad Corporation on December 1, 1928, and transferring all its rail property to the new wholly-owned subsidiary corporation on April 1, 1930. In addition to the railroad, the parent Delaware & Hudson Company continued to own the Greenwich & Johnsonville Railway, the Napierville Junction Railway, and a variety of other related holdings (such as the Hudson Coal Company).

The D&H’s last major route expansion occurred on January 1, 1955, with the purchase of the Erie Railroad’s 34.6-mile Jefferson Branch from Carbondale to Lanesboro, Pennsylvania. This line had been constructed jointly by the D&H and the Erie just after the Civil War and the D&H’s trackage rights on this branch had allowed it to connect its gravity railroad in Carbondale with its own line from Lanesboro to Albany in 1870. The D&H’s purchase of the former Erie line solidified the connection of the D&H’s existing routes from Wilkes-Barre to Carbondale and from Lanesboro to Nineveh Junction, all of which were combined to become the D&H’s famed Pennsylvania (Penn) Division.

By the 1940s, the reliability and cost savings of diesel-electric locomotives over steam engines were undeniable, and the first diesel locomotive arrived on the D&H roster in May of 1944. The last steam locomotives dropped their fires on July 22, 1953. The black and yellow paint scheme that was carried over from the steam era was replaced in January of 1961 with a striking gray-and-blue “lightning stripe” scheme that became a defining characteristic of the D&H’s motive power for the next thirty years.

Passenger rail services across the United States began to hemorrhage money in the 1960s due to the competition afforded by new airlines and the new interstate highway system. The federal government stepped in, forming Amtrak to take over interstate passenger rail services across the country. Amtrak declined to continue operations of the D&H’s daytime Laurentian and overnight Montreal Limited, and these trains were discontinued effective on May 1, 1971 - the first day of Amtrak operations.

The 1960s were a decade of mergers and acquisitions in the U.S. railroad scene, and the D&H was not immune. On July 1, 1968, the D&H was acquired by Dereco, a subsidiary of the Norfolk & Western Railway. All assets of the Delaware & Hudson Railroad Corporation were transferred to a new Dereco subsidiary, the Delaware & Hudson Railway Company. Several D&H branch lines were abandoned or sold off in the late 1960s and early 1970s as they succumbed to truck competition and the relocation of manufacturing facilities. The year 1973 was marked by the railroad’s grand sesquicentennial celebration. A special train of historic displays was operated throughout the D&H system during April and May of that year, while excursions were operated for both employees and the public.

(click map to enlarge)

In 1974, regular passenger trains returned to the D&H between Albany and Montreal. Amtrak’s new Adirondack service, which followed the original route of the Laurentian and Montreal Limited, commenced operations on August 5, 1974 using D&H equipment and crews. This arrangement continued until March 1, 1977, when the D&H-supplied equipment was replaced by Amtrak Turboliners. Modern Amtrak equipment continues to operate the Adirondack route over the former D&H today.

Meanwhile, the freight rail situation in the northeast had deteriorated rapidly in the early 1970s, spurred by competition from trucks and over-regulation from the government. By 1972, nearly every freight railroad surrounding the D&H was bankrupt and under the protection of the courts, which kept the railroads operating as a vital public service. As it had done with Amtrak, the federal government again stepped in, creating Conrail to take over the operations of six bankrupt railroads on April 1, 1976. As the D&H was the only remaining viable railroad in the northeast, it was viewed as the necessary competition for the new Conrail system. As a result, the D&H was doubled in size overnight through the acquisition of the former Pennsylvania Railroad Wilkes-Barre Branch and a variety of trackage rights agreements on the new Conrail system, allowing the D&H to directly serve several major terminals throughout the new Conrail system using Conrail’s own tracks.

While the expansion was lauded as a great opportunity for the D&H, a paint scheme change in September of 1977 indicated the reality of the situation. The classic “lightning stripe” scheme was simplified to a solid blue scheme to save money, as the railroad was massively overextended and bleeding money rapidly. By 1980, the railroad was in dire financial straits.

In 1981, Guilford Transportation Industries - owners of the Maine Central Railroad - signed an agreement to purchase the D&H. An influx of Guilford capital meant that the D&H was able to briefly revert to painting locomotives in its classic “lightning stripe” scheme before taking on Guilford’s charcoal and orange colors. Guilford acquired the Boston & Maine in 1983 and finally completed its purchase of the Delaware & Hudson Railway Company from Dereco on January 4, 1984, creating what was projected to become a strong and united New England rail network. However, it was not to be, as management disputes with labor, strikes, and the D&H’s long-suffering finances posed insurmountable issues. The D&H declared bankruptcy on June 20, 1988.

The New York, Susquehanna & Western Railway was directed by the court to operate the D&H until a plan could be formulated. It was eventually decided to put the D&H up for sale, and on January 16, 1991, the entire D&H - spanning from Sunbury, Pennsylvania to Rouses Point, New York - was sold to the Canadian Pacific Railway, known then as CP Rail. The assets of the Delaware & Hudson Railway Company were transferred to the D&H Corporation, a new CP Rail subsidiary.

Little by little, the D&H lost its independent identity in a sea of CP Rail red paint through the early 1990s. In the early 2000s, the D&H Corporation was merged into CP Rail entirely, and on September 18, 2015, the southern half of the D&H (from Sunbury, Pennsylvania to Mechanicville, New York) was sold to the Norfolk Southern Railway, becoming that railroad’s Sunbury Line. CP Rail itself merged with the Kansas City Southern Railway on April 14, 2023, forming CPKC.

Today, the northern end of the former Delaware & Hudson Railway comprises a significant part of the CPKC network, providing access to the Port of Albany and portions of New England via interchanges in Mechanicville and Albany. It also forms an important route for American trade north into Canada along Lake Champlain. Similarly, the southern end of the D&H is a direct route for Norfolk Southern freight moving east-west between Harrisburg and various New England connections. The physical line of the D&H, therefore, remains an important bridge line to New England and Canada, serving much the same purpose today as it did when the famous D&H slogan was first conceived in the late 1930s.

Most of the D&H’s former employees are now enjoying their retirement from the railroad industry. However, their stories and memories of “North America’s oldest continually-operated transportation company” are now being preserved by the hard-working volunteers of the Delaware & Hudson Railway Historical Society.


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