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The Scrantonian

Chronicling the Electric City

1840
Erie and Lackawanna Merge

MILESTONE

Erie and Lackawanna Merge

1960-10-17

On October 17, 1960, the Erie Railroad and the Delaware, Lackawanna and Western Railroad merged to form the Erie-Lackawanna Railroad. For Scranton, the merger ended more than a century of DL&W independence and folded the city's railroad yards, shops, and main line into a system run from Cleveland.

The Event

The last independent Lackawanna day

By 1960, the Delaware, Lackawanna and Western Railroad was no longer the confident coal road that had helped make Scranton. Passenger traffic had thinned, anthracite traffic had weakened, and the older eastern railroads were carrying too much duplicated track, too many terminals, and too much debt. The Erie Railroad had its own problems, but it still offered a western route toward Chicago. The Lackawanna offered a better eastern terminal position and the line through Scranton and Binghamton.

The two companies had been moving toward each other for years. Erie officials opened informal talks with the Lackawanna in 1954. Erie passenger trains began using Lackawanna’s Hoboken Terminal on October 13, 1956, and the two railroads shared trackage through parts of southern New York before the merger was final. Those arrangements made the formal combination less of a surprise than a confirmation of what the traffic had already forced.

October 17, 1960

The Interstate Commerce Commission approved the merger on September 13, 1960. On October 17, the Erie Railroad and the Delaware, Lackawanna and Western Railroad became the Erie-Lackawanna Railroad.

The new company ran 3,031 miles of track. Its principal routes included Hoboken to Newark, Scranton, Binghamton, and Buffalo, along with the Erie lines west toward Ohio, Indiana, and Chicago. Cleveland became the principal place of business. The Scranton railroad that had carried Lackawanna coal east for generations was now one part of a larger company trying to survive a shrinking railroad economy.

The corporate name changed quickly. In 1963 the company dropped the hyphen and became Erie Lackawanna Railroad. On March 1, 1968, after Norfolk and Western interests took control through Dereco, it became Erie Lackawanna Railway.

What changed in Scranton

The merger did not close Scranton’s railroad facilities overnight. Former DL&W power still appeared around the Scranton shops and roundhouse in the early 1960s, and the Hoboken-to-Scranton-to-Binghamton route remained part of the new railroad’s eastern system. But the old center of gravity had moved. Decisions that once belonged to a Lackawanna management world built around Scranton, Hoboken, and coal traffic now passed through a company whose principal business office was in Cleveland and whose survival depended on systemwide cuts.

That was the deeper local break. DL&W had been more than a railroad name in Scranton. Its yards, station, shops, and coal traffic shaped the physical city. After October 17, 1960, those assets remained in place, but they belonged to a railroad built from compromise: Erie western reach joined to Lackawanna eastern terminals, with both roads trying to shed duplicate costs faster than revenue disappeared.

A short reprieve

Erie Lackawanna did not collapse immediately. The company found some savings from the merger and, for a time in the late 1960s, regained profitability. The new railroad also kept alive three names that still pull at railroad historians: DL&W, Erie, and Erie Lackawanna.

The reprieve was thin. Passenger service kept shrinking, freight patterns changed, and the northeastern rail industry kept deteriorating. Hurricane Agnes in 1972 damaged Erie Lackawanna trackage across the region and pushed the company into bankruptcy that June. By 1976, the remaining Erie Lackawanna operations were absorbed into Conrail.

The yard that stayed

Scranton’s former DL&W yard outlasted the railroad names attached to it. Steamtown National Historic Site now occupies about 40 acres of that former Delaware, Lackawanna and Western Railroad yard. The Steamtown Foundation moved its collection there in 1984, and the yard eventually became part of the National Park System.

That afterlife matters because the 1960 merger did not erase the railroad city. It ended DL&W independence, shifted control away from Scranton, and began the final chapter of the Lackawanna as an operating railroad. But the tracks, shops, and station left enough behind that Scranton could turn a working railroad yard into a public memory of the industry that had built much of the city.

Timeline of Events

1954

Erie Railroad begins informal merger talks with the Delaware, Lackawanna and Western Railroad

1956-10-13

Erie passenger trains begin using Lackawanna's Hoboken Terminal

1960-09-13

Interstate Commerce Commission approves the Erie and DL&W merger

1960-10-17

Erie-Lackawanna Railroad begins operations

1963

Company drops the hyphen and becomes Erie Lackawanna Railroad

1968-03-01

Norfolk and Western subsidiary Dereco takes control and the company becomes Erie Lackawanna Railway

1972-06

Hurricane Agnes damages Erie Lackawanna trackage across the region

1972-06

Erie Lackawanna enters bankruptcy

1976

Erie Lackawanna operations are absorbed into Conrail

1984

Steamtown collection is moved to the former DL&W yard in Scranton

Sources & Further Reading