Operation of the canal never proved profitable, least of all the 15-mile stretch between Nelsonville and Athens, where a number of salt works were located. Their owners, frustrated by the slow pace of the canal boats (4 miles per hour) and the unavailability of the canal in the winter when it often froze, began construction of the Columbus and Hocking Valley Railroad, which by 1857 competed with the canal for cargo.
The operation of the canal failed to yield profits, especially the 15-mile segment between Nelsonville and Athens, where several salt manufacturing facilities were situated. The owners, frustrated by the slow pace of the canal boats (4 miles per hour) and the unavailability of the canal during winter due to freezing, initiated construction of the Columbus and Hocking Valley Railroad by 1857, which soon competed with the canal for freight.