The Americans continued to defy expectations in 1938–39. They again qualified for the playoffs, losing to Toronto in the first round, while Dutton was named an NHL Second-Team All-Star as coach. He led them to the playoffs again in 1939–40, but the loss of players due to World War II took its toll on the franchise. After finishing in last place the season before, the league announced that the Americans had suspended operations for the 1942–43 NHL season, though Dutton continued to represent the team on the Board of Governors. Dutton believed that if the Americans could have held on through the war, his team would become more popular than the Rangers. "A couple of more years and we would have run the Rangers right out of the rink," he said.