An early setback for the railroad occurred in 1895. The Centre Iron Company had made an exclusive contract with the PRR and its local subsidiaries for shipment of its products. Gephart held that the sheriff's sale of the Centre Iron properties to Valentine Iron had nullified the contract, and Valentine Iron began sending most of its traffic over the Central Railroad. While Gephart was initially successful, the PRR won on appeal, and Gephart was forced to step down as president of Valentine Iron, although he retained his post with the Central Railroad.