In 1905, the Delaware and Eastern Railroad (later changed to the Delaware and Northern Railroad) was built. The railroad era lasted only into the 1940s. In 1907, Sanford brought the first automobile (a Pope-Toledo) to Margaretville. In 1922, Sanford built the Galli-Curci Theatre (named for the singer Amelita Galli-Curci) on Main Street. In 1925, Dr. Gordon Bostwick Maurer moved to the community, and his village home quickly became a "veritable hospital". On October 21, 1930, the Margaretville Hospital was incorporated and was built using a two-story white farmhouse near the current high school. On 1931 January 13, the Margaretville Hospital was opened. It was run by Dr. Maurer until his untimely death in 1938. The hospital was expanded in 1944, and again in 1947. In 1969, the Margaretville Memorial Hospital (dedicated to Dr. Maurer) replaced the older facility.