As the founder and president of the Vermont Central Railroad Paine built its headquarters in his home town of Northfield, despite the hilly terrain, earning the enmity of residents of larger, more accessible nearby towns. In the extensive yard, engines and railroad cars were built and repaired. In 1853 the Vermont Central Railroad went into bankruptcy due to overexpansion and, in some cases, mismanagement. The railroad was placed under receivership and renamed the Central Vermont Railroad. Its headquarters were moved to St. Albans.