After all the commotion, when the D&N workers were finally about to extend the line, the Interstate Commerce Commission wasn't allowing any extensions. There would be too much competition from other railroads. There were very few places that the railroad could get to Pennsylvania without crossing or touching another railroad. The new president sold the railroad to the State of New York in 1939 for $200,000, and was sinking $60,000 into the line every year until he sold it. The railroad was abandoned in 1942, with all the 40,000 tons of rolling stock and locomotives sold for scrap at a price of $50,000 a piece. The entire railroad was soon scrapped, with the Pepacton taking over most of its right-of-way.