Operations were transferred to the New York City Transit Authority on June 15, 1953. Passenger service on McDonald Avenue ended on October 31, 1958, and thereafter the South Brooklyn Railway started using the surface trackage solely for freight. In 1960, two more diesel electric locomotives were bought. On December 27, 1961, the line was de-electrified, due to the high cost of refurbishing the overhead trolley wire. Electric locomotives #4, 5, 6, and 7, which had third rail conduction shoes, were given to the NYCTA for subway and elevated operation.