The railroad's passenger numbers were at a disadvantage with the railroad's major competitor in the northeast, the Pennsylvania Railroad. That railroad had a tunnel into Manhattan, thus carrying passengers directly into New York City. The B&O had no tunnel rights, and its New York City market trains actually terminated at the Central Railroad of New Jersey Terminal in Jersey City. From Philadelphia to Jersey City the B&O traveled over Reading Railroad tracks to Bound Brook and there joining Central Railroad of New Jersey tracks to Jersey City. Passengers rode CNJ ferries on B&O busses to Manhattan. Suffering from its weaker market position from Baltimore to New York, the B&O discontinued all passenger service north of Baltimore on April 26, 1958. On April 19, 1960, the railroad retired its last steam locomotive.