This new railroad had William H. Seif as the new president, and still had the plans of the old railroad, hoping to extend to Wilkes-Barre and Schenectady. Many changes were made; three of the D&E's old locomotives were scrapped (D&N #1-3), and the remaining two (D&E #2 & 4), were reassigned as D&N locomotives #4 & 6, along with new ones purchased from the Chicago and Eastern Illinois Railroad, along with the headquarters being moved from Downsville to Margaretville, with an entire yard built there. Margaretville was now the busiest part of the line, with 20 workers and two motor cars for maintenance on the line, and when it was time for the town fair, ten people were given jobs at the shops.