Hurricane Agnes hit the East on June 22, 1972. After estimating that the damage to EL, principally between Binghamton and Salamanca, New York, amounted to $2 million ($ today), EL filed for bankruptcy on June 26, 1972. During the reorganization of the eastern railroads, it was thought that EL might be able to reorganize on its own, and there was a proposal by Chessie System to buy a portion of the EL. However, operating unions could not reach a compromise, and Chessie canceled the agreement. Also, by 1975, the economy in the eastern United States was affected by the 1973 oil crisis, hurting any hopes of EL being able to independently compete with government-rehabilitated Conrail lines. Not surprisingly, EL asked to be included in Conrail. Due to the low density of traffic, the Honesdale Branch would not be included. Wayne County then made plans to purchase the line from EL to avoid abandonment.