By that time the railroad was a financially starved remnant from Klondike gold rush days, with well-worn engines and rolling stock. Despite this, the railroad moved 67,496 tons during the first 9 months of 1942, more than double its prewar annual traffic. Even this was deemed insufficient, and so the U.S. Government leased the railroad for the duration, effective at 12:01 a.m. on 1 October 1942, handing control to the United States Army. What became the 770th Railway Operating Battalion of the Military Railway Service took over train operations in company with the WP&Y's civilian staff.