In 1850, the Pennsylvania Coal Company constructed its own gravity railroad from the coal fields to the port at Hawley and the canal enjoyed increased traffic, carrying over 300,000 tons of PCC coal in the first season. However, the relationship between the two companies soured after the canal attempted to raise tolls under the argument that canal improvements had reduced costs for the PCC. The dispute led to the courts and was decided in 1863, but by that time the Erie Railroad constructed its extension to Hawley and the PCC moved its shipments to the railroad.