The Philadelphia and Erie Railroad was a railroad that operated in Pennsylvania

Pennsylvania

The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

 between 1861 and 1907. It was subsequently merged into the Pennsylvania Railroad

Pennsylvania Railroad

The Pennsylvania Railroad was an American Class I railroad, founded in 1846. Commonly referred to as the "Pennsy", the PRR was headquartered in Philadelphia, Pennsylvania....

 (PRR).

History

The Sunbury and Erie Railroad Company was chartered by the Commonwealth of Pennsylvania in 1837, to build a rail line connecting towns between Sunbury

Sunbury, Pennsylvania

Sunbury is a city in Northumberland County, Pennsylvania, United States. The city is located on the east bank of the Susquehanna River, just downstream of the confluence of its main and West branches. The population was 9,905 at the 2010 census...

 and Erie, Pennsylvania

Erie, Pennsylvania

Erie is a city located in northwestern Pennsylvania in the United States. Named for the lake and the Native American tribe that resided along its southern shore, Erie is the state's fourth-largest city , with a population of 102,000...

. Due to financial problems, the company did not begin construction until the state passed enabling legislation, which including reducing tax assessments, in 1852. By December 1854, 28.5 miles (45.9 km) of track were completed between Milton

Milton, Pennsylvania

Milton is a borough in Northumberland County, Pennsylvania, on the Susquehanna River, north of Harrisburg. Settled in 1770, it was incorporated in 1817, and is governed by a charter that was revised in 1890...

 (a junction with the Catawissa Railroad

Catawissa Railroad

The Catawissa Railroad was a railroad that operated in Pennsylvania between 1860 and 1953. For most of its lifespan it was leased by the Reading Railroad, and was subsequently merged into the Reading.-History:...

) and Williamsport

Williamsport, Pennsylvania

Williamsport is a city in and the county seat of Lycoming County, Pennsylvania in the United States. In 2009, the population was estimated at 29,304...

. The line reached Sunbury in 1855, a total of 40 miles (64.4 km). The company continued to experience financial problems, exacerbated by the Panic of 1857

Panic of 1857

The Panic of 1857 was a financial panic in the United States caused by the declining international economy and over-expansion of the domestic economy. Indeed, because of the interconnectedness of the world economy by the time of the 1850s, the financial crisis which began in the autumn of 1857 was...

. The tracks reached Lock Haven

Lock Haven, Pennsylvania

The city of Lock Haven is the county seat of Clinton County, in the U.S. state of Pennsylvania. Located near the confluence of the West Branch Susquehanna River and Bald Eagle Creek, it is the principal city of the Lock Haven, Pennsylvania, micropolitan statistical area, itself part of the...

 in 1859; little construction occurred in 1860 due to the politics leading to the American Civil War

American Civil War

The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...

.

In 1861 the Pennsylvania General Assembly

Pennsylvania General Assembly

The Pennsylvania General Assembly is the state legislature of the U.S. state of Pennsylvania. The legislature convenes in the State Capitol building in Harrisburg. In colonial times , the legislature was known as the Pennsylvania Provincial Assembly. Since the Constitution of 1776, written by...

 passed additional legislation to strengthen the company's financial position, and changed the company name to the Philadelphia and Erie Railroad (P&E). Other, related legislation authorized various railroad companies to lease the lines of other companies, and the PRR entered into a 999-year lease with the Philadelphia & Erie in 1862. That same year the PRR assumed control of the P&E. Labor shortages due to the Civil War further delayed construction.

The main line was completed to Erie in October 1864. The New York Times suggested that the railroad would be a major route connecting trade for petroleum among Northwest Pennsylvania and Philadelphia. The Erie Union Station opened on October 1, 1865.

The P&E opened a large coal transfer terminal at its Lake Erie

Lake Erie

Lake Erie is the fourth largest lake of the five Great Lakes in North America, and the tenth largest globally. It is the southernmost, shallowest, and smallest by volume of the Great Lakes and therefore also has the shortest average water residence time. It is bounded on the north by the...

 terminus in 1866. In 1867 the pier at Erie was expanded to handle ore shipments from the midwest. Despite these improvements, the P&E did not thrive, as it faced strong competition from the New York Central Railroad

New York Central Railroad

The New York Central Railroad , known simply as the New York Central in its publicity, was a railroad operating in the Northeastern United States...

. Over the next three decades the P&E also experienced serious setbacks due to several major floods, storms, a bridge fire, and various operational accidents.

The P&E was formally merged with the PRR in May 1907.