through train from Oswego to Jersey City operated on July 9, 1873. While the goals of the two partners had been reached, the Panic of 1873 caused financial ruin for both companies. The NY&OM suspended lease payments, and the agreement was broken. The NY&OM was reorganized as the New York, Ontario and Western Railway in 1879, and went its separate way. The NJM took over the lease of the MU&WG as well. Unable to weather the financial storm, the NJM was put into receivership in 1875. In 1880, the NJM was reorganized as the New Jersey Midland Railroad (NJM), and attention was once again turned to the lucrative coal fields of eastern Pennsylvania. Formation and as an independent railroad In 1881, the New Jersey Midland Railroad was consolidated with five other railroads to form the New York, Susquehanna and Western Railway. The new New York, Susquehanna and Western Railway had extended west to Gravel Place, Pennsylvania, and a connection with the Delaware, Lackawanna and Western Railway (DL&W). The NYS&W also had a connection to the DL&W at Delaware, New Jersey via the Blairstown Railway. Due to the increased volume of traffic, the railroad was double-tracked from Paterson to Jersey City in 1887. To reach the port on the Hudson River waterfront, traffic was handed off to the Pennsylvania Railroad at Marion Junction via the Hudson Connecting Railway. To keep more of the line haul revenue for themselves, the Susquehanna extended their line from their Little Ferry Yard through the new Palisades Tunnel to a new terminal at Edgewater where they had constructed coal docks for transfer from train to boat in 1892. The NYSW also reached west of the Delaware River and leased the Wilkes-Barre and Eastern Railroad to access the Scranton area directly and divert traffic away from the Lackawanna. American financier J.P. Morgan began to take notice of this rapidly expanding coal-hauler, and quietly bought up its stock on behalf of the Erie Railroad. The railroad was leased in 1898 by the Erie, which soon after took over complete operation of the line. The NYS&W was reported as the first Class I railroad in the US to completely replace its steam locomotives with internal combustion motive power, in the form of diesel electric locomotives, in early June 1945. By that time the railroad was profitably operating a suburban commuter passenger service across New Jersey, as well as being