The New Haven began removing the double track on the P&W mainline in the 1950s, and it was reduced to a single track with passing sidings by 1963. Passenger train service on the line was cut back during the 1950s as well; after experimenting with four local trains each way in 1953, the New Haven cut the schedule back to one local round trip per day in 1954; this round trip was also discontinued by 1957. The State of Maine Express ended operations in 1960, leaving no passenger trains on the line. Freight traffic also declined from the 1950s onward, as the Blackstone Valley's mills largely closed down and relocated to the Southern United States and trucking eroded railroad market share. In response to the declines in both passenger and freight traffic, the P&W's electric signal system was dismantled and the second track largely removed to lower maintenance costs. On July 7, 1961, the New Haven declared bankruptcy for a second and final time. Plans for regained independence While the New Haven was bankrupt again, it continued its lease payments just as it had done during the previous bankruptcy. This time, however, the New Haven's condition was much worse and the possibility of survival was remote; its operations and physical plant had both become seriously neglected. Starting in 1964, a group of Providence and Worcester shareholders began plotting to acquire the company. They recruited Robert H. Eder, a businessman from Providence, to lead their efforts. The group launched three proxy fights to take control; the last one ended in 1966 with Eder as the Providence and Worcester's new president. Under his presidency, the P&W released its first ever audited annual report, had all P&W property appraised, and also commissioned a third party firm to write a report evaluating whether the P&W could successfully resume operations as an independent railroad, if necessary. While attempting to restore the P&W as an independent company was an option, the P&W's leadership was primarily seeking inclusion of the company within another railroad by a new lease or merger. The possibility of an independent P&W was meant as leverage to help secure this goal. As part of negotiations to include the New Haven into the planned Penn Central Transportation Company merger, to be created by the New York Central and Pennsylvania railroads, the New Haven's bankruptcy trustees were told to disaffirm the P&W lease in January