Baxter died in 1904, leaving as his heritage the now completed TC, which was heavily burdened with debt. Although the company was operating "in the black", they were unable to meet their bonded indebtedness, which was incurred from the building of the line. In 1905, the TC was leased for three years to the Illinois Central Railroad west of Nashville and the Southern east of Nashville. Due to unprofitable operations, neither line opted to renew their lease. In 1922, a group of investors led by Paul M. Davis bought the railroad at a bankruptcy sale, thus abolishing the bonded indebtedness. They hired former president Hugh Wright Stanley, who operated the line profitably (except during 1932 and 1933) until 1945. The first diesel-electric locomotive switcher was brought to Nashville in 1939 by the TC. Early 20th century passenger service The TC had passenger service from Nashville to Harriman, with through service to Knoxville in cooperation with the Southern Railway. In 1936 it had a day and a night train in each direction on the route. The night train served as a section of the Carolina Special, however, passengers would need to switch to other coaches or sleepers at Knoxville to continue the trip to Asheville and eastern North Carolina and southeastern South Carolina. Postwar years and decline Wartime traffic in the early 1940s brightened the financial picture, but after that hard times returned. Despite losses in 1946, a group of investors led by J. L. Armstrong bought out the Davis group. The last of the steam engines were pulled from service in 1952 due to the arrival of four diesel locomotives (along with 200 coal hoppers) financed by a Reconstruction Finance Corporation loan in the amount of $2.2 million. 1954 saw the opening of the first unit of the Tennessee Valley Authority's Kingston coal-fired power generating plant, which was largely fed coal from TC's own on-line coal mines operators. The company dropped money-losing passenger service on July 31, 1955, which by post-war years had narrowed to a single trip from Nashville to Harriman and a reverse trip. Also in that year, the TC ended operations of their steam locomotives. 1956 saw the TC purchase more diesel locomotives and coal hoppers with another RFC loan. Brief profitability was restored from 1949 through 1956. In 1957 the TVA began awarding contracts to non-TC coal mine operators and their traffic boom went bust. Although