 In order to build in New York, the company, on June 24, 1850, took a perpetual rent-free lease of the franchise rights east of Salem of the Troy and Rutland Railroad, which had been chartered in that state on July 2, 1849.The remainder of the Troy and Rutland, from Salem west to Eagle Bridge, was completed in 1852 and leased to the Rutland and Washington effective July 2.After the Panic of 1857, a majority of the company's bonds were acquired by Jay Gould at 10 cents on the dollar, which left him in control of the company.