 The new company was to operate the Altoona & Philipsburg Connecting, planning to convert to standard gauge and extend the two railroads to a junction at East Frugality, near Dougherty.The PJE&E would be extended further south through Ebensburg and then down to the Baltimore and Ohio Railroad at Johnstown.During this period, the line was known as the "Altoona Division" of the PJE&E.