The syndicate of investors who owned the Canadian Pacific Railway also owned a large portion of the CL&EC, and when funds were needed to further work on the CPR, their shares were sold to the respected locomotive builder Dübs and Company, of Glasgow, Scotland, which eventually gained control effective January 1, 1888.

In January 1900, following the decision of both the CPR and the GTR to build their own locomotives, the CL&EC once again became insolvent, and the plant was closed.

By the end of World War II steam technology was at its peak, but production was declining except for exports to France, Belgium and India.

One of the last groups of steam locomotives, completed in 1955, was 120 1,676 mm (5 ft 6 in) broad gauge, streamlined 4-6-2 types for passenger service in India.

[1] CLC felt its future lay with diesel locomotives, but lacking expertise it sought out opportunities with existing builders in the United States.

CLC then turned to Fairbanks-Morse, a manufacturer of opposed piston diesel engines primarily used in maritime applications that was itself attempting to break into the railway locomotive market.

A Canadian-only DTC (Diesel Torque Converter) was built for the CPR featuring a diesel-hydraulic design rather than the conventional diesel-electric.

The site of the old plant (known as "Block D") sat vacant for 35 years while several proposed developments failed to materialize or obtain municipal approval.