The lumber boom ended in the early 20th century and the line slowly declined until 1964, when it was purchased by the Wellsville, Addison and Galeton Railroad.
[4] The original plan for a railroad along the Allegheny River between Coudersport and Port Allegany was as a part of the Jersey Shore, Pine Creek and Buffalo Railway (JSPC&B), which was incorporated on February 17, 1870.
The JSPC&B was originally planned to run from the vicinity of Williamsport west to Jersey Shore, then north up Pine Creek and down the Allegheny River past Coudersport and west to Port Allegany,[5] as part of a larger route to Buffalo, New York.
[8] The unfinished JSPC&B route along the Allegheny River was acquired for $7000 and construction was carried out that summer with the first train reaching Coudersport on September 7, 1882.
The original 17-mile (27 km) line between Coudersport and Port Allegany was initially operated with two 4-4-0 steam locomotives.
[8] There was a connection with the 4 ft 8+1⁄2 in (1,435 mm) standard gauge Western New York and Pennsylvania Railroad at Port Allegany, and a Ramsey Car Transfer Apparatus was added there in 1883 so that lumber from mills on the line could be more easily loaded onto 4 ft 8+1⁄2 in (1,435 mm) standard gauge cars.
In 1887 a 2-6-0 locomotive was added, and in July the next year the stockholders voted to convert the line to 4 ft 8+1⁄2 in (1,435 mm) standard gauge, which was done on June 16, 1889.
By 1895 a new line was extended northeast along the Allegheny River east to Newfield Junction in Ulysses Township, Pennsylvania, where it connected with the Buffalo and Susquehanna Railroad, and then on to a new eastern terminus at the borough of Ulysses, where it linked with the Fall Brook Railway.