The Norwich and Worcester tried to convince regulators and politicians it could resume service on its line, but was defeated by the efforts of the P&W, which took over operations that year.
Described by contemporary press as "extremely liberal", the charter did not specify a route, leaving the paths to both destinations up to the discretion of the company.
[6] The final cost of the line was about $1.5 million; only substantial loans from Massachusetts and the town of Norwich kept the company afloat during the Panic of 1837.
In December 1843, the railroad opened a 6-mile (9.7 km) extension southward along the east bank of the Thames to Allyn's Point in Ledyard, allowing year-round ship connections.
[9] Attempts to build a further extension to Long Island Sound at Groton were defeated by interference from the New London Northern Railroad, operator of a parallel line across the Thames River.
[7] In 1876, a section of the line was realigned in Norwich, using a new bridge over the Shetucket and a short tunnel under the side of Laurel Hill.
With southern New England's dominant railroad in control, the 6-mile (9.7 km) extension from Allyn's Point to Groton finally received approval.
[16] Hourly streetcar service between Norwich and Central Village began on June 17, 1907, sharing the tracks with steam trains.
[20] By this time, local passenger service on the line was provided by a self-propelled gas-electric railcar as a cost-cutting measure.
The company's bankruptcy trustees eventually disaffirmed the Norwich and Worcester Railroad lease, but per an Interstate Commerce Commission (ICC) order, the New Haven continued to operate the N&W.
[5] The New Haven was succeeded by Penn Central Transportation Company at the end of 1968, and the order to continue operations transferred as well.
[24] Penn Central declared bankruptcy in 1970, and as a result was selected for inclusion in government-formed Conrail, which was to begin operations in 1976.
[27][28] A coalition of industry groups, rail unions, and several members of Connecticut's congressional delegation (including representative Chris Dodd and senator Lowell Weicker) all endorsed the P&W's takeover request.
[26][27][28] Conrail's Final System Plan, prepared by the United States Railway Association (USRA), divided the Norwich and Worcester main line into two segments – the southern portion between Groton and Plainfield, with heavier rail traffic, would be included in Conrail, while the remainder of the line would instead go to the Providence and Worcester.
[16] However, the USRA also included a contingency allowing 60 days for the Norwich and Worcester to submit a comprehensive plan showing how it would establish rail service comparable to that which Conrail and the P&W would provide.
[24] Finally, failing the previous options occurring, the USRA issued a non-binding recommendation that Conrail and P&W reach an agreement for the latter to operate the entirety of the line.
[25] Left without a railroad, the Norwich and Worcester's outstanding shares were surrendered between 1985 and 1986, and the company merged into the remnants of Penn Central.
[29] The remains of the downtown Norwich shops, including the foundations of roundhouses built in 1860 and 1889, were found in 1998 during surveys prior to construction of a then-planned transportation center.