Due to financial problems, the company did not begin construction until the state passed enabling legislation, which including reducing tax assessments, in 1852.

That portion of the line reached Warren, a distance of 66 miles, by 1859;[2] little construction occurred in 1860 amid the politics leading to the American Civil War.

The New York Times suggested that the railroad would be a major route connecting trade for petroleum between northwestern Pennsylvania and Philadelphia.

[6] Over the next three decades the P&E also experienced serious setbacks due to several major floods, storms, a bridge fire, and various operational accidents.

[2] The P&E and its successor (PRR) operated a significant 25-track freight classification yard and repair facility at Renovo, Pennsylvania, from 1866 until 1968.