When the Vermont legislature created the state railroad commissioner in 1855 to oversee railway construction, maintenance, and operations, the first person appointed to the position was Charles Linsley, the Rutland and Burlington's counsel, and a member of its board of directors.

The purpose of this construction was to give the Rutland access to Canada, independent of the tracks of the competing Central Vermont.

[5] The company also had a line from Rutland southeast to Bellows Falls, in southeastern Vermont on the Connecticut River just opposite North Walpole, New Hampshire (still operated by the Vermont Railway), and a line from Rutland south to North Bennington; thence to Chatham, New York.

It also operated a night train counterpart, the Mount Royal, from Montreal to New York City, via Burlington and Rutland.

The Rutland's primary freight traffic was derived from dairy products, including milk, that used to move over the system.

Also in 1953, the Rutland parked and stored (dead) all of its last steam locomotives, which were finally all scrapped by 1955 in return for some much-needed revenue.

[10] In early 1961, following additional worker strikes (see below), including wage-increase demands that the railroad could not afford to pay and survive, the Rutland applied to the Interstate Commerce Commission for permission to completely abandon the entire line.

The changes would also have lengthened the total time of runs from Burlington to both Bellows Falls, Vermont and Ogdensburg, New York, due to their creation of a new overnight stop that would delay returning trains until the following day.

[17] Until it was relocated to Scranton, Pennsylvania, The Steamtown Foundation, located near the Bellows Falls terminus, operated tourist trains between the museum site and Chester, Vermont.