Altoona and Beech Creek Railroad - Extension and Legal Battle

Extension and Legal Battle

Patterson wished to extend the line to Dougherty, and a further 12 miles (19 km) to Coalport on Clearfield Creek. To finance the extension, the shareholders, in November 1891, authorized a $60,000 mortgage on the property, and allowed Patterson to issue himself 600 additional shares of stock. He did so, but never paid the money due for them to the company's treasury.

On January 22, 1892, the railroad's name was changed to the Altoona, Clearfield and Northern Railroad to reflect the projected extension, which was built that year as far as Dougherty. However, a struggle for control of the railroad now ensued.

Patterson had agreed to sell 60% of the company's stock to James Kerr, who was expected in turn to sell the stock to the Pennsylvania Railroad, at whose Juniata station the line terminated. However, before Patterson could transfer the stock to Kerr, several other directors of the railroad, including Shellenberger, contracted to sell a majority interest in the railroad to Samuel P. Langdon. Langdon controlled the Altoona and Philipsburg Connecting Railroad, a short line in the Philipsburg area whose southern end would reach Ramey, about 17 miles (27 km) from Dougherty, in 1894. He intended to connect the two railroads and use the AC&N to enter Altoona.

Patterson and Langdon both claimed to control a majority of the company's stock, and in February 1893, rival boards of directors were elected by stockholders loyal to those two figures. The issue of 600 shares to Patterson, authorized in 1891, turned the issue, and its validity was ultimately upheld by the Supreme Court of Pennsylvania and Patterson's board of directors ordered seated. Langdon promptly petitioned for a receivership, and was appointed joint receiver with Patterson. Patterson, however, took most of the responsibility for operations. He was responsible having wyes installed at Wopsononock and Juniata in late 1894 so that the railroad's engines did not have to back down the mountain. The co-receivership was lifted on July 6, 1896, and Patterson took full control of the railroad again. However, the railroad failed to cover its operating expenses shortly thereafter, and Patterson was re-appointed receiver on September 28, 1896. On February 29, 1897, it was sold under foreclosure to William L. Shellenberger, on behalf of the bondholders—the group which had allied with Langdon. On March 17, 1897, it was reorganized as the Altoona and Beech Creek Railroad.

Shellenberger and his fellow bondholders had good reason to seek control of the railroad. After their failure to deliver control of the road to Langdon, he brought suit against them. In exchange for his dropping the suit, they agreed to lease the Altoona and Beech Creek to the Pittsburgh, Johnstown, Ebensburg and Eastern Railroad, a holding company formed by Langdon, on highly favorable terms. The new company was to operate the Altoona & Philipsburg Connecting, planning to convert to standard gauge and extend the two railroads to a junction at East Frugality, near Dougherty. The PJE&E would be extended further south through Ebensburg and then down to the Baltimore and Ohio Railroad at Johnstown. During this period, the line was known as the "Altoona Division" of the PJE&E. On December 17, 1898, Langdon chartered the Altoona and Beech Creek Terminal Railroad, which would extend the Altoona and Beech Creek from Juniata to a new terminal at 9th Street and 15th Avenue in Altoona. However, he was unable to carry out these plans, and his lease was invalidated on March 27, 1900. Through appeals and legal maneuvers, Langdon was able to hold out until December 27, 1901, when the Sheriff of Blair County ejected the PJE&E employees and returned the Altoona and Beech Creek to its stockholders. The Altoona and Beech Creek Terminal was dissolved in 1905–6.

The Altoona and Beech Creek reported itself in the Official Guide of 1903 as having been extended to Fallentimber, 5 miles (8.0 km) beyond Dougherty. However, it does not appear that this extension was, in fact, built. By 1909, the railroad had built two short branches of 1.4 miles (2.3 km) each at the Juniata end of the line. The Kipple Branch left the main line near Broadway and Penn Avenue, Juniata, and circled around to the north, serving a few local industries and reaching the PRR's main line at Juniata Junction, near 2nd Avenue and 10th Street. The Fairview Branch ran southwest from a wye near 25th Avenue and Broadway to end in the Fairview neighborhood of Altoona, at 23rd Avenue and 10th Street.

Despite the battle waged for possession of it, the railroad had not been very profitable. Passenger traffic to Wopsononock had been declining, and coal traffic from Dougherty was rather limited. Shellenberger installed a rock crusher atop the mountain, which also provided revenue. A major forest fire destroyed both the Wopsononock Hotel and the coal tipple at Dougherty on April 30, 1903. When the railroad became insolvent again, Shellenberger was appointed receiver on June 4, 1909. It was once more sold under foreclosure on April 30, 1910 to H.A. Davis, and reorganized as the Altoona, Juniata and Northern Railway.