On October 31, 1961 the L&NE Railroad Company officially ceased business. On the following day, November 1, 1961, all foreign rolling stock remaining on-line was delivered to interchange points, the Erie-Lackawanna Railroad acquired ownership of the Pen Argyl to Wind Gap right-of-way, and the CNJ - through its newly formed Lehigh & New England Railway Company - ownership of the Bethlehem Junction to Bath, Bath to Martins Creek, Allen Junction to Allentown, and Hauto to Tamaqua trackage. The following January 1962 the L&NE RY purchased industrial trackage in Catasauqua and approximately 4.4 miles of the ex-L&NE Catasauqua Branch from Crane Junction to the Penn Perlite Co. plant west of Schoenersville.
 
When the CNJ formed the Lehigh & New England Railway Company in 1961 it had assigned three diesel locomotives from its fleet to the new L&NE RY roster, including Nos. 1531, 1532, and 1601. Two of the three had participated in tragic CNJ history. Nos. 1531 and 1532 were the passenger GP-7s (as Nos. 1526 and 1532 respectively) that had taken the fatal plunge off of the Newark Bay drawbridge during 1958. Subsequent to the wreck they had been rebuilt by Electro Motive Division of General Motors into freight GP-9m's. No. 1532 had also been distinguished by having been the final and longest CNJ road power to wear the distinctive toothpaste stripe decorations of the Jersey Central Lines. In this view No. 1531 rests alongside the wreck of a less dramatic accident. CNJ Nos. 1091 was wrecked  when it ran through an open switch and rammed the side of a freight train. This wreck had been unfortunate, but not tragic. Ashley, PA, March 26, 1967 - Reverend A. W. Kovacs
 
(Note: The Photo of CNJ No. 1532 being raised from the depths of Newark Bay Channel is from the Tom Ernst collection, courtesy of Jack DeRosset.)
 
CNJ No. 1601 stops traffic as it rolls over a grade crossing on PA Route 512 south of Bath (Beth-Bath Pike). - northwestward view, October 19, 1965 - Reverend A. W. Kovacs
 
Another ALCO RSD-4, CNJ No. 1608, drilling the ex-L&NE Dexter Spur backs a cut of cement cars into Penn-Dixie Cement Company No. 4 Plant at Nazareth. Assigning three locomotives to the L&NE RY had been purely an accounting move. Over the years several different CNJ engines worked the cement region. The photographer had stood on PA Route 248 to record this scene. - northward view, October 11, 1968 - Reverend A. W. Kovacs
 
Leaving the Penn-Dixie Cement Company No. 4 Plant, CNJ No. 1608 crosses over PA Route 248 under flag protection. The E-L and the L&NE RY both serviced Penn-Dixie No. 4 and shared this stretch of track into the plant. In the distance, to the right of the locomotive, is the searchlight signal and tower (just a shanty) of Dexter Spur Interlocking. This interlocker regulated traffic on the spur crossing the Martins Creek Branch diamond (which is hidden in the weeds in front of the tower. - southward view, October 11, 1968 - Reverend A. W. Kovacs
 
The L&NE RY served six primary customers in Nazareth, Penn-Dixie Cement, Lone Star Cement, Nazareth Cement, Nazareth Steel Fabricators, St. Regis Paper, and Trumbower Co. (building supplies). In this view taken in Nazareth, CNJ No. 1702 has backed across PA Route 191, which ran north-south through the center of town, into Nazareth Steel Fabricators. - September 25, 1968 - Reverend A. W. Kovacs
 
Another day found CNJ No. 1540 with L&NE RY No. 584 drilling freight in Nazareth. The precise location of this scene and date are unknown. Reverend A. W. Kovacs
 
During 1974 the L&NE RY Company acquired three (L&NE RY Nos. 1533 to 1535) ex-RDG ALCO RS-3 diesel road switchers from the CNJ. The original RDG Pullman green paint was retained with all  markings painted out and a small LNE identification and road number substituted on the sides of the cab. The locomotive in this view, spotted in Cranford, NJ, used to be RDG No. 461. - June 1974 - Walter A. Appel
 
L&NE RY No. 20, an ancient flatbed Chevrolet truck of an unknown vintage with large crew cab on the bed, is parked at the CNJ's Bethlehem Engine Terminal. The door of the truck bears the amply punctuated identification "L. N. E. RY. Co. - 20 - BETH. - PA." - September 23, 1968 - Reverend A. W. Kovacs
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