The only reason for retaining the Troy passenger station at the bitter end was the remnant of B&M service from Boston with one or two Budd RDC’s. The NYC and D&H had the alternative of using Albany as their passenger interchange, and actually it switched back and forth between Albany and Troy for individual trains over the years. The B&M had nothing but Troy.
The D&H preferred Troy over Albany, because the distance from Colonie Shops (the Capital District locomotive service point and crew HQ) was shorter to Troy, and then they didn’t have to run the North Albany Yard Engine to Albany to handle the occasional passenger switching. The Troy Station Switcher (NYCRR crew) was in the station anyway. I don’t think the individual railroads paid for it per move, just a on a fixed percentage.
NYC preferred Albany, because it avoided running light engines the longer distance between…
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