Between 1871 and 1896 the Rutland Railroad was leased to the Central Vermont, regaining its independence when that road entered receivership. The New York Central Railroad briefly had a controlling interest in the Rutland from 1904, but sold half of its shares to the New York, New Haven & Hartford Railroad in 1911.
Never a solid financial operation, the Rutland entered receivership for the first time in 1938. Cost cutting, including wage reduction, brought things around.
Postwar, the decline continued. Many branches were closed down. 1950 saw the reorganisation as the Rutland Railway. 1953 saw three weeks of employee strike action, which killed off the remaining passenger service on the line. Further strike action in 1961 brought the realisation that the railroad was not viable, and the management applied to the Interstate Commerce Commission for complete abandonment. This was approved, and the railroad closed down on May 20, 1963. Much of the right-of-way was purchased by the State of Vermont.