I am somewhat familer with DERECO and there are pictures of thru Erie-Laccawanna Trains on D&H Track in Albany, NY. How much actualy affected opertions as N&W was taking D&H and the Erie out on "dates" has been noted by Jim Shaughnessy in his books and the D&H in Color. see-http://www.amazon.com/Delaware-Hudson-Color-Vol-1/dp/1878887106
N&W had an interest in both Erie Lackawanna and Delaware & Hudson, using Dereco as an intermediary to keep EL and D&H from bleeding red ink on N&W's balance sheet. EL, D&H and B&M were viewed as the next likely acquisitions for N&W after absorbing NKP, Wabash and P&WV in 1964. All of them were in poor financial shape and Dereco was a way of keeping them at arm's length. All of this went out the window with the Penn Central and other bankruptcies.
http://www.railroad.net/forums/viewtopic.php?t=47351&f=156The D&H S end will be sold to the Norfolk and Southern which will connect the Southern Tier line (Erie Laccawanna) to Scenectady Mohawk Yard. At one time the Erie had passenger trains to Albany NY thru Delamar NY. Norfolk and Western and the C&O and tried to merge all the eastern roads into one holding company called DERECO more about them here-
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