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In early 1961, following additional worker strikes (see below), including wage-increase demands that the railroad could not afford to pay and survive, the Rutland applied to the [[Interstate Commerce Commission]] for permission to completely abandon the entire line. The measure was swiftly approved, and the railroad was completely shut-down (but not formally abandoned) in early 1961. The strikes were the result of the employees' unwillingness to accept divisional operating changes that would have moved the center of operations from Rutland to Burlington, requiring many of them to relocate. The changes would also have lengthened the total time of runs from Burlington to both [[Bellows Falls, Vermont]] and [[Ogdensburg, New York]], due to their creation of a new overnight stop that would delay returning trains until the following day. Under operating orders in place at the time, crews would make the run from Rutland to Burlington or Bellows Falls and back in a day, or from [[Malone (village), New York|Malone, New York]] to Ogdensburg and Burlington and back in a day. Several years later, the national railroad unions agreed to nationwide job changes that allowed this type of change: far too late to save the old Rutland.<ref> Entire section follows the earlier text, but timeline and specific years corrected. Additional facts from www.rutlandrr.org. </ref>
The State of Vermont persuaded the Vermont bankruptcy court to postpone selling the railroad for net scrap value,
Much of the remaining railroad right-of-way, tracks and facilities were purchased by the State of Vermont via the Vermont bankruptcy court following formal abandonment in 1963. However, a 132.4-mile segment between Burlington passenger station and Norwood, NY <ref> Rutland Railroad Employee Timetable, 1954 </ref> , via the Hero Islands and Alburgh, VT and through Rouses Point and Malone to Norwood, NY, was not only closed in 1961 and abandoned in 1963, but was also torn-up in 1964. <ref> State of Vermont and Vermont Railway news releases </ref> Unlucky Malone, NY thus went from having one railroad to none, previously reduced from two to one when the northern portion of the New York Central's Adirondack Division through Malone was abandoned and torn-up in 1960.<ref> New York Central System Historical Society "blogspot": www.nycshs.org </ref> The 26 westernmost miles of the Rutland's Ogdensburg Division, between Ogdensburg and [[Norwood, New York|Norwood]], remains in tracks. It is operated by [[Vermont Railway]], resulting in all the remaining trackage of the Rutland being operated by one company. Ownership of the 132.4-mile roadbed between Norwood, NY and Burlington, VT has been dispersed, but a 21-mile section from Norwood to [[Moira, New York]] is now the multi-use [[Rutland Trail]]. Other abandoned sections now make up all or part of the Hudson and Delaware Rail Trail, Corkscrew Rail Trail and the Alburg Recreation Rail Trail.<ref>Most of the above section is from current text, but I have clarified what was saved for trails and what remains in rails in northern NY State.</ref> The Rutland Railroad route from Rutland to Burlington is set to be used by passenger railroads in summer, 2022, when [[Amtrak]] extends its ''[[Ethan Allen Express]]'' to Burlington.<ref>{{cite news |last1=Flowers |first1=John |title=Summer debut eyed for passenger train |url=https://www.addisonindependent.com/2021/11/18/summer-debut-eyed-for-passenger-train/ |access-date=19 November 2021 |work=Addison Independent |date=18 November 2021}}</ref>
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