The Cleveland and Mahoning Railroad's focus on connecting with the A&GW led the C&M to neglect its responsibilities under its Pennsylvania charter. On May 4, 1864, the Pennsylvania General Assembly repealed the C&M's charter, and turned over authority to construct a route between the state line and New Castle to the Lawrence Railroad and Transportation Co. The C&M still sought a direct connection to Pittsburgh, and began seeking an extension of its charter authority in 1866. The Pennsylvania General Assembly refused to approve the charter revision in April 1866, after heavy lobbying against it by Pennsylvania railroads. Committed to reaching New Castle, however, the C&M reluctantly agreed to connect to the Lawrence Railroad once it completed its branch line between New Castle and the Hubbard Branch. (Work on the branch line was completed in March 1867.)
