Interesting topic. Someone in an earlier post mentioned the PRR purchasing new U25B locomotives with government money. That wasn't they only thing they purchased. The following is from an article I did for Railpace a few years ago and the subject dovetails with the current topic:
In 1962, the Chautauqua Branch received one of the PRR’s last, and probably most short lived, applications of centralized traffic control. Construction of the Kinzua Dam on the Allegheny River east of Warren, and the subsequent inundation of land behind the dam, forced the PRR to close their Salamanca Branch between Warren and Olean, New York. All traffic that ran via that route was shifted to the Chautauqua Branch. The Federal Government provided financial compensation to the PRR for loss of the Salamanca Branch and a portion of those funds were used for the Chautauqua CTC Program. The CTC machine was located at Corry in a newly constructed one story building called “EYE” Tower which opened in July 1962. This building replaced an old wooden tower structure located a few dozen feet to the west. Commencing in October 1962, new interlockings and sidings were commissioned and by December 20, 1962, “EYE” controlled the entire Chautauqua Branch from Brocton, NY southward through Petroleum Centre.
On February 1, 1968, the landscape of railroading through the Oil Creek region was about to radically change. The merger of the PRR and NYC, resulting in the ill-fated Penn-Central Railroad, rendered the Chautauqua Branch as “redundant” and one of the first casualties was the CTC system. “EYE” Tower was closed on August 15, 1968 and control of the branch was transferred to “BRIDGE” Tower (located at the wye bridge over the Allegheny River) in Oil City. As Pittsburgh-Buffalo through traffic was rerouted via Youngstown and Ashtabula, Ohio, the Chautauqua CTC system was taken out of service between October 1 and December 1, 1970. Consequently, portions of the entire branch were changed to secondary, running, or industrial track status. The Chautauqua Branch through Titusville was designated as the Titus Secondary Track. Penn-Central gave way to Conrail on April 1, 1976 and over the next two years, the former Chautauqua Branch was slowly dismembered.