After the death of Isaac Smith, the founder of the Buffalo Railway, out-of-state stockholders lost investment. The Wyoming Railway was in desperate need of maintenance because it had been deferred during WWI, the Great Depression, and WWII. Severely in debt, the railroad was sold to C. Porter Dixon of Denver in 1946. Dixon wanted to keep the railroad operating while making the necessary repairs and purchasing new locomotives.
The Public Service Commission issued an order to cease operations after there were reports of the locomotives starting several prairie fires. Dixon was ordered to convert the locomotives into oil burners. The first converted rail train crossed a high trestle 12 miles from Buffalo and fell into the draw, suffering severe damage. Damage to the train, in conjunction with a drop in summer wool shipments, and sections of track washing out, led the railroad to cease operations in 1947.