The current company, established in 1992 is a separate entity from the original Allegheny Valley Railroad, which was established in the 1850s. That line, affiliated with the Pennsylvania Railroad system, followed the present company's tracks to Arnold and continued beyond, along the right upstream (southeastern) bank of the river to Oil City.
The original Allegheny Valley Railroad transported oil from the vicinity of Oil Creek and Titusville. On February 20, 1861, The Pittsburgh Post printed "The Allegheny Valley Railroad (Extracts from the Eighth Annual Report, which is important for the light thrown on the transportation of oil)." On February 5, 1862, The Pittsburgh Gazette and Commercial Journal published "Allegheny Valley Railroad—Annual Meeting of Stockholders."
“The Allegheny Valley Railroad was originally incorporated April 4, 1837 as the Pittsburgh, Kittanning and Warren Railroad. The name was changed in 1852 to the Allegheny Valley Railroad. The company having sold the required $100,000 worth of stock, was granted a patent through Felix Brunot, Esq. by the governor of Pennsylvania. Felix Brunot also served as one of the first directors of the railroad. The charter granted to the AVRR was one of the best obtained by any road in Pennsylvania. The road was immune from taxation until the dividends reached 12% and it was also granted perfect freedom in the choice of a route. The road was completed to Kittanning January 23, 1856 and the first train was greeted in Kittanning with great ceremony. The railroad proved to be a great convenience, but did not truly pay its own way until oil was discovered at Drake’s well and the road was extended to Oil City in 1870.
The completion of the track to Kittanning gave great impetus to Verona. Four railroad stations were located within the borough limits: Iona, Verner, Edgewater and Hulton. (The name Verona is a combination of the names Verner and Iona.) The following additions and betterments to the railroad continued to help Verona grow.
1874 - New engine house at Verona
1875 – New machine shop 112” x 215” with eight tracks entering the building from a transferable at Verona.
1876 – The engine house at Verona, containing 44 stalls converted into a shop for repairing passenger and freight cars.
1879 – New passenger station at Verona
1883 – Brass foundry fitted up at Verona shop.
These principal shops of the Allegheny Valley Railroad employed about 200 men and turned out nearly everything that was used on the road. “Appleknockers”, farmers from Clarion and other northern counties, came to Verona to work in the shops and settle here. Stores, hotels, churches, and homes sprang up all over the borough. The town was booming.”
Leased to the Pennsylvania RR, July 31, 1900