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with Erie Vice-President Eben B. Thomas on November 2, 1892. Mr. Thomas explained that road bed, rolling stock, and establishment of a block signal system had been seen as priorities. Besides, other communities were also "clamoring" for improved facilities. However, he "frankly admitted that a new depot was greatly needed." Mr. Thomas promised to present the matter to the board at the annual meeting being held later in the month, noting they would make the final decision. Five railroad officials looked over the depot on December 23, 1892, arriving on a special train. The newspaper report was quite amusing terming the station a "shanty" and a "museum." One official returned on December 31 and spent some time examining the old station. By late February, 1893, a ruinor was going around that some North Street businessmen were planning to buy the hotel property at 86-90 North Street (formerly Sweet's Hotel, between the tracks and John Street) and present it to the railroad company if they would build a new depot there. March's rumor was that Erie architect George E. Archer was working on plans for a new depot. "The public has been building depots for a long time on the strength of these Erie folks' plans," the paper commented. This time, however, the rumors were possibly correct. Also in March, 1893, electric lights were installed at the station. At the beginning of June, the railroad again had people looking over the depot. Rumors at this time said East Main Street property owners were raising funds to build a Union depot on East Main Street (Middletown had four train stations at this time; Erie stations on James Street and East Main Street, the o&W on Wickham, and the New York, Susquehanna & Western on East Main).
But Middletown would have no Erie station that year, or the year after that, or the year after that. In 1893, the New York Lake Erie & Western Railway Co. entered bankruptcy. Two years later, the company emerged, reorganized as the Erie Railroad Co. On November 25, 1895, the Board of Trade sent a letter to Mr. Thomas, now the President of the Erie, requesting a new station. Eben Thomas replied two days later that Middletown would soon have a new depot.
It was estimated the new station would cost between $20 - $25,000. There was speculation the old depot would remain in use until the new one was completed. The 1843 station would then be torn down and a small park put on the site. Plans of the new station were released and printed in the paper in early June, 1896. George E. Archer, architect of the station arrived in Middletown on June 12 to confer with city engineer Charles H. Smith and Middletown architect Frank J. Lindsey. Several Middletown firms bid on the project; the Erie had stated they would give preference to a local company if the bids were not greatly over a firm from out of town. In July, it was announced the Fahey Co. from Hornell was awarded the contract. Mr. Fahey set up his headquarters at the Madison House Hotel (later the Waldo) on the corner of Linden Avenue and Franklin Street.
During the month of July, the railroad emptied out the old