The only reason for retaining the Troy passenger station at the bitter end was the remnant of B&M service from Boston with one or two Budd RDC’s. The NYC and D&H had the alternative of using Albany as their passenger interchange, and actually it switched back and forth between Albany and Troy for individual trains over the years. The B&M had nothing but Troy.
The D&H preferred Troy over Albany, because the distance from Colonie Shops (the Capital District locomotive service point and crew HQ) was shorter to Troy, and then they didn’t have to run the North Albany Yard Engine to Albany to handle the occasional passenger switching. The Troy Station Switcher (NYCRR crew) was in the station anyway. I don’t think the individual railroads paid for it per move, just a on a fixed percentage.
NYC preferred Albany, because it avoided running light engines the longer distance between Troy and Rensselaer, their locomotive service point, if they didn’t come back with a train.
The D&H paid NYC to use the upper level at Albany on a pro-rata basis, but, all three railroads that owned the Troy Union RR paid a fixed percent of the operating expenses. NYC paid 50%, D&H and B&M 25% each, because NYC took over the ownership of two predecssor RR’s – the Troy and Greenbush and the Troy and Schenectady. The Rutland had no ownership – they operated as B&M trains between White Creek and Troy.
The passenger station was demolished as soon as the last B&M train left town, mostly to avoid the high property taxes levied on railroad property in New York State. The Troy Union RR employees once said, only half in jest, that they knew the end was near when they put a new roof on the station. That was usually the kiss of death for any railroad building.
A serious problem that always plagued Troy was the number of highway grade crossings in the city. Every switching move blocked Fulton Street or Broadway, and the TURR needed about ten crossing watchmen per trick, or a total of more than 40 for the 24/7 passenger operation.
As for the demolition of Troy Union Station, the last passenger service left town in January of 1958 and it was demolished by the end of the summer that same year. So, no, there was never a post-classic- era shack.
Probably the reason Troy lost its direct passenger service relativley early is because it wasn’t far from more-than-adequate remaining service in Albany (7 miles, and with good local transit connections) . The cost saving from shutting down TUS was probably enormous.
Around 1959 D&H and NYC had brought running B&M to Albany, but they couldn’t make an agreement with the operating brotherhoods to allow B&M crews to run to Albany. It wouldn’t work out if a D&H crew had to take the train over that distance. The B&M wasn’t about to put any more money into maintaining that service west of Fitchburg, and this was another good reason for them to dump it.
Either way, the B&M would have had to either run via TURR to the NYC at Madison Street or to the D&H via the Green Island Bridge, and they would have still needed most of the TURR with all of its crossings, and the Green Island Bridge. A route via Mechanicville would not have worked, either. All three railroads wanted to be shed of the entire TURR, not only the station, and the best way to get regulatory approval was to let the expenses pile up and then dump the whole thing. The only fly in the ointment was the Rutland operation, and when that went away in 1961 the fate of the TURR was sealed.
Read more about the Troy Union Railroad
https://penneyandkc.wordpress.com/troy-schenectady-railroad/