^ I could see the B&O going the electrification route for the entire Washington-New York route ITTL too, if they are going to go to the cost of building Tribeca Station and the tunnels to get to it from the New Jersey side, particularly since the Reading was already using electric power for part of the route by the 1930s. The B&O's Midwest trains would use electric power as far as Baltimore, then switch to steam (or diesel) power there, the latter more likely because the B&O was an early user of diesel power on its passenger trains.
Idea on that front: have Kálmán Kandó's work be recognized by George H. Emerson (B&O's motive power boss), have him live longer and come to the US as the situation deteriorates in Europe. Kando and the shop crews at Mount Clare develop a prototype electric based on Kondo's work and others which performs beautifully, and during the WPA days have the B&O apply for money to help pay for railroad electrification at 25 kV 50 Hz, and thus as the PRR goes electric (and builds the GG1s for it), Kondo, Westinghouse and the B&O create their own electric locomotive for the Royal Blue. The cost of electrification would be less than the tunnels or station (especially the former), and thus the B&O continues to slug it out with the PRR, while the Reading uses the 25 kV system for electrifying its passenger operations and many of its heavily-graded freight routes as well, likewise the CNJ goes electric for the Blue Comet.
After the war, the PRR and New Haven eventually recognize the superiority of the 25 kV system and as new trains come to the Northeast Corridor in the 1960s, the PRR rebuilds the electrification to the B&O standard. The states take over commuter operations way sooner than OTL, and the Long Island Railroad eventually builds a tunnel to Tribeca Station in the 1960s, as does the PATH system, which makes Tribeca its end point after its Manhattan terminus is demolished to make way for the World Trade Center in the late 1960s. One Amtrak takes over the long-distance passenger trains, Tribeca Station passes off its long-distance trains to Penn Station, but the Long Island Railroad and New Jersey Transit focus their own Manhattan trains on Penn Station, and the Shore Line East comes to fruition way ahead of OTL, resulting in the NEC fast trains all going to Penn Station, while Metro-North and Shore Line East go to Grand Central and Long Island Railroad and New Jersey Transit trains all go to Tribeca.