From the description you give of the trains, it sounds like you're confusing the Lacawanna out of Hoboken with the CNJ out of Jersey City. Both railroads went to Scranton, and both had green coaches with gold lettering.
The CNJ used Train Masters primarily for commuter trains, in the configuration you mention. In fact, the CNJ units didn't even have dynamic brakes, which is contrary to almost every other railroad.
As for the cab cars, they were built in the late '60's, in anticipation of the Aldene Plan, because Harrison yard would not have provided for turning trains. They were used in several test runs prior to the plan going into effect in 1967. I have seen photos of the Train Masters being used with cab cars, but the Train Masters only lasted until 1969. After that, it was GP7's and GP40P's.
From 1967 to 1978, they could be seen on the main line, and the Bayonne shuttle, if Budd Cars were not available. They normally didn't run on the NY&LB, except for the Monmouth Park racing trains, because the Bayhead Loop made them unnecessary.
They were built from the round roof 1300 series coaches, because these cars were built in anticipation of electrification that never came, so they already had cab windows on the end.
Nobody has made these in o scale yet, but Lionel is going to be making some sets of Reading coaches that are pretty close. But they don't have cab windows. You might try replacing one end with the cab front from another electric coach, but it needs to be one with square windows.
