The caption on this postcard photo is partially accurate. The yards pictured are the Laurel Line passenger terminal and freight yards. The DL&W yards and roundhouse are located behind the red buildings. The photo was taken from the Spruce street bridge.
The Station in the center of the photo with the loop track is the (L&WV) Laurel Line terminal. To the extreme right is the rear of the DL&W Scranton station. Note the track sheds used for passenger trains such as the Phoebe Snow. The large building in the rear of the photo is now an ammunition plant.
The buildings were once part of the DL&W shops, hence the caption on the photo. Here is what Alan C. Jones offered on the buildings.
"In the last picture on the page (showing the Laurel Line and DL&W stations), the ammunition plant you mention used to be the DL&W erection shops (where they built, rebuilt, performed major repairs) during the steam era."