The greatest impetus to the movement was now to come, not from any individual pioneer, but from the Liverpool and Manchester Railway; and this line, in turn, was due far more to purely local conditions and circumstances than to any idea of encouraging the creation of a network of railways on some approach, however remote, to a national or "general" system. The original cause of the Liverpool and Manchester line being undertaken was, in fact, nothing less than extreme dissatisfaction among the traders both of Liverpool and of Manchester with the then existing transport arrangements between these two places.

Just as the Duke of Bridgewater had drawn his strongest arguments in favour of a canal from the shortcomings of the Irwell and Mersey navigation, so now did the traders base their case for a railway mainly on the deficiencies and shortcomings alike of the river navigation and of the canal by which the rivers had been supplemented.

There were, in the first place, physical difficulties. By whichever of the two water routes goods were sent from Liverpool to Manchester, the barges had first to go about eighteen miles along the Mersey to Runcorn, being thus exposed for that distance to the possibly adverse winds and strong tides of an open estuary. The boats often got aground, and many wrecks occurred during stormy weather. On the canal itself the boats could often go with only half loads in the summer, and they were liable to be stopped by frost in winter, while the canal was closed altogether for ten days every year for repairs.

Supplementing these physical disadvantages of the navigation was the attitude of the waterway interests towards the traders whom they held at their mercy. Theoretically there was competition between the rivers and the canal; but the agents of both extorted from the traders the highest possible charges for a most inefficient service.

Joseph Sandars, who was to take a leading part in the movement for a railway between Liverpool and Manchester, has some strong things to say about the "exorbitant and unjust charges of the water carriers" in a "Letter" on the subject of the proposed railway which he published in 1824. He alleged that, whereas the Duke of Bridgewater had been authorised by his Acts to charge not more than two shillings and sixpence per ton for canal dues, his agents had, by various devices, which Sandars details, exacted five shillings and twopence per ton. The trustees had, also, obtained possession of all the warehouses alongside the canal at Manchester, and they were thus able to exact whatever terms they pleased from the bye-carriers and traders. If the canal trustees carried the goods in their own vessels they were entitled to charge six shillings per ton; and their aim seems to have been to render it impossible for the independent carriers to do their business at a lower rate than this. When the carriers, using boats of their own, would not pay the same rate as if the trustees had themselves done the carrying, they were not allowed to land the goods.

Then, by acquiring all the warehouses and all the available land at Preston Brook and Runcorn, the trustees had likewise got control over navigation on the Trent and Mersey Canal, which joins the Bridgewater Canal at Preston Brook. Sandars speaks of Mr Bradshaw, to whom the Duke of Bridgewater had, by his will, given absolute control of his undertakings, as a dictator of canal transport. "No man," he says, in giving examples of the wide extent of the interests that Bradshaw controlled or sought to influence, "can bring a Bill forward for a canal in any part of the Kingdom but Mr Bradshaw interferes as a sort of canal Neptune, directing where, how, and at what price it shall run. He has tortured the trade of the country to become tributory to him in all directions. Every man, every corporate body, seems spellbound the moment Mr Bradshaw interposes his authority." As for the profits of the undertaking, Sandars says: "There is good reason to believe that the nett income of the Duke's canal has, for the last twenty years, averaged nearly £100,000 per annum."

The Old Quay Company had refrained from exceeding the amounts they were authorised to charge for tolls on the Irwell and the Mersey; but there was no restriction on them in regard to traffic they themselves carried, and Sandars alleges that they, also, had secured all the warehouse accommodation on their own line of route, and had almost monopolised the carrying trade, since a bye-carrier's business could hardly be conducted without warehouses. They were thus making far more money than they could have got from the statutory tolls alone. So profitable had the undertaking become that the thirty-nine original proprietors had, Sandars continues, "been paid every other year, for nearly half a century, the total amount of their investment." An immense revenue was being raised at the expense of the merchants and manufacturers, "and for no other purpose than to enrich a few individuals who were daily violating Acts of Parliament, Acts which, by a long course of cunning policy," they had contrived to convert into "the most oppressive and unjust monopoly known to the trade of this Kingdom—a monopoly which," Sandars goes on to declare, "there is every reason to believe compels the public to pay, in one shape or another, £100,000 more per annum than they ought to pay."

The agents of the two companies not only agreed between themselves what charges they would impose but, autocrats as they were, they established a despotic sway over the traders. They set up, says Francis, "a rotation by which they sent as much or as little as suited them, and shipped it how or when they pleased. They held levees, attended by crowds who, admitted one by one, almost implored them to forward their goods. One firm was thus limited by the supreme wisdom of the canal managers to sixty or seventy bags a day. The effects were really disastrous; mills stood still for want of material; machines were stopped for lack of food. Of 5000 feet of pine timber required in Manchester by one house, 2000 remained unshipped from November, 1824, to March, 1825."

Merchants whose timber was thus delayed in transit were fined for allowing it to obstruct the quays; and Sandars tells of one who paid £69 in fines on this account during the course of two months. It was less costly and more convenient to leave the delayed timber where it was, and pay the fines, than to keep moving it to and fro between quay and timber yard; though the effect—especially as the imports of timber increased—was to block up, not only the quays, but the neighbouring streets, which thus became almost impassable for carts and carriages.

Corn and other commodities had often to be kept back eight or ten days on account of a lack of vessels. It sometimes happened that commodities brought across the Atlantic in three weeks were detained in Liverpool for six weeks before they could be sent on to Manchester. The agents would not carry certain kinds of merchandise or particular descriptions of cotton at all. Alternatively they would tell a trader: "We took so much for you yesterday, and we can take only so much for you to-day." "They limited the quantity," says Francis, "they appointed the time, until the difficulties of transit became a public talk and the abuse of power a public trouble. The Exchange of Liverpool resounded with merchants' complaints; the counting-houses of Manchester re-echoed the murmurs of manufacturers."