The story of the London and Birmingham Railway is especially significant of the general conditions under which the English railway system came into being.

Industrial expansion had brought about great developments in the Birmingham and Black Country districts, the population in Birmingham alone having increased from about 50,000 in 1751 to 110,000 in 1830. Wide possibilities of increasing trade and commerce were being opened up, but these were seriously hampered by the disadvantages experienced in the matter of transport. Small parcels of manufactured goods could be sent by coach, and a good deal of wrought iron—in small quantities per coach—was also distributed in the same way during the course of the year. For bulky goods or raw materials the only means of transport between Birmingham and London was by canal, and this meant a three-days' journey. Over 1000 tons a week were then going from Birmingham to London by water; but there was great need for a means of communication at once more speedy and more trustworthy. Goods were delayed in transit even beyond the three days; they were rejected by the shippers because they did not arrive in proper time; they were sometimes held up by frost on the canal between Birmingham and London and lost their chance of getting to the Baltic before the spring; while, alternatively, they might be pilfered or lost on the canal journey, and so not get even as far as London. There was often much difficulty, also, in obtaining raw materials.

In the result manufacturers had to refuse orders because they could not execute them in time, and the local industries were not making anything like the advance of which, with better transport facilities, they would have been capable. The business that Birmingham manufacturers should have been doing with Italy, with Spain, or with Portugal was found to be drifting more and more into the hands of Continental competitors who had greater advantages both in obtaining raw materials on the spot and in distributing their manufactured goods. It was further argued that in view of the struggle then proceeding between this country and Continental countries for commercial supremacy, the improvement of the means of transport, even as regarded Birmingham and London, was a matter of national, and not simply of local, concern.

It might well be assumed that such considerations as these would have appealed to the patriotic instincts of the English people, and especially to those of the landed gentry. Yet the issue, in January, 1832, of the first prospectus of the London and Birmingham Railway Company, and the introduction of their Bill in February of the same year, led to opposition, to extortion and to actual blackmail of the most determined and most merciless description.

The Bill passed in the Commons, but it was thrown out in the Lords. Its rejection there was attributed to the landowners, who, it was declared, had "tried to smother the company by the high price they demanded for their property." The inevitable negotiations followed. Six months after the defeat of the Bill the directors announced that the "measures" they had taken with a view to removing "that opposition of dissentient landowners and proprietors which was the sole cause of their failure ... had been successful to a greater extent than they had ventured to anticipate. The most active and formidable had been conciliated," and the Bill would be introduced afresh in the following Session. This was done, and the Bill became an Act, receiving the Royal assent on May 6, 1833.

The nature of the "measures" which had succeeded in overcoming the opposition may be judged from some facts mentioned by John Francis, who says that land estimated in value at £250,000 cost the company three times that amount. One landowner, in addition to getting £3000 for a certain plot, extorted £10,000 for what he called "consequential damages"; though, instead of injuring the remainder of his property, the line increased its value by twenty per cent. For land used only as agricultural holdings the company is said to have had to pay at the rate of £350 an acre.

But this was not all. There was the opposition of towns as well as the greed of individuals to be taken into account. According to Robert Stephenson's original survey, the London and Birmingham Railway was to pass through Northampton, where, also, it was proposed to establish the company's locomotive and carriage works. The opposition in Northampton, however, was so great that in order to meet it the company altered their plans and arranged for the line to pass at a distance from that town. They further undertook to start their locomotive works at Wolverton, and thus not interfere with the amenities of Northampton.

How much the town and trade of Northampton lost as the result of its scruples could hardly be told; but the consequences to the railway company of this enforced alteration of route were as serious as any of the extortions practised by the landowners. The line had now to pass through a tunnel at Kilsby, five miles distant from Northampton, and a contractor undertook to cut this tunnel for £90,000. But, while engaged on the task, he came upon a quicksand which reduced him to despair and led to his throwing up the contract. Robert Stephenson thereupon took the work in hand and he had to have 1250 men, 200 horses and thirteen steam-engines at work raising 1800 gallons of water per minute night and day for the greater part of eight months before the difficulty was overcome. By the time the tunnel was completed the cost of construction had risen from the original estimate of £90,000 to over £300,000, this enormous expenditure having been incurred, not because it was necessary for the line, as first designed, but to meet the opposition and spare the feelings of the then short-sighted dwellers in the town of Northampton.

The London and Birmingham Railway, with its terminus at Euston, was eventually opened for traffic throughout in September, 1838. It was, of course, one of the lines subsequently amalgamated to form the London and North-Western Railway.

The first Bill of the Great Western Railway, applied for in 1834, was strenuously opposed and defeated. The second Bill, brought forward in the following session, was less strenuously opposed, and was duly passed. In the interval the opposition of the dissentient landowners had been "conciliated"; and, commenting thereon (in 1851), John Francis says:—