Morayshire Railway - Amalgamation

Amalgamation

Relations between the Morayshire and GNSR had soured in 1865 when the larger company wanted to take over its smaller partner under very unfavourable terms as a way of recovering the money it was owed—the debt carried by the Morayshire had become intolerable and on 14 August 1865, the City of Glasgow Bank refused further loans on top of the £38,172 16s 9d already owed. Loans to various lenders included £15211 to the Commercial Bank and £12620 to the GNSR. Despite great efforts no solution to paying off the debt could be found. The relationship between the GNSR and the Morayshire continued to worsen. In late 1867, James Grant, the Morayshire Chairman made tentative enquiries with The Highland Railway (successor company to IAJR) regarding an amalgamation of their two companies and in early 1868 a statement regarding the terms of a possible amalgamation were produced. The GNSR, when made aware of the statement immediately set about safeguarding its investment in the Morayshire with negotiations between the two big companies eventually leading to the Highland withdrawing the amalgamation terms.

After a short illness, the Morayshire chairman James Grant died on 22 May 1872. Gradually over the next few years, thanks mainly to the General Manager, Alexander Watt, the Morayshire introduced cost-cutting measures and revenue raising schemes. Rail travel for both goods and passengers increased greatly. The herring fishing at Lossiemouth coupled with such attractions as the public swimming baths at the port attracted visitors in large numbers allowing the Morayshire to pay back outstanding debts to most of its creditors. The GNSR acknowledged that the Morayshire was now on a sound footing and so in 1880 negotiations between the companies resumed and the enabling act for the amalgamation was given Royal Assent on 11 August 1881. This ended the Morayshire Railway's 35 year existence.