In
1854 three companies, York & North Midland,
Leeds Northern and the York, Newcastle & Berwick amalgamated to
form the North Eastern Railway. The amalgamation produced a system
700 miles long, with administrative headquarters at York.
The North Eastern Railway continued to expand and gradually other
companies were taken over. This included: South Durham & Lancashire
(1862), Stockton & Darlington (1863)
and the West Hartlepool Railway (1865).
The North Eastern Railway now had virtually a monopoly of rail transport
in the north-east. However, integration was slow, and an increase
in accidents brought warnings concerning the dangers of trying to
organize such a large company. After four serious accidents took place
on the North Eastern at the end of 1870, the company's general manager,
William O'Brien, was sacked.
The North Eastern Railway relied heavily for its income on the transport
of coal and other raw materials. This trade declined in the early
1870s and in order to maintain revenues, the company decided to vigorously
promote third-class travel.
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