{269}"The Committee entertain the opinion that the announcement of an intention on the part of Parliament to sift with care the particulars of railway schemes, to associate them with the public interest (in the cases of all future schemes and of all subsisting companies which may voluntarily accede to such an arrangement) ... will produce very beneficial effects in deterring parties from the attempt to entrap the public by dishonest projects, in securing railway projects against the shocks to which in periods of great commercial excitement it must otherwise be liable from such causes," etc. Praiseworthy as was the design thus put forward by Mr Gladstone's Committee, it failed to bring about the results anticipated. In accordance with the recommendations made, a special department of the Board of Trade, under the direction of Lord Dalhousie, was created, in August, 1844, to inquire into and report to Parliament on all new railway schemes and Bills, with a view to guiding the Private Bill Committees of both Houses. The special department was more especially to report as to the positive and comparative advantages to the public of any Bills proposed for the construction of competing lines. A great deal was hoped for from this new arrangement, and the decisions of the department as to which of the schemes then being promoted they would recommend for first consideration by Parliament were keenly awaited. The expansion of the railway system had, by this time, proceeded so far that by the end of 1843 Parliament had authorised the construction of 2390 miles of railway, of which 2036 miles were then open for traffic. The capital of these lines was £82,800,000, and of this amount about £66,000,000 had been raised. A good deal of wild speculation in 1836-7 had been followed by a reaction, and the railway market was still depressed in 1843; but in 1844 interest in railway enterprise was greatly stimulated by the announcement that the Liverpool and Manchester, the Grand Junction, the London and Birmingham and the York and Midland were paying dividends of from ten to twelve per cent each, and that the Stockton and Darlington was paying fifteen per cent. The shares in existing companies rose in value, a number of new companies were formed, and companies already operating {270}projected branches in defence of their own interests against threatened competition. It was at this juncture that Mr Gladstone's Committee presented its Report and that, following thereon, the special department of the Board of Trade was called upon to undertake its responsible duties.