From 1873 the Midland Railway (MR) was nearing completion of its line to Carlisle—the Settle and Carlisle line—and it needed a Scottish partner: the G&SWR. The Midland was thinking strategically, wishing to recoup the expense of its long new trunk line, and it energised the G&SWR to do the same. The two companies formed a powerful Anglo-Scottish alliance. The rival Caledonian Railway was working the Portpatrick Railway line, and the Portpatrick Railway itself had become much more profitable in later years, paying a peak dividend of 4¾%. The CR working contract was due to expire in 1885 and the MR and G&SWR began to consider the implications. The CR and its English partner, the London and North Western Railway (LNWR) naturally wished to retain control, and the power struggle reached a stalemate. The outcome was that all four parties offered to acquire the railway jointly, guaranteeing Portpatrick Railway shareholders 3½% on their holdings. This was an attractive offer, and after some negotiation on matters of detail, the arrangement was agreed upon, with the addition that the Wigtownshire Railway was to be included.
