Its directors had grand ideas of extending further to Monmouth and forming part of a long-distance trunk route.

It issued misleading promotional material which secured significant investment from the public, but exposure of the falsehoods resulted in collapse.

Richard Dansey Green-Price was prominent in furthering the scheme, and although there were some who were sceptical, he managed to get significant local support.

At public meetings optimistic assertions about traffic receipts were made, and the line would, it was claimed, be extended to Monmouth and become the focus of local commerce.

At a board meeting on 25 October 1876 the directors undertook to promote a bill for an extension from Dorstone to Hay, provided local people would subscribe for £10,000 of shares.

The Board had been confident of being able to open the Dorstone section on 1 August 1880, but this was quickly seen to be impossible as the construction work was inadequate.

At length on 4 August 1881 Colonel Rich of the Board of Trade inspected the line for passenger operation and approved it.

£67,083 had been expended so far, and directors gave personal guarantees to the GWR regarding payment of the locomotive hire charges.

[3][5] Clearly the line was not paying; for the first full half year (January to June 1882) receipts were £667 11s 7d and operational expenses including engine hire were £857 12s 3d.

The Golden Valley was being somewhat aggressive in its approach while trying to coerce the GWR to take on a commercially challenging task.

By 1884 the GWR agreed to work the line, taking the whole of the meagre income if the Golden Valley would bring the permanent way into fair condition.

As the company was certainly heavily indebted and loss-making, this was not unreasonable, but Green-Price, as a dominant shareholder, urged rejection of the deal, promising that completion to Hay and reconditioning of the existing track would enable the line to "form part of the shortest route between Bristol and Mid Wales and North Wales; such a line... would not only pay interest on the debentures but provide a fair dividend for the preferred and ordinary shareholders.

"[9] Green-Price attended the Great Western Board on 6 August 1885; by that time the company owed the GWR £1,318.

He promised that he and Robinson would liquidate the portion of the debt guaranteed by them within three months if the Great Western allowed the Golden Valley trains to continue to run into Pontrilas.

Evidently the GWR had threatened refusal of that facility; moreover it was the personal guarantees that would be liquidated, not the Golden Valley's own indebtedness.

Colonel Rich of the Board of Trade inspected the extension on 9 December 1888 for passenger operation, but declined to authorise it as the trackbed was not well consolidated and the recent heavy rains had affected it badly.

Rich made a second visit three months later and found the line not much improved, and the sought-for approval was still withheld.

[3][4][6][7][5] The stations on the first section were at Abbeydore, Vowchurch, Peterchurch and Dorstone, and trains stopped at the level crossing at Bacton Road.

The debenture holders held a meeting with the directors and it was made obvious that the company could not simply carry on regardless: the Monmouth extension had to be abandoned forthwith.

[3][page needed] However the crisis was averted so far as the existing line was concerned, when in 1891 a financial reconstruction was implemented and ratified by act of Parliament,[which?]

But early in 1891 several directors had resigned, including Green-Price, although he nevertheless came to a shareholders' meeting of 22 May 1891, still recommending completion to Monmouth as the means of resolving the company's financial embarrassment.

[citation needed] On 23 August 1897 the line between Dorstone and Hay was closed because of the unsafe condition of the track.

[3][6] A purchase by the GWR was agreed in December 1898 for the sum of £9,000 as well as £2,000 to the contractor Chambers in settlement of money owed to him.

[10] There were three round trips on the line as well as a short working; the GWR scrapped the locomotives and rolling stock of the Golden Valley and installed their own equipment.