Early railways in Scotland had been mainly involved with conveyance of minerals, chiefly coal and limestone in the earliest times, a short distance to a river or coastal harbour for onward transport.

Scottish promoters began to consider how central Scotland could be connected to the growing English network, and a government commission was established to determine the approved route.

During this frenzy, a group of businesspeople formed the North British Railway Company to build a line from Edinburgh to Berwick (later named Berwick-on-Tweed) with a branch to Haddington.

In addition, the first part of the line to Carlisle, the Edinburgh and Hawick Railway, was authorised: it was nominally independent, but in fact the shares were all owned by Learmonth and other NBR directors.

[3][7][8][9][10] The station at Edinburgh was located in a depression between the Old and New Towns; this had early been a disreputable and insanitary swamp called the Nor' Loch, although steps had been taken to provide ornamental gardens on part of the area.

[18] Mineral traffic, in particular coal from the Lothian coalfield, was the largest source of revenue, although delivery to the West Coast harbours and the developing iron smelting industry in the Monklands was problematical.

It was noted that the Caledonian Railway was equally determined to enlarge its system, but was doing so by leasing smaller companies, avoiding a large payment at the beginning.

In early 1852, a new preference share issue failed, and at the Shareholders' meeting in March two directors resigned, and Learmonth was forced to declare that he too would go in due course.

At a special shareholders' meeting on 15 July 1856 he announced that the company's money bill had been passed as the North British Railway (Finance and Bridge) Act 1856 (19 & 20 Vict.

There was limited intermediate population, and the Caledonian Railway frustrated attempts to arrange through workings, or even through bookings, for passengers, and goods traffic was diverted away from the NBR.

Widespread financial impropriety and falsification of accounts were disclosed, all laid at Hodgson's door, and this was reported to a Special General Meeting on 14 November 1866.

(At one time there had been thoughts of the NBR using a considerably expanded terminus on the line in alliance with the Glasgow and South Western Railway, but the cost would have been huge and it was not now possible to proceed.

The Shareholders' Meeting of 12 September 1867 was told that arrangements had been made to deal with the £1,875,625 (equivalent to £209,777,300 in 2023)[19] of debt already identified; but the company are under obligations to construct new lines, involving a further amount of £2,600,000.

[38]Building on the improved relations with the Caledonian, Kippendavie reached a revenue sharing arrangement with that company on 16 January 1868; the agreement included refrain from opposing time extension on NBR projects that had been delayed by the financial turmoil.

Throughout 1868 steady progress was being made in getting the financial state of the company under control, and from January 1869 it was announced that cash dividends and payment on the warrants would be forthcoming.

[5] With the acquisition of the Edinburgh, Perth and Dundee Railway in 1862, the NBR had acquired a line to Dunfermline from Thornton, passing through terrain that was rich in coal.

Both railways were engineered very cheaply, and while this had facilitated acquiring the funds for construction, it left the lines unable to renew worn-out track, and they both agreed absorption by the NBR in 1877.

The agricultural area between the two lines was crossed by the Anstruther and St Andrews Railway, but it too was unable to continue alone and the company agreed to join the NBR in 1883.

[52] In 1879, the Kelvin Valley Railway opened; mainly intended to bring minerals from Kilsyth, it was not welcomed with enthusiasm by the NBR, which nonetheless worked it.

[26] From 1873 onward, operating costs rose considerably faster than receipts and the NBR discontinued paying a dividend on ordinary shares, the only Scottish railway in this position at the time.

As well as the human tragedy, this was a huge shock to the North British Railway, which was planning the construction of a Forth Bridge at the time, enabling it finally to get an independent line from Edinburgh to Dundee.

The approach railways were now complete, but considerable volumes of bad publicity resulted from the inadequate state of Edinburgh Waverley station.

The line transformed suburban services: local branch trains no longer needed to terminate in Queen Street (High Level) station, but simply ran through the city.

The NBR had guaranteed a dividend to the West Highland Railway Company based on a much smaller construction cost, and the commitment was now far beyond what the line was likely to produce in income.

Public policy wished to encourage the fishermen of the West Coast in the area, but Fort William was not considered a suitable fishing port, on account of the long passage required up Loch Linnhe.

North of the Campsie Fells the independent Forth and Clyde Junction Railway opened in 1856 from Balloch to Stirling, passing through largely agricultural terrain.

[5][53] With the huge adverse publicity about the congestion and inadequate accommodation at Waverley station after the opening of the Forth Bridge, the NBR obtained agreement to develop the site, and an act of Parliament[which?]

The North British Railway was reluctant to join in, for several reasons: it was sceptical whether the cost of the running would pay off in publicity terms; there was continuing bad feeling with the NER over the running powers from Berwick to Edinburgh; and the NBR did not want to offend the Midland Railway, its main partner at Carlisle; the Midland had a more difficult route from London to Carlisle and was not a party to the races.

[66] The North British Hotel at the east end of Princes Street in Edinburgh city centre forms a prominent landmark with its high tower displaying large clocks.

[67][68] Conacher was a strong-willed manager and many reforms were introduced by him, but in 1899 a scandal arose in the board room of the company in connection with undertakings given by a director, Randolph Wemyss.