For extensive work on the London, Chatham and Dover Railway, Peto and Betts joined in partnership with Thomas Crampton, the LCDR engineer.
Between 1846 and 1855 the partnership carried out many large railway contracts both at home and abroad, including the South Eastern Line.
To raise the funding for the construction they became involved in complicated finance-raising schemes, and with their overseas operations hindered by war, they overstretched themselves.
[7] In a public statement Peto and Betts declared, "We much regret to find ourselves under the painful necessity of allowing our acceptances to be returned, owing wholly to the disappointment of the arrangements we have made for their provision, which have been defeated by the unexpected turn which has taken place in the money market within the last few days.
"[8] The statement went on to say that Peto and Betts thought the cash shortfall of the partnership was temporary and given a little time they would be able to liquidate sufficient assets and be able to pay off their debts.
The new management of the resurrected LCDR resolved to pursue the partnership and Peto and Betts personally, eventually making a claim against them for a "staggering"[11] £6,661,941 19s 1d.
[6] The LCDR later reduced their claim, their solicitor declaring, “Whether my clients had a proof upon the proceedings of £360,000 or for £6,600,000, the result would, unfortunately be the same – in neither case would there be any dividend.