In this, the second instalment of his article on “The Inauguration of the Australian Railways,” Mr. Vogel concludes his interesting account of pioneer railway construction in New South Wales.

The opening up of the extensive coal measures at Newcastle, a seaport sixty miles north of Sydney, and the increasing settlement of the fertile Hunter River Valley, were factors of major importance in the early railway history of Australia. Lack of cheap and reliable communication here (as elsewhere) was proving a serious drawback to development, for the average cost of cartage was two shillings per ton mile, and the time of delivery uncertain.

Undaunted by the difficulties experienced by the Sydney Railway Company (referred to in my previous article), a movement for the construction of a railway between Newcastle and Maitland, a town on the Hunter River, twenty miles inland, was taken up with a view to securing a portion of the northern district trade. This would be carried by rail to Newcastle, and thence by large ships to Sydney, instead of being collected by small craft on the lower Hunter River, and conveyed by them to Sydney.

This movement took definite shape at a meeting help in April, 1853, when a committee was appointed, and the proposed capital of £100,000 was subscribed for the construction of the railway. The Government was asked to grant concessions similar to those granted the Sydney Railway Company.

After the passing of an Act, in October, 1853, incorporating the “Hunter River Railway Company,” the Government, granted land to be used for railway purposes only, financial aid, and, also, permission to bring to the Colony 500 railway labourers. (These labourers had to repay £13 of their passage money, but their families were brought out free.)

However, this company soon experienced the same difficulties as the Sydney company, and the Government, recognising that the colonists would not advance and funds for railway purposes unless the Government guaranteed interest and also capital in excess of that subscribed by private individuals, decided to acquire this company's property also, the purchase price being the amount of paid-up capital only, viz., £54,337.