By the 1790s, the Manor of Horncastle was leased by Sir Joseph Banks, a man of both local and national standing, with a keen interest in agriculture and trade. He had plans which included an
inclosure act for Horncastle and drainage of the
Wildmore Fen, and was also influential in plans for the canalisation of the River Bain from Horncastle to the River Witham near Tatteshall. Tattershall was already served by a short canal from the River Witham, which had been constructed in 1786 by John Gibson, a merchant from Tattershall, and John Dyson, who was from Bawtry. The canal was about long, and had an entrance lock near to where it joined the river.
Sir Joseph Banks canvassed the support of local merchants and the owners of the estates that bordered the river, and formed a steering committee, which instructed Sir Joseph's solicitor to draft a parliamentary bill for the proposed canal. This was ready by March 1792, and was considered by a public meeting held on 4 April. That meeting approved the bill, which became an
act of Parliament, the '''''' (
32 Geo. 3. c. 107) on 11 June 1792. In addition to local supporters, the bill was also supported by the corporations of Boston and Lincoln, as it included a clause that would enable the channel beneath Lincoln High Bridge, a medieval structure which prevented navigation from the River Witham to the Brayford Pool, to be made deeper. The act also regularised the position of the Gibson Cut, which had been built without an act of Parliament on land owned by Lord Fortescue, and ensured that he would be compensated when the cut was taken over by the new company.
Construction The company was authorised to raise £15,000 by the issuing of shares, and another £10,000 if required. Gibson's Cut was bought for £840, but in order to extend it to join the main line at Tattershall, part of the terminal warehouse had to be demolished, as it obstructed the line of the extension. Sir Joseph expected Jessop to oversee the work, but he was too busy and suggested William Cawley from Cheshire as engineer. Cawley was engaged in April 1793, and work started immediately, but workmanship was poor. The lock at Tattershall collapsed when first filled with water, and Cawley was dismissed in October, to be followed by a series of other engineers, none of whom lasted for very long. Pressure was put on the builders of the locks at Tattershall and Tumby and the bridge at Butts Road in Coningsby, and they agreed to rebuild them, rather than lose contracts for other parts of the canal. The canal was opened from the River Witham northwards, as each section became available. Tolls of £250 were collected in 1795, but the company was experiencing financial difficulties. The decision was taken to build a wharf at Dalderby, and to terminate the canal there. All of the original capital, together with the £10,000 mortgage on tolls had been spent by early 1797, and there was no immediate prospect of continuing. The engineer
John Rennie was consulted, and he suggested that a new cut from Dalderby to Horncastle would be better than trying to follow the winding course of the River Bain. Accordingly, a new act of parliament, the '''''' (
39 & 40 Geo. 3. c. cix) was obtained on 9 July 1800, authorising the raising of a further £20,000, but very little money was attracted to the scheme, and the company eventually borrowed £20,600 from Lord Fortescue and Sir Joseph, mortgaged against the tolls of the canal. Rennie declined to oversee the work, and so William Walker was appointed, although he was not a qualified engineer. The canal was finally opened throughout in 1802, having cost nearly four times the original estimate. The cost included £1,165 which was part of the cost for the work carried out at High Bridge, Lincoln in 1797 ==Operation==