The LSWR was completed to
Southampton in 1840 and a branch line was opened in 1848 from
Bishopstoke to
Milford station in
Salisbury. Within a few years efforts started on work to extend from Southampton to
Dorchester. A great debate then started within the LSWR about whether to extend further west through Salisbury (the shorter "central route" or through Dorchester (the more populous "coastal route"). The rival
Great Western Railway (GWR) was supporting the
Wilts, Somerset and Weymouth Railway as an alternative route to Dorchester, which was to be built from the north through
Yeovil. It also proposed a connecting line from Yeovil to
Exeter which would have been in direct competition with either of the two proposed LSWR routes. Both companies applied for powers to construct new lines in 1846; the LSWR for a line from Basingstoke to Yeovil and both companies for different lines from Yeovil to Exeter. Neither was approved and so new applications were made in 1847, and after a mammoth 50-day hearing it was decided that the LSWR scheme was the better. Both the '''''' (
11 & 12 Vict. c. lxxxvii) and the
Exeter, Yeovil and Dorchester Railway Act 1848 (
11 & 12 Vict. c. lxxxv) received
royal assent on 22 July 1848. The large number of new railway schemes approved at that time caused an economic depression; it proved difficult to raise the money needed for the work and so the powers lapsed. Three years later an independent company tried to raise the money for a Salisbury to Exeter line and the LSWR agreed to take up half the shares, guarantee a 4% return on the shareholders' investment, and operate the trains. However a large faction in the LSWR now preferred the coastal route that could use the already constructed line to Dorchester, while still others opposed westward extension by any route. Another independent company now put forward their own proposals for a Salisbury and Yeovil Railway, and they were rewarded by the '''''' (
17 & 18 Vict. c. ccxv) which was passed on 7 August 1854. In the meantime, the LSWR's line from
Bradford Abbas Junction to
Exeter Queen Street had opened on 19 July 1860. Although initially just a single track with
passing loops at stations, work started in 1861 to double westwards from Salisbury, and east from . The whole route was doubled within ten years. In 1861 the
Dorset Central Railway arrived at . The station for this line was at a lower level than the S&YR but a junction was established to allow traffic to be exchanged. This was a rather unusual arrangement that entailed Dorset trains reversing into the S&YR station on a line alongside the main line. This space was needed for doubling the Salisbury line in 1870 so a new Templecombe Junction Railway was built by the S&YR that allowed trains from the north to run directly into the main line station. In 1874 the lower line, by now the
Somerset and Dorset Joint Railway and part-owned by the LSWR, was extended to where a connection was made with the
Midland Railway. This brought even more traffic onto the S&YR in the form of goods and passengers from the North to the LSWR. Bradford Abbas Junction was closed on 1 January 1870, after which time all trains to Yeovil had to run via . In January 1878 the company was sold to the LSWR. ==Finances==