This period of factionalism was eventually ended with the appointment of a new and able Chairman in March 1866. This was
Edward (later Sir Edward) Watkin who was also chairman of the
Manchester, Sheffield and Lincolnshire Railway and the
Metropolitan Railway, as well as being a director of the
Chemins de fer du Nord in France. However his appointment was quickly followed by the collapse of bankers
Overend, Gurney and Company on 10 May 1866 and the subsequent financial crisis during the following year. This had a severe effect on expansion plans of several railways. No new lines were built by the until the opening of the
Sandling to
Hythe branch line on 9 October 1874. The went bankrupt and was taken into administration 12 July 1866, and in 1867 the was also on the brink of bankruptcy. The directors and shareholders saw that constant quarrelling between the three companies had damaged their interests and began talks to merge or to work together. In 1868 a
bill was presented to Parliament to allow for co-operative working of railways of southern England (the , the , the and the ). However this failed at a late stage when Parliament sought to limit the fares charged by the to those of the , and the withdrew. A further attempt to merge the and in 1875 failed when the latter withdrew after shareholders felt it favoured the . Watkin had long-term ambitions for the to become one link in a chain of 'Watkin' railways from the industrial north of England to the Continent via a proposed
Channel Tunnel. His plans for a Channel Tunnel were ultimately blocked by the
War Office, and suspicion fell on
James Staats Forbes, chairman of the for having urged the decision.
Oxted & Westerham Lines One result of improved relations between the and the during the 1870s was that the two collaborated in construction of a
line between
South Croydon on the main Brighton line and
Oxted. The completion of the
Orpington cut-off in 1866 reduced services to and from the growing town of
Croydon. The had supported a plan to build the
Surrey and Sussex Junction Railway along this route in 1865, but its involvement had been opposed by the as being contrary to their agreement, and the scheme was abandoned during the 1867 financial crisis. However, following a revised agreement, the scheme was revived as a joint venture. Beyond Oxted the linked with its lines to
East Grinstead and
Tunbridge Wells, while the joined its original main line to
Tonbridge Tunbridge Wells and
Hastings. Authority for construction of these lines was granted in 1878 and they opened in 1884. As a part of the same scheme, the at last began to implement plans for the
a line from
Dunton Green on its new main line to Oxted via
Westerham, the first phase of which opened on 7 July 1881. Authorisation for line was first obtained in 1864, but no progress had been made by 1876, when local inhabitants sponsored their own
bill, forcing the hand of the . In the event only the first phase (from Dunton Green to Westerham) was built, leaving a
branch line rather than a through route. The remaining four miles (6 km) to the new
Oxted Line (then still under construction) were never completed due to opposition in the
House of Commons and the difficult terrain between Westerham and Oxted.
Unpopularity of the SER During the 1880s and 1890s the was accused of only caring about Continental travellers and of neglecting the interests of its other customers. A series of letters to
The Times in London in 1883 demonstrated how unpopular the railway had become with its regular commuters. Ernest Foxwell, also writing in 1883, stated 'The great blots on the South Eastern are its unpunctuality, its fares, its third class carriages, and the way in which
local interests are sacrificed to Continental traffic.' Hamilton Ellis later described both the and the at this time as 'bywords of poverty stricken inefficiency and dirtiness'. In spite of these criticisms the shareholders stuck with their chairman, until they eventually realised that their own interests were suffering as well. A scathing article in
The Investors Review for June 1894 demonstrated how poorly Watkin's railways had performed financially compared to others, and referred to the 's 'bitter hatred towards all but first-class travellers, [and] their determined cultivation of the art of running empty coaches'. The article finished, Watkin retired shortly afterwards. Some of the complaints of unpunctuality of the may have been exaggerated, or were at least soon remedied after Watkin's departure, since a statistical survey of the company's services conducted in 1895 by William Acworth found that, with the exception of the heavily congested and difficult to operate lines between London Bridge and Cannon Street and Charing Cross, the company did not perform significantly worse than others in London in terms of timekeeping.
Later branches and proposed lines During the 1870s and the 1880s the railway attempted to exploit the potential of the East Kent coast as both holiday destinations and potential new channel ports. Thus branches were built from
Sandling near Folkestone to
Hythe and Sandgate, (opened 9 October 1874); from Dover to
Deal and
Sandwich (
jointly with the LCDR, which opened 15 June 1881); from
Appledore to
Dungeness (1 April 1883) and
New Romney (19 June 1884). (In 1897 the obtained powers in the '''''' (
60 & 61 Vict. c. ccxxvii) to build a branch line from
Crowhurst railway station to its own station at
Bexhill-on-sea in opposition to the existing service to the town.) However this line was not completed until 1902. On 4 July 1887 the railway opened the
Elham Valley Line from
Canterbury West to
Shorncliffe. However, there was by then already an line from Canterbury to Dover and so the new line did not attract much traffic. Likewise on 1 October 1892 the
Hawkhurst Branch from
Paddock Wood to
Hope Mill was opened and extended to
Hawkhurst on 4 September 1893. Similarly the company also obtained an act of Parliament giving powers to build a line from
Appledore to
Maidstone via
Headcorn and the
Loose Valley.
Chatham extension Probably the most wasteful competitive venture by the was a second bridge over the river Medway between
Strood leading to a branch to
Rochester (opened July 1891) and to
Chatham. The branch line only had a twenty-year life-span as the stations were less conveniently sited than the alternatives. The main line was however re-aligned after 1911 to use the newer bridge.
London suburbs Unlike the neighbouring , the failed to capitalise on the rapidly growing population of the South London suburbs during the 1870s and 1880s, and to develop effective suburban services. In particular, the area between the
North Kent Line the
Dartford Loop Line became well populated at this time, but the was reluctant to build a proposed
Bexleyheath Line, including stations at
Blackheath,
Eltham,
Bexleyheath and
Slade Green, in spite of public pressure in the 1880s. This line was eventually built as a private concern in 1895, and it was only after the original investors had gone bankrupt and Watkin had retired that the eventually agreed to incorporate it into its system. As mentioned above, the line from London Bridge to Charing Cross and Cannon Street was particularly congested and difficult to operate. During the early 1890s the was actively considering extending the Bricklayers Arms branch into Charing Cross and Cannon Street as a means of relieving this congestion, but deferred making any decision to do so and ultimately the idea was dropped following the operating agreement with the in 1899, which provided the new 'joint railway' with two further pathways into London. One of the last branch lines to be incorporated into the was between
Purley and
Tattenham Corner railway station. The line as far as Chipstead and Kingswood were built by the
Chipstead Valley Railway from 1893 and opened in 1897. The extension to Tattenham Corner was built by the
Epsom Downs Extension Railway from 1894. Both companies were acquired by the , but the line to Tattenham Corner was not completed until 1901, after the working agreement with the . This line was in the territory of the but provided the railway with access to a proportion of the lucrative
Epsom Downs Racecourse traffic. ==South Eastern and Chatham Railways Joint Management Committee==