Premier, Charles Wade, offered an advance of £70,000, as a loan to the company, under stringent conditions, and with the agreement of the bank not to call in its existing loan to Sandford and to reduce the rate of interest on its loan. The nature of the arrangement necessitated that it be ratified by the N.S.W. Parliament. The bank stated that, even if the Government loan went through, it would not lend further money to the company above the existing overdraft limit. After debating the issue all night, the N.S.W. Parliament passed legislation ratifying the loan, in early hours of 5 December 1907, but a last minute amendment—moved by the Labor Party, leader, James McGowan, who favoured a nationalised steel industry—made the government loan take absolute precedence of security, over existing commercial loans. The final form of the legislation alarmed the bank, which then withdrew its tentative agreement to support Sandford, demanded full repayment of the overdraft amount, and took over the assets on 9 December 1907. Only the new blast furnace was kept in operation, to prevent its destruction if it were to cool. 700 workers became idle. Hoskins take over Sandford's shares became essentially worthless and he faced financial ruin, at the age of 66. After years of great mental stress, he was a broken man. The Lithgow works was too large an employer and economic asset to be allowed to close down. Sandford met Premier Wade on 11 December 1907, but that would be his last involvement. Other discussions took place, concerning the future of the works, between the bank, the N.S.W Government, and the firm of G & C Hoskins, and a plan was formulated, without Sandford's involvement. There was, however, public pressure to ensure that Sandford's pioneering role in the industry was recognised by ensuring he was not ruined financially. There was also great concern, about the future of Lithgow and the existing investments in housing and infrastructure there. Left with little choice, on 19 December 1907, Sandford reluctantly accepted the offer from G & C Hoskins to take over his enterprise. Summing up his position he stated, " I have only the satisfaction of knowing that the object of my life has been attained, and I have demonstrated that good merchantable pig iron can be made from the Australian raw materials". The Eskbank Ironworks and its near new blast furnace were taken over by