in 1890. Instead a financial reconstruction was arranged, in which many shareholders received reduced holdings and debenture holders lower interest rates; arrears of interest were cancelled. The scheme was accepted and the former £373,000 issued capital of the company was reduced to £148,000. This enabled the company to apply to be released from receivership and this took place on 5 July 1895. The company soon found itself unable to pay the current interest, however, and it was returned to receivership on 6 February 1896. This second period lasted until release on 29 July 1898. For the half year ended 30 June 1899 preference shareholders received a dividend of %, although ordinary shareholders had to wait. The Sandy to Pwll connection was proceeded with, authorised by Act of 28 July 1891. Passenger operation On 3 September 1903 there was a collision between a light engine and one of the workmen's trains. The Board of Trade wrote to the company on 23 September warning of the "responsibility incurred by your company in carrying persons in this manner without the proper safeguards adopted for passenger lines". Lt Col Yorke of the Board of Trade visited the line by invitation to discuss what the proper safeguards might be, and he advised that the Board of Trade "could not recognise the practice of carrying outsiders..." From the careful wording it is evident that the carrying of workmen was condoned, but that it had come to light that the company had been improperly permitting the carriage of members of the general public. The company continued running the workmen's trains. At the same time local people were demanding the operation of a public passenger service on the line; an outlay of £8,500 was calculated to be necessary to enable that, and the work was deferred. However public opinion was insistent and the Company noted that the Light Railway Acts permitted the authorisation of passenger operation as a light railway on an existing line. To ensure that they made use of relevant experience, the Company consulted Holman Fred Stephens (later Colonel Stephens), who had much experience on the field. Stephens produced a report and waited on the Directors at a meeting on 13 July 1908; his estimate confirmed the £8,500 previously arrived at. The scheme gathered pace, and new, heavier, rails were ordered together with a new locomotive and signalling equipment. Ten second-hand coaches were acquired from the