both the Eastern and Western Branches of the Montgomeryshire Canal. The Eastern Branch was formally transferred to become part of the Shropshire Union on 1 January 1847 with the company receiving £78,210 of which £7,920 was in shares in the new company and the rest was in cash. The Western Branch remained under Pugh's control for three more years but was bought for £42,000 on 5 February 1850 although some £7,000 of this cannot be traced from the accounts. The Shropshire Union company had negotiated with several railway companies who had initially been rivals but on 1 January 1846, they had all amalgamated to become the London and North Western Railway (LNWR). The Shropshire Union had obtained powers in their enabling act to build railways and thus became a threat to the London and North Western Railway who offered to lease the Shropshire Union in the autumn of 1846. This was formalised by an Act of Parliament in June 1847 although the powers were not fully implemented until 25 March 1857. Part of the deal was that the Shropshire Union would drop its aspirations to build railways but in return, would have a free hand to run the canals which they did vigorously. The LNWR applied for powers to build a railway linking Shrewsbury, Newtown, Welshpool and Oswestry in 1853 but after negotiation with the Great Western Railway, withdrew the bill and it was they who built the Oswestry and Newtown Railway which was completed on 10 June 1861. The plan was supported by some of the former Montgomeryshire Canal shareholders, who were disappointed that the sale of the canal to the Shropshire Union had not resulted in it being converted into a railway. Decline Although the Shropshire Union had a fairly free hand in running the canals, the goods that could be carried were restricted by the terms of their lease and the canals gradually became less profitable. Consideration was given to closing the Weston Arm in 1875 and again in 1885 but no action was taken. The idea of closing the whole of the former Montgomery Canal was considered in 1887 but study of the figures revealed that it was still making a small profit of £432 per year and so it was reprieved. In May 1917, the Weston Arm suffered a breach at Dandyfield which it was estimated would cost £14,000 to repair. Thereafter, the arm was