of the line averaged about £7,000 for the first three years, giving the MHR an annual profit of about £3,675. On 31 January 1867 a bill in Chancery was filed against the company, in respect of unpaid interest owed, and on 4 July 1867 a receiver was appointed. While the situation lasted the MHR share of receipts had to be handed direct to the receiver. The MHR was released from receivership when it filed a scheme of arrangement-with its creditors, confirmed in April 1869, making a rearrangement of its stock. The LSWR opened a new line from Pirbright Junction (near Brookwood) to Farnham Junction on 2 May 1870. This formed a direct route from London to Alton: up until that time the eastward connection to Alton had only been via Guildford, making a rather roundabout journey from London. The new line put the MHR potentially on a direct line between London and Southampton. However the MHR naively imagined that the LSWR ought to transfer through traffic between London and Southampton away from the main line over the MHR, an operationally difficult single line with steep gradients. The friction between the MHR and the LSWR led to a Parliamentary Commission hearing. The MHR listed a series of complaints and demands for facilities off its own route, while the LSWR indicated a number of technical matters that had needed to be attended to so as to improve the MHR line. Revised working agreement, and sale of the business The original working agreement had been for ten years and MHR dissatisfaction was such that the directors decided not to renew it. They were going to seek running powers between Guildford and Winchester, and were preparing to work their line with their own rolling stock. The LSWR promised another agreement on improved terms, and negotiations began: the LSWR continued to work the line meanwhile, and matters dragged on 15 August 1878, when a new agreement was reached. This was for seven years. from 1 January 1878, giving the MHR the same proportions of gross receipts, but including a mileage proportion of all goods. and mineral traffic passing between stations in the Guildford and Alton areas and the LSWR system west of Winchester. Another agreement of 3 August 1880 cancelled that of 1878 as from 31 December 1879, and gave the LSWR a 999 year lease from 1 January 1880 for £9,200 yearly. The MHR