entered service on 29 September 1833 on the level section below Balbeuchly incline. When Alexander Allan (superintendent of the Scottish Central Railway) discovered one of the original locos in use as a stationary engine in 1854, he realised it was of historical importance, and had it 'removed and all the parts carefully put together, cleaned, painted, and lined'. He then had it photographed, and a lithograph taken from the photograph was reproduced in an article in The Engineer journal of 1883. The date on the maker's plate of 1833 identifies it as either no. 1, Earl of Airlie or no. 2, Lord Wharncliffe. The introduction of locomotives, and therefore somewhat faster speeds, now showed up the deficiencies in the engineering of the line. Passenger trains averaged 15 mph (24 km/h). Development of Newtyle Early in 1832 Lord Wharncliffe, as the landlord of the small settlement at Newtyle. offered a prize for the best plan for development of a village there; George Matthewson of Dundee won the prize and his scheme was implemented between 1832 and 1838, somewhat enlarging the community and providing roads and drainage, and water supplies; however the expansion did not materially affect the income of the railway. Reaching the harbour The original line had its Dundee terminus at Ward, some considerable distance from the harbour, the principal origin of much of its goods traffic. In 1834 definite plans were prepared for an extension to the harbour; this had been authorised in principle by the original Act. The Burgh was enhancing its dock facilities at the time and wished to encourage railway access, and therefore agreed to the extension through the streets: the line was to run down Lindsay Street, across Nethegate to Yeaman Shore, then turning east to join the Dundee Harbour internal railway lines. There were to be steep inclines: up to 1 in 24: and horse traction was to move two wagons at a time. The extension was completed in February 1837. The Yeaman Shore section was moved from street running to railway property in 1847. Financial difficulties The construction of the line had not been well executed, and maintenance costs were considerable; in addition the three stationary engines were expensive to operate. The shortage of capital at the time of building the line had resulted in heavy loans being taken. The agricultural traffic from Strathmore had not developed as much as had been forecast,