Even with the advent of the railway in 1846, the canal continued to flourish. Plans to make improvements were deferred in 1845, when the effect of the railways was unknown, but although the Hull and Bridlington Railway opened a station at Driffield in 1846, a proposed branch to Frodingham, which would have offered serious competition, was not built. Plans were drawn up for further improvements in 1855, but the bill to authorise the work was defeated over concerns about flooding. However, by 1870, trade started to decrease. Despite this, the commissioners bought a steam dredger in 1898, which kept the channel in good order, and earned some revenue, as it was hired out to Beverley Corporation and Joseph Rank. By 1922 the tolls were £714 and the profits £88. In 1931 receipts were £414 and the profits down to £11. This figure included £7, which was obtained from pleasure boats using the navigation.