From 1874, earnings declined and, by 1877, the financial situation of the P&TR was serious; moreover the state of the permanent way and other infrastructure was known to be poor, and money needed to be spent on it. A number of management changes were made, and also a simplification of the committee structure of the company. Consolidation with the M&MR was considered, but the M&MR itself was in difficulty and not carrying the trunk traffic it had been built for, and was hardly of any financial assistance.