Measures were taken to seek parliamentary authority in 1846 but before the Bill was presented the GNoSR was created. A decision was taken that the two railways would connect at Elgin and the Morayshire Railway would connect its Speyside line to Craigellachie at Orton. The company's capital was agreed at £50,000. Parliamentary approval for this scheme were obtained on 10 July 1846 but financial panic gripped the United Kingdom in 1847 and the entire project was shelved. An internal crisis developed within the company following a change of some the directors. The board declared that powers would be requested to abandon plans for the Craigellachie extension as there was no sign of the GNoSR starting their scheme. Some Edinburgh based shareholders—with the financial upheaval of the previous few years feared that the entire project was no longer viable—attempted to get the entire railway cancelled at an Extraordinary General Meeting (EGM) held on 24 February 1851 using the Abandonment of Railways Act, 1850. This motion was carried by 1800 shares to 677. Provost Grant suspected that due processes had not been observed and protested to the Railway Commissioners who on 21 March 1851 called for a list of shareholders who had attended the abandonment EGM—the Commissioners found that the necessary shares owned by those attending were insufficient for an abandonment. The Edinburgh shareholders withdrew their support placing the company in a critical position. The Railway Commissioners granted the abandonment of the Craigellachie section on 10 July and agreed that the capital of the company be reduced to £29,700. However, it was not until Elgin Town Council agreed to invest £1,000 in shares and Colonel Brander of Pitgaveny made a large addition to his already substantial holding that the contract for the Elgin to Lossiemouth section was placed.