Following a report by C J Wall, a former manager of the Bristol and Exeter Railway, the gauge of was chosen. This would make the line somewhat more expensive to build, but it was thought that the increased carrying capacity would offset this. A prospectus was published on 3 November 1877, which mentioned that the company had agreed provisional contracts with Charles Chambers of Westminster, who would build the line and stations for £30,000, and with the Bristol Wagon & Carriage Works Co, who would supply the locomotives and rolling stock for £4,000. The company suffered upheaval around this time, as Allen, the secretary, resigned due to a conflict of interest, when he found himself representing local landowners in their negotiations with the railway. He was replaced by T H Jellicoe, who was joined on the board by the Mayor of Southwold and R C Rapier. Raising finance proved difficult, and when Chambers declined to enter into a proper contract until they were sure that purchase of the land was certain, most of the board resigned on 5 November 1877. Only Rapier and Bagot-Chester remained, to be joined by a new board, who were not local men, whereas all of the previous board except one had been residents of Halesworth. Board meetings moved to Rapier's London office, and he became chairman on 20 December 1877. Bagot-Chester resigned from the company on 29 January 1879, leaving a board that had no real commitment to the service of the community.