A parliamentary bill was passed authorising the construction of a railway line from Coolgardie to Norseman.
Many businesses began to close at this time, or were already closed. Burns, Philp’s bulk store, G.W. Gray & Co, the bakery, blacksmiths’ shops and E.J. McCarthy’s store closed. D.M. Peek’s store was taken over by son in law Sam Barclay.
F.J. Daw kept his store going through the bad times as did W.E. Hughes & Co. The Esperance Brewery was sold, pulled down and re-erected at the gold and copper town of Ravensthorpe, where a large smelter was developed run by a German firm.