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An investigation by Major General C. S. Hutchinson concluded that whereas the immediate cause was the obscured signal, signalling practice at Esholt Junction — specifically clause 16, which allowed trains to approach the junction simultaneously — should be abolished and considered to be a breach of the Regulation of Railways Act 1889.
Penalty fares are used to discourage casual fare evasion and disregard for the ticketing rules without resorting to (in the case of railways in Great Britain) the drastic and costly step of prosecution under the Regulation of Railways Act 1889 or other laws dealing with theft and fraud.