If the L&B and the MC had merged when they built a line up to Scotland they could have called themselves the London Midland and Scottish Railway or LMS for short
I don't suppose at the time of closure the Rugby (Midland) - Leicester line was seen as valuable ( in times of disruption or any other time) , or used as a diversionary route when it was open. Owing to the constrained layout north of Rugby (Midland) Station, there was no track connection in the 'down' direction ( from London to Leicester), without extensive wrong line running or a shunt, which was not a practical move with the signalling and operations at the time. The Rugby (Midland)-Leicester line at time of closure had no viable local or long distance passenger traffic, or originating/terminating freight traffic, and featured several level crossings, which were expensive to man, with one across a busy main road (A5) which would have required bridging in the near future.
Both companies voted for amalgamation at meetings in late 1852 and a Bill was taken forward in 1853. But parliament was not taking kindly to amalgamations, things were postponed, and then never revived. The best summary I know of what was considered is the attached detail of the Bill as published by Herapath. Clement Stretton, in his History of the Midoland Railway (always to be used with caution!), writes (p.146): "In the following year (1852) the directors became firmly convinced that it was of vast importance to the prosperity of the Midland system that the Company should establish more or less direct connections with London, and negotiations were entered upon with representatives of the London and North Western Railway Company with a view to amalgamation. So essential was it considered that the Midland should be permanently identified with a line having a terminus in London that the amalgamation scheme was all but completed. The Midland terms were finally £60 in proportion to the London and North Western shares of £100, and the dividend to be pro rata on these amounts. The London and North Western would not agree to these terms, and offered amalgamation on the basis of £57 10s. per share, and on this difference of 50s. per share between the parties the negotiations were broken off. But meanwhile the Midland Company had established other arrangements, which enabled them to deal with their growing London traffic until the time was ripe for another forward movement." The same parliamentary session that saw the failure of the amalgamation Bill also saw the passing of the Leicester & Hitchin Act. That line was opened in spring 1857 and in February of the following year the Midland began to exercise its newly-acquired running powers to get to King's Cross. Euston was not at first abandoned, and the LNW route continued to be important for Midland coal until the Midland's own line was opened.
Personally I'd support a reopening although there are obstructions and buildings (boo hiss) in the Ullesthorpe area and a couple of other places, plus the track alignmentis now also obstructed at Willey (snigger) as well as having to pass under the M6.
That might be it.
As a Rugby area resident you will also know that Rugby people don't (and never have) gone to Leicester very much. Neither the Midland or GC line carried many local passengers, hence their withdrawal, and the bus offer pretty thin since then, indicating not much business on offer. So spaffing hundreds of millions on re-instating a line for a local train probably isn't going to cut it, especially when a one change connection is available via Nuneaton every hour.
