Life became more tolerable for Catholics in the early 19th century and some of the restrictions imposed were removed. Fr. O’Kelly availed himself of the opportunity of having a chapel built in Clare on the site of the original Mass House which had earlier been destroyed during a sectarian attack.

In 1801, while Vicar General of the Diocese, Fr. Hugh O' Kelly declined the bishopric but became Dean of Dromore, after Dr. Edmund Derry had become bishop. On 29th. October 1819, Dr. Derry died and, on the 30th. January 1820, Fr. O'Kelly was appointed bishop to succeed him. From the peaceful environment of Hallsmill he travelled to Newry to take up residence in Boat Street, which at the time was the bishop's residence. His successor in Tullylish was Fr. Edmund Magennis, a native of Tullylish Parish, reputedly a relative of Dr. O' Kelly. Dr. O' Kelly's zeal and determination to extend church buildings continued after his appointment in Newry. He is known as the founder of Newry Cathedral. He completed negotiations for the acquisition of land for the Cathedral and obtained legal permission for the work to commence.

The Railway at Hazelbank 1910