First usage was a long time before that - (John?) Bridges Adams built the first ones in the 1840s (working from memory, "Express" on the Easten Counties and "Fairfield" on the Bristol and Exeter, though those names could have been the other way around, plus some for railways in Ireland [1]). They were regarded as successful, but the long rigid wheelbase (no bogies for the coach-section in the 1840s..) was hard on the track. They fell by the wayside in favour of small engines + coaches (for example, George England's "Little England" type), which in turn fell victim to increasing loadings. All of these were designed for quasi-main-line work.
Second appearance of railcars was in the 1890s, when they were viewed as a way of operating branch lines at lower cost. Several railways used conductor/guard working - forshadowing the 1960s/70s Paytrain scheme. All of these used bogie-mounted coach sections (//big// advance of the hauled stock on the branches back then). Generally successful, though limited by haulage capacity if loadings increased (few could pull a trailer) and there were issues with maintainance - if the engine section broke down the whole thing was out of order. The North Eastern didn't build any of these, but instead converted old tank engines to be driven from a cab in a coach end, with the engine pushing or pulling the coaches. Eventually this approach (the "auto-train" replaced steam railcars on most other lines - IIRC the Lancashire and Yorkshire steam railcars lasted the longest, into the 1930s).
Third outing used high-pressure geared engines (based on steam lorry technology) to provide smoother-running, higher-powered steam railcars which could haul trailers. The LN&E was very keen on these - it's one of these machines that's shown in the photograph. Again, haulage power and maintainance issues did for them.
The railcar concept only really came of age when multiple engines or motors could be controlled by a single crewman - the diesel multiple unit was a revolutionary concept.
[1] Interesting that all of these were broad gauge - I'm pretty sure the Eastern Counties was still 5' gauge then..