It also suited their type of railway lines: for much of the 19th century (e.g. before the Settle-Carlisle line toward Scotland) the Midland didn't have any steep gradients on their lines, so they didn't require high powered locomotives on many of their trains. Bulk freight (such as coal) isn't time-sensitive, so they could send a coal train with one small locomotive (fairly) slowly to London, looping it out of the way of fast passenger trains, and reduce their operating costs. Those trains that were heavy enough to require more power could be operated by two locomotives; labour costs were cheap in those days after all.
Other railways, such as the London & North Western, had similar cost-saving (profit-enhancing) policies: the London & North Western Railway's chairman Sir Richard Moon operated a policy that 40mph was fast enough for a long-distance express train, and going faster would waste too much coal. They were broken out of this mindset by
competition on travel to Scotland via the East Coast route.
The use of small engines in the Midland, though, seems to have become part of the company's identity, and it was reluctant to change its policy as trains became gradually longer, heavier, and faster, leading to a situation where many passenger trains were routinely double-headed. Even after merging with the LNWR to form the LMS in the 1923 grouping, the policy still continued because they appointed the Midland's Chief Engineer to be their Chief Engineer.
There's a short summary on
Wikipedia, but for further perspective you'll have to ask someone with more knowledge of the Midland than me. I'm more of a LNWR man, myself.