The Lake Ontario Shore Railroad Company was founded in Oswego on March 27, 1868.

Under Chief Engineer James Ross, work commenced in August 1871 in Red Creek, New York.

Despite heavy support from on-line and planned on-line communities, the LOSRR was unable to handle its great financial obligations.

Reasons include a lack of manufacturing industries, bypassing Rochester, New York and close competition with the New York Central Railroad.

On October 22, this company and the RW&O made an agreement to consolidate, which was filed with the New York Secretary of State on December 23, 1875.