An early version[1] of the Pacific Railway Act of 1862 included a branch north into Oregon, but this was left out of the law as passed.
Undaunted, they incorporated a second Oregon Central Rail Road (East Side Company) in April 1867, with Governor George L. Woods as president.
West Side construction was stopped when Portland's guarantee on bond interest was declared in violation of the city charter.
[6] The first 20 miles (32 km), from Portland to New Era,[7] were completed by December 1869, thus enabling the East Side Company to receive its first pieces of land.
[5] The West Side Company operated its own road, under control of the O&C, until September 1879, when it was leased to the O&C-controlled Western Oregon Railroad, which had continued the line to Corvallis.