Oregon Pacific Railroad (1880–1894)

[2] Hogg originally intended to terminate the line at Seal Rock on the Oregon Coast.

[2] In anticipation of the railroad's arrival, the town was platted in 1877 with pedestrian-friendly public spaces and resort hotels that would accommodate train travelers, but the line was instead routed through Toledo to end at Yaquina, resulting in financial ruin for many who invested in Seal Rock.

[2][4] To the east, the line extended as far as Idanha, 15 miles (24 km) short of Santiam Pass before running out of money.

Despite the Yaquina City being insured, Hogg had just lost his biggest source of income and could not immediately replace the steamer.

Hogg's contract with the government stated however, that if he could establish railroad service over the Cascade Mountains, he could receive a massive land grant.

In 1888, Hogg purchased the Ocean liner Caracas from the Red D Line to replace the Yaquina City.