The Silverton, Gladstone and Northerly Railroad was incorporated in 1899 after Otto Mears and associates were unable to procure financing to build a branch of the Silverton Northern Railroad to the mining area around the town of Gladstone.
(Mears leased the Silverton Northern in the same year and purchased the SN outright in 1915, although traffic was discontinued soon thereafter.)
Construction began from the mainline of the SN on the north side of Silverton, and followed Cement Creek northward to the town of Gladstone.
At one time, an extension to the Silver Lake Mine was proposed, but no further construction ever was accomplished.
[2] Following the ups and downs of the metals markets, the SG&N was finally absorbed by the Silverton Northern Railroad in 1915, being operated as the Gladstone Branch.