Nor would there be much hope of a reduction in the inland transportation charges, were matters to progress as they have been doing during the past six months. Everything pointed toward the centralization of the control of every railroad and steamboat line in this State and the adjacent Territory in the hands of the Oregon Railway and Navigation Company, presided over by Mr. Villard. The narrow-gauge system of railroads in this valley, owned and operated by the Scotch company, with headquarters at Dundee, was six months back the sole hope of the valley farmers as an honest competitor with its huge rival. But a few months ago announcement was made that Mr. Villard had secured the Scotch company, by a series of astute operations in Scotland; and now, under the ninety-nine years' lease which he obtained, the narrow-gauge company has ceased its independent existence, and its traffic is being assimilated as to rates with that of its former competitor, while it is so conducted as to stifle its growth as a separate organization, and throw all its vitality into the other roads. But the anticipations, expressed in the earlier pages of this book, of an active rivalry to the Oregon Railway and Navigation Company, through the Oregon Pacific Railroad and its outlet at Yaquina Bay, are being realized as rapidly as men and money can do it. Early in July last the news came through the wires that the financial battle had been won by Colonel Hogg, and that construction was to be pushed forward immediately. Short as the time is, much has been done, and more is being done. Engineering parties were organized and fitted out, and their work is nearly complete in all its parts. A good line of easy grades is located through from Corvallis to Yaquina Bay, presenting no extraordinary difficulties of construction. On this, as I write, a large force of both white and Chinese labor is employed, with the full expectation that the line will be surveyed, built, equipped, and running within four or five months from the time the first spadeful of earth was dug. Difficulties in starting a great enterprise like the Oregon Pacific Railroad, of course, abound, but so far have been successfully met. Meanwhile the goodwill of the valley farmers has been maintained throughout, and the new road will open with abundance of customers. Therefore, all interested in the undertaking are well satisfied with the prospect of having to operate a line which shall save the valley farmers two hundred and twenty-one miles in actual distance, and save them half the present charges for transportation between the valley and San Francisco, and which gives also an early prospect of ocean-going ships loading direct from an Oregon port, with wharves within three miles from the ocean, for the European or Eastern market.