To the east, the line extended as far as Idanha, short of Santiam Pass before running out of money. Hogg purchased the steamship Yaquina City to provide a direct link to his railroad between Yaquina and San Francisco. Yaquina City successfully completed several voyages, until she ran aground at Yaquina Bay in 1887 due to a rudder failure. 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. By selling this land, enough money could be made to keep the railroad in business. To get the grant, some additional track was laid over Santiam Pass. Hogg had mules pull some cars a few times to assert right of way. Hogg Rock near Santiam Pass is named for T. Egenton Hogg for his railroad which went around the rock. Track was also laid in the canyon of the Malheur River to reserve that pass for the railroad.