By 1891, the line had reached McEwen, west of Baker City, and the railroad began offering passenger and freight service. To reach uncut forests further west, the company extended the line in stages. It reached Sumpter in 1896 and continued southwestward to Whitney, Tipton, Austin and Bates. By 1910, it arrived in Prairie City, a ranching and mining community along the John Day River in Grant County. The railroad continued to use wood fuel for their locomotives until converting to oil fuel in June, 1940. Diamond-shaped smokestacks were replaced by cabbage-shaped Rushton stacks after 1916.