On October 20th 1881 construction of Pontiac, Oxford & Port Austin Railroad began at Caseville to bring rail service to the Thumb area. Just before construction began a huge fire devastated the thumb area. The result was that the former lumbering area was now ripe for agricultural development. The fire opened up the land to farming.
Caseville’s first railroad engines were delivered by the ship C.R. Dumford from Cleveland. The track out of Caseville was laid out about a mile before heavy snow stopped the work. Francis Crawford financed the railway project and the rails were shipped in from Cleveland.
On one shipment from Cleveland the ship ran aground on the rocky shoals near Oak Point. During the salvage operation, 23 rails slipped into Saginaw Bay and were lost. It’s assumed that those rails are still at the bottom of the lake today.