Astoria was now assuming the proportions of a town and in 1856 was incorporated by the territorial legislature. The town included the Shively claim and a part of the McClure claim.
With the incorporation of the Astoria and Willamette Valley Railroad in 1858 by T. R. Cornelius, W. W. Parker, John Adair and others began Astoria's struggle for rail connections with other parts of the state and with the East which ended with the completion of the Astoria and Columbia River Railroad in 1898.
No census returns were handed in for Astoria in 1860, but the estimated population was about two hundred and fifty. The troops had been removed before this so that the town had had a substantial growth caused chiefly by the increase in the amount of shipping and the trade with the small growing settlements near Astoria. Astoria was becoming the trade center for all points on the lower Columbia. The fishing industry was confined still to the smoking and salting of salmon and a considerable quantity was shipped to the Sandwich Islands.
J. M. Shively, who had been appointed postmaster in 1847, left for the mines in 1849 leaving his deputy, David Ingalls, in charge of the office, who moved the office to his store on the southwest corner of Tenth and Duane streets. At this time Astoria was the distributing office for the entire Northwest, including the present states of Oregon, Washington, Idaho, and Montana. In 1853 San Francisco was made the distributing point for the coast. T. P. Powers, who resided in Upper Town and was a part owner in that place, succeeded Mr. Shively as postmaster and moved the post office to upper town near the customhouse. This left Astoria without a federal office and helped to build up its rival. With the change of the national administration in 1861, new officers who were friendly to the lower town were appointed and the post office and the customhouse were moved to the lower town. It was remarked at the time by a resident of lower town that "politics took them away and politics brought them back."
The erection of Fort Stevens and Fort Canby at this time made work plentiful around the mouth of the river and contributed to the growth of Astoria both in population and in wealth, as many of the supplies were drawn from the town.
The school census for the years 1859-70 shows a steady growth in population brought about by the establishment of new enterprises, the settlement of the country tributary to the town, and the increase in amount of shipping from the Columbia River, especially the establishment of a regular line of steamers from Portland and Astoria to San Francisco. In 1865 Christian Leinweber started the Upper Astoria tannery which gave employment to about thirty persons. In 1867 what was afterwards known as the Hume mill was built near Thirteenth and Commercial streets and was one of the city's most important resources until its destruction by fire in 1883.
In 1867 Judge Cyrus Olney, who had succeeded to the claim of John McClure, formulated a plan to dispose of a part of this property at a uniform price per lot. This plan was known, locally, as the Olney lottery. Tickets were sold for $50 each, entitling the holder to a lot in the city and a chance to draw the "grand prize," which consisted of two lots and a house, the property now owned and occupied by Louis Kirchoff and situated on Twelfth Street, between Exchange Street and Franklin Avenue. The other lots were situated in different parts of McClure's Astoria. The plan then amounted to this: each ticket entitled the holder to a lot, though the location was a matter of chance, and a chance to win two lots and a house. Many lots were disposed of by means of this lottery.
By 1870 the population of the town had increased to six hundred and thirty-nine, and the population of Clatsop County had increased from four hundred and sixty-two in 1850 to one thousand two hundred and fifty-five in 1870. Small sailing vessels and steamboats were running between Astoria and lower river points, and a regular steamer service was maintained between Portland and Astoria and between Portland and San Francisco. At this time it was customary for the ocean steamers to make the trip from Portland to Astoria during the day, and to tie up at Astoria for the night, and to cross the bar the next morning. Steamer day was the event of the week and was a source of considerable revenue to the merchants of the town.
The Pioneer and Historical Society was organized in this city in 1871, and, as the name implies, its membership is limited to the pioneers of Oregon, and its object is to prepare and keep a record of the events in which the pioneers figured during the founding and development of the State. Many records were collected by the society, but for the most part have been scattered and lost, as have the books of its once valuable library. For several years past the society has had merely a nominal existence, but recently a movement has been started to reorganize the society, and to carry out the purposes for which it was founded, especially in the way of collecting local history.
The Astorian, the successor to Astoria's first newspaper, The Marine Gazette, published during the sixties, was first published in 1873, and has been issued continuously since that time. Its influence in the upbuilding of the town can not be estimated. The early files of the paper are filled with articles encouraging new enterprises, setting forth the advantages of the town, and recording every new step in its advancement.