Lincoln City is actually five smaller coast towns that combined in the 1950s. Instead of naming the new town after one of the old towns, a new name was voted on. The school children of the area chose Surfland, but local fuddy duddy adults didn't like the name. Instead they decided to name it after Abraham Lincoln, who was offered the job of Oregon's territorial governor in 1849. He would tour the circuit from town to town, and along the way he would read books while riding his horse. He ultimately declined the governor position and returned to his law practice and ran for President instead.
The statue was sculpted by Anna Hyatt Huntington and given to Lincoln City on the condition that the town never change its name.