History / Economy
A Railroad Bond in 1875 Doubled Palestine's Population
In 1875, Anderson County voters approved a $150,000 bond to bring the International-Great Northern Railroad's shops to Palestine. Within five years, the county's population nearly doubled.
Palestine's rise as a regional center came down to one vote. The International-Great Northern Railroad had reached Palestine in 1872, but the real prize was the company's main shops and offices. In 1875, county residents approved a $150,000 bond to offer the railroad as a bonus to locate those facilities in Palestine. In return, the railroad put its machine shops and general offices in town. The company employed over 300 people. By 1880, Palestine's population had doubled. The county's population had grown to about 17,000.
The railroad also changed the layout of the town. The line ran west of the courthouse hill. That created a new commercial area called New Town, which slowly merged with the original Old Town near the courthouse square. By the 1890s, Palestine had about 6,000 people, plus mills, cotton gins, an opera house, and a fire department.
In 1928, oil was found at Boggy Creek east of Palestine. That added another source of income and helped the county get through the Depression. The TSHA Handbook of Texas entries on both Palestine and Anderson County cover this economic history in full.
Source to confirm: TSHA Handbook of Texas — Palestine, TX (Anderson County)