Lexington's Golden Age of Railroads

Derrick Baker
Lexington High School, Lexington

Lexington, settled in the 1830s, was still unincorporated in 1850 and totaled only ninety-six residents, mostly farmers. Just ten years later, though, Lexington had become a thriving, incorporated town with a broadly based service sector.

What caused this unbelievable growth and development in a small rural community lacking any major industry or other economic advantage? It was the Chicago and Alton Railroad, which was planned to connect Alton, Illinois, with Chicago. Why did it have such a great influence?

After the railroad came through in 1854, Lexington had a great advantage in location. Agricultural markets could be tapped. Previously, goods had to be hauled overland by wagon to Pekin or Peoria. However, when the railroad came through, the immense markets of Chicago were brought within reach. This created agricultural wealth and increased rural population.

The McLean County censuses of 1850, 1860, and 1870 demonstrate the growth. The assets of all agriculturally related occupations, including principally farmers and grain buyers, in 1850 totaled $19,950. This figure is for all agricultural wealth in Lexington and the immediate surrounding area. In 1860 total assets grew 994.7 percent to $218,400. By 1870 the total was $695,180, or a 3,384 percent increase over the 1850 figures.

Freight trains brought wealth and prosperity to towns along their routes, but passenger traffic also increased to serve those new communities along the railroad. Train travel was stylish and elegant; passengers could relax in the comfort of a lounge car like this one.

The two ribbons of rails also created a boom town by introducing new people. Laborers were needed to construct the railroad. A large majority of the workers who came were Irish immigrants, and many stayed in Lexington to find work after the railroad was built. Also, many more immigrants settled near railroads because it was an easy way to travel long distances. Altogether, there were thirty-one Irishmen and thirty-three Germans in Lexington at the time of the 1860 census. Immigration coupled with the increased agricultural wealth provided strong economic growth. As the local economy grew, many merchants saw a golden opportunity. To many young, adult males, Lexington was a ship coming to port. Many of them saw the opportunity to start a business in a growing town with a rich and prosperous population. Lexington's expanding markets thus attracted many merchants. Evidence of this is seen in the 1860 census. There were nine merchants, four grocers, six cabinetmakers, seven blacksmiths, one tailor, one jeweler, and many other entrepreneurs, all key to Lexington's early

economy. Many of them became quite wealthy, such as John Fulwiler, a merchant. He moved to Lexington sometime after 1855, and owned $20,000 worth of real estate and $1,000 of personal property—an extremely large sum of money at the time. It seems he likely saw Lexington as an emerging market and then made a business decision to relocate from Pennsylvania to Lexington.

One of the wealthiest Lexingtonians was R. F. Marshall, a speculator. His children's ages and birthplace suggest he moved from Ohio to Illinois between 1854 and 1856, during Lexington's early railroad period.

The censuses also prove that construction increased. In 1850 Lexington had 20 houses, and by 1860 there were 152 houses. Therefore, in 10 years 132 houses were built, plus a hotel and 48 shops. Lexington also boasted 15 carpenters and a lumber merchant by 1860. William Lindsay, a wealthy man originally from Scotland, exemplified the master builders who benefited from Lexington's building boom.

Basically, the railroad caused a chain reaction of economic development that created a boom town. First, it bolstered Lexington's agricultural capability, turning Lexington's natural resources into economic resources. As that happened, it brought more people to Lexington, causing real estate values to boom. That in turn attracted wealthy speculators who pumped thousands of dollars more into the local economy. That lured even more merchants, and the cycle continued.—[From U.S. Population Census, 1850, 1860, and 1870.]

ILLINOIS HISTORY / DECEMBER 1994

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