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===19th century=== In 1868, James B. Mattingly, a freighter originally from Kentucky, established a sawmill on the banks of the [[Little Blue River (Kansas/Nebraska)|Little Blue River]]. Shortly thereafter, Woodford G. McDowell, a capitalist from [[Fairbury, Illinois]], came to Nebraska to plat a town along the route of the St. Joseph and Denver City Railroad, which was to follow the Little Blue. In 1869, Mattingly and McDowell each contributed {{Convert|80|acre}} for a new townsite, which they named after McDowell's hometown.<ref name=survey/><ref name=casde/><ref name=fairhist/><ref>{{cite book | url=https://archive.org/details/bub_gb_9V1IAAAAMAAJ | title=The Origin of Certain Place Names in the United States | publisher=Govt. Print. Off. | author=Gannett, Henry | year=1905 | pages=[https://archive.org/details/bub_gb_9V1IAAAAMAAJ/page/n122 123]}}</ref> The new town grew rapidly, even before the railroad's arrival. In 1870, a population of 370 was reported; in that year, the ''Fairbury Gazette'' was established. A year later, Fairbury was chosen as the county seat; in early 1872, the city was incorporated. By this time, its businesses included three hotels and five blacksmith shops.<ref name=survey/><ref name=casde/><ref name=nomform/> In 1872, the St. Joseph and Denver City reached Jefferson County. (The railroad was subsequently acquired by the [[Union Pacific Railroad|Union Pacific]] and operated as the St. Joseph and Grand Island branch.) Fairbury became a shipping center: in the first half of 1873, it shipped 255 cars of grain and received 143 of lumber. By 1874, there were 600 residents; 44 businesses operated in the city.<ref name=nomform/> An 1879 fire, "supposed to have been the work of an incendiary",<ref name=andreas/> destroyed an estimated fourteen buildings, for a loss of $50,000, much of it uninsured. However, recovery was swift, and many of the destroyed frame buildings were replaced by more modern brick and stone structures. By 1882, the city's population had grown to 1,600.<ref name=nomform/><ref name=andreas/> In 1885, the [[Campbell Brothers Circus]] began wintering in Fairbury. It continued to winter in and around the city until its closing in 1913. At its peak, the circus was the second-largest in the world.<ref name=circus/> In 1886, the [[Chicago, Rock Island and Pacific Railroad]] reached Fairbury. The city lay at the junction of the Rock Island's north-south and east-west lines; because of this, it was designated the headquarters of the railroad's Western Division. An extensive rail yard was constructed, including shops, storage and maintenance facilities, switching yards, and an 18-stall [[Railway roundhouse|roundhouse]]. The railroad had a major impact on Fairbury: by 1890, the population had grown to 2,630.<ref name=survey/><ref name=depot/> [[File:Jefferson County, Nebraska courthouse from E.JPG|thumb|alt=Two-story stone building with one-story clock tower above|Jefferson County courthouse]] The brick courthouse had survived the fire of 1879;<ref name=andreas/> but soon thereafter, it proved too small to handle the county's increasing business and store its growing records. In 1882, the county began renting the top two floors of the newly constructed Opera House, and moved its offices there; but this too was quickly outgrown. In 1889, a $60,000 bond issue for the construction of a new courthouse passed; the new [[Romanesque Revival architecture|Romanesque Revival]] building was completed in 1892.<ref name=courthouse/> Fairbury continued to prosper as the home of the Rock Island headquarters, which employed many locals directly and in supporting businesses. Commercial and residential development continued apace in Fairbury. Both of the city's banks survived the [[Panic of 1893]]. Boardwalks were replaced with brick sidewalks between 1892 and 1894; an electricity and waterworks powerhouse was constructed in 1895; and in 1898, electric street lights were installed. By 1900, the population had reached 3,140.<ref name=survey/><ref name=nomform/> [[File:South side of the courthouse square, early 1900's..jpg|thumb|alt=Old postcard, showing courthouse and commercial streets; several horse-drawn vehicles on street|South side of courthouse square in early 1900s]]
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