At the end of the Civil War, Texas
had no satisfactory market for its excess cattle. Speculators brought huge herds and moved them
north for final fattening before shipping to Omaha, St. Joe, Chicago and
Denver. The Dundy County area was carpeted with thick buffalo
grass and many varieties of tall grass. This offered free grazing and
Collinsville was an excellent shipping point. But the Nebraska Embargo on
Texas cattle combined with the "Homestead Act" and the settlers it brought,
resulted in the open range beginning to break up. Early in 1882, the railroad built a depot and the town
relocated north of the track. It was destined to become a flourishing town.
In the south central part of the County at the junction of north and south
forks of the Republican River, and on the main line of Burlington Railroad,
it had great advantages. It became a shipping point for grain, livestock and
cream. On February 8, 1887, the Village of Benkelman was
incorporated. In 1888 Hiawatha, Ough and Allston were putting up stiff
competition with Benkelman for the County seat. But Benkelman didn't join
directly in the controversy. Instead it quietly built a courthouse and the
County Commissioners awarded the County Seat to Benkelman soon after the
Courthouse was completed. Another courthouse replaced the original in 1918.
Originally called Collinsville, the town's name was
changed to Benkelman in 1880 when J.G. Benkelman established one of the
largest cattle shipping points next to the town.