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The city of Terrell, in Kaufman County, Texas, was founded as a railroad town in 1873 when the Texas and Pacific Railroad came through the area. C.C. Nash and John G. Moore bought 320 acres and platted the town. The post office opened that year, and the town was named after Robert Terrell, a pioneer settler whose farm was on the western edge of town. Mr. Terrell had a house called “The Round House” on his land which was octagonal in shape and which served to defend against Indian attacks. The town It was incorporated in 1875, and in the next few years, there were 3,000 residents, three flour mills, three cotton gins, an iron foundry, a canning factory, a creamery, two banks. nine churches, and three weekly newspapers. It also became home to the North Texas Insane Asylum, which is now called Terrell State Hospital.

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