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Paxton was one of many towns that grew up in a Chicago-to-Cairo corridor along the tracks of the Illinois Central Railroad in the 1850s. It was first called Prairie City, and then the name was changed to Prospect City. Eventually, it was renamed Paxton after Sir Joseph Paxton, an English architect who settled there. It became Ford County's county seat, and remains so today.
The town is a showcase for a variety of architectural styles, and many of the beautiful structures built between 1860 and 1880 are preserved to this day. As a matter of fact, the small building that served as the first public school in 1856 and the rare brick water tower and pump house erected in 1887 have been listed in the National Register of Historic Places. Paxton demonstrates a large Scandinavian influence since the earliest settlers were Swedish and Norwegian.
A quarter of the town's work force is in manufacturing, and agriculture is another large employer. Along with many fine shops, Paxton offers a railroad museum housed in the old Paxton Depot. The museum is operated by the Illinois Central Railroad Historical Society.
Paxton became the second home of Augustana College when it moved from Chicago in 1863. The school was moved to its current Rock Island location in 1875.
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