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Although the mill was profitable for many years, and Austin-Nicholson was the largest producer of railroad ties in the British Empire, the establishment of another mill at nearby Dalton Mills in 1921 limited the town's growth potential.
In 1942, the government loaned some land to the State Train Company, which harvested oak wood to use as railroad ties.
Working first as foreman of a crew hired to supply railroad ties, and then as manager of a large railroad construction gang, Paxton contracted with the Omaha and Northwestern Railroad in 1869 to build lines north out of Omaha to Oakland, Nebraska.