The Shelton store building and the O'Linn and Judge Wood shacks became the nucleus of the "old town" of Chadron. Later in the fall of 1884 Milo M. Harrah came from Iowa with a stock of hardware, and early in January, 1885, W. A. and G. A. Birdsall cast their lot with the town and established a livery stable and feed supply store. With the coming of spring of 1885 other business houses were established as follows : Loewenthal Brothers, clothing, Walter & Lyman, druggists, J. Kass & Company, hardware. Glover & Brower. general merchandise, Dawes County Bank, Chadron Banking Company, Lake & Halley, bankers, McCoy hotel, F. R. Curran, saloon.

Some of the later comers were doing business in tents waiting the time when the town should be definitely located, and a town site plated and lots placed on sale, and other business people were on the ground ready to embark in business ventures as soon as a permanent town should be established. Among the latter were Robert Hood and Mary Smith-Hayward. who are still Chadronites. No dwelling houses were" built at the old town for the reason that all were merely squatters on Mrs. O'Linn's claim without any legal rights to the ground occupied. The temporary buildings were grouped so as to .give the appearance of a street. The O'Linn homestead and adjoining lands were generally believed to be the natural and most desirable site for the new town. The matter of location was entirely in the hands of the railroad company, and why the present site was determined upon has always remained a mystery. In those days the higher railroad officials were often quite arrogant, and many of the first settlers believed that the price of land asked by Mrs. O'Linn, coupled with other demands, so incensed the railroad officials that they acted in a vengeful spirit in making the location.