In 1904 the Hidalgo and San Miguel Extension of the St. Louis, Brownsville and Mexico Railway reached the Santa Anita Ranch, after John McAllen and his son James had donated land to make sure it crossed their property. On December 5, 1904, Uriah Lott, Leonidas C. Hill Sr., John McAllen, James Balli McAllen and John J. Young formed the McAllen Townsite Company. The new town, named for John McAllen, had the depot closest to the county seat at Hidalgo, 8 miles south.
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By 1911, 5,000 acres in East McAllen were planted in cotton, alfalfa, broomcorn, citrus, grapes and figs. East McAllen had about 1,000 people, and West McAllen had disappeared. The town was incorporated as McAllen in 1911. In 1916, 20,000 New York state troops were stationed there during border troubles connected with the Mexican Revolution, and the boom raised the population from 1,200 in 1916 to 6,000 in 1920.
McAllen adopted a home-rule charter in 1927. Canneries, a winery, tortilla plants, woodworking shops and oil exploration brought the population to 9,074 by 1930. In 1936 Hiram Garner opened the Valley Distillery, which made wine from citrus juice, and by 1940 the city of 11,877 had taken the nickname the City of Palms. In 1941 a suspension bridge replaced the old crossing from Hidalgo to Reynosa, and the city bought the new McAllen-Hidalgo-Reynosa International Bridge, which made McAllen a winter resort and a port of entry to Mexico.
Sources
Wikipedia: McAllen, Texas