

History
Positive dates connected with the founding of McAllen are lost in the mists of antiquity. Four different accounts of the founding of McAllen are given in Ruth Clark's famous scrapbook. The majority of the opinion is that McAllen was founded in 1909 and incorporated February 21, 1911. James McAllen came to the Valley in the early 1 850's from Edinburgh, Scotland. He owned 65,000 acres of land in the area. In 1909, William Briggs and other investors purchased 1,200 acres of land at $3.50/acre from him.
Ancient History
The history of McAllen and the Lower Rio Grande Valley dates back centuries. Aztec Indians from Central Mexico made annual trips to the a rea to gather peyote to be used in tribal rituals. In 1519, Alonzo de Pineda discovered the mouth of the Rio Grande, making this the second place in the United States visited by European explorers after Columbus discovered America in 1492.
Other explorers including Cabeza de Vaca made their way through this area, but civilization did not advance much until 1749 when Jose de Escandon established the San Joauquin Mission in present day Hidalgo. A great flood swept away the mission in 1887. Hidalgo County was formed in 1850 and named after Father Miguel Hidalgo, the "Father of Mexican Independence."
Early History
Banditos and cattle rustlers plagued the area until Sheriff John Closner established respect for the law in 1890. (Without using guns!) Through his efforts, the railroads were extended and a great farming area was established. The Missouri-Pacific was built in West McAllen in 1903 but the old depot at 23rd Street and the few buildings near the depot never developed. The town of McAllen began growing in the area now known as South 17th and Main Street around 1907-1908.
First from 1908-1909
William Briggs moved a two-story building to Main and Highway in 1908 and operated it as a hotel for the McAllen town-site company. This same building is now operated as a rooming house on Ash between Broadway and 12th Streets. A Presbyterian church was the first built in McAllen in 1908 on the corner of 12th and Austin. The first two homes were also built in 1908; the first grocery store was the McChesney at 1 7th and Austin. The first newspaper to come off the press was the McAllen Monitor, a weekly publication still in existence. Volume 1, Number 1 was dated December 11, 1909. The first Chamber of Commerce was organized in the fall of 1909.
Progress
A water well, located in the 100 block between Main and 1 5th Street was the source of water in the downtown area in the early McAllen days. By public subscription, enough money was secured to dig the well. Civic leaders of McAllen say that the early progressive spirit of the city was evidenced in 1910 when a group of merchants built a horse trough at Main and Austin, so that cowboys coming to the city to purchase their supplies, could water their ponies easily. The population in 1910 was approximately 150.
Farming & Irrigation Expand
The irrigation system began development in 1904 by D.R. Swift, William Briggs and others whose company was known as Tejon Water Company. It served about 600 acres of land to grow vegetables and it was the third irrigation system built in the Valley. McAllen remained a dusty cactus patch town, little more than a village. The town went through all the struggles of a pioneer community, with people living with mud part of the year and dust the rest of the time. This dust and mud were so fertile that irrigation gradually increased, and citrus as well as vegetable growing proved to be successful.
In 1907 the Hidalgo Canal Company assumed control of the system, which by then was serving 900 acres. By 1914 the acreage watered had increased to 6,000 acres. In serving the larger areas, difficulties were born that taxed the company's resources, and in 1914, R.E. Horn took over the properties as received and operated them until 1917. In 1917, a Mutual Irrigation Company was organized. This company became the Hidalgo County Improvement District No. 3 in 1921.
Single-handed defense
James McAllen was a prominent figure during the raids along the border in 1916, and a popular story is told about how he single-handedly defended his ranch against a band of fourteen banditos. The bandits threatened to kill him if he did not pay $4,000 cash. McAllen chose to battle it out and barricaded his home. A faithful Hispanic woman loaded his rifle for him as he proceeded to shoot down four of the attackers. The others fled, but he was continually plagued by the bandits during this period.
July 4,1916
Due to the problems of bandits and raiding that occurred so often along the border, 12,000 soldiers arrived in McAllen on July 4, 1916. Some of the banditos are said to have been members of Pancho Villa's gang. The town of McAllen consisted of two or three businesses, two old frame hotels, a restaurant or two, a small bank, a feed store, a small saloon, half a dozen doctors and lawyers and the weekly newspaper. The arrival of this "army of occupation" certainly energized the McAllen economy.
There were no facilities to handle this increased population. The citizens were outnumbered and every business establishment was swamped. Calls went out to wholesale houses to rush in orders of every type of merchandise. Cold drink business was good; the weather was hot and sticky. Boarding houses were jammed full and new eating places were established under tents in vacant lots or any place where a spot might be obtained.
The soldiers made business and business made McAllen grow rapidly from a village into a city. Many of these soldiers were well to do. They did not depend upon their monthly check of $30. Some officers were millionaires and paid excessive rent for local homes. Some of the homes were rented for $125 to $175 per month, a small fortune back then.
In a few short weeks after the arrival of these soldiers, building started in every section of the city. Homes, business, churches, etc., sprang up and rents soared. Everyone was making money and spending it. There was no such thing as unemployment. All of the skilled trades were represented in McAllen and everybody had a job. About $10,000 in cash flowed into the city of McAllen per day. By the time the soldiers began leaving in March of 1917, McAllen had grown into a nice little city. It had developed into a stable trade center, and its social life and cultural interest had established a sound footing.
Broomcorn
The next substantial period of growth came about 1919-1921, when McAllen became a broomcorn center. At that time broomcorn was the money crop. Prices were high and there were some thirty-five broomcorn buyers in McAllen, all making their headquarters in a local hotel. It is stated that these fellows were the best spenders who ever lived within the city limits of McAllen. As a result of successful sales of broomcorn, every business grew. Speculators began to buy and improve property, and many made young fortunes in their speculation.
Farming Crops
In the 1920's and 1930's trainloads of Mid-Western farmers were brought to the Valley by developers. Southern Pacific Railroad came to McAllen in the late 1 920's and built a new train station. That building was renovated in the 1980's and is now a law office. The influx of Mid-Westerners brought farming skill and a love for the soil. They established farms and plantations, and many of their offspring are still here, growing some of the world's sweetest grapefruit and oranges, sweetest onions and melons, cotton, sugar cane, and virtually every row crop vegetable you can name.
Though the Decades 1920-1970
In the late 1 920's a suspension bridge was built across the Rio Grande. Falcon Dam was built in the early 1 950's and Expressway 83 was constructed in the early 1 960's. Neauhouse Tower was built in the mid-1 960's on land that used to be McAllen High School. A memorial now stands at the southwest corner of the
property commemorating the site. The 1970's brought increased industrial trade and manufacturing, and early in the decade the Free Trade Zone was activated; it was the first inland FTZ in the world. With the passing of the North American Free Trade Agreement in the 1 990's, the FTZ has grown and flourished, creating over 4,000 new jobs in the U.S. and over 5,500 jobs in Reynosa, Mexico.
McAllen Today
McAllen has grown and developed from an agricultural based economy to a strong retail, manufacturing and trade center. McAllen has always enjoyed strong economic impact from tourism dollars that come in the winter. McAllen was named an "All America City" in 1996 and the FM named the new airport terminal the 1996 Texas Airport of the Year. McAllen is a top 20 city in Texas, 1 7th in population, 17th in retail sales, 5th in per capita sales tax collections and 2nd in percentage change in population. The growth rate in McAllen is 4.2% annually, and, at this rate, the MSA population will double in 18 years. The city population is expected to grow to 151,000 in the next five years.
McAllen is the retail center of South Texas and Northern Mexico, drawing from a consumer base of over ten million people in a 200-mile radius. In the bi-national metro area, McAllen retailers serve a market population of over 1.5 million. La Plaza Mall is one of the highest grossing malls in the United States, with sales of over $400 per square foot. McAllen is home to 24 of America's top 100 retail outlets, many of which are among the most profitable stores in their chains.
McAllen has over 550 restaurants that represent 47% of Hidalgo County's $299 million in restaurant sales. McAllen ranks 7th in total restaurant sales and 3rd in per capita restaurant sales in the state, and is home to many major chains, including Denny's, Olive Garden, Luby's, Chili's, Tony Roma's and T.G.I. Friday's. But be sure and explore some of our home town proprietors who serve food from around the world, from the Middle East to China and Italy to Japan, and of course Mexico and USA. There is sure to be one to suit your taste or cravings.
