On June 18, 1918, a troop train carrying soldiers from Camp MacArthur’s 80th Field Artillery left East Waco and traveled eastward on the Cotton Belt line, heading toward a southern training camp. After traveling for fifteen minutes (about seven miles), the train derailed just north of Selby, killing Corporals Laurn Harrell and August Handschumacher, Jr. and injuring about thirty military personnel and four railroad employees. 

According to a report made by the Interstate Commerce Commission (ICC) on the incident, Troop Train Number 264 consisted of fourteen passenger coaches, six freight cars, and a caboose, and was a Baldwin Consolidation-type, 2-8-0, Number 510, of the St. Louis Southwestern Railway of Texas, also known as the Cotton Belt line.

The derailment occurred as the train approached a trestle crossing the Tehuacana Creek. After an official investigation and upon hearing statements from the train’s engineer, Statham, the ICC came to the conclusion that a sun kink served as the main factor in the accident. Sun kinks can occur when extreme heat causes rails to bulge or spread. At the time of the accident on that June day, it was reported to be 103 degrees. Statham reported to the agency that the sun kink was “3 to 5 inches in width and about half a rail length long, located about 400 feet south of the trestle; he then set the air [brakes] in emergency and jumped.”

The ICC report also factored in the poor condition of the track: “this section was not properly supported by a ballast, and should not have been permitted to remain in that condition.” This information led to the determination that the locomotive began its derailment 113 feet south of the trestle, causing the engine to turn over when it began to cross. A Waco News-Tribune account of June 19, 1918, states: "at the time of the wreck [the train] was passing over a wooden bridge across Tehuacana Creek. As the engine went onto the bridge, timbers suddenly gave way and the locomotive ploughed through.”

The ICC found no mechanical problems with the Baldwin Locomotive Number 510. However, the arrangement of the cars made the event more tragic. During the derailment, the engine’s tender cistern detached from its frame, and unfortunately, the first passenger car directly behind it was composed entirely of wood. The tender’s frame and tank practically demolished the wooden coach, and the two deaths and many of the injuries occurred in this car. The ICC claimed that placing this lighter wooden coach behind the locomotive with the heavier steel cars behind it “undoubtedly increased the danger of injury to the passengers.”

Much speculation followed the incident as to the cause. On June 19, 1918, the Waco News-Tribune reported on a popular belief: “The favorite opinion of the hundreds of officers, camp and railroad officials, and citizen spectators, was that the bridge or the rails had been tampered with, by persons knowing of the troop movement.” With the United States into its second year of involvement in World War I, it is not surprising that such theories of sabotage were being put forth. Just a few days after the derailment, the investigation reports debunked these theories.

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For nearly half a century, cotton reigned as king of Waco's economy, establishing the once small frontier town as a thriving urban center known throughout the country.

The area later named Waco held a long history of agricultural pursuits tracing back to the Waco Indians' farming of crops such as melons, pumpkins, lima beans, and corn. Cotton farming and plantation culture arrived in Waco along with the first white settlers of McLennan County. Initially hesitant to plant crops in the black soil found in Central Texas, these settlers soon found the alluvial soil of the Brazos Valley and blackland prairie ideal for growing cotton.

Prior to the Civil War, cotton production in McLennan County remained relatively small. Without a means to transport the product with ease throughout the country, there was little reason to produce large amounts of cotton. Additionally, although farmers sought to recreate southern plantation life in Waco, legal restrictions placed on the number of slaves a landlord could bring into Texas prevented large-scale plantations from developing.

Cotton production slowed with the dawn of the Civil War as most Wacoans, supporting secession, left to fight. The price of cotton fell and shipments to Europe stopped completely when the Union blocked established trade routes out of the South. Yet this setback ultimately turned into Waco's first step toward industrialization when, during his search to secure passage for the crop, John Baylis Earle acquired equipment for a cotton mill in England, disassembled it, and smuggled it into Waco via Mexico. The new mill freed up considerable time for women who had previously spent hours sewing and spinning cotton.

The defeat of the South in 1865 and subsequent emancipation of slaves completely restructured plantation life. Although some freedmen left Waco, many remained in the area in altered relationships with their former owners. The large number of people desiring to farm a limited amount of land led to a new hierarchy. Unable to pay all of their former slaves a fair wage, landowners rented pieces of land to tenants and sharecroppers in exchange for a portion of the crop and profit at the end of the growing season.

The cotton industry industrialized and grew considerably in Waco during this period immediately following the Civil War. The construction of the Waco Suspension Bridge and arrival of the Waco Tap Railroad in 1870 increased the number of people and goods entering and departing the city. Waco's cotton market boomed, and by 1885, the city became known as the largest inland cotton market in Texas. When a second railroad connection arrived, it was named the Cotton Belt Route in honor of the large market to which it primarily catered.

Life in Waco came to revolve around the crop which had earned the town the name of King Cotton. Bankers loaned money against cotton crops, and the city economy boomed along with farmers' prosperity. Brokers from other states and nations opened offices in the city. Each fall, farmers from the surrounding counties arrived in the town square at daybreak to display bales for classification and sale. In 1894, the city instituted the grand annual festival named the Cotton Palace Exposition in order to honor and celebrate the central role of the crop in the local economy.

By the turn of the twentieth century, however, the cotton industry reached its peak and was already beginning a steady decline, largely due to the diversification of agriculture as well as the depletion of soil nutrients. Although no longer the enormous market force it once represented, cotton continued to play an important role in Waco's economy throughout the twentieth century, with small numbers of farmers growing cotton and local merchants continuing to offer rewards for the first bale of cotton each season. Today, small cotton farms can be seen in the countryside surrounding the city, and the legacy of the crop which once made Waco a center of the South is visible in landmarks around town such as Cottonland Castle, the silos of the old cotton oil mill, and the site of the Texas Cotton Palace.

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