In reviewing the events of pioneer days in Schuyler, the founding of Rushville, the county seat, marks the beginning of the civic history and opens the way to the historical development of county and city.
Levi Green, Thomas Blair, and Benjamin Chadsey were the three commissioners elected to locate the permanent county seat, and they made their report to the county commissioners March 6, 1826, and on their recommendation the town was named in honor of Dr. William Rush, a celebrated Philadelphia physician. On April 24, however, the name was changed to Rushville.
The first public sale of town lots was advertised for July 4, 1826, and even tho lots were sold as low as $5 each, several years elapsed before all the platted lots were sold.
The first cabin erected within what is now the bounds of Rushville was built by John B. Terry on the lot occupied by the new high school building. Soon afterwards Hart Fellows erected a cabin where H. M. Dace’s store stands on the north side of the square, and it was here the first stock of goods was put on sale.
In 1828 Rushville was granted a government postoffice, and Hart Fellows was named as postmaster. The first industry to be established in the village was a tannery that was operated on West Lafayette street by Dr. James Blackburn. In 1831 Hodge & Hunter established a carding mill, the first to be operated in the Military Tract, and they did a thriving business for many years. Among the early merchants were Benj. Chadsey, and Thos. W. Scott, who were in business here in 1830.