This history was taken from a book by Della Isbell Davis called Krum, Texas the Story of a Small Town. Originally published in 1976.
The Gulf, Colorado and Santa Fe built a line through western Denton County in 1884. In the fall of 1886, Mr. L.L. Finley sold 200 acres off the south end of his farm to the railroad for a town site. With this, began the building of a business community in Krum.
Mr. Finley opened a general merchandise store in the new town on the lot now owned by the Harpool Seed Company. The Santa Fe moved in a boxcar to serve as a depot. By 1887, the depot and section house were completed and the railway had built the first house in Krum for the home of their agent. It was built east of the railroad on the site later known as Knight's Bee and Chicken Farm.
The Post Office came in 1888 and was first housed in the Finley Store with Mr. Finley handling the mail. By 1888, R.R. Turner had started a blacksmith shop on the south side of the main street and Amos Rowley had a saloon on the north side. R.C. Scripture sold hardware, harness, clothing, and other merchandise from a large store where the bank now stands.
In 1891, Dr. W.G. Kimbrough opened a drug store and began the practice of medicine. Arthur Jackson set up a lumberyard where one continued to be opened until recent years. The office faced the main street on the south. John Boyd opened a barbershop next door on the east.
The one-room schoolhouse was moved from North Hickory Creek in 1891 and placed on the ground where the present high school stands. The Methodist congregation continued to use it as their meeting house. The Literary and Debating Society was organized and met in the school. All of the young people in the area joined. In that year also, the second house was built in Krum for a young bachelor, W.H. Henshel.
In 1894, Reuben ("Pony") McGee opened a hardware and feed store on the south side of the business street, next door to the lumberyard office, on the west. He built the third house in Krum for his family. Mr. McGee performed a public service by providing a watering trough for farmers' teams at a well behind his store.
Dr. W.H. Kimbrough's sons, Walter and Wallace, completed their medical education at Vanderbilt University, Nashville, Tennessee, and joined their father in Krum.
By 1899, the telephone and telegraph had arrived. The Baptist congregation had moved their church building from North Hickory Creek into town; and the members of the Church of Christ built their meetinghouse that year. In addition to other businesses already established, June Benton had a livery stable that covered all the lots from the present Muncy Building to the washateria, and was busy renting buggies and teams. Frank Shifflett and Brent Jackson owned a wagon yard adjoining the livery stable on the north. There was a cotton gin, a restaurant, short-order house, and a dry-line delivering freight.
W.T. Ginn had built a hotel earlier in the 1890s. It was later owned by the Butterworths for many years, then by the Chitwoods, and finally by Mr. and Mrs. Raymond Ericson. The roomy old house was recently torn down and the lots sold.
In 1898, S.D. Chadwell built a fine hotel on three lots, which is now a brick building occupied by Kountry Store, Krum Korral, and Fowler Hardware. The hotel was a one-story wooden structure surround by a white picket fence. Facing the alley in back were stables, a cow shed, coalhouse, and other necessary out-door facilities. Inside, the floors were covered with an elegant turkey-red carpet, which was the talk of the countryside. There were rooms for "drummers" to display their merchandise and merchants came from miles around to buy. Unfortunately, this asset to the community was destroyed by fire and was not rebuilt. A brick building was constructed on the site and in 1976 is occupied by Kountry Store, Krum Korral and Fowler Hardware.