Nestled on the southern edge of the timber, the town that Shabbona would become grew rapidly but then slowed by not having a railroad. John Ray, John Palm, and Charles Stevens made an agreement with F.E. Hinckley, president of the Chicago & Iowa Railroad, for the purpose of locating the depot and suitable sidetracks in exchange for eight acres of land. John Palm generously gave the undivided one-half interest in 40 acres of land for a village plat besides giving the right-of-way through 160 acres to the railroad company. His gift to the railroad was double that of any other individual and was the means of inducing others to give. He also gave away a number of lots to encourage the growth and settlement of the village.