Mercedes, Texas, nestled in the Rio Grande Valley, holds a captivating history that reflects the broader narrative of the United States’ southwestern expansion and agricultural development. Situated in southeastern Hidalgo County, just twenty-five miles east of McAllen on U.S. Highway 83, Mercedes boasts a heritage rooted in ranching and transformed by the vision of land developers in the early 20th century.
The land upon which Mercedes, Texas, stands was first appreciated for its ranching potential in the late 1770s. This area was originally part of the expansive Llano Grande Spanish land grant, officially issued on May 29, 1790, to Juan José Ynojosa de Ballí. By the mid-1850s, the location was known as the Anacuitas ranch, owned by Ramón and Manuel Cavazos, marking its continued significance in cattle ranching. As the 20th century dawned, the Fuste ranch, also under the stewardship of the Cavazos family, who claimed to be heirs of Ynojosa de Ballí, replaced Anacuitas, further cementing the area’s ranching legacy.
The transformation of this ranching landscape into the town of Mercedes began with Lon C. Hill, Jr., a forward-thinking land promoter. Hill acquired 45,000 acres stretching sixteen miles from the Rio Grande, encompassing the future site of Mercedes. Recognizing the land’s development potential, Hill initiated land clearing and the construction of the Estarito Canal, setting the stage for agricultural prosperity. On May 29, 1904, Hill established the Capisallo Town and Improvement Company, initially aiming to develop the town of Capisallo slightly east of present-day Mercedes.
A historical map illustrating Hidalgo County, Texas, highlighting early settlements and land grants, providing geographical context to the origins of Mercedes, Texas.
Hill quickly renamed his nascent community Lonsboro before selling his company to the American Rio Grande Land and Irrigation Company. This new entity rechristened the town Díaz. However, the name Díaz was not to last. Through a series of further name changes, the town eventually settled on Mercedes. The precise origin of the name “Mercedes” remains a point of local debate. While some theories suggest it was named in honor of the wife of Mexican President Porfirio Díaz, historical evidence to support this claim is lacking, as there is no record of Díaz marrying a woman named Mercedes. Despite the name’s uncertain etymology, Mercedes officially marked its place on the map when it became the first town served by the Sam Fordyce Branch of the St. Louis, Brownsville and Mexico Railway on July 8, 1904, earning the endearing nickname “Sweetheart of the Branch.”
To ensure Mercedes, Texas, developed into a robust economic center, the Rio Grande Company implemented stringent building regulations, particularly along Main Street and in residential areas. Commercial buildings were mandated to be constructed from durable materials like brick, stone, or concrete, with a minimum cost of $3,000 – a significant investment at the time. Residential properties were required to cost no less than $2,000. Adding to the town’s unique character, the company also prohibited the sale of alcoholic beverages within Mercedes for the first fifteen years of its existence, aiming to cultivate a wholesome community atmosphere.
The American Rio Grande Land and Irrigation Company actively promoted Mercedes, Texas, to attract settlers from the northern United States. They launched extensive publicity campaigns highlighting the fertile lands and opportunities in the Rio Grande Valley. To further entice potential residents, the company organized railroad transport for prospective buyers, offering whirlwind tours of the surrounding Rio Grande Valley area, showcasing the region’s agricultural promise and burgeoning communities.
Agriculture quickly took root in Mercedes. Grape cultivation was introduced in 1907, paving the way for the large-scale production of citrus fruits and various truck crops that would become staples of the local economy. The same year marked another milestone with the opening of the first hotel in town, catering to new arrivals and visitors. By 1908, Mercedes had grown to a population of 1,000 residents and boasted essential community infrastructure including a school, a lumberyard, a feed store, a livery stable, and its own weekly newspaper, The Enterprise, reflecting the town’s rapid development and self-sufficiency. The establishment of the Hidalgo County Bank in 1908 further solidified Mercedes’s economic foundation, amassing deposits totaling $100,000 by the end of the following year, indicative of the growing prosperity within the community.
Mercedes officially incorporated as a town in 1909, a year that also brought adversity in the form of a devastating flood, testing the resilience of the young community. The Mercedes Commercial Club was formed in 1911, playing a vital role in promoting the town and attracting further investment and residents. That same year also saw the establishment of the Mercedes Public Library, underscoring the community’s commitment to education and civic development. A new city charter was adopted in 1914, and by 1915, the population of Mercedes was estimated to have doubled to 2,000, demonstrating significant growth in just a few years.
A vintage postcard depicting downtown Mercedes, Texas, showcasing the early 20th-century architecture and bustling street life of the emerging town.
During World War I, Mercedes, Texas, and the surrounding area played a significant role in supporting the war effort. Camp Mercedes and Camp Llano Grande, located just outside of town, became home to approximately 15,000 soldiers, temporarily transforming the small agricultural community into a bustling military hub. Reflecting the wartime sentiments, on April 15, 1918, the Mercedes City Council enacted an ordinance prohibiting the speaking of German or any other language used by the enemy in schools and public spaces. This ordinance also extended to advertising in German, highlighting the pervasive anti-German sentiment of the era.
By 1925, Mercedes had a population of 3,414, continuing its upward trajectory. A further revised city charter was adopted in 1931, adapting the town’s governance to its evolving needs. The discovery of oil in the Mercedes field in 1935 marked another transformative period, fueling significant population growth. By 1940, the population had more than doubled to 7,624, as the oil industry brought new economic opportunities and residents to Mercedes, Texas.
Mercedes experienced its most successful harvest season among all Rio Grande Valley towns in 1947–48, handling over 2,000 carloads of produce, underscoring its continued agricultural importance even with the rise of the oil industry. On September 17, 1952, businessmen from Mercedes and Weslaco joined forces to establish the B&P Bridge Company, initiating the construction of a new international bridge at the Progreso bend in the Rio Grande. Construction commenced in the fall of 1952 and was completed by the fall of 1953, enhancing trade and connectivity with Mexico and further boosting the regional economy. By 1952, Mercedes boasted a population of 10,065 and 252 businesses, reflecting a diverse and thriving local economy.
Throughout the 1960s, Mercedes, Texas, solidified its position as a key center for cotton, vegetable, and livestock marketing and processing within the Rio Grande Valley. Its industrial base diversified to include meat packing, box and boot making, and farm-chemical manufacturing, demonstrating a broadening economic landscape. In 1961, the town’s population reached 10,943. By 1970, the number of businesses had adjusted to 140, possibly reflecting economic shifts or consolidations within certain sectors.
During the 1980s, Mercedes gained wider recognition for hosting the annual Rio Grande Valley Stock Show, a significant agricultural event, and for its concentration of nationally renowned bootmakers, adding unique cultural and economic dimensions to the town. In 1980, the city’s population was 10,354, and by 1990, it had increased to 12,694. The turn of the millennium in 2000 saw Mercedes reporting 377 businesses and a population of 13,649 residents. This continued growth and economic activity underscore Mercedes, Texas’s enduring importance as a vibrant community within the United States, rooted in its rich history and continuously adapting to new opportunities and challenges.
