Thomas Lewis Latane Temple is credited with the founding of Diboll. He built a sawmill when the railroad came to town in 1893. He bought 7,000 acres of forestland from J. C. Diboll and began business in June of 1894. His sawmill was called the Southern Pine Lumber Company. His business prospered and he expanded. By 1908, he built a second sawmill and enlarged his land holdings. Most of the homes and businesses in town were owned by the Lumber company making it quite the "company town." Up until the 1950's, the lumber company had a large business in Dibold which included a grocery, postoffice, drugstore and feed store among other businesses. The first official post office opened in 1897 with William P. Rutland as postmaster. The first school opened in Diboll in 1894. As with most areas, the great Depression of the 1930's affected the town. The Lumber Company struggled, but was able to hang on by selling off some of its acreage and by receiving loans from loyal employees. In the mid 1900's, the company sold many of the homes to the employees and encouraged private building to take place. The old company commissary was closed and was replaced by a shopping center. More business came to town, including a radio station and a new library. Diboll was incorporated in 1962. By 1984, the population had risen to 5,500. It remained oriented to forest products, though other businesses also prospered. By 1990, the population has gone up to 4,341.
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