In 1881, the area now known as "Falcon" was crossed by the railroads: first the Denver and New Orleans on a rail bed parallel to today's Eastonville Road, then the Chicago and Rock Island on a rail bed parallel to today's U.S. Highway 24. The lines' intersection remains an important center of the Falcon area today.
On September 20, 1888, the first announcement of "Falcon, Colorado" was advertised in the Colorado Springs Gazette. The Falcon Land and Town Company, associated with the Chicago Rock Island Railroad, were selling lots to individuals. By 1896, there were two hotels, a newspaper, six saloons, a pool hall, stockyards, two train depots, two general stores, a blacksmith shop and a school.
The introduction of the automobile brought a decline in passenger rail traffic to Falcon. A 1935 flood washed out the Colorado & Southern tracks, which weren't rebuilt, and the Rock Island railroad junction closed. By 1975, only a small number of homes and the school remained near the Falcon intersection.
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