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.