Joint American–British occupation of Oregon Country, in effect since the Treaty of 1818, eventually led to the Oregon Boundary Dispute as large influxes of American settlers began arriving by the Oregon Trail. The first American settlers in the present-day city, squatters J.J. Downing and S.R. Scranton, built a cabin and established a claim at Spokane Falls in 1871. Together they built a small sawmill on a claim near the south bank of the Spokane Falls. James N. Glover and Jasper Matheney, Oregonians passing through the region in 1873, recognized the value of the Spokane River and its falls. They realized the investment potential and bought the claims of 160 acres (0.65 km) and the sawmill from Downing and Scranton for a total of $4,000. Glover and Matheney knew that the Northern Pacific Railroad Company had received a government charter to build a main line across this northern route. Glover later became known as the "Father of Spokane".
In 1880, Fort Spokane was established by U.S. Army troops under Lt. Col. Henry Clay Merriam 56 miles (90 km) northwest of Spokane at the junction of the Columbia and Spokane Rivers to protect the construction of the Northern Pacific Railway and secure a place for U.S. settlement. By 1881, the Northern Pacific Railway was completed, bringing major European settlement to the area. The city of Spokan Falls (the "e" was added in 1883 and "Falls" dropped in 1891) was officially incorporated as a city of about 1,000 residents on November 29, 1881. The city's population ballooned to 19,922 in 1890, and 36,848 in 1900 with the arrival of the railroads. By
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