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In 1872, a railroad ran from Portland to St. Joe, but the train didn't stop between these two stations. Where Carlton is now, there was nothing but farmland. Wilson Carl, a local farmer, went to Portland and talked the railroad company into making a stop nearer to them so that they could more easily market their produce. Railroad employees began referring to the stop as Carl's town, which was shortened to Carlton when it was incorporated in 1899.

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