Although March 20, 1888, is generally regarded as the birthday of Clayton, that being the day the first train arrived on the newly laid rails; first town site surveys were run, lots sold, and several small buildings erected in 1887.  An old timer who arrived in 1887 related that when he first saw Clayton it was a tent town with three saloons, a livery stable, two small hotels of sorts and a general store. 

However, until the railroad had designated this location as the spot where its station was to be, the town site was merely open prairie. A handful of ranch headquarters were scattered in the 100 mile area south of the Colorado line and fifty miles west of the Texas and Oklahoma borders.

In 1886, while the railroad was building across Union County, Homer E. Byler moved his store and post office to a frame structure with canvas roof on Clayton’s Main Street, but his post office was still called Perico, the original name for Clayton.  However, the name changed officially to Claytonin 1888, in honor of Clayton Dorsey, son of U.S. Senator Stephen W. Dorsey. (Dorsey mansion, west of Clayton).