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Mitchell was built as a railroad town in the mid-19th century. At this location in Lawrence County, the Chicago, Indianapolis and Louisville Railroad, better known by the shorter name of "the Monon", was built as a north-south line from New Albany to Chicago, passing through the area which became Mitchell in 1853. In 1857, the east-west Ohio and Mississippi Railway (later part of the Baltimore and Ohio Railroad) was completed, as part of a link between Cincinnati and St. Louis.

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