(one-half mi.S) Founded in 1840s as a ferrying point on the Caddo Trace; later became a major landing for flatboats and steamers on the Trinity River, where cotton and other products were shipped by a four-day trip to Galveston to be exchanged for flour, salt, and sugar. Magnolia -- named for a huge tree in center of town -- reached its zenith in 1863, when it had several hundred people and eight major stores. Focus of social life then was Haygood's Magnolia Tavern, where board and lodging for a man and two horses cost $2 a day. Haygood's was the scene of many gala parties feting riverboat passengers, for when a deep-throated steamer whistle blew a few miles from port, it signaled a rush of people from miles around eager to greet arrivals and collect long-awaited parcels. Growing river traffic spawned many towns like this, and from 1830 to 1880, Texas waterways were dotted with boats. From the first, though, the state's rivers were unsuited for extensive trade, because even the largest were shallow, winding, and often choked with debris. After 1880, trains replaced riverboats. An irony of the transition was that one of the last steamers to pass Magnolia, in 1872, carried rails for the tracks being lad through nearby Palestine. (1967) An irony of the transition was that one of the last steamers to pass Magnolia, in 1872, carried rails for the tracks being laid through nearby Palestine.