Carlton, at the junction of Farm roads 219, 1744, and 2823, in northwestern Hamilton County, was settled in 1877 by H. H. Armstrong on land belonging to J. M. Evans and Dr. F. M. Carlton. The Honey Creek post office was moved from the Malone gin in 1879 and named after Dr. Carlton. Location on the east-west stage and freight route helped development, and by 1878 a school and churches had been founded. The Stephenville, North and South Texas Railway reached town in 1907. By 1900 Carlton had 161 residents, and businesses included a cotton gin. By 1910 the town had a bank and a population of 750. In 1940 the population was 400; the rail line was abandoned that year. Carlton had two newspapers, the Courier (1907–09) and the Citizen (1910–36). The school closed in 1969, as the population decline continued. By 1980 the population was only seventy, but Carlton retained its post office and had a renovated community center, a volunteer fire department, and several clubs and associations. In 1990 and 2000 the population was still seventy.
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