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Lebanon flourished as stagecoaches rumbled through her streets bearing travelers and settlers from the East. In 1805, the first courthouse and jail were built by public subscription, and in 1807, John McLean began publishing Ohio's oldest weekly newspaper, The Western Star.

One of the earliest influences on the Lebanon area came from a religious sect known as the Shakers. Although their community, Union Village, was sold over half a century ago, local interest still exists in their culture and buildings, which form the nucleus of the present day Otterbein Retirement Community.

The history of Lebanon is rich in the philanthropy and foresight of its founders and their followers. In 1855, with the arrival in Lebanon of Alfred Holbrook, came the Southwestern Normal School. Its maverick methods and texts were nationally admired and copied. By 1917, the University, which grew out of the School, boasted 80,000 graduates.

Upon her death in 1867, Mary Ann Klingling left $40,000 to establish a home for orphaned children. The bequest required a community match and so it was not until 1886 that the County Commissioners built the Mary Haven Home for children.

In the 1900s, Lebanon became the recipient of her strongest private benefactors: William Harmon and a mysterious Jedediah Tingle. (William Harmon and Jedediah Tingle were later discovered by The New York Times to be one and the same person. Apparently, William Harmon used the name of his maternal great-grandfather for much of his charity correspondence.) He provided much needed funding and encouragement to a variety of community projects. In 1915, Harmon organized and endowed the Harmon Civic Trust, specifically for on-going community improvement projects. This Trust still exists today.