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At the end of the Civil War in 1865, the U.S. government began the era of Reconstruction in the South. The expectation that equality and personal freedom would follow emancipation soon became nothing more than a dream. A counterrevolution, fighting against pro-African sentiments, suppressed the liberty of African Americans, using Jim Crow laws and groups such as the Ku Klux Klan to keep Africans without rights and without liberty. Oppressed and poverty stricken, many African Americans sought new land where they could acquire the freedom they had long lived without. Ever since John Brown's attack on Pottawatomie, Kansas, African Americans looked to Kansas as the freest state in the Union. It was in late 1877 that many began their migration to this land of opportunity.

On April 18, 1877, six men created the Nicodemus Town Company, which sought to establish a town for African Americans where they could obtain their liberty and live in peace. W. H. Smith and W. R. Hill headed the company with Smith as the president and Hill as the treasurer. Once established, it was asserted that Nicodemus was abundant with animals, and under the Homestead Act of 1862 many could enjoy owning their own plot of land. Furthermore, railroads desiring to populate the West made it appear as though the soils and climates were ideal. Thus, many African Americans left the South bound for their new home-land. Those who did migrate did so in large numbers, and became known as Exodusters, comparing them to the Israelites who were led out of Egypt.

The town Nicodemus was named for an African prince who was sold into slavery and who later purchased his freedom. Those who promoted Nicodemus used this to arouse a spirit of liberty, hoping that such enthusiasm would help bring people to the town. The commotion over Nicodemus led 308 people to purchase railroad tickets to take them there. Because Nicodemus was 55 miles away from the nearest train station, they were dropped off in Ellis, Kansas, and from there many walked the rest of the way. With the mass influx of Exodusters, the town began to grow rapidly, and within one month the first baby was born. Yet, despite growth, the living conditions in Nicodemus proved less than expected. Those who inhabited the town were forced to build their homes in dugouts, as adequate building materials and funds were scarce. As a result of travel expenses, many migrants found themselves without money and food. Despite assertions of good climate and good soil, Nicodemus presented serious problems for African Americans used to farming in the woodlands of Kentucky and Tennessee. Circulars passed out made Nicodemus appear as though it was an industrialized town, with enough wood and timber to help foster growth. Yet many migrants found this not to be the case.

Attempts at promoting industrial growth initially proved unsuccessful. During the winter of 1877–1878, Z. T. Fletcher, the town's first entrepreneur, opened the first store, but found his efforts to be futile, for residents had little money to purchase any of the goods. Despite his failure, Fletcher remained persistent, and in 1879 he and his wife opened the first school in Graham County, the county in which Nicodemus was located. Fletcher and his wife, Jenny Smith Fletcher, were the first master and mistress of the school. Jenny, the daughter of W. H. Smith, president of Nicodemus until 1878, taught 15 students in a sod hotel. The length of the school year ranged anywhere from three to six months, beginning in the winter after children helped with the harvesting.

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