In 1871 the first settlers staked their claims at the point where the railroad would cross the Red River. Railroads were crucial in the settlement of North Dakota. Fargo was named in honor of William Fargo, a director of the Northern Pacific Railroad. Early Fargo was a rough and tumble town with its fair share of saloons, bordellos, tents, and shanties. In 1876 the population was about 600.