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About Baxter,MN Baxter owes its existence partly to the 1920s operation of a (since closed) large tie-treating plant, owned by Northern Pacific Railroad. Farming was also an important early industry. Baxter was incorporated on May 25, 1939. The town is named after Luther Baxter, an attorney for the railroad who served in the Minnesota Legislature and as a colonel in the Civil War. Tourism and various service industries have become Baxter's biggest employers, and numerous housing subdivisions have been developed in the wooded area west of Minnesota Highway 371, which passes through the town.
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