Frank Beiyon, a land agent whose descriptions of the area often exceeded reality, attracted many settlers. The majority of the immigrants came directly from Sweden or from Swedish communities in Iowa. Bethany Evangelical Lutheran Church, first church in Kearney County, was founded at a gathering in 1876 at the Beiyon home. Organized under the Augustana Synod, the members built a sod church which became the focus of their cultural, religious, and educational experiences. Its arrival assured Axtell's success, and the town incorporated in December of that year.
Tradition says that the village is named for the engineer on the first train.
Intense suffering stalked the community that fall and winter. When a car load of relief goods arrived from St. Joseph, Illinois, a crowd of hungry people swarmed ahead, breaking the car's seal, and quickly distributed its goods. Those involved in the food riot were not prosecuted. Disaster struck in 1907 when a fire that started in Erlandson's Restaurant burned most of the businesses on the east side of main street.