Fortunately, the Texas & Pacific Railroad elected to come through town in 1872, and built its main manufacturing facility in Hallsville, later moving it just north of Marshall. The T&P shops employed thousands of workers and guaranteed a healthy economy for another century.

During the early days of railroad prosperity, the County decided to build a more modern courthouse in the then-fashionable Second Empire style. The third courthouse was completed in 1889. County residents could see the soaring tower from miles away, a symbol marking the location of the seat of justice and the lively business hub of the region.

On June 7, 1889 the courthouse caught fire. Firefighters and residents tried to douse the flames, but the building was completely destroyed. Within weeks, Harrison County commissioners had toured other courthouses and selected noted San Antonio Architect James Riely Gordon to execute the new design.

Gordon's earlier Texas courthouse projects were all in the Victorian Romanesque Revival style. The architect's plan for Harrison County, completed in 1899, called for a temple in the emerging Classic Revival style, widely popularized during the Chicago World Exposition in 1893.

At dedication ceremonies held on May 14, 1901, Harrison County commissioners formally accepted the new courthouse, which the local newspaper described as a "thing of beauty and a joy forever."