History of Colonial Williamsburg
With the seat of government removed, the colonial section of Williamsburg was neglected as the modern town was built around it. By the early 20th century, many older structures were in poor condition, and were no longer in use. The site on high ground and away from waterways was not reached by the early railroads, whose construction began in the 1830s, and only was reached by the Chesapeake and Ohio Railway through the area in 1881.
Williamsburg relied on three institutions for jobs for its people: The College of William & Mary, the Courthouse and the Eastern Lunatic Asylum (now Eastern State Hospital),; it was said that the "500 Crazies" of the asylum supported the "500 Lazies" of the College and town. Colonial-era buildings were neglected in the wake of the Civil War, which had a much larger presence in the minds of the townsfolk. Williamsburg had Civil War commemorations every year, one on May 5, the anniversary of the Battle of Williamsburg. On May 5, 1908, Williamsburg dedicated a monument to Confederate soldiers and sailors and placed it prominently on the Palace Green.
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