Three major cultures influenced the Hill Country between Fredericksburg and Johnson City, the
Native Americans, Spanish and German. A well-known area on the north to south route from Blanco
to the Colorado River was identified as early as Spanish Times. Johnson City never grew into a
lasting settlement until Lyndon B. Johnson’s grandfather, Sam Early Johnson, Sr. sold his
interests to a nephew, James Polk Johnson. Johnson made the transition from rancher to
businessman. Johnson built the first gristmill, farmed corn and cotton, constructed the Pearl
Hotel and a general merchandise store (where the Johnson City Bank now sits).