Civil War and Industry (1861-1892) continued
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In 1877 the Howe Scale Company opened a plant in Rutland after moving from Brandon to Rutland to share in Rutland's transportation advantages and its numerous and skilled industrial workforce.

In the 1880s, nearly 20 years after the end of the Civil War, a G. A. R. Memorial Hall was built on West Street in Rutland to honor the Rutland area men who served in the Civil War.

But a division of the original Town of Rutland was about to occur. In 1886 Proctor and West Rutland became separate towns and in 1892 Rutland City separated from Rutland Town. What was once one had become four communities.

By 1885 the growing pressures of urbanization led to the development of a horse-drawn trolley system that looped around north and south Rutland and also went to West Rutland. However, transportation improvements could not prevent a fracturing of the original town.