Diboll, Texas is located in southern Angelina County, and was founded in 1894, after a sawmill was built on the Houston, East and West Texas Railway by Thomas Lewis Lantane Temple. Temple arrived in East Texas in 1893, and purchased 7,000 acres of timberland in the Pineywoods from J.C. Diboll. The following year he began his sawmill operation under the name Southern Pine Lumber Company. By 1908, Temple had grown his holdings to 209,313 acres, and added a second sawmill. A post office was established in 1897. During the Great Depression Southern Pine Lumber Company sold about 100,000 acres to the U.S. Government for less that $3 per acre in order to keep its sawmill running. During this time employees of the lumber company repaid the loyalty and loaned the company small sums of money they had been saving up before the Depression.