Paragon was founded by James D. Newton and Solomen Meyers in 1852. Newton had a store across the road from his farmhouse and Myers owned property one half mile west of the Newton farm. Mr. Newton purchased half the land for $50 per acre, had it surveyed, named the town Paragon and started building.

By about 1856 there were 16 families, a post office, a school, and a storehouse in Paragon. All the homes were on Union and Liberty Streets. There were no homes north of Union Street at that time.

     The town was approved for incorporation on November 15th 1897. The first election was held on October 2, 1897.

     As a town, the government structure of Paragon consists of a Board of Trustees. This board is made up of four members, all of which serve a four-year term.

     The building presently used as the Town Hall was originally the Paragon State Bank. Established in 1909, it became newsworthy as the first bank robbed by John Dillinger.