Loyal Valley was settled in 1858 by German immigrants from Fredericksburg, including Henry and Christian Keyser, John Kidd, and a Mr. Gertsdorff. It was also a stagecoach stop on the route between San Antonio and the western forts. The community received a post office in 1868, and Solomon Wright was the first postmaster. John O. Meusebach moved to Loyal Valley after the New Braunfels tornado of September 12, 1869 destroyed his home there. According to Meusebach's granddaughter Irene Marschall King, he named the area for his personal loyalty to the Union that he had maintained during the American Civil War. He operated a general store and stage stop. Meusebach was appointed justice of the peace, notary public and served as the community's second postmaster in 1873. His daughter Lucy Meusebach Marschall was postmaster in January 1887, and his wife Agnes became postmaster in August 1887. The Meusebach-Comanche Treaty was brokered in with the PenatekaComanche Tribe 1847, making area settlers safe from Penataka raids. However, Kiowa, Apache and other Comanche tribes still committed depredations against the settlers. During the 1870s, settlers from neighboring communities relocated to Loyal Valley for safety. Herman Lehmann, son of Augusta and Moritz Lehmann, became the most famous captive of the Apache depredations. He escaped the Apache, to be later rescued by the Comanche and adopted by chief Quanah Parker. Philip Buchmeyer was the second husband of the widowed Augusta Lehmann, and stepfather to her sons Herman and Willie. The Buchmeyers ran a hotel and saloon, which later was owned by Charlie Metcalf. Philip Buchmeyer built a one-room stone structure school-church, which was still standing as of 1980.
In 1875, the Mason County Hoo Doo War erupted over cattle rustling and those who took the law into their own hands. Armed bands raided settlements spreading fear and unrest. John O. Meusebach was shot in the leg during a raid of his store. In the midst of the war, Loyal Valley home ownerTim Williamson was murdered by a dozen masked vigilantes who accused him of cattle theft. Williamson's adopted son Texas RangerScott Cooley sought revenge. Cooley and his desperadoes, which included Johnny Ringo, created a reign of terror over the area. It was during this episode that Ringo committed his first murder, that of James Cheyney.
