Madison, the second town in importance and size in Greenwood county, is located on the Atchison, Topeka & Santa Fe and the Missouri Pacific railroads, and on the Verdigris river in Madison township, 27 miles northeast of Eureka, the county seat. It is the only important shipping and receiving station for many miles around and has a number of mercantile establishments. There are 2 banks, a weekly newspaper (the Spirit), express and telegraph offices, and an international money order postoffice with five rural routes. The schools are excellent and all the leading denominations of churches are represented. The population in 1910 was 721.

The first Madison was established in 1872, northwest of the present town. E. Smith opened a general merchandise store, and later four men named Green, Strails, Crinkle and Oglesby erected log buildings and began business. In 1879, when the Atchison, Topeka & Santa Fe R. R. was built, the town was moved to the present site, which was laid out by a town company with the following officers: President, L. J. Cunkle; secretary, S. J. Wells; treasurer, W. Martindale. The postoffice was also moved, the postmaster, T. A. McClure, still retaining his office. A school house was built at the cost of $1,100, and E. Walters was the first teacher. The first building on the new town site was the residence of W. H. Green. Professional people came in, new business enterprises were established and inside of two years the population had increased to 300. The first church was organized by Rev. H. P. Baker before the founding of the town. The first newspaper (the Madison News) was established in 1879 by W. O. Lundsford.