The first school meeting held in Callaway was a hotly contested affair, held August 1, 1887 in the Deems Opera House; C. W. Root, moderator Dr, A. L. Mathews, director, and F. A. Clark, treasurer. The tract offered by Smith and Needham was considered the best location and their proposition was accepted, the tract located south across the creek from the original townsite. A unanimous vote was cast for a nine month school starting in September 1887, bonds voted not to exceed $1,500 for the building. The contract for building a two-story brick schoolhouse was awarded to John Wirges and S. R. Idell. The brick was from the kiln of Mr. Wirges, of Callaway. This was the first two-story building erected in Custer County and the people of the community carried the project through by subscribing liberally in money and material to have the second story erected, there being barely enough funds in the treasury to complete one story. School censes, 1888–54. The new brick school was ready for use in the fall of 1889; the first class graduated from the tenth grade in 1893. The bell on the school house, which was donated by the Ladies Union, was put up. The bell weighs about 200 pounds and is a beauty. It has a very sweet tone and can be heard for a long distance. This bell is now located at the west side of the Callaway School. This building was blown down and completely wrecked June 4, 1894 in a terrible storm.