The story of Memorial Day begins in the summer of 1865, when a prominent local druggist, Henry C. Welles, mentioned to some of his friends at a social gathering that while praising the living veterans of the Civil War it would be well to remember the patriotic dead by placing flowers on their graves. Nothing resulted from this suggestion until he advanced the idea again the following spring to General John B. Murray. Murray, a civil war hero and intensely patriotic, supported the idea wholeheartedly and marshalled veterans' support. Plans were developed for a more complete celebration by a local citizens' committee headed by Welles and Murray.
On May 5, 1866, the Village was decorated with flags at half mast, draped with evergreens and mourning black. Veterans, civic societies and residents, led by General Murray, marched to the strains of martial music to the three village cemeteries. There impressive ceremonies were held and soldiers' graves decorated. One year later, on May 5, 1867, the ceremonies were repeated. In 1868, Waterloo joined with other communities in holding their observance on May 30th, in accordance with General Logan's orders. It has been held annually ever since.[