Lane University was founded in 1865 by Reverend Solomon Weaver. It was named after the former US Senator, James H. Lane, a firm free-state leader.
Although, it is nice to think that the institution was named in honor of his great political beliefs, there was also the story about local tale about promising donators that whoever becomes the most major contributor gets to have the school named after them. Senator Lane tuned out to give the biggest pledge.

Initially, the university was housed in the former Rowena Hotel building. It was transferred, later on by state donation, in the 13 acres of land that was planned to be used for the Kansas Territorial Capitol. It constructed a building in 1882.

Lane University is now operated as the Lane University & Territorial Capital Museum.