In 1859, Charles Fuller built a toll bridge across the Truckee River; two years later, he sold it to Myron C. Lake (the founder of Reno); General Reno died the following year. In 1868, Central Pacific Railroad (CPRR) built tracks in the area, and a town was laid out; a CPRR superintendent named the city after General Reno.
Barbara Fritchie (1766-1862) did not wave the flag at General "Stonewall" Jackson (1824-1863). This incident is based on a poem written over a year after the supposed incident by an author who heard the story second hand.
Like many Westerns, historical accuracy is a bit suspect. In 1847 Reno uses a Colt Peacemaker, and in 1858 the waystation proprietor is cleaning a Trapdoor Springfield - both introduced in 1873.
General Reno's son, Jesse W. (1823-1862) , invented the first working escalator in 1891.
The flags used in the episode were never correct. The 1861-1863, 34-star US flag had two rows of 7 stars, one row of 6 stars, and two rows of seven stars. These same flags were also used in The Light on the Mountain (1954).