A girl goes for a handful of candy during the Streetcar Days parade. Every year in August, Red Cloud, Neb., celebrates its heritage with a festival named after one of its earliest modes of transportation. Red Cloud, a town with a population of 935, down 17% in the 2009 census, has all the charm and challenges that face small towns in rural America. Famed turn-of-the-century author Willa Cather grew up in Red Cloud.