Dr. Mahlon Bailey was born on March 15, 1835 near Salem, Ohio to a Quaker family. Bailey attended Iowa State University and St. Louis Medical College where he received his medical degree in 1858. He then settled in Emporia, Kansas, where he became the town's first physician.

In 1861, Bailey joined the 1st Regiment, Kansas Volunteers, an infantry unit aligned with the Union, where he served as Assistant Surgeon. On May 27, 1862, he was promoted to the rank of Surgeon. He remained with the 1st Kansas Volunteers until they were mustered out of service on July 1, 1863. Following his military service, Dr. Bailey moved to Topeka, Kansas and resumed medical practice. In 1864, he married Laura Jarboe of Muscatine, Iowa.

During 1868, tension between white settlers in western Kansas and Native American tribes reached its height. Native Americans were raiding Euro-American settlements throughout Kansas. By mid-August, Kansas Governor Crawford asked United States President Andrew Johnson for aid to supply a volunteer force to remove the Native Americans from Kansas. Several more raids and major battles between the US Army and Cavalry and the Native Americans occurred through September. In mid-September, Crawford resigned as Governor to become Commander of the newly-created 19th Kansas Cavalry Volunteers under the direction of General Sheridan.

It was under these circumstances that Dr. Bailey joined the 19th to serve as its surgeon. Approximately 1,000-1,200 men joined the 19th Kansas Volunteers, and by October, they were marching southwest to join up with Major General George A. Custer's 7th US Cavalry at Camp Supply, Indian Territory. Despite bad weather and lack of food, together with the 7th Cavalry, the 19th Kansas Volunteers were successful in removing hostile and peaceful Native American tribes from Kansas. As Dr. Bailey related in his diary, none of the men of the 19th were lost to any encounter with Native tribes. By the spring of 1869, the 19th was mustered out of service at Fort Hays.

Following his service, Dr. Bailey returned to Topeka. In 1869, he was President of the Kansas State Medical Society. In 1870-71, he and his family moved to Chanute, Kansas where he abandoned formal practice in medicine and founded a bank called M. Bailey and Company. It was the first bank in Neosho County. Bailey was also involved in other business ventures and served two terms as Mayor of Chanute. He also served on the local school board.

Mahlon Bailey and his wife had four sons and one daughter. Dr. Bailey died on August 2, 1893.