True, but our text is off by one year: the town was flooded in 1962.
"In 1962 the Army Corps of Engineers began construction on the Milford dam, which inundated the old town. Minnie and Johnny Boy received $1000 for the land they still owned there. [Minnie] asked for permission to place a buoy in the lake marking the location of the Brinkley Hospital, but the corps routinely refused her request" (Lee, 232),
History of Milford Lake: http://www.lv2sail.com/History_of_Milford_Lake/History_of_Milford_Lake.html