A tree will be blocking the way so you will need to use Cut on the tree to get past it. You can get Cut from the Captain of the SS Anne. You need the 2nd badge (Cascade Badge) in order to use Cut outside of battle.
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Vermilion city
TM24 is given by Lt Surge after his defeat at the Vermilion City gym.
After defeating Lt. Surge, the Gym Leader of Vermilion City, you can talk to Officer Jenny nearby the Gym and she will give you a Squirtle.
He is in Vermilion City!!!
Yes, in Vermilion City near the gym.