Page:Oregon Historical Quarterly vol. 3.djvu/258



About the year 1854 Mr. Joseph Watt, being at that time one of the largest sheep owners in the territory, and there being no market for the wool produced, Mr. Watt conceived the idea of manufacturing the wool into serviceable goods to supply the pioneers. He first attempted to organize a company and locate the factory in Yamhill County (then his place of residence), but, failing to get satisfactory encouragement, he came to Marion County and here met with better encouragement, and by perseverance succeeded in getting others interested and finally organized a joint stock company, which was duly incorporated by an act of the territorial legislature in 1856. He commenced operations by constructing a canal from the Santiam River, about one mile, to intersect with Mill Creek, (which was totally dry in the summer season,) which leads down through the prairie about 15 miles and intersects the Willamette at Salem, where the factory was located, furnishing abundant water power for the factory and for other extended improvements. Mr. Joseph Watt was the originator and also the father of the wool producing and wool manufacturing industry of Oregon. The following is the history of the first woolen factory on the Pacific Coast, by the manager from 1857 to 1863: Its unfavorable and almost unsuccessful commencement Its final perfect success Its changing ownership and by the mismanagement of the new company was burdened with debt and loss of credit Again changed ownership and was soon thereafter mysteriously destroyed by fire.