Further additions were made to the Winona Paper Mill in 1888. Casper Ranger added a machine room and cutter room, and Rivers & Barber were awarded a contract in August 1888 to pour the foundation for a mill extension. Casper Ranger was selected to perform this major plant improvement project, carrying out the plans of D. H. & A. B. Tower, designers and architects, who personally supervised the project.
The company obtained additional water privileges in August 1888, and with a new wheel pit had a capacity of 12 mills-power. A new Hercules water wheel and iron case was placed in the pit. A new beach room was added to accommodate two rotary beach boilers. Four cast-iron bleaching engines replaced the loder editions. Additional facilities were added through new builds or alterations to the old for preparing rag stock or storing raw materials. Several contractors were hired to complete the large design.
In 1889, the company installed a long fence around its property. It was said that this added greatly to the appearance of the mill.
By 1890, Holyoke had about 25 paper mills, employing close to 3,500 workers. Aggregate sales for Holyoke's paper industry were about $11m yearly.
In January 1891, after significantly underbidding competitors for a government contract, there were concerns raised that the company was having financial problems and was grasping for money. A week later, William Skinner was the first to file an attachment for debts totaling $10,000. Massachusetts Mutual Life Insurance Company was owed $200,000 and held a mortgage, as did Holyoke Water Power Company, which was owed $25,000. It was estimated that other creditors were due about $375,000, most of which were notes issued by the company with promises to pay.
Several business entrepreneurs were surprised that Winona lasted as long as it did, given its massive spending on projects over the years.
With debts of $600,000-$800,000 and assets of $450,000, businesses that relied on Winona would be hard hit. The repercussions would result in the failure of some companies, including 1 or 2 in Holyoke.
B. F. Hosford, the company Treasurer, did attempt to appease creditors by promising $300,000 in bonds at 10% interest over 10 years. Some believed the company could continue. Additional creditors filed attachments, making it more difficult for the company to survive.
Five months after the Skinner attachment was filed, the real estate, machinery, equipment, inventory and other assets were auctioned. The tally of outstanding debt reached $860,000. Moses Newton of the Chemical Paper Co. was the successful bidder at the auction, acquiring the assets for $234,000, effectively paying the mortgages held by Massachusetts Mutual Life Insurance and Holyoke Water Power.
Mr. Newton renamed this new acquisition Chemical Paper No. 2. At the time, George C. Gill was the Treasurer of Chemical Paper Co. No. 1.
In February 1892, Mr. Gill purchased the No. 2 mill and resigned his position with Chemical Paper No. 1. He renamed the company the George C. Gill Paper Company, a story for another day.
Citations:
Newspapers.com (paid subscription): Citations: Holyoke (Massachusetts) Transcript & Transcript-Telegram; publication dates and pages are shown.
Ancestry.com (paid subscription): Price & Lee, Holyoke, Massachusetts, City Directories
Massachusetts Cultural Resource and Information System, Secretary of State's Office, Boston, Massachusetts.
The Story of Holyoke, Wyatt E. Harper, 1973
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