were given to begin the work. The water power was to be brought from the Santiam River by means of a ditch. The task was not great as the bed of Mill Creek could be used and the water power was soon secured. An agent was sent East to purchase the machinery and by the time it arrived the building was ready for its occupation.
Before the machinery was placed the introduction of this new industry was the occasion of a splendid ball in the spacious building. It was one of the most brilliant social affairs ever held in Oregon up to this time. Among the list of those present from all over the territory were dignitaries of state, including the Governor; dignitaries from the army, including Lieut. Phil Sheridan, and as Watt himself says, "even dignitaries from the church were present." Watt was an inveterate lover of song and dance, and would go many miles at any time to engage in such festivities. He was therefore in the height of his glory, which was not even destroyed by the fact that his chosen lady, Miss Lyons, beautifully adorned in a gown of blue velvet, with golden stars, was led to the dance by the Governor. Indeed, he had no reason to be uneasy, for the understanding between them was good, and a few years later, 1860, he was married to her, dressed for the occasion in a suit of wool made in the mill which he had done so much to establish.
By the first of May the machinery was in place, and everything was in running order. Cloth bearing the name of "Hardtimes" was produced, and the first blankets ever made west of the Rocky Mountains were sold at auction. The first pair went to Mr. Watt for $110, and the others brought $75 to $25. At first all the product that could be turned out found a ready market; competition, however, soon set in and the managers of the mill were undecided what course to pursue. Unwilling to discontinue the enterprise Watt was consulted, and
