Portland physician J.F. Bailey built the Union Mill, to produce woolen goods, in Washougal in 1910. The location provided for water power and transportation, and it was close to markets and rail lines. Despite the favorable location on the Columbia River, the Union Mill went bankrupt in two years due to a shortage of orders.
The Pendleton Woolen Mills bought the woolen mill in 1912 and transformed it into the company’s largest and most successful mill. Pendleton now has fourteen facilities altogether. Pendleton has remained successful in light of the failure of similar companies, making it the last family-owned textile mill in the United states.
The Pendleton Woolen Mills specialized in Indian blankets, which were woven and finished at the Washougal mill. Native Americans have been purchasing the company’s blankets since before 1900.
During WWI the Washougal mill mainly produced blankets for the troops.
A 1924 fire destroyed everything except the water towers at the Washougal mill. Pendleton rebuilt a larger factory with modern equipment such as ring spindle frames and automatic looms. It was the first mill in the pacific coast to operate with that equipment.
During the Depression, Pendleton was able to keep up production and, as a result, many local residents kept their jobs.
Pendleton has both expanded its product line and its way of business in recent years. The company, once an all-wool business, now produces men’s and women’s apparel, made out of a variety of fabrics, a line of home products, and woolen goods. While Pendleton maintains its “Sheep-to-Shawl” approach, processing raw fleece into finished products, the company now exports some clothing-assembly work to Mexico and Costa Rica.
