In 1809, John W. Tibbits and Lafayette Tibbits came to Jewett City, Connecticut, and purchased a mill privilege on the Pachaug River. After enjoying several good years during the War of 1812, the company was reorganized in 1815, and incorporated on 20 September 1816. The company was soon struggling and was finally sold in 1823 to John Slater. On the death of John Slater in 1843, his two sons John Fox and William S. Slater inherited his business properties. John F. Slater was succeeded by his son William A. Slater in 1884. Two years later, the Great Freshet of 1886 destroyed most of the dams along the Pachaug. As a result, the Slater mills were inundated, production was lost for many months, and more than $150,000 was spent for repairs. This crisis was surmounted and by 1896, the company's most prosperous period, 700 looms and 19,000 spindles were operating, providing employment for 500 people. The major products were stripes, plaids, flannels, shirtings, dress goods, and fancy colored goods.
The Smith family of Canterbury, CT, owned and operated a number of mills in the section of Hanover from the mid-eighteenth century until the 1940s. The original site on Little River, north of Hanover and Woodchuck Hill Roads, became the home to five successive generations of Smiths.