Old Town’s woolen industry began with the incorporation of the Old Town Woolen Mill, a brick mill built along the Penobscot River in 1887. The mill, operated by Herbert Gray, brought in skilled laborers from other parts of New England while local people were trained and soon became a vital part of the town’s economy. The Ounegan Woolen Company, named for the falls that were replaced by the Milford Dam, brought the town its second mill in 1899, with a brick addition built in 1904 when the Maine Woolen Company came into ownership of the mill. It closed briefly and reopened under the American Woolen Company in 1909. The Old Town Woolen Mill produced cassimeres and overcoatings as its primary products, while the Ounegan Mill focused on men’s clothing. The Old Town Woolen Mill closed in 1937, but the Ounegan Mill was boosted by production needed during World War II and operated until 1959.

The caption reads, "The dam and Woolen Mills, Old Town, Maine."

The Tichnor Brothers printing company published this type of postcard circa 1938.