William McCarty had seen the signs. It was obvious to him that South Jersey's bog iron industry was on a downturn. Consequently, in 1832, while already settled as Philadelphia merchant and bookseller, McCarty purchased a tract of land and decided to construct a paper mill.
Even though McCarty predicted this thriving industry on the early side of its growth, by 1834 the state had witnesssed construction of 29 other paper mills. McCarty's original recipe for his paper included salt hay, old ropes, rags, paper scraps, and burlap bagging material.
Along with his partners and associates, McCarty decided to build a town adjacent to his paper mill. The town would feature residences for the mill's employees. There was also a company store, gristmill, sawmill, blacksmith, carpenter, and boardinghouse. Canal was built to provide water for the mill's turbines, and across from the boardinghouse, McCarty built are large estate where he entertained friends and guests from Philadelphia.
Eventually, McCarty's friend, Henry Carey, became a partner in and president of the Wading River Manufacturing and Canal Company. Under Carey's management, the mill became producing butcher paper, bonnet boards, and binder boards. By 1836 the mill was producing almost a ton of paper each day. The company also grew to include a 550 acre farm to feed its employee community and a schooner used to transport goods to New York City and Philadelphia.
Constantly on the hunt for new things, McCarty experimented with silk production. He raised worms in mulberry trees planted around the town. However, the experiment never developed into a business and he eventually abandoned the idea.
In 1846, the company hit some financial troubles. Although it was one of the most successful paper mills in the area, the company defaulted on $50,000 loan and collateral property was seized. Unwilling to give up, McCarty bought back a quarter interest in his company. However, soon after, a fire destroyed the mill and factory and McCarty was forced to sell his interest and move back to Philadelphia.
McCarty spent the rest of his retirement in Philadelphia. In 1851, Richard and William Harris brought part of the town and company property. They revived papermaking production and developed the town under a new name, Harrisville.