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A dredge was built to maintain a channel and, coupled with the railway and the river system, the lumber business flourished. Mills sprang up almost overnight. Mills sprang up almost overnight. The Atlantic Coast Lumber Company was the largest in the world with its 5,000,000 board foot (12,000 m³) dock and shed.
Lumber was the nation's largest industry in 1850, and second in 1860 behind textiles. As Frederick Starr emphasized in 1865, forests were integral to the four key necessities for prosperity: "cheap bread, cheap houses, cheap fuel, and cheap transportation for passengers and freights."
This last-named company had been chartered July 2, 1904, to acquire at a receiver's sale the railroad, sawmill and planing-mill property of the Gay Lumber Company, the original builder. The railroad had been opened to commercial business about 1900-1901, under the business name of the Kinston and Carolina Railroad, by the Gay Lumber Company.
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