From 1776 to 1778, when Arkwright and Hargreaves's inventions had become fully established, six small cotton mills were erected in Oldham township, namely, three moved by horse power, and three by water. These concerns were Water street, near the present Baptist chapel, Manchester street, belonging to Mr. James Smethurst, of Goldbourn, worked by horse power; Holebottom, Yorkshire street, owner, Mr. Joseph Milne, horse power; Wallshaw, Mumps, Mr. James Lees, horsepower; Acre mill, near Pit bank, Mr. John Lees, water power; Higher Sheepwashes, Mr. John Brierley, water power; and Lees hall, near North moor, Mr. William Clegg, water power. The earliest cotton mills in the out townships of the parish, were Clough mill, Chadderton, Mr. Joel Halliwell, water power; Bank mill, Chadderton, Mr. Thomas Ashton, water power; Top of Fold mill, Royton, Messrs. John and Edmund Taylor, horse power; Thorp clough mill, Boyton, Mr. Ralph Taylor, water power ; Low Crompton, Crompton, Messrs. John Milne and John Travis, water power; and Greenfield, Shaw, Crompton, Messrs. Milne and Newton, horse power. It is thus evident that immediately after the introduction of the factory system twelve small cotton mills were established in the chapelry of Oldham. The greater part of the proprietors of these concerns contracted to pay to Mr. Arkwright a certain animal rent for every spindle contained in their machinery; but it has been stated by a party likely to be well acquainted with the circumstances that Mr. William Clegg, of Westwood, erected Lees hall higher mill in defiance of Arkwright's patent. The processes of the manufacture at this period were as follow:—After the cotton had been picked and cleaned, it passed through the carding machine; it was then drawn through rollers three different times (the invention of Arkwright, 1771). The next operation was roving, which was also effected by rollers, and this method was first rendered effectual by Arkwright in 1775. The last part of the process was spinning, the discovery of which has been already noticed.

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