The Madison Hemp and Flax Co. began operations on Silver Creek in 1806, using water power to run machinery for spinning hemp and flax. In 1808, it received permission from the legislature to incorporate and sell stock. The factory produced thread that was sold or used there for weaving, and one hundred and six spindles were in operation, each capable of spinning daily one-half pound of thread suitable for linen. In Kentucky, the first hemp crop was grown in 1775. From 1840 to 1860, Kentucky's production was the largest in the U.S., reaching a peak in 1850 of 40,000 tons valued at $5,000,000. Scores of factories made twine, rope, oakum to caulk sailing ships, and cotton bagging. Hemp remained the state's largest cash crop until 1915, then lost its market to imported jute freed of tariff, before being grown again during World War II as a war measure.