Thomas E. Douglas built a saw mill and an electric plant in 1896 on the banks of the North Branch of the Au Sable River in Lovells. The electric plant supplied power to the saw mill and the Douglas Hotel. A shingle plant was added in December, 1901. The mill burned in January, 1908 at a loss of $8,000 and 300,000 shingles. Douglas rebuilt the mill in June, 1908 and it included a saw mill, lathe mill, shingle mill and stave mill. The mill employed as many as 100 men. This mill burned in July, 1910 at a loss of $12,000. Three Michigan Central Railroad cars were also lost in the blaze. Douglas again rebuilt the mill in 1912. This mill ran until it was shut down in the 1930's. Many boarding houses sprang up in Lovells to house the mill workers. In winter, Douglas employed as many as 100 men in three logging camps.