The Ponemah Mills, a cotton textile factory, was built on the Shetucket River where a large dam could be built to provide power. The large mill building (Building No. 1) was purported to be the largest weave-shed under one roof at that time. The original workers were predominantly Irish immigrants, and they were hard hit by the depression of the 1870s that began with the Panic of 1873. Unemployment rose and wages dropped appreciably from 1873 to 1875, causing bitter relations between workers and management in many places.