In 1814, the Boston Company built America's first fully mechanized mill in Waltham, Massachusetts. Nine years later, the company built a complex of new mills at East Chelmsford, soon renamed Lowell in honor of the company's founder, Francis Lowell. With the production process fully mechanized, the principal limitation on the firm's output was the availability of labor, and here the company made its second innovation: it began to recruit young farm girls from the surrounding countryside. In order to attract these women and to reassure their families, the owners developed a paternalistic approach to management that became known as the Lowell system.
The mill workers were housed in clean, well-run boardinghouses, were strictly supervised both at work and at home, and were paid unusually good wages. The farm girls responded with enthusiasm. They soon became renowned as excellent employees, and their lively self-improvement program (including a literary magazine) drew international attention. Few of the Lowell women worked more than a few years, but for every one who returned home to marry, two new ones appeared. By the 1830s, the Lowell system had become a national symbol of the fact that in America, humanity could go hand in hand with industrial success.
Even at the pinnacle of its renown, however, conditions in Lowell had begun to deteriorate. In 1834, an economic downturn led to the mills' first wage cuts. In the 1840s, managers instituted a speedup, requiring higher and higher output for the same hourly wage. The women formed the Lowell Female Labor Reform Association and tried to appeal to their employers and then to the state legislature through petitions. These led to state investigations in 1845 and 1846, but little changed. After 1848, conditions deteriorated further, as New England's textile industry began to suffer from overexpansion. Seeking cheaper labor, the mill owners turned increasingly to Irish immigrants and in the process discontinued the management policies they had devised to attract workers from the farms. By the 1850s, the Lowell system had been abandoned.