Although it had become axiomatic that no money could be made competing against European firms in the dyes and dyeing industries, the management of Crompton & Knowles Corp. believed that they could prosper as a niche manufacturer. Crompton had begun as Crompton & Knowles Loom Works, but wished to move away from the manufacture of industrial equipment, a field with a narrowing future. In an effort to diversify, they began to acquire smaller dyeing and dye-producing operations. Among their acquisitions were Bates Chemical Co. of Lansdowne, PA, which manufactured food and cosmetic dyes and Althouse Chemical Co. of Reading, PA which specialized in fabric dyes and dyeing, both of which began as small family-owned firms. Crompton subsequently phased Bates out, although Althouse continued as a division of Crompton & Knowles Corp. Following a 1996 merger with Witco Corporation and now operating as Crompton, the new firm moved out of the manufacture of textile colors.
From the description of Records of the Althouse, Bates, and Crompton Chemical Companies, 1903-2000 (bulk 1930-1999) (Chemical Heritage Foundation). WorldCat record id: 182942308
