Gilman Paper Company

Gilman Paper Company

Company type	Private
Industry	Paper products manufacturing
Founded	1880s
Founder	Isaac Gilman
Defunct	2002
Fate	Mill sold to Durango Products; shutdown after bankruptcy in 2002
Headquarters	New York City , United States
Area served	United States
Key people	Isaac Gilman, Charles Gilman, Charles (Chris) Gilman Jr., Howard Gilman, Robert W. Harrison
Products	Paper products, Kraft bags, gummed tape, twisted paper yarn
Number of employees	1,100 (plus 1,500 contractors in 1940s)

The Gilman Paper Company was an American manufacturer of paper products, established by Isaac Gilman during the 1880s in the village initially known as Fitzdale, Vermont, which was eventually renamed Gilman, Vermont.

History

Isaac Gilman, a Ukrainian immigrant, launched his career in paper production in 1881. In 1921, the Gilman Paper Company took over Fitzdale Paper Company and undertook significant upgrades, including replacing the steam plant with four Stirling boilers and erecting new facilities dedicated to paper machines and grocery bag manufacturing. The firm broadened its operations into paper converting by adding departments for Kraft bags, gummed tape, and twisted paper yarn.

During the 1940s, Charles Gilman, Isaac’s son, founded an additional mill in St. Mary's, Georgia. By that period, the company was producing 2.6 million pounds of paper daily, employing 1,100 workers alongside 1,500 contractors, with its headquarters located at 111 West 50th Street in New York City. Gilman grew to become the largest privately owned paper company in the United States. It held vast timberland holdings across Florida and Georgia, including 7,400 acres in Nassau County, Florida that were later transformed into White Oak Conservation. The company also constructed a short-line railroad to facilitate the transport of timber and finished products. In 1969, Georgia-Pacific Corporation acquired its Vermont mill.

Following Charles Gilman’s passing in 1967, control of the firm was transferred to his sons, Charles (Chris) Gilman, Jr. and Howard Gilman. Their contentious relationship influenced corporate governance; in 1979 their mother disinherited Howard and awarded control to Chris. Howard subsequently reclaimed his ownership stake through legal means and became sole proprietor after Chris’s death in 1982. Howard Gilman died in 1998 at White Oak Conservation; at that time, the family's assets were valued at $1.1 billion with liabilities amounting to $550 million.

The paper mill was eventually sold to Mexico-based Durango Products, which filed for bankruptcy in 2002, leading to the mill’s shutdown that September.

St. Marys, Georgia

Starting operations in 1941, Gilman Paper Company ran a mill in St. Marys, Georgia that by the 1970s produced as much as 900 tons of paper daily. The facility employed between 1,500 and 2,000 residents out of the town’s population of approximately 4,000 and was pivotal to Camden County’s economic health—estimates suggested the mill accounted for roughly three-quarters of the county’s economic activity. Robert W. Harrison, an influential executive and company attorney, also served as legal counsel for nearby municipalities and local governments while managing disputes concerning Gilman’s tax responsibilities.

A tax arrangement established in 1958 fixed the mill’s property valuation at $3 million for city tax purposes whereas county valuation stood at $15.4 million—reflecting advantageous tax treatment that significantly reduced Gilman’s city tax burden.

Statewide and national publicity

In 1970, Ralph Nader’s “Nader’s Raiders” drew attention to Gilman Paper Company amid investigations into corporate pollution and tax practices within Georgia. The mill released approximately 18 million gallons of untreated wastewater daily into the St. Marys River, provoking environmental concerns. Media outlets such as Harper's Magazine and CBS's 60 Minutes exposed Gilman’s tax arrangements alongside its political influence.

During the same year’s state legislative election, Robert W. Harrison—an attorney affiliated with Gilman—was defeated by Carl Drury amid accusations that Drury faced politically motivated attacks. After assuming office, Drury launched inquiries into Gilman’s tax policies and environmental adherence. These investigations resulted in increased regulatory scrutiny, a rise in tax assessments from $45,000 to $227,000 annually, and a federal grand jury inquiry into local political irregularities.

In response to mounting regulation and adverse publicity during 1972, a Gilman supervisor reportedly offered $50,000 to assassinate labor union leader Wyman Westberry. This conspiracy was uncovered through FBI surveillance involving company officials including Vice President George W. Brumley and attorney Robert W. Harrison. Grand jury indictments ensued leading to convictions on charges of conspiracy to commit murder.

The St. Marys facility became a symbol of corporate wrongdoing following the broadcast of CBS 60 Minutes documentary Company Town in 1972, which brought attention to environmental violations, political corruption, and civil rights abuses associated with Gilman Paper Company’s operations.