D. C. Holmes was sawmilling in Panola County during the 1920s. Holmes had borrowed money from the W. W. Waterman Lumber Company and was unable to pay it back. Waterman Lumber sued and won, forcing Holmes to turn the sawmill and property over to Waterman Lumber. Equipment consisted of a steam-powered circular sawmill with carriage and sawframe, a No. 2 1/2 Mississippi planer, a saw grinder, wedge, lumber dollies, and the various assortments of belting, pulleys, shaftings, etc.
It is not certain what Waterman Lumber Company did with the sawmill plant. The company sold its last remaining plant, the one at Waskom, two year later to Frost Lumber Industries of Texas.