After buying land near Hendrick's Lake for a sawmill, Charles Dealy of Dallas, Texas, president of Dealy Lumber Company, bought in 1900 land adjacent to the Trinity and Sabine Valley Railroad and on the Flanagan property. Here he built a very large planing mill to finish the lumber milled by the sawmill at the Lake. A two-mile tram road connected the mill at Hendrick's Lake to Flanagan.
Sawmill equipment at Hendrick's Lake included 44-inch by 14-foot boiler, a 60/16 100-horsepower steam engine, edgers, trimmers, a Fisher & Davis No. 3 Right-hand sawmill, a Shay engine and three logging cars and ten lumber cars, a commissary, tenant houses, a boarding house, and a mule corral.