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With the advance of the Southern Pacific Railroad through the wharf area in 1878, the way became open for the California Powder Works to move into the adjacent waterfront they called Hercules. The company built both the plant and its houses and became the largest producer of dynamite in the world by the turn of the century. During World War it manufactured more TNT than any other plant in the country. The town of Pinole became the service center for the plant, and the success of the plant had a direct relationship with the development of Pinole. Twenty of the homes built by the company for worker housing have been rehabilitated and relocated to an historic district receiving area adjacent to the Pinole City limits.
Edward M. Downer came to Pinole in late 1889 and went to work in 1890 as a dispatcher and station agent at the Southern Pacific train depot at the end of Tennent Avenue near the waterfront. During the last ten years of the Nineteenth Century and the early part of the Twentieth, he was one of the most influential and prominent business figures in Pinole and the surrounding areas including Rodeo, Crockett, Port Costa, Richmond, El Cerrito and Albany. This was due to the chain of banking houses which he and his family established in these cities and to his civic efforts and successes all through these areas.
Upon incorporation in 1903, Old Town was bustling with waterfront activity at the wharf, a post office, a newspaper (The Pinole Weekly Times), a school, several hotels, saloons, and stores and two churches. By 1915 it boasted the Pinole Opera House, the Pinole Theatre, the Bank of Pinole, and numerous other commercial businesses including a bakery and butcher shop. Several of these buildings, such as the Bank of Pinole building, are still standing today and are a testimony to the rich history of Old Town Pinole.
The history and architectural character of Pinole was very much influenced by the commercial activity that took place here, including the Gold Rush, agricultural shipping (about 1854 to 1885), railroad shipping, California Powder Works Company (1879 to the 1970s), the growth in automobile travel, World War II - 1940s, and construction of I-8O. The Old Town area of Pinole is unique. Despite rapid growth since the 1950s, Pinole's downtown has retained a great deal of historic and architectural character. A large number of historic residences, primarily Queen Anne and Italianate cottages, remain in good condition, and many of the old commercial buildings still remain.
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