Following his profitable sales trip, Washington Duke began the manufacture of smoking tobacco on a part time basis.  Though farming  tobacco, wheat, corn, oats, and other subsistence crops took up much of the family's time, the Dukes were able to manufacture 15,000 pounds of their product, "Bro Bono Publico," during the year 1866.  This increase in production necessitated the utilization of other outbuildings on the farm, including an old stable--known as the second factory.  Soon, in order to lessen the heavy workload and keep production up, Duke began buying additional tobacco from neighboring farmers.

Though it was difficult to make a large profit on manufactured tobacco due to the high federal revenue tax placed on it during this period, the Duke's country enterprise continued to grow steadily in the late 1860s as the market for Duke's tobacco expanded and subsequent peddling journeys were launched from the homestead.  Prices for "Pro Bono Publico" increased but fluctuated over the next few years.

In 1868 Brodie Duke tried to persuade his father to move the manufacturing operation to Durham.  Though Washington Duke decided to continue at a rural location, he provided funds for Brodie to establish his own factory in Durham, where he began production in 1870.  Around that time also, Washington began to concentrate more heavily on the manufacture of tobacco; he constructed a two-story frame building--the third factory, and hired additional workers to handle the increased production.  Until that time, there had been no building on the property built specifically for the manufacture of smoking tobacco.  The third factory was designed to receive and store un-manufactured tobacco and to house the manufacturing operation.  The structure featured wide doors to facilitate loading and unloading of tobacco.  Rafters inside the building held tier poles probably used for hanging sticks of tobacco prior to manufacture; small doors in the attic were opened or closed to regulate the moisture content of the hanging leaves.  Square holes cut into the ceiling of the first floor apparently were openings for chutes.  The manufactory probably contained no sophisticated machinery; no records have been found detailing the interior contents, though it must have contained such items as flails, sieves, work tables, weighing scales, and an assortment of baskets and barrels.


 Rafters inside the building held tier poles probably used for hanging sticks of tobacco prior to manufacture; small doors in the attic were opened or closed to regulate the moisture content of the hanging leaves.  Square holes cut into the ceiling of the first floor apparently were openings for chutes.  The manufactory probably contained no sophisticated machinery; no records have been found detailing the interior contents, though it must have contained such items as flails, sieves, work tables, weighing scales, and an assortment of baskets and barrels.

Still, the homestead tobacco business retained its simple, family-oriented manufacturing processes.  The process of manufacture at the third factory was simple and slow--as it had been at the first and second factories in use previously.  Workers flailed the cured tobacco, beating the dry leaves into a very fine state by forcing it through a sieve.  Laborers then granulated the crushed leaf while other skilled workers weighed and packed the sieved tobacco.  Demonstrations of processes used in early tobacco manufacturing are presented in this factory.  By 1873, the Dukes were producing around 125,000 pounds of smoking tobacco annually.

As the enterprise steadily expanded, and the number of customers outside of North Carolina increased, Washington Duke began to consider the advantages of moving his business into town.  Conditions in Durham in the early 1870s were very favorable for the manufacture of tobacco; the location of the North Carolina railroad station was convenient for shipping, and a warehouse for the sale of leaf tobacco had been opened in 1871.  Durham was rapidly becoming a major tobacco center.  In April 1874, Duke purchased two acres near the railroad where he built a new factory.