The following government report is probably the first of the menhaden industry of the Chesapeake and its tributaries. It is dated 1869.
| Men employed on vessels fishing | 12 |
| Vessels employed | 4 |
| Men employed making guano | 9 |
| Fish taken | 3,000,000 |
| Oil made | 200 bbls. |
| Guano made | 300 tons |
In 1873 Reed's factory on Point Pleasant burned. The next year he built another factory on another point on Cockrell's Creek on a spot where a windmill for grinding corn had been previously located. This location was known as Windmill Point. Later the village of Reedville grew up on this small peninsula.
By 1874 the manufacture of menhaden oil and guano had become identified as one of the important industries of this country. The annual yield of the menhaden oil now exceeded the whale oil (from American fisheries) by about 200,000 gallons.
By 1878 the menhaden industry of the Chesapeake area had grown considerably according to the government report of that year:
| Men employed on vessels fishing | 286 |
| Vessels employed fishing | 78 |
| Men employed on shore | 201 |
| Fish taken | 118,309,200 |
| Gallons of oil made | 234,168 |
| Tons of guano | 10,832 |
The next advancement in the industry came when steam cooking superseded the use of the kettles. The first steam factory in Virginia was built by Elijah Reed in 1879. The first fishing steamer used in the business in the Chesapeake, Starry Banner, was purchased by him in Rhode Island. This steamer's capacity was one hundred and fifty thousand fish.
The menhaden fishing industry continued to grow and to advance with the times. It brought prosperity to the lower Northern Neck. Reedville became an important menhaden fishing center and fishing port.
Eventually menhaden became the biggest fishery in America.