Adolph Kastor & Bros.started a cutlery import business in about 1875. In 1902 they bought the Camillus Knife Co., based in Camillus, NY., from Charlie Sherwood and began producing their own knives under the Camillus name.
They also started making super high quality knives for various hardware and distributing companies like KeenKutter, and manufacturing magnates like Henry Sears and John Primble.
During the world wars, demand by soldiers and military personnel for fixed and folding knives grew constantly. Toward the end of WW II the demand exceeded the capacity of the entire industry. Camillus, being an old hand at supplying knives to troops in WW I and after, started devoting their production more and more to the war knives. Finally, nearly the entire plant capacity was devoted to the exclusive production of war knives.
In '43 they got the Army/Navy "E" award and a bunch of stars for consistently matching contract demands the whole time. When the war ended they had supplied about 12 million folders and, I think, over 2 million fighitng and sheath knives, a production run never matched.
The unheralded effect was that it quickened the development of the finest factory for manufacture and design progression as they produced good and fine knives for a long period of time.
I know that in 2007 they had a major labor dispute and closed. I stopped following them after that. They produced an astounding variety of knives...many of them very high quality.
Add Inazone's comments above as Chapter Two and I think that gives it to you in a nutshell.
The only Camillus I own now is a USMC my uncle gave me when he returned from 'Nam in the 60's. It's been a great all-round knife and is still in rotation for the rougher stuff.