Ellenville Co-Operative Cutlery Company began making knives in 1871. Community leaders were looking for an industry to boost the economy of their town, a glass factory being the main industry at the time and apparently not too stable. And more jobs were needed for the 2200 residents. So the village leaders got together and formed a committee to locate land and, if possible, attract a factory. An early meeting with men from Walden Knife Company didn't bear fruit. And better came of a meeting with a group from a cutlery co-operative in Connecticut.
So the comittee formed a co-operative under the name "Ellenville Knife Building Company" and bought a six acre plot on Canal street including the old Bloomer Foundry Works, property of John L. Bloomer & Sons on the Beer Kill in August, 1871. The company succeeded in making a fine grade of cutlery, but its finances were not sufficiently strong to enable it to continue long as a cooperative company. It could not meet its obligations, and by 1875 was practically bankrupt. At this time "The Ulster Knife Company" was incorporated by Jacob Hermance, John Lyon, Alfred Neafie, R. Harvey Brodhead and Dwight Divine. This group assumed all the obligations of the company and proceeded with the manufacture of knives. The name Ulster was then adopted as the trade mark for its cutlery, and has since been used to designate one of the most popular and dependable lines of cutlery ever made in this country.
In 1878 Dwight Divine took over the entire responsibility, and continued the business as an individual enterprise, although he retained the organization of the Ulster Knife Company. William Booth, one of the original group, was retained as foreman, and so continued until his death many years later. Mr. Divine proved to be a very efficient business man, and gradually straightened out the tangled financial situation and placed the business on a paying basis, in spite of a fire which destroyed the plant in 1880. The buildings were soon replaced. About four hundred workmen were finally employed. In 1926, Mr. Divine organized as Dwight Divine & Sons, Inc., taking into partnership his two sons, C. Dwight and John H. Divine, who carried on the business after the death of their father in 1933.
The rest of the early Ulster story can be found in this link, including some of the text above which was quoted. Some came from other sources. But the link contains a wealth of early photographs as well.
http://collectors-of-schrades-r.us/articles/409-01.pdf