Editor's note: This information was compiled from the Hills Our Town history book.
In 1896 A.C. Finke and Olaf Nash hatched the notion of starting a creamery in Hills. This notion would become the Hills Cooperative Creamery, a major industry. Finke and Nash visited area farmers to build support for the project.
At a public meeting in 1896 a creamery equipment salesman painted a rosy picture of the dairy business. All a farmer had to do was join the creamery association, get a dairy cow, and open a bank account to enter the business.
Despite what the salesman said, the pioneer men who attended the first meeting realized nothing would be handed to them on a silver platter.
The Hills Crescent lists those present at the first meeting in 1896 as Niels Jacobson, Fred Nuffer, John Paulson, Goodman Anderson, Asle Skattum, Olaf Kolsrud, John and Charles Nelson, Haaken Tuff, Nels, G.G. and Andrew Sundem, Charles Skovgaard, A.T. Sexe, Lars and Martin Peterson, Hans Haroldson, Gilbert Rovang, Hans Rognley, John Helgeson, Ole Medgorden, F.C. Finke, Halvor Savold, C.E. Halls, Lars Engebretson and many others.
It was decided by those present to form a cooperative creamery business.
The first board of directors hired Mr. Barthong as manager. He came recommended by the distributor of the new creamery equipment.
The creamery started with a steam-powered Russian Cream Separator. When the steam went down, some of the cream ran into the skimmed milk vat, which was not good. Those days whole milk was hauled to the creamery and each farmer took his skimmed milk home with him.
The first patron of the creamery was O.G. Qualley. Second in line was Osmund Rortvedt.
As business grew, a second separator was purchased. The manager strongly recommended the creamery purchase the same model again. It was later discovered Barthong received a $75 kickback on the deal.
It was also discovered Barthong had spent 30 days in jail for jumping a board bill. Within a short time, the creamery had to purchase new separators and find a new manager.
Fritz Lehmberg was hired as the new manager. Under his leadership, the creamery grew and prospered. A new building was built, new equipment purchased, and Blue Ribbon Butter was made a familiar sight around the country, particularly in New York and California.
Eli Johnson delivered starter milk to the creamery every morning. When production increased and more starter milk was needed Griffith Helgeson and Fred Metzger joined Mr. Johnson in delivery.
By 1934, the Hills Cooperative Creamery had produced 1,269,580 pounds of butter. Thousands of dollars had been paid out to patrons in three states. The biggest year was 1942.
Many people served on the board of directors including Albert Halls, Halvor Halverson, John Bosch, Ivan Wyum, Earl Nelson, Richard Johnson, G.H. Helgeson, O. Rortvedt, Lewis Skattum, J.A. Thorin, Ernest Metzger, Art Rogness, Bill Kitchenmaster, Elmer Drost, Clark Helgeson and Gilbert Smith, to name a few.
Lehmberg passed away in 1945 and was succeeded by Olaf Nash as secretary and Merle Clemetson as operator. Nash, who retired in 1948, was replaced by Vernon Eberlein. Later Bernard Sevatson served as secretary, then Arnold Qualley until the creamery closed in 1961.
By 1961, more and more farmers had quit milking to feed cattle or raise grain. It soon became apparent the creamery would no longer be able to operate. The creamery was sold to Sioux Valley Milk Producers in 1961.