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Pacific Fabrics & Crafts evolved out of the company’s processing of rags. Old discarded fabric items, surplus fabrics and trimmings from area manufacturers were sold at the company’s warehouse on 4th Avenue South in downtown Seattle to thrifty housewives who used them to make quilts, blankets, home furnishings and garments for their families.

Throughout the Second World War, the company’s rag business thrived as they supplied the nation’s industries with rag items critical for production. Pacific Iron & Metal held a position of national prominence in the reclamation of materials for the war efforts.