San Felipe, Texas, sold part of its original 22,000-acre (8,900 ha) township to the Gulf, Colorado and Santa Fe Railroad to create Sealy in 1879. Sealy gets its name after business tycoon and majority stock holder of the GCSF RR, George Sealy of Galveston. In 1881, Daniel Haynes, a cotton gin builder, filled a request for a cotton-filled mattress which started a company. He named this the Sealy Mattress Company after the town. Business grew exponentially, which led to more innovation and several patents, such as a machine that compressed cotton
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