jumpinjoe
Hellcat
Yep, you're right on, at least according to Wiki. Here's a couple lines about how it all started.If I recall correctly, it was a mil-surp ball rifle powder that Mr. Hodgdon obtained and resold to bootstrap his company. Post WWII, the military was searching for the least-cost means of disposing of it and Mr. Hodgdon stepped up and said, "I'll buy it so that you don't have to dump it at sea," and he did so by the boxcar load. At least, that's what I remember about how the story goes.
In the opening days of WorldWar II, a chemist friend of Bruce E. Hodgdon was casually reminiscing about WorldWar I. He mentioned the quantities of surplus smokeless powder the military had dumped at sea after the war; and speculated how useful that would have been to handloaders struggling through the Great Depression. He anticipated a similar surplus powder situation might occur after World War II. Hodgdon began investigating availability of surplus powder when the war ended; and sales to handloaders began in 1946. One of the first powders he found was 4895 used for loading .30-06Springfield service ammunition. He purchased 25 tons of government surplus 4895 for $2000 and then purchased two boxcars to store it in preparation for resale at 75 cents per pound. His family initially packaged the powder for resale in the basement of their home. In 1947, he began acquisition of 80 tons of spherical powder salvaged from disassembled .303British military rifle cartridges manufactured in the United States. By 1949, he was marketing the powder as BL type C. The C was to indicate the powder burned "cooler" than traditional Improved Military Rifle (IMR) powders. In 1949, he began acquisition of powder salvaged from disassembled Oerlikon 20mm cannon cartridges. This powder resembled IMR 4350 in appearance, and with a slower burning rate, was initially marketed as"4350 Data", and later as 4831.
Back in the day as a kid, I remember someone telling me about buying a brown paper sandwich bag of powder that was scooped out of a barrel at a local hardware store. I thought that was wild, but now I read that the Hodgton family bagged and sold it out of their home's basement!!!!!. And I can't even imagine what 25 tons of powder would look like, much less anticipate buying it on a hunch.