 He was also a large stockholder in the Merrimack Woolen Mills Company.Appreciating more than any other man the natural advantages of the water powers which have made Lowell what she is, he bethought himself of securing the supply of water in Winnepesaukee and Squam lakes in New Hampshire as reservoirs for the Lowell Mills in dry seasons and letting the water into the Merrimac River when needed by artificial canals.This brilliant conception was at first scouted by the manufacturers along the river, but Mr. Nesmith, satisfied that they would eventually require the water, bought the right to use both these lakes for the purpose and before long the manufacturers had to buy of him at a handsome profit.