The beginnings of the Fulton Bag and Cotton Mills can be traced to Atlanta in 1868, when Jacob Elsas, an immigrant of German Jewish descent who had recently arrived in Atlanta, began work in the rag, paper, and hide business.

Elsas soon recognized the need of his and other area businesses for cloth and paper containers to house their goods. Within three years Elsas had switched to the business of manufacturing cloth and paper bags and joined forces with fellow German Jewish immigrant Isaac May to form the new venture Elsas, May and Company.

The company expanded during the 1870s into the current location and by the end of the decade, the firm consisted of a bleachery, print shop, and bag mill, and employed between 100 and 160 workers.