Cole and his brother, John, and another pioneer erected a second log cabin later that year, and by the end of 1837 the saw mill was turning out lumber. But throughout 1837 the population of Watertown did not exceed 15, and one of that number, Thomas Bass, and Englishman, was accidentally burned to death. He was buried in a grove nearby, the settlement's first burial. In 1841, John and Luther Cole erected a building on the corner of Main and Second streets. It was the first store in Watertown.
Records show that living at that time was a hardship.
Provisions were not easily obtained and money was scarce. The people had to live on fresh fish and pork when there was any to be had. At one time they went without bread for nearly a week because they ran out of their supply of flour and many thefts were made by the Indians. After a watch, some wheat, and a supply of tobacco had been stolen, the people decided to put a stop to robbery if possible. They found the Indian who had caused the trouble and forming a ring around him, forced him to strip his blanket.