Waddell and his family arrived at New Salem and built their residence in 1832. Waddell was a hatter who made rabbit fur hats for 50 cents, coonskin hats for $2, and wool felt hats. The kettle in front of this residence was used by Martin Waddell to make felt. Waddell had a wife, a son, and several daughters to support. Considering the number of children he had, one room might have served as both a shop and a bedroom. The Waddell family left New Salem by 1838.