| In that year two of Alexander's great-grandsons, Alexander and James, crossed the valley and founded a new firm, A & J Macnaughton, in the town of Pitlochry. The move took advantage of the 'Age of the Railway', with Pitlochry being on the main railway line to the north.|
In addition to operating the woollen mill, the brothers opened a shop to cater for the needs of the ever expanding local townsfolk. The shop not only sold the wares from the mill, but also had what must have been one of the Highland's earliest delicatessens.
Over the years the shop became rather well known and even enjoyed Royal patronage. Queen Victoria often travelled through Pitlochry on her trips north to Balmoral and she and John Brown were frequent visitors. On one occasion a rug was purchased in preparation for a cold trip on horseback, through Glenshee to Braemar. For many years the shop proudly displayed a telegram from the Palace stating, "The Queen is much pleased with the rug".
The Firm continued to prosper during the 19th and 20th centuries, with its management being passed from father to son unbroken through the generations. The Second World War was generally kind to textiles and the firm prospered throughout, manufacturing blankets and fabrics for the forces and tweeds for everyday life.