Baekeland worked for the Anthony company for two years, and in 1891, set up in business for himself working as a consulting chemist.[8]: 130 However, a spell of illness and disappearing funds made him rethink his actions and he decided to return to his old interest of producing a photographic paper that would allow enlargements to be printed by artificial light.[13] After two years of intensive effort, he perfected the process to produce the paper, which he named "Velox"; it was the first commercially successful photographic paper. At the time, the US was suffering a recession and there were no investors or buyers for his proposed new product, so Baekeland became partners with Leonard Jacobi and established the Nepera Chemical Company in Nepera Park, Yonkers, New York.[8]: 131–135 [12]
In 1899, Jacobi, Baekeland, and Albert Hahn, a further associate, sold Nepera to George Eastman of the Eastman Kodak Co. for $750,000.[14][15] Baekeland earned approximately $215,000 net through the transaction.[8]: 134–136 [16]
With a portion of the money he purchased "Snug Rock", a house in Yonkers, New York, where he set up his own well-equipped laboratory. There, he later said,
"in comfortable financial circumstances, a free man, ready to devote myself again to my favorite studies... I enjoyed for several years that great blessing, the luxury of not being interrupted in one's favorite work."[17]
One of the requirements of the Nepera sale was, in effect, a non-compete clause: Baekeland agreed not to do research in photography for at least 20 years. He would have to find a new area of research. His first step was to go to Germany in 1900, for a "refresher in electrochemistry" at the Technical Institute at Charlottenburg.[2]: 14
Upon returning to the United States, Baekeland was involved briefly but successfully in helping Clinton Paul Townsend and Elon Huntington Hooker to develop a production-quality electrolytic cell. Baekeland was hired as an independent consultant, with the responsibility of constructing and operating a pilot plant.[8]: 138–139 Baekeland developed a stronger diaphragm cell for the chloralkali process, using woven asbestos cloth filled with a mixture of iron oxide, asbestos fibre, and iron hydroxide. Baekeland's improvements were important to the founding of Hooker Chemical Company and the construction of one of the world's largest electrochemical plants, at Niagara Falls.[2][17][18]
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