From thence he removed to Himley in the county of Stafford, where he set up a pit-coal furnace; but being without the means of forging the iron into bars, he was constrained to sell the pig-iron to the charcoal-ironmasters, "who did him much prejudice, not only by detaining his stock, but also by disparaging his iron." He next proceeded to erect a large new furnace at Hasco Bridge, near Sedgeley, in the same county, for the purpose of carrying out the manufacture on the most improved principles.

This furnace was of stone, twenty-seven feet square, provided with unusually large bellows; and when in full work he says he was enabled to turn out seven tons of iron per week, "the greatest quantity of pit-coal iron ever yet made in Great Britain." At the same place he discovered and opened out new workings of coal ten feet thick, lying immediately over the ironstone, and he prepared to carry on his operations on a large scale; but the new works were scarcely finished when a mob of rioters, instigated by the charcoal-ironmasters, broke in upon them, cut in pieces the new bellows, destroyed the machinery, and laid the results of all his deep-laid ingenuity and persevering industry in ruins.

From that time forward Dudley was allowed no rest nor peace: he was attacked by mobs, worried by lawsuits, and eventually overwhelmed by debts.

He was then seized by his creditors and sent up to London, where he was held a prisoner in the Comptoir for several thousand pounds.

The charcoal-iron men thus for a time remained masters of the field.
Charles I.seems to have taken pity on the suffering inventor; and on his earnest petition, setting forth the great advantages to the nation of his invention, from which he had as yet derived no advantage, but only losses, sufferings, and persecution, the King granted him a renewal of his patent[6] in the year 1638; three other gentlemen joining him as partners, and doubtless providing the requisite capital for carrying on the manufacture after the plans of the inventor.