Summary

1911 Encyclopædia Britannica, Volume 21… (1911)

The clay, which must be free from sand and iron, is treated in the same manner. Clay and graphite so prepared are mixed together in varying proportions with water to a paste, passed repeatedly through a grinding mill, then placed in bags and squeezed in a hydraulic press till they have the consistency of stiff dough, in which condition they are ready for forming pencil rods.
Source: Wikisource

1911 Encyclopædia Britannica, Volume 21… (1911)

When dry they are taken to rapidly revolving cutters which remove the wood between the leads. The individual pencils thus formed only need to be finished by being dyed and varnished and stamped with name, grade, &c. Instead of wood, paper has been tried for the casings, rolled on in narrow strips which are torn off to expose fresh lead as the point becomes worn down by use.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature