Notes on the Origins of Some American Tractors The tractor used by the CCC crew in Southwest Harbor, as shown in SWHPL 10609, was a Best 30 crawler tractor with open radiator sides, made in 1924-1925 as one of the last models made by the C.L. Best Tractor Company before it merged with Holt Manufacturing to become the Caterpillar Tractor Company. 1890. Benjamin Holt and Daniel Best experimented with various forms of steam tractors for use in farming. They did so separately, with separate companies. 1904. Holt's first steam track-type tractor. 1906. Holt's first gas track-type tractor. 1915. Holt "Caterpillar®" track-type tractors are used by the Allies in World War I. 1925. The Holt Manufacturing Company and the C. L. Best Tractor Co. merge to form Caterpillar Tractor Co. In 1908, at the age of 70, Daniel retired. His son, Clarence Leo Best ("Leo"), continued in his father’s footsteps, and with his father still giving advice, continued to experiment and improve on their tractors. One improvement made was the track laying design. This type of tractor moved on rolling tracks instead of wheels. He made several different models, but two really stood out as notable. The two models — the 30 hp field tractor, and the 60 hp field tractor — were well received and highly praised by the farming community. These tractors would eventually launch a new line of tractors that are still used today. Caterpillar Tractor Company In 1925, the C.L. Best Tractor Company and the Holt Manufacturing Company, who also manufactured tractors and had trademarked the Caterpillar brand, merged to form the Caterpillar Tractor Company. Leo became the chairman of the board of this new company, a position he held until 1951, overseeing its growth into the largest manufacturer of heavy machinery and farm equipment worldwide C.L. Best was known for continual changes and improvements to his products, and, at least in the West, the Best "Tracklayer's" reputation soared. He had been using Buffalo-brand gasoline engines in his tractors, but, in 1913, Best started the manufacture of his own four-cylinder gasoline engines, and installed them in his tractors. Best's first "crawler" tractor was its C.L. Best Model 70 "Tracklayer". The "70" had some desirable features missing in Holt's products: a liberal use of high-grade steels (instead of iron), and power-assisted steering for the front tiller wheel. In 1914, Best's Model "70" became the C.L. Best Model 75 "Tracklayer", with the added power indicated by the model number. The Best Model 75 was produced through 1919. In 1914, Best introduced its "humpback" Model 30 "Tracklayer". It was called a "humpback" because the sprockets that turned the tracks was not in contact with the ground, but rather was above the back idlers, similar to a modern Caterpillar tractor. This tractor was Best's answer to Holt's Model 18 "Midget". The Best "humpback" 30 was discontinued within a year of its introduction. In 1914, to counter Holt's new "Caterpillar 45" without a "tiller" wheel, Best introduced his C.L. Best Model 40 "Tracklayer", also the first Best tractor without a "tiller" wheel. Since the Best Model 40 was lighter in weight, the 5 horsepower difference was unimportant. Best discontinued this model in 1919. In 1916, Best introduced its C.L. Best Model 90 "Tracklayer" and its Model 120 "Tracklayer", both models very large tractors, and its much smaller tractor for agricultural uses, the C.L. Best Model "8-16 Tracklayer," introduced in 1915. All three tractors were discontinued in late 1917. Best released a memorandum stating, "Owing to the demand for the '40' and '75' Tracklayers we have discontinued construction of all other models." In 1916, with a financial enticement from the city of San Leandro, C.L. Best purchased Holt's recently- vacated production plant in San Leandro, and moved his manufacturing from Elmhurst back to his father's old factory in San Leandro. Additional financing was arranged, and the old buildings were replaced by a modern factory facility. In 1918, Best introduced its smallest tractor, the C.L. Best Model 25 "Tracklayer", of which about 300 were manufactured before production was discontinued in 1919. In 1919, Best introduced its "Best 60 Tracklayer", the first big Best tractor without a front "tiller" wheel for steering. It was to become the best-known of all of C.L. Best's tractors, and was the finest large tractor then made. This was followed by the 1921 introduction of the Best 30 "Tracklayer", built on the same principles as the popular 60, but about one-half the size and with one-half the power. As with the Best 60, the Best 30 met huge approval in the marketplace. While failing to obtain a military contract during WWI, Best obtained assurances from the government that he would have all of the steel his company needed to continue manufacturing tractors for farmers during the war. This set the company up for having the market advantage when the war ended. During the post-war depression, the company's sales actually increased by nearly 70 percent. In 1920, the Best company changed its name to the C.L. Best Tractor Co., and assumed a large amount of debt in order to expand production, especially of its new Best Model 60 "Tracklayer". It expanded its product line again in when in 1921 it introduced its popular Model 30 "Tracklayer". The Best and Holt companies had been engaged in litigation against one another during the period from 1907 to 1918. It has been reliably estimated that the total cost of litigation during that period was roughly $1.5 million, at a time when the dollar had real value. The lawyers and the results of their work had nearly bled the companies dry. C.L. Best and Benjamin Holt were leaders in their industry. But the fellow who next changed the landscape of "crawler" tractor manufacturing was Harry H. Fair of the bond brokerage house of Pierce, Fair & Company of San Francisco. Fair was the gentleman who had arranged financing for C.L. Best to purchase his father's shops in San Leandro in 1916. Fair was also a significant shareholder in the C.L. Best Tractor Co., and was on its board of directors. Ultimately, Fair was approached by several key Holt shareholders who wished Fair's bond firm to handle future financing of the Holt company. Fair was engaged by the Holt company, and quickly became aware of its precarious financial condition. Fair proposed that the Best and Holt companies consolidate together, as it was possible that they would both go out of business if they did not. Best had the better financial status, more advanced tractor designs, and the beginnings of a better dealer group. Holt offered its worldwide reputation and name, bigger factories, a 40-year old combined harvester line, and the Caterpillar trademark. The shareholders of both companies accepted the proposal to consolidate together, and in legal maneuvering that occurred in April and May 1925, the Caterpillar Tractor Co.© was formed and the consolidation was effected. The Best factory in San Leandro, California, became the first headquarters location for the new company and limited production was continued at the plant for a number of years. The Holt's factory in East Peoria, Illinois, became the main manufacturing plant for the company. In 1930, the headquarters was officially moved from San Leandro to East Peoria in order to fulfill the terms of the merger. C.L. Best was named chairman of the board of directors, and Raymond C. Force, Best's attorney, was named president of the company. A consolidation of the companies was intended to lead to more efficiency, a reduction in the combined number of employees, a reduction in models offered, a reduction in plant capacity, and the elimination of duplicate dealerships in the same geographic area, all resulting in what economists refer to as "increasing economies of scale". Indeed, soon after the consolidation in 1925, the product offering of "crawler" tractors was rationalized. The new company's first product line had only five track-type tractors - the 2-Ton, 5-Ton, and 10-Ton from The Holt Manufacturing Company's former product line and the Thirty and Sixty from the C. L. Best Tractor Co.'s former product line. The 10-Ton and 5-Ton were discontinued in 1926. In 1928, the 2-Ton was discontinued. Fair's vision was correct, and the shareholders in the consolidated company were rewarded. Between 1926 and 1929, sales more than doubled, and profits roughly tripled. At the same time, the efficiencies of the consolidated operations led to consumer price reductions in the Caterpillar Thirty and Sixty models: from $3,665 to $2,475 for the Caterpillar Thirty, and from $6,060 to $4,300 for the Caterpillar Sixty. The first tractor that was designed and produced by the Caterpillar Tractor Co. that was not based on a previous Holt or Best model was its Model Twenty, which went into production at San Leandro in 1927. Production of the Twenty was started at East Peoria, Illinois, in 1928. .