Holt tractors also played a part, to varying degrees, in the development of military tanks in Great Britain, France, and Germany.
The company decided to focus instead on heavy construction equipment and sought to capitalize on the passage of the Federal Aid Highway Act of 1921.
The two companies had spent about US$1.5 million (about $26,060,721 today) in legal fees fighting each other in various contractual, trademark, and patent infringement lawsuits since 1905.
The factory cost US$65,000 (or about $2,380,560 ) to build[18] and used a 40 horsepower Corliss steam engine manufactured in Providence, Rhode Island, and shipped around Cape Horn.
In 1905, they resolved a patent infringement lawsuit when Daniel Best retired and gave one-third of Best Manufacturing Company to his son, Clarence Leo ("C. L.") Best.
[9] C. L. did not stay long, and left in 1910 to form the C. L. Best Gas Traction Company to replace his father's firm, resulting in further difficulties between the two men.
Baker, who later became the first executive vice president of what became Caterpillar Tractor Company,[9] wrote to Holt headquarters in Stockton and described the plant of the bankrupt Colean Manufacturing Co. of East Peoria, Illinois.
[5] In 1909, the engineers building the 233-mile-long (375 km) Los Angeles Aqueduct bought one of Holt's Model 70-120 tractors to haul supplies across the Mojave Desert.
Baxter initially cut the large tractors from the company's product line and introduced smaller models focused on the agricultural market.
It continues as the largest Caterpillar dealership in the US, under the ownership and management of Benjamin's great-grandson, Peter Holt (who is better known as the owner of the NBA's San Antonio Spurs, the five-time world champions).
[33] One key innovation Holt implemented was using flexible chain belts rather than gears to transmit power from the ground wheels to the working parts of the machine.
Carrying 675 US gallons (2,560 L; 562 imp gal) of water, the traction engine weighed 48,000 pounds (22,000 kg) and rode on huge metal wheels.
Holt's tractors were popular despite their weight and awkward size because they could harvest large fields for one-sixth the cost of a horse-drawn combine.
[35] The steam tractors were extremely heavy, sometimes weighing 1,000 pounds (450 kg) per horsepower, and often sank into the rich, soft earth of the San Joaquin Valley Delta farmland surrounding Stockton, California.
[18] During that period, the chief engineer (and managing director) of Richard Hornsby & Sons in Grantham, England, David Roberts, was experimenting with a chain-track.
[38] Hornsby's design incorporated a steering clutch that varied the speed of each set of wheels, allowing the operator to turn the tractor by retarding one tread or the other.
[40] Holt returned to Stockton and applied his skills and his company's expertise in metallurgy, design, and testing to develop a workable track-laying system.
On Thanksgiving Day, November 24, 1904, he successfully tested the updated machine plowing the soggy delta land of Roberts Island.
The new company manufactured gasoline engines to replace the large, heavy steam boilers used to power the earlier Holt tractors.
Holt sent all farmers who owned Haines-Houser tractors in Yolo County, California, a letter containing a demand that they stop using the competitor's harvesters or face a lawsuit.
[47] Competitors latched onto Holt's litigious nature and warned farmers considering buying his equipment that they might be prosecuted for patent infringement.
Holt immediately sued, claiming breach of contract and infringement because as owner of the Best Manufacturing Company, he believed he also owned the "Best" name.
[33] In England, starting in 1905, David Roberts of Richard Hornsby & Sons had attempted to interest British military officials in a tracked vehicle, but failed.
When World War I broke out, with the problem of trench warfare and the difficulty of transporting supplies to the front, the pulling power of crawling-type tractors drew the attention of the military.
Company Vice-President and general manager Pliny Holt had retired and traveled to Washington D.C. to offer his services, and was appointed by Gen. C. C. Williams, Chief of Ordnance, to serve as chairman of the board organized to handle the production of the "Caterpillar" Artillery program.
The British Army Service Corps also used them to haul long trains of freight wagons over the unimproved dirt tracks behind the front.
[54]: 116 He proposed to Sir Maurice Hankey, Secretary of the Committee of Imperial Defence, that the British build a power-driven, bullet-proof, tracked vehicle that could destroy enemy machine-guns.
[2] The prototypes were rejected after trials found that their size and maneuverability did not offer the relative agility required by a tank for cross-country travel.
[14] In 1921, the company finished the "Mark VI", which achieved speeds of up to 31 miles per hour (50 km/h) on a test run from Stockton to San Francisco and back.
[59] A wooden, miniature mockup of an early British tank, powered by a motorcycle engine, was built especially for and showcased in pictures of Colonel Swinton's visit.