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Steam tractors 1890 and early 1900 were very heavy, though sometimes reaching 450 kg per horsepower, and often sank into the soft earth of the farmland Delta San Joaquin Valley around Stockton, California. Benjamin Holt attempted to solve the problem by increasing the size and width of the wheels up to 2.3 m high and 1.8 m wide, producing a tractor 14 m. But this made ​​the tractors were also increasingly complex, expensive and difficult to maintain. Another solution considered was to put a temporary plank road ahead of the tractor, but had long, was expensive, and interfered in the work of plowing. Holt thought boards placed around the wheels.Holt replaced the No 77 by a set of wooden planks held together with strings. On Thanksgiving Day, the November 24, 1904, successfully tested the new machine plowing the land of soggy delta Roberts Island. Photographer Charles Clements, related that he saw as the slow-moving tractor as a caterpillar, and Holt took advantage of the metaphor. “Caterpillar. We will call you so,” although some sources attribute the name to the British soldiers in July 1907.

Two years later Holt sold his first new tractor for $ 5.500. Each chain had a thickness of 760 mm, a width of 1.1 m and 2.7 m in height. The tables were of redwood 76X100 mm. Holt received his first patent for a caterpillar tractor , on December 7, 1907.

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