t.
The land might be situated in one or two localities, but not profitably
in more, because of the increase in overhead expenses. To carry out the
provisions of the act a state Land Settlement Board was appointed of
which Prof. Elwood Mead was chairman. The board was organized at the end
of August, 1917, and immediately began the search for a suitable tract
of land. With the advice of technical experts of the University of
California and of other authorities upon soil, irrigation, health, and
various conditions which would affect the success of the colony, final
selection was made of a tract at Durham, Butte County, California.

On May 7, 1918, the land was finally transferred to the state. Prior to
this, however, the land had been subdivided and had been prepared for
farming, a large acreage having even been seeded. On May 15th, 3,421 acres
were offered to settlers, consisting of 53 farms, ranging in size from
3-1/2 acres to 160 acres, and of 21 two-acre farm laborers allotments. The
prices of the farms varied from $875 (above which the next price was
$3,646) to $14,942. The price of the farm laborers' allotments was $400.
The law provided that the value of the former, without improvements, should
not exceed $15,000, and that of the latter, without improvements, should
not exceed $400. The terms of sale were as follows:

Settlers were to pay 5 per cent of the cost of the land and 40 per cent
of the cost of the improvements at the time of purchase, the remainder
of the purchase price to be paid over a period of twenty years with
interest at the rate of 5 per cent per annum. Payments of principal and
interest were to be made semiannually in accord with the amortization
table of the Federal Farm Loan Board.

All applicants for land were carefully considered as to their character
and their fitness for farming. The minimum amount of capital a settler
was required to have was fixed at $1,500 or a working equipment of equal
value. A farm laborer was not required to have any capital, but had only
to pay the initial deposit of $20 and semiannual payments of about $15.

The board reserved the right of supervision of the methods of
cultivation of each settler, of the state of repair of buildings, of
fire-insurance policies, and of other details.

Plans of houses and barns were prepared and the board offered to build
these, or others, for the settler, on payment of 40 per cent of the cost.
An engineer was employed to supervise