Mr. Hazen Kelly, owner of the fifty-five acres ly- ing on the east side of Pepper Drive, north of the railway, once offered us at $20,000, sold off eight acres, lying along the east side of Pepper Drive, at $400 an acre, to a number of our brethren. These eight acres have been divided and sub-divided and built on until there are now on this portion of land twenty-two cottages occupied by physicians and workers of the Sanitarium. On the west side of Pepper Drive, just north of the railway, the Kelly brothers sold off some ten acres to our brethren at from $200 to $400 an acre. The Sanitarium has since purchased back most of these small tracts at from $300 to $1,000 an acre. Just before the general meeting at Loma Linda held in May, 1910, when Sister \White was again with us, she expressed the conviction that we should secure the property in front of the Sanitar- ium. We told her it had nearly doubled in value since we purchased Loma linda. Nevertheless she expressed her anxiety that we should secure these lands so close to the institution. \We then obtained an option on the one hundred and fifty acres lying west of Pepper Drive, or that portion that remained unsold, at $250 an acre. While waiting for the general meeting to convene in May, the parties were about to back out on their option, so the local Board took the matter under advisement and com- promised by securing thirty-six acres of the prop- erty lying north of the railway, at $225 an acre, and purchased most of the acreage that had been sold off in front of this piece along Pepper Drive. paying $500 and $600 an acre for it. Early in 1911 the remainder of the Kelly tract, comprising eighty-six acres lving west of Pepper Drive and south of Colton avenue, was offered to 6