During the five years that intervened between the time he became a citizen of the Mexican Republic and the ceding of the whole territory of Alta California by Mexico to the United States, Sutter was lord of all he surveyed. He had studied Dr. McLaughlin’s (the agent of the Hudson Bay Company) method of handling the Indians, and he followed it strictly. He treated them kindly, without fear, paying them exactly as agreed for their services, and punishing them when they stole or disturbed the peace and order of the camp; and if they showed any disposition to act against him in force, he easily frightened them by the use of his three cannon, which always terrified them. Sutter’s Fort soon became the rendezvous for all the trappers, hunters and wandering people of all sorts in the surrounding territory, besides the emigrants that all the time came from the East over the Oregon trail, the fort being its terminal. When the territory came under the Stars and Stripes, Sutter swore allegiance to the flag and anglicized his name, becoming John Augustus Sutter. By 1847 his colony had developed wonderfully. He had a thousand acres of land growing wheat; he owned 8,000 head of cattle, 2,000 horses and mules, 2,000 sheep and 1,000 hogs. Commodore Stockton had confirmed him as alcalde, or justice of the peace, and General Kearney later made him Indian Agent. He had now come to the point where it became necessary to have a flour mill for the colony, and that a flour mill might be built, a saw-mill was necessary, to prepare timbers, planks and boards. The machinery for these mills had been recently brought to the fort in 1844 by the ship _Lexington_. Among the immigrants that came to the fort in 1844 was a man from New Jersey named James Wilson Marshall, a millwright by trade. He worked for Sutter for a time, but being taken with an attack of land-hunger, he undertook to work land of his own. Tiring of that, he came back to Sutter in 1847, when the necessity for the mills became so urgent. They formed a partnership in the saw-mill, and Marshall, with two white men and an Indian guide, left the fort on May 16, 1847, to search for a site and build the saw-mill. He found a place on the south fork of the American river, about forty-five miles from the fort, adjacent to timber, that he thought suitable. This place now bears the name of Coloma. Work on the mill and dam was at once begun, and in January of the following year the mill and dam had been constructed, and they were at work on the tail-race that was to lead the water, after it had done its work on the wheel, back to the river. Marshall found conditions such that considerable time and labor could be saved by simply loosening up the earth with a pick and by turning on the water washing it out into the river.