engineers founded the towns of Kennewick and Pasco. Settlers moved into the region, initially along the Columbia River south of Priest Rapids. They established farms and orchards supported by small-scale irrigation projects, but most went bankrupt in the Panic of 1893. The Reclamation Act of 1902 provided for federal government participation in the financing of irrigation projects, and the population began expanding again, with small town centers at Hanford, White Bluffs and Richland established between 1905 and 1910. The Great Depression of the 1930s decreased the price of agricultural commodities and many farms were foreclosed on or abandoned. The economy was supported by the construction of the Grand Coulee Dam between 1933 and 1942, and the establishment of the Naval Air Station Pasco in 1942. Manhattan Project Contractor selection During World War II, the S-1 Section of the federal Office of Scientific Research and Development (OSRD) sponsored a research project on plutonium. Research was conducted by scientists at the University of Chicago Metallurgical Laboratory. At the time, plutonium was a rare element that had only recently been synthesized in laboratories. It was theorized that plutonium was fissile and could be used in an atomic bomb. The United States government was concerned that Germany was developing a nuclear weapons program. The Metallurgical Laboratory physicists worked on designing nuclear reactors ("piles") that could irradiate uranium and transmute it into plutonium. Meanwhile, chemists investigated ways to separate plutonium from uranium. In September 1942 Brigadier General Leslie R. Groves Jr. became the director of the Manhattan Project, as it came to be known. The project to build industrial-size plants for the manufacture of plutonium was codenamed the X10 project. Groves engaged DuPont, a firm he had worked with in the past on the construction of explosives plants, to design, construct and operate the plutonium manufacturing complex. To avoid being labeled as merchants of death, as the company had been after World WarI, DuPont's executive committee insisted that it should receive no payment. For legal reasons, a Cost Plus Fixed Fee contract was agreed, with a fee of one dollar. The president of DuPont, Walter S. Carpenter Jr., was given assurances that the government was assuming all responsibility for the hazards involved in the project. Site selection Carpenter expressed reservations about building the reactors at Oak Ridge, Tennessee; with Knoxville only away, a catastrophic accident might result in loss of life and severe health effects.