service is excellent, the average time required to handle freight between San Francisco and New Orleans, a distance of about 2,500 miles, being seven days and seven hours, which includes all delays from regular stops and other incidental causes. The possibility of inaugurating a double daily passenger train service through the Territory is under consideration, and would be a great accommodation to the public if inaugurated. The company adopted oil for locomotive fuel instead of coal, replacing the coalburning engines with oil burners as rapidly as possible. Oil as a fuel has been found more economical than coal, and is cleaner, makes a hotter fire, and is much easier to handle. This has necessitated the building of large oil-storage reservoirs at different points on this division, with a capacity running from 1,250,000 to 2,000,000 gallons each. These reservoirs feed the oil direct to the engine tenders through large column pipes, a minimum amount of labor being involved. The gross earnings of the company in the Territory show a corresponding increase with the volume of business handled, and I regret that I have not available the figures for giving you accurate data on the subject. El Paso and Southwestern Railway.-Mr. W. G. Choate, general superintendent and traffic manager of the El Paso and Southwestern Railway, submits the following report: At the close of the year ending June 30, 1902, there were in operation on this system 133.96 miles of main line and 16.06 miles of siding, making a total of 150.02 miles. New line completed during the year was 41.12 miles; old track relaid was 4 miles; weight of steel used, 60 and 65 pounds, respectively. Grading and laying various spurs at Douglas and Bisbee for convenience and betterment of the service, 10 miles; surveys made for straightening the line between Forrest and Naco, 15 miles; between Lewis Springs and Naco, 23 miles. There has been erected during the year a roundhouse and railroad shops at Douglas; also many permanent buildings and a general office added for our operating forces at that point. In addition to the foregoing, this company has expended during the year in Arizona, in the way of obtaining the necessary supply of water, houses for its laborers engaged in track service, coal bins, powder houses, station buildings, etc., an amount considerably in excess of $50,000. Since the close of the year above named the same interests have also let contracts for the building of a branch road from Fairbank to Tombstone, a distance of 10.23 miles, and the actual work on this branch is now in active progress and we hope to have the road ready for operation not later than January 1, 1903. Maricopa and Phoenix and Salt River Valley Railroad. This road is the connecting link of the Southern Pacific system with the Salt River Valley. The distance from Maricopa, where the road connects with the Southern Pacific, to Phoenix is 35 miles. A branch line from Tempe to Mesa City is 8 miles in length. The company operates 4 large locomotives and 67 cars, this embracing the entire rolling facilities. The road is of standard gauge. The company maintains a shop at Phoenix, where all of the repair work is done with the exception of the heaviest character. Improvements have been made during the year upon the tracks of the company, and $35,000 have been expended in repairing bridges on the Gila and Salt rivers. A fine structure has been built by the company across the Salt River, consisting of nine spans, known as the Pratt truss, a combination wood and steel bridge. It is 1,600 feet in length, with its approaches. The traffic of the road has been very heavy during the past season in cattle, horses, hogs, hay, and grain. During the year there have been shipped over this road, for delivery in southern California, 20,000 or 25,000 head of beef cattle. Shipments of cattle would have been much greater had it not been for the drought. A large number of the cattle brought to the Salt River Valley from mountain ranges failed to 7351-02---3 fatten on account of the scarcity of feed. Phoenix, Tempe, and Mesa are the stock, hay, and grain shipping points. During the past year Tempe exceeded in the number of cattle shipped out. The passenger service of the road at the present time is one round trip a day between Maricopa and Phoenix. The Southern Pacific Company will double its daily passenger service during the present fall and winter, which will necessitate, in all probability, a double passenger service between Phoenix and Maricopa in order to accommodate the passenger service on the other line. The Maricopa and Phoenix and Salt River Valley Railroad is operated independently, although its connections and affiliations are with the Southern Pacific Company, it being the outlet of that road to the Salt River Valley. A double daily service between Mesa and Phoenix is maintained. Mesa is one of the most flourishing districts of the valley, and the stock industry is carried on there extensively. The tourist travel last winter was above the average, and the pros pect of its being beyond anything that has been known heretofore is excellent for the fall and winter months of the present year. Numbers of people every winter come to the Salt River Valley to gain the benefit of the mild and health-giving climate. Offices for the operation of the road are maintained in Phoenix under the direction of Mr. B. F. Porter, general superintendent. The president, Mr. Francis Cutting, who is also president of the Cutting Packing Company, in San Francisco, and the board of directors have their offices in San Francisco. The roads now in operation in the Territory are as follows: Gauge. Miles. Feet. Southern Pacific of Arizona, extending along the southern part of the Territory from Santa Fe, Prescott, and Phoenix, running from Ash Fork, on the line of the Santa New Mexico and Arizona, running from Benson, on the Southern Pacific, in Cochise Arizona and Southeastern, running from Bisbee, Cochise County, to Benson, on the Arizona and New Mexico, running from Clifton, in Graham County, to the Southern Maricopa and Phoenix and Salt River Valley, running from Maricopa, Pinal County, on the Southern Pacific, to Phoenix, Maricopa County, with a branch from Tempe, Maricopa County, to Mesa, in the same county 4.8 Prescott and Eastern, running from a point on the Santa Fe, Prescott, and Phoenix, Arizona and Utah, running from McConnico Junction, on the Santa Fe Pacific, in The Southeastern, from Don Louis Station, on the Arizona and Southeastern Railway, El Paso and Southwestern, entering Arizona at the eastern border of Cochise County and passing Southwest to Bisbee, Naco 64 FORESTS AND LUMBER MANUFACTURE. In the northern portion of Arizona are the largest pine forests in the United States, covering an almost unbroken area of 10,000 square miles. Coconino County contains the greatest forest area, although Yavapai, Apache, and Gila also have great forests. Reserves of forests have been made by the Government, thus providing for the greatest possible safety from destruction by fires and the cutting of trees without consent and according to rules laid down by the Government. The lumber industry, therefore, is carried on wholly in these northern counties of the Territory. There are a number of small mills in some of the smaller pine forests of southern Arizona, such as the Huachucas, Pinal Mountain, the Chiricahuas, and quantities of lumber and timbers are manufactured for local uses. Flagstaff and Williams contain the principal lumber mills in Arizona, and their equipment is first-class in every particular. The Arizona Lumber and Timber Company, of Flagstaff, and the Saginaw and Manistee Lumber Company, at Williams, operate large plants, and the manufacture of lumber at these points is carried on very extensively. In order to properly present the progress made during the past year, I have the honor to submit herewith statements received from the managers of these lumber companies. Arizona Lumber and Timber Company, Flagstaff. Mr. M. J. Riordan, secretary of this company, submits the following report: In relation to our operations we would say that during the year named the volume of our business has been unprecedented. During all the summer of 1901, and beginning with March, 1902, our principal mill has been operated day and night on tenhour shifts, and our auxiliary mill, 15 miles from Flagstaff, has been working on a ten-hour shift continuously. In addition to this, during the present season we have been operating our box factory day and night, a thing that was never before attempted by us. The volume of our trade, particularly in box and cut-up material, so greatly increased during the year that we found it necessary to make an addition to our box factory and planery of a building 50 by 155 feet, with a corresponding increase of machinery. We had anticipated when this was done that it would not be necessary to run this part of our plant day and night, but the result has not justified our anticipations, as even with the additions made we can now barely keep abreast of the demands. The limits of our trade, because of the peculiar conditions of the eastern lumber market, have extended to points which, a few years ago, it would have been thought beyond the possibilities of an Arizona institution ever reaching. The denudation of the white-pine forests of Michigan and Wisconsin and the increased demand for this class of material have brought about the curious situation that dealers in white pine are now looking to the Pacific coast to make up the deficit in their natural sources of supply. In consequence of these conditions, we have been called upon during the last eight months for shipments of our material to all parts of Kansas, Muscatine (Iowa), St. Louis (Mo.), Janesville and Oshkosh (Wis.), Chicago, and Yonkers and Tonowanda (N. Y.). Of course this new market absorbs only certain grades of our product, mainly such as can be worked into sash and door stock. How long the condition now existing will prevail can not be determined, but it is to be presumed that the market opened up for Arizona pine will constantly widen rather than diminish. During several years past, but particularly during the last, a broad market, heretofore supplied from Arkansas, Iowa, and, to some extent, Wisconsin and Texas, has opened up for us in the supply of boxes of various kinds, and particularly of cantaloupe crates, in Colorado, Kansas, and Texas. Our cantaloupe crate particularly has been shipped very largely to the Rocky Ford district of Colorado, where, on account of the superior class of material and the excellence of the manufacture, it has been preferred, even at a higher price, to the product coming from other States. We believe that it is greatly to the credit of Arizona to be able to say that the quality of workmanship put into the material which it is shipping has given it a preference over States which have always been furnishing such material heretofore. In other words, we might answer the query, "Can any good come out of Arizona?" positively and unqualifiedly in the affirmative. The main body of our box shipments has gone to California, into which State we have thus far this year shipped more pine boxes than any concern on the Pacific coast, with a single exception, and there is at the present date only a small margin between ourselves and this other concern. It may be of interest to know that the Saginaw and Manistee Lumber Company, at Williams, and ourselves have during this year shipped six cars of boxes to the Rhodes fruit farm, at Capetown, South Africa. We believe that this is probably the most distant shipment of an Arizona product that has ever been made. Our shipments in mining material, railroad material, and commercial lumber have increased considerably and the territory which we now reach has been very materially extended. It is unfortunate for us and, we believe, for the Territory that transportation facilities within Arizona are not such as to permit us to reach some of the largest consumers of lumber within the Territory. To certain parts of the Territory lumber is being brought from 1,000 to 2,500 miles at freight rates very much lower than can be shipped under by ourselves to the same points, a distance of only between 300 to 500 miles. It is to be regretted that the interests of the Territory are thus made to suffer and that the industries of States with which we have nothing in common are built up at the expense of our own. The policy of the General Government in withdrawing from entry all forest lands within the Territory and forming them into forest reserves has greatly diminished the available timber resources of the Territory. It is to be expected that such rules as will make the mature timber on these reservations available will in time be formulated by the Government, but for the present they are absolutely withdrawn both from entry and from availability for commercial purposes. The policy of the Government in conserving the forest interests of the Territory is undoubtedly a wise one and will ultimately redound to the commercial benefit of all interests of the Territory, but for the present it leaves the interests of the Saginaw and Manistee Lumber Company at Williams and those belonging to this company, with a few minor holdings, practically the only timber resources in the Territory available for commercial uses. The Arizona Lumber and Timber Company has been continuously in operation for twenty years, the whistle having blown for the first time on August 20, 1882. The volume of business has constantly increased until it is now from four to six times as great as during any one year of the first ten years of its existence. A better index of the general progress of the Territory, we believe, could not be had, for the advance in our operations has been the result of the advance made in the interests surrounding us. Saginaw and Manistee Lumber Company, Williams.-Mr. William F. Dermont, general manager of the Saginaw and Manistee Lumber Company, has submitted a brief statement of the progress made by his company during the year, and the quantity of lumber, boxes, and other articles manufactured. The manufacture of lumber for the fiscal year closed June 30, 1902, was 23,000,000 feet, and other production is given as follows: Box shooks, 5,400,000 feet; lath, 4,769,000; stulls, 64,765 linear feet. The average number of men employed in the woods by the company during the year was 130; the average number employed in the sawmill, planing mill, box factory, and yard was 200. The company operates the Saginaw Southern Railway, which runs into the forests from the mills, and during the year branches of this road were built to extend farther into the forests. FOREST RESERVES. A number of forest reserves have been made in Arizona during the past year, removing large areas of land from entry. The San Francisco Forest Reserve, created August 17, 1898, was enlarged by Executive order of April 12, 1902, so as to cover the sections owned by the Santa Fe Pacific Railroad Company, successors to the Atlantic-Pacific Railroad. The Black Mesa Forest Reserve was created August 17, 1898; the Prescott Forest Reserve was created May 10, 1898, and enlarged October 21, 1899; the Santa Rita Forest Reserve was created by Executive order of April 11, 1902, and is situated south and southeast of Tucson; the Santa Catalina Forest Reserve, created by Executive order July 2, 1902, 'is situated northeast of Tucson; Mount Graham Forest Reserve, created by Executive order dated July 22, 1902, is situated northeast and south of Camp Grant Military Reservation; Chiricahua Forest Reservation, created by Executive order of July 30, 1902, is situated east of Tombstone, in Cochise County, and extends about 10 to 15 miles from the New Mexico boundary; Grand Canyon Forest Reserve was created by Executive order of February 20, 1893. Four sections of land southeast of Tucson, in Pima County, were reserved during the year for an agricultural experimental station, and the director of the agricultural experimental station of Arizona has under way, upon this land, experimentations in the improvement of the ranges. Tree planting. An inspection of the mountains and hills in the neighborhood of Prescott and other portions of the Territory, which have in the past been denuded of their timber, leads to the belief that the Government Forestry Department should plant either young trees or seeds of forest trees common to their several localities. Massive stumps of the oak, pines in variety, ash, walnut, sycamore, juniper, birch, cottonwood, and other trees indicate that the soil is capable of growing large timber, and if the Forestry Department should instruct the forest supervisors to collect and plant seeds of trees in suitable places, in time these districts would again be growing timber of the greatest value to the country; and with the growth of timber it may be expected that the present unfavorable conditions of the climate will be affected, for the trees will attract and conserve moisture. It may be safely predicted that the old springs will revive and the dry water courses again be charged with running water for the use of the miner in reducing his ores and the irrigator in cultivating the valleys below. Another matter for the consideration of the Forestry Department is the necessity of replanting young trees upon the ground which is now being laid bare by lumbermen. Lumber in the future will be in great demand, and provision for its growth is of the greatest importance to the country. Nature in its wild way cares for many young trees on the mountain sides, but its efforts can be increased a thousandfold by the guiding hand of the Forestry Department. MINING. Guiding and directing the destiny of every industry, mining in Arizona has always occupied the vanguard of civilization; progress and wealth in all commercial lines, education, society, and the advancement of cities and towns all received their impetus of growth because of the development of some rich mining district, which made it possible for other industries to thrive. But few counties in Arizona present exceptions to this fact; yet if the history of the settlement of the country is closely studied it will be found that scarcely a community in Arizona has not sprung up more or less directly through the influence of mining development; therefore it must be conceded that mining stands first and foremost, planting the outpost of civilization in new districts, creating wholesome conditions of life in untamed and |