for the past year, and it is probably the most successful plant in the Territory for the treatment of ores of this class by milling.

Lake Valley has not had so large an output as last year, but has done well; it is more than paying all expenses, and much exploration work has been done. In Hermosa I found that there is about the usual tonnage; and a new concentrating plant is erected near the Palomas Chief and Pelican.

Of course the bright particular stars in the sky at this time are the mines at White Oaks that produce gold only, and also the Hillsboro gold mines that have attracted especial attention.

I have made two reports this summer for the Santa Fe Railroad on the proposition to extend the railroad into the Black Range both from Magdalena and Lake Valley. I am satisfied that if money was not so hard to get the additional branches that are so badly needed would be built.

The following description of a new process of treating ores, now being introduced at Albuquerque by Hon. E. S. Stover, is of interest. I am indebted to W. S. Burke, secretary of the Albuquerque Commercial Club, for the facts:

An experiment is now being tried at Albuquerque with a newly-invented process for the treatment of certain classes of ores which are found in large quantities in many parts of the Territory, and this experiment, if it proves successful, as now seems to be almost assured, will have a very great influence upon the mining interests of New Mexico.

In nearly all of the camps are large bodies of ore carrying more or less of the precious metal, but so combined with other substances as to make their treatment so difficult and expensive by the ordinary method that there is little or no margin of profit left for the miner. By the new process it is claimed that these rebellious ores can be worked more cheaply than free ores can be treated by smelting. The method pursued is to pulverize the ore, subject the pulp to an electric bath, and then collect the precious metals by amalgamation. The process is very simple and inexpensive. The mill is just being started, and will not be prepared to work ore in quantities for a week or ten days; but various experiments made with small lots have all proved successful, and the gold and silver saved so thoroughly that assays of the "failings" have failed to show a trace. If the new process stands the test of practical operation it will make a revolution in our mining affairs and will make profitable the working of hundreds of lodes in various parts of the Territory which are now practically valueless by reason of the difficulty and expense attending the treatment by fire process.

COAL.

Coal mining continues to be one of the most important industries of the Territory. It is carried on very extensively at Blossburg, near Raton; at Amargo, in Rio Arriba County; at Gallup, and at Cerrillos, and to a smaller extent in a number of other localities. The mines at Carthage, which have been extensively worked for many years, are almost entirely closed, and many buildings there have been moved to Cerrillos. The latter has become the most important point in this business in the Southwest. The owners of the great coal tracts in the vicinity have combined all interests, and in connection with the Atchison, Topeka and Santa Fé Railroad Company are building many miles of branch railroad to connect the various mines with the main line. There is every prospect that the output of their locality in the year 1893 will be far larger than has ever been known in any part of the Territory before.

Mr. J. C. Spears, recently appointed coal-mine inspector by the President, furnishes the following information with regard to the mines at Gallup. These are situated near the Arizona line, and the shipments are nearly all to the Pacific slope.

In 1891 at all the Gallup mines combined (eight mines) 12,925 railroad cars of coal were produced, each car containing 20 tons, making a total of 258,500 tons. The output would have been much larger had the mines been worked steadily, but unfortunately three of the Aztec Coal Company's mines were closed on account of the strikes, from May 9, 1891, to about the last of July, 1891. For the same cause the Gallup Coal Company's mines were closed one month and the Black Diamond Coal

Company's mines were closed one month. I may add that most of the mines did not work more than three-quarter time from January 1, 1891, up to the date of the strike, and about the same ratio after the strike was settled in 1891.

From January 1, 1892, down to and including July 31, 1892, there were shipped from all the mines combined 7,810 railroad cars of 20 tons each, making a total of 156,200 tons. Out of the 7,810 cars produced, the Atlantic and Pacific Railroad bought 6,061 cars; the remaining 1,749 sold in northern and southern California and Albuquerque, and along the line of the Atlantic and Pacific Railroad. The production was as follows:

The figures given do not include coal consumed in the town of Gallup or at the mines, but we can safely count that at 1,000 tons per month more. I will further state that the mines have only worked about 3 days per week, on an average, since January 1. 1892, with the exception of the Caledonia mine, which has averaged about 4 days per week since January 1, 1892. The reason assigned for this slackness in work is sharp competition with British Columbia coal in California and the high freight rates from Gallup to California.

Coal is sold to the Atlantic and Pacific Railroad Company at the mine at $1.38 per ton. Commercial coal in Gallup is delivered at $3 per ton. Miners receive 70 cents per ton for mining. Day's wages around mines are from $2 to $3 per day. There has been no new mine opened in 1892. On January 15, 1892, the Gallup Coal Company, the Black Diamond Coal Company, and the Aztec Coal Company consolidated, and are now known as the Crescent Coal Company, and they control all the mines at Gallup but the Caledonia, Beacon Hill, and Eureka.

FORESTS AND LUMBER.

Our forest products are destined to increase in importance as the years go by. The business has not materially changed since my last report, except that the work on the vast tract purchased by the Mitchell Brothers from the Atlantic and Pacific Railroad Company, and situated in Valencia and Bernalillo counties, has actually commenced. Regarding their operations Mr. Fitz Gerald, the manager, makes the following statement:

Our mills are only partially completed. We have now in operation a sawmill with an annual capacity of 30,000,000 feet. A planing mill with improved machinery of all kinds used in that branch of the lumber business is in course of construction. A railroad 9 miles in length is completed into the timber; from that point logs are transferred to the mill, which is located on the main line of the Atlantic and Pacific Railroad, 125 miles west from Albuquerque. As you already are aware, we have an almost unlimited supply of timber suitable for all classes of building material and all grades known by the trade. The amount of lumber manufactured in the last year was of little consequence, the mill having just fairly started. As the demand for our product increases we expect to enlarge our capacity.

The amount of lumber cut on the Petaca grant during the year was 3,000,000 feet. On the Tierra Amarilla grant the amount was 15,000,000 feet, which was sawed by three mills. The product of the vicinity of Catskill and other points mentioned in previous reports is virtually unchanged. There is a probability that the vast forests on the Cebolleta grant, which are unsurpassed elsewhere, will shortly be made the source of a large production.

NEW INDUSTRIES.

Various new branches of manufacture have been introduced recently, but I will only refer to two: (1) the preparation of au extract of

cañaigre for tanning; (2) the manufacture of firebrick, tiling, sewerpipe, etc., at Socorro

In relation to the former, the following statement from C. B. Allaire, president of the Tanning Extract Company of Peoria, who are operating at Deming, will be found to be of much interest. Its description of the method of raising the cañaigre is of particular practical importance. It is dated at Deming, N. Mex., and reads as follows:

We are erecting at this place a factory 74 by 250 feet, partly one story and partly two stories, for the manufacture of an extract from the tubers of the cañaigre root (Rumex himenocephalum), to be used for tanning purposes. We expect to export our entire product to England, because freights are cheaper from here to Liverpool than from here to New York city or Boston, and because Europe is not so well supplied with tanning materials as America. This product is used only for light leather, such as goat, sheep, kid, dongola calf, etc., and does not come into competition with oak and hemlock extracts, which are cheaper and are used for heavy leather, such as sole, harness, etc. Our present capacity is about 30 tons of green or undried root per day, which should make about 5 tons of extract of a consistence about like putty, dry enough to ship in sacks. We do not expect to be able to secure enough root from the natural growth that is available to run us continuously for the first three years. At the ruling freight rates we can not afford to ship root to this factory outside of a radius of about 100 miles by rail and a less distance, say 20 miles. by wagon. To meet this deficiency and to provide for a steady supply of the raw material near at hand we are clearing and planting about 1,000 acres this season of selected sandy bottom land suitable for this plant, and expect to have at the end of three years a crop of from 5 to 10 tons per acre without irrigation, and we shall do the same in 1893 and 1894, eventually having 3,000 acres in cultivation near at hand, which we estimate will keep us continuously supplied with raw material.

If this experiment is a success we shall be able to demonstrate to landowners in this arid region that they can raise a valuable commercial crop without irrigation where irrigation is impracticable; that has an eight months' planting and harvesting period; that is not subject to drought, decay, or market fluctuations, and that will yield, over and above all cost for labor, seed, etc., a good return on $50 per acre value of the land, and, in fact, make a profitable industry where now they have absolutely nothing.

Our method of planting is as follows: We first clear the land of soapweed, willow, and mesquite. Very little of the latter grows on this class of land. The cost averages about $1 per acre over and above the value of the fuel obtained. Sage brush and other light growths are left on the land, as they are easily plowed under. Then we put on a 12-inch plow, with four horses, two men, and three boys. The plow must have a side and well-curved mold board, so as to cover well the preceding furrow. One man drives the team, the other guides the plow; one boy follows the plow and picks up and carries to be deposited at the end of the furrow any natural growth of cañaigre that may be turned up; another boy follows him and drops into the bottom of the furrow small roots, say three-fourths inch in diameter and less, about 12 to 18 inches apart. He can not plant as fast as the furrow is made, so that it takes two boys to do the planting. The return furrow covers the firse, and this process is continued until all the land is planted. We plant about 6 inches deep. The cost of clearing, plowing, and planting, etc., is as follows:

If we add to this $5 per acre for harvesting we have a total cost of $9.67 per acre chargeable to the crop, the $1 for clearing being considered a permanent improvement to the land and no labor being required for cultivation during the growth of the crop. At the lowest estimate of 5 tons to the acre, which is at present worth $6 per ton at the factory, we have a net profit of $20.33 per acre over and above all cost for plowing, planting, seed, and harvesting the crop. This is equal to 10 per cent return per annum on a valuation of $68 dollars per acre for the land, three years' use of the land being required to mature a crop.

Naturally a farmer would plant one-third of his land each year and so secure a regular annual income.

It is not a part of our policy to engage permanently in the business of propagating this plant, but we find the people here skeptical as to the profit of engaging in

this industry and we have thought it necessary to make a practical demonstration of the actual cost and method of operation and the result to be obtained.

We have found much difficulty in securing land of the proper character near or within economical hauling distance to our factory. We have leased some from owners, probably enough for this season's operations; but most of the land suitable for our purpose is not fit for homesteads, can not be irrigated, and is not subject to desert entry, or rather title can not be perfected, and there seems to be no legal and honorable method by which the use of this land can be acquired for the prosecution of our experiment, and it would seem as if some legislation was desirable in a case of this kind by which parties of a responsible character might acquire a lease from the Government for a period of years of a reasonable amount of land under proper bonds or restrictions.

It is not feasible to build factories at various points, as it is exceedingly difficult to find in this Territory an abundance of water of the proper character.

The product being of such a delicate nature the most careful manipulation is necessary, and the presence of a trace of alkali, iron, or other contamination in the water would be disastrous.

F. W. Gallagher, manager of the Socorro Fire Clay Company, writes as follows regarding their enterprise:

In the San Felicita Mountains east of Socorro, this company has its fire clay properties; which consists of different grades of fire clay in thick strata, the entire bed as far as explored being 20 feet in thickness. In addition to the above it has in the Socorro Mountains very extensive deposits of kaolin and sanodin, both of which materials are used in manufacturing pottery. The company has also in the Socorro Mountains extensive beds of red clay and white clay for the manufacture of pressed and common brick. The purpose of the company, in time, in addition to fine and common brick which are now being manufactured, is to extend their works to include the manufacture of pottery of common and higher grades, sewer pipe, tiling, etc. It is proper to add that this company has already very extensive works and is actively engaged in its business.

TERRITORIAL INSTITUTIONS.

The four institutions established by the legislature of 1889, the agricultural college at Las Cruces, the school of mines at Socorro, the university at Albuquerque, and the insane asylum at Las Vegas, all have now beautiful structures, either occupied or ready for occupancy. The deaf and dumb asylum at Santa Fe is located in a rented building, but no doubt will be provided with permanent quarters by the next legislature.

At the school of mines, the laboratory building, which includes recitation rooms and will be sufficient for all purposes for many years, is completed, and is a most substantial and well-arranged structure. Its construction has exhausted all the available funds, so that the institution can not be opered until additional legislative action is had.

The university building is completed and is an imposing edifice. The regents in charge of this institution very wisely determined to inaugu rate its work by opening a normal school, which was continued through the whole of the past summer and achieved a marked success. Owing to the distance of the university building from the city, the school was held in the academy belonging to the New West commission. A very thorough course, in all the branches required by law for a first grade county certificate, was given. At the beginning there were two teachers and about twenty-five pupils, but the attendance increased so rapidly that soon a third teacher had to be employed, and during the term seventy-five pupils were enrolled. The regular college courses of study will commence at the university this fall; normal instruction, which is much needed in New Mexico, being made a conspicuous feature.

The university received the proceeds of a tax of two-fifths of a mill, amounting to about $14,000 each year. The total receipts to August

2, 1892, were $35,964.48. The entire expenses of the building, including furnace, improvement of grounds, etc., was $32,672.73.

The agricultural college, located at Las Cruces, was first opened to students in a rented building, January 21, 1890.

The erection of a college building was begun about May 1 of the same year, and the building was first occupied by the college about February 1, 1891. It is a substantial, two-story, brick structure, with stone foundation and basement. It contains fourteen rooms, and with heating apparatus and furniture cost about $25,000.

At the present time the building is well furnished with modern school furniture. Its library occupies a large room which also serves as the office of the college clerk and the study room for the college students. The library contains 1,500 volumes, including several sets of cyclopedias, various dictionaries, and a large number of books of reference, besides a well selected library of general literature. The reading room is also supplied with many leading magazines and periodicals.

The various departments of the college are supplied with good ap paratus appropriate to their needs; in short, the equipment is such as to furnish first-class facilities for obtaining a practical education according to the purposes of the institution.

The experiment station is being managed in accordance with the provisions of the act creating it. A fine experimental fruit orchard and vineyard will soon come into bearing, and the results will be given to the people in bulletins, of which seven have already been published. The various small grains, including 400 varieties of wheat just harvested show astonishing results with little irrigation under intelligent treatment.

The faculty having charge of the college and the experiment station consists of the president of the college and director of the station, seven professors, two instructors, four assistants, one librarian and clerk. The college offers to students four courses of instruction, besides a preparatory school; the courses are agriculture and science, mechanical engineering, civil engineering, and classical and scientific.

During the year closing June 1, 1892, the enrollment of students was as follows: In the preparatory school, 105; in the freshman class, 15; in the sophomore class, 13; and in the junior class, 1. Tuition is free, except an entrance fee of $3 per annum. Text-books are loaned to students. The revenue is derived from the following sources:

(1) From the Territory one-fifth mill tax which yields annually about $7,000.

(2) From the United States, under act of 1890, for year 1892, $17,000. This sum is to be increased annually by the sum of $1,000 until the annual appropriation reaches $25,000.

(3) From the United States, under act of 1887 for support of agricultural experiment station, annually $15,000.

(4) From entrance fees and products sold from the farm, an uncertain

sum.

The second and third sums are appropriated for specific purposes and can not be used for the purchase, repair, erection or preservation of any building," except 5 per cent annually of the $15,000.

The theory of the Government is that the State or Territory must furnish the educational plant, if the United States furnishes these endowments. This seems reasonable and just.

The great need of this college is more buildings. Buildings are needed for carpenter and blacksmith shops, and a foundry for the me