Dairying.

During the past year one cheese factory and one creamery have been established in the neighborhood of Calgary. The success which has attended these enterprises will no doubt lead to a output of dairying products within a very short time on an extensive scale. My report of last year dealt fully both with the facilities and prospects for the manufacture of an A 1 article, and also of a market for the same.

Reservations for Water and Shelter for Stock.

So soon as the returns of surveys made during the past season have been completed, and I have made a few more inspections, a further list of those lands which, in the stock interests, should be reserved for the above purposes, will be made out and submitted for approval. Public interests have been greatly promoted by these reservations, and will continue to be, if preserved. In my report of last year I alluded to the pernicious practice adopted by the stockmen of our neighbors to the south to obtain control of water and shelter. For certain reasons many parties, either through ignorance or from selfish motives, bave through the public prints extolled the prin ciple adopted there, and depreciated the Canadian policy; it might be well that special attention should be directed to this.

Hamlet System of Settlement.

By many it has been urged that the hamlet system is the only one by which very large portions of the country lying west of the 3rd Principal Meridian, east of the foothills and south of the Red Deer and South Saskatchewan Rivers, can be successfully settled. It is a matter worthy of the most careful consideration, and if it should be decided to adopt it, the locations of said hamlets should be selected as soon as possible and held in reserve till required for such settlement.

Irrigation.

I have nothing new to add to my report of last year on this head, except that every year it would seem to be a matter of more moment than in the preceding; and further, it is worthy of serious consideration whether in that portion of our territory, where the rainfall is light, a reservation in patents to land of the right to construct ditches ard canals for irrigation purposes might not with advantage be adopted, similar to the principle adopted in the railway belt in British Columbia, both as regards agricultural and mining purposes.

Prairie Fires.

This subject is receiving a considerable share of public attention, and the present session of the North-West Council will probably not adjourn without legisla tion thereon, which, it is to be hoped, may, at least to a certain extent, meet the difficulty.

Prairie and Timber Wolves.

The introduction of stag and greyhounds by the cattle men has, to a considerable extent, mitigated the loss and annoyance caused by these pests; at the same time excellent sport is obtained, which increases the number destroyed.

Stock Associations.

It is reported that there is a good deal of stealing of stock, chiefly horses, practised-not by running them to Montana, as formerly, but by altering and defacing brands, and also shipping to the Eastern Provinces. The purchasers not being familiar with the branding system cannot tell whether a purchase has been stolen or not; even if stolen, being so far distant from its owner, it would be doubtful if that point would ever be raised. Cattle are generally killed and the hide destroyed. These evils can be best remedied by the formation of a strong stock association, and the sooner that is done the better.

Mining Statistics.

The advisability of collecting and publishing annually the statistics of the mineral output of the Dominion of Canada is a subject which should receive early attention. This has been attempted, but until the legislation is passed compelling the production of such statistics by the parties who only can give them exactly, the collection of them must prove unreliable and vexatious in their compilation. The experience (particularly of the United States) where such statistics have been collected and published for years, has proved most beneficial, and those who at first objected most strongly on the ground that their publication would injuriously affect their business, after an experience of one or two years would not consent to a return to the old system.

Coal Output.

The chief output of coal has been at Lethbridge, by the North-West Coal and Navigation Company, and has been probably double that of any preceding year, The widening of the gauge of their railway and a connection with the American railway system at Fort Assiniboine would probably lead to a quadruplication of their output. Both of these enterprises will probably be accomplished next year.

Medicine Hat.-The output at this point during the past year has been meagre; legal complications have retarded operations. These, it is stated, have been adjusted so that a renewal of operations may be anticipated. The Medicine Hat Railway and Coal Company assert that they will shortly build their railway and develop their coal properties.

Crowfoot Creek.-On this creek, some four miles north of the Canadian Pacifio Railway, the railway corporation has during the past few months been developing some of its coal lands, so far with very favorable results. Certain diamond drill tests are now being made, which will probably prove of as great value as they are of interest.

Bow River Mines, Cochrane.-During the past season the original Bow River Mine has been closed down; another has been opened with, it is stated, ample capital to back the enterprise, and coking furnaces are to be put in operation. As a coking coal, it ranks "A. 1.", and the establishment of these furnaces should prevent a great deal of waste, which heretofore from its character had to be left at the pit mouth. With proper coking appliances, it could be cheaply converted into coke, and a good market in connection with smelting works will no doubt be obtainable in a year or two, as well as for fuel. The coming year will probably witness several diamond drill tests made in that neighborhood, which it is to be deplored was not made at the inception of mining in that locality.

Anthracite. The opening up and mining of coal at this point was carried on with vigor up to the let of June last, about 200 men being so employed, but since then very little has been doue.

It is reported that work will shortly be resumed on a much more extensive scale than formerly. The quality of the coal, when properly cleaned, is all that can be desired.

Petroleum.

Considerable prospecting for petroleum has been carried on during the past year in the Lac Dauphin District, Manitoba. No oil chamber of any considerable size has yet been tapped, but the prospects are sufficient to warrant much further and more intelligently conducted operations.

Diamond Drills.

Within the past few weeks two of the above machines have been put in operation, one by the North-West Coal and Navigation Company in the vicinity of Lethbridge, the second by the Canadian Pacific Railway Company on Crowfoot Creek.

The latter company, it is stated, purpose prospecting thoroughly by such means, at many points along the railway line. This is a step which has been

alluded to in many of my former reports as one which gives promise of giving incalculable benefits to the country.

Mining and Minerals other than Coal.

The dispute between the Province of British Columbia and the Dominion Government over the minerals in the railway belt in British Columbia has acted as a "wet blanket " on many enterprises in that territory, but before the opening of another season this point will be decided. It is felt by many who should be good judges that the country is on the eve of great activity in mining matters. One good camp will cause the usual influx of capital, prospectors and miners. The difficulty at present is that the majority of prospectors have neither experience nor capital; most of them are trying to hold several claims, some as many as 20: the result is that none, no matter how rich they might be, are sufficiently developed to warrant capital in taking hold to further develop and operate them. A mining boom would remedy that to a very considerable extent.

Smelters.

The first smelter for the precious metals in Canada is about completed at Vancouver. It would be safe to assert that within a decade a large number of others will be erected between that place and Calgary.

Crops.

Throughout the whole of Alberta, and on this head I will confine my remarks to this district, as I know whereof I speak, the crops were excellent, the yield, both as to quality and quantity not to be surpassed, no failure from drought, frost or insects. The Calgary exhibit this year took the Canadian Pacific Railway prize. All of which is respectfully submitted.

I have the honor to be, Sir,

Your obedient servant,

WM. PEARCE,

Superintendent of Mines.

SIR, I have the honor to submit the following report on the work of my office for the year ending to-day.

In the month of November last, I completed inspections of the Dominion Lands and Crown Timber Agencies at New Westminster, and the Dominion Lands Agency at Calgary.

In the months of December and January I was engaged at Ottawa revising and preparing for the printer a number of forms for use in the Agencies, and with other matters pertaining thereto.

In March inspections were made of the Dominion Lands Agencies at New Westminster, Lethbridge, Regina, Touchwood, Swift Current and Brandon, and the Dominion Lands and Crown Timber Agencies at Calgary.

In April I inspected the Dominion Lands Agencies at Winnipeg, Manitou and Deloraine, and attended the meeting of the Dominion Land Board held at Winnipeg during that Month.

In June I visited the Dominion Lands Agencies at Carlyle and Calgary, and the Dominion Lands and Crown Timber Agencies at Edmonton.

In July I inspected the Dominion Lands Agency at Battleford and the Dominion Lands and Crown Timber Agencies at Prince Albert.

In August I made an inspection of the Crown Timber Agency at Winnipeg. The results of these inspections have from time to time been communicated through you for the information of the Minister of the Interior.

As a rule, the work of the Agencies continues to be satisfactorily performed. The schedule appended hereto indicates the nature and extent of the business transacted at the several Dominion Lands Offices during the year.

My time, when not occupied with the work of inspection, has been taken up in attending to my duties as a member of the Land Board.

I have the honor to be, Sir,

Your obedient servant,

J. M. GORDON,

Inspector.