Stock Shipments.

The shipments of live stock to England have not been very considerable during the year. An attempt has been made to introduce in the markets of the Eastern States and Canada beef from the ranches of the Territories in the shape of dressed meat, the slaughtering being done at Calgary, and it is anticipated that the experiment will prove fairly successful.

Prairie Fires.

The necessity for some systematic organization on the part of settlers for the prevention of prairie fires, to which I have called attention in previous reports, still exists, the loss from this source being very considerable and of great injury to the country.

Tanneries.

In my previous reports I have frequently referred to the opening there appeared to me to be for the establishment of tanneries in Alberta. This year has seen the establishment of one in Calgary. It has not been sufficiently long in operation to ascertain what success has attended its operations.

Irrigation in British Columbia.

I have already referred to irrigation in the North-West. I may point out that even should it be deemed necessary or advisable to defer consideration of the problem so far as portions of the North West are concerned, the Department should at once devote some attention to it in connection with the administration of its lands in British Columbia. In British Columbia irrigation has been long practised. The portion of that Province known as the " dry belt," which extends from Ranges 12 to 26 west of the 6th Meridian inclusive, and north of Township 14, is, without irrigation, practically valueless. By irrigation, however, hay for winter feed is produced there, which, with the summer pasturage of the non-irrigable portions, renders it a district of not inconsiderable importance for stock raising. Prior to the lands in this district included in the railway belt passing to the Dominion Government, the Provincial authorities granted "water records" to settlers and others, allowing them the use of water flowing through these lands for irrigation thereof. Even since the lands in the railway belt have passed to this Government the Provincial authorities have continued to accept "water records " in connection with them, considering the matter as one still within their jurisdiction. These "water records " do not appear to have been granted with any particular system, and, now that settlement is increasing in the district in question, what has already been demonstrated in portions of the United States is there becoming apparent; that is, that by an injudicious and indiscriminate granting of water privileges in the past considerable portions of the country, which, under a well arranged system of water distribution could be irrigated and made productive, either cannot be irrigated at all, or can be irrigated to nothing like the extent they could have been. In many cases parties have recorded much more water than they require, and not a few are so selfish or disagrecable that they would sooner waste any surplus water they might have than allow their neighbours to use it. Under these circumstances, not only is ill feeling being engendered amongst settlers, but the development of the district is being retarded, and lands belonging to this Government, which otherwise would be valuable, are kept temporarily worthless. This is a condition of affairs which it. seems to me that the Dominion Government should, in its own interest, and in the interests of the settlers on its lands, seek to remedy. Lately, as a result of one of my visits to British Columbia, during which the ill effects of this state of affairs were brought prominently to my attention, I suggested to the Department the desirability of the appointment of a joint committee representing Dominion and Provincial interests, to look into and report upon the question of these water rights. I understand that, owing to non-compliance with the law by the recorders, most of these old records can legally be done away with. That being the case, it would,

in my opinion, be desirable to cancel as much as possible of the old recording and start anew, granting water where it can be used to the best advantage, of course protecting as far as may be necessary lands now having water placed on them. This cannot be done except by joint action on the part of the Local and Federal authorities; for some streams rise on Dominion Lands and thence flow into Provincial territory, while others rise outside of the railway belt and afterwards pass through it; and it is apparent that by the two Governments acting independently in the matter, a state of things might again arise no better than that which now prevails. By both acting in concert and dividing the country into irrigation districts, somewhat on the lines of the law of the State of California, known as the "Wright Law," I think the productive capacity of the "Dry Belt" would be largely increased, and the revenue to the Dominion from land sales therein would be considerably improved.

Sales of Lands in British Columbia.

As having some bearing on the foregoing, I may say that, in my opinion, in the administration of our lands in British Columbia, or at any rate in that portion of it known as the "Dry Belt," the Department will have to pursue a somewhat different line of policy to what it has adopted in the North-West. The Department has always discouraged the sale of large areas of land to one individual. In Manitoba and the North-West Territories, where land is valuable for agricultural purposes, where but a comparatively small area is required by a bona fide settler, and where the acquisition of large tracts by one person would most likely be prompted by speculative motives, this policy is undoubtedly in the interests of the country. In the district in question, however, the only way the Government is likely to derive revenue from its lands, and, indeed, the only way by which they can be profitably managed by parties acquiring them, is by disposing of them in large blocks. The lands here, as I have indicated, are valuable chiefly, if not entirely, in connection with stock raising. To prevent the pasturage being destroyed by sheep and horses, it is advisable that the pasture lands should be in the hands of the stockholders themselves, who, if they own the lands, will fence them and prevent the destruction of the pasturage.

Sheep Grazing in British Columbia.

In this connection I may refer to a recommendation made by me to the Department in the course of the year that action should be taken with the view to preventing the grazing of sheep in the "Dry Belt" in British Columbia. Owing to the pasturing of sheep thousands upon thousands of acres of land have been rendered utterly worthless, the bunch grass being destroyed for ever. This grazing is being done almost entirely by foreigners or people who have no great interest in the country. Flocks of sheep are brought across the boundary in the spring, fattened during the summer, and in the autumn are shipped out again as mutton. The cattle men complain that the country is being ruined for cattle by the damage the sheep are doing; and quantities of land owned by the Government are being rendered valueless, without any compensation even in the way of rental from those engaged in this business. Under these circumstances, I think that steps should forthwith be taken to prevent the practice complained of.

SIR, I have the honour to submit through you, for the information of the Minister of the Interior, a statement giving an outline of the work performed by the several Dominion Lands Agencies during the year ended 31st October, 1893.

These agencies have been inspected from time to time, as occasion would permit, and as a general thing were found to be in a satisfactory condition. In some instances, owing to press of work, there were found to be some arrears, but it is to be hoped that during the slack season such arrears have been overtaken. Three of the agencies have been furnished with type-writing machines, and the result is so satisfactory in the way of simplifying and expediting the correspondence work, that I am of the opinion that these machines should be supplied to all of the larger agencies.

SIR, I have the honour to submit the thirteenth annual report of the Timber, Mineral and Grazing Lands Office of the Department of the Interior. Statements prepared by Mr. F. Loyer, bookkeeper of this office, showing the revenue amounting to $131,455.52, derived from Crown timber, mineral and grazing lands, but exclusive of sales of mineral lands, for the Departmental year which ended on the 31st of October last, are appended hereto; also the reports of the Crown Timber Agents at Edmonton, N.W.T., New Westminster, B.C., and Wininpeg, Man. The above amount includes the dues on timber and hay cut on School lands.

The revenue exceeded that of last year by $1,552.85. There was an increase for grazing lands of $8,023.51; but a decrease for timber dues of $5,396.87; for hay lands of $604.77; for mining fees of $334.97; for coal lands of $106.80; and for stone quarries of $27.25.

For the sake of reference and comparison, statements showing both by Fiscal and Departmental years, the revenue received for timber, mineral and grazing Lands, from the year 1872 up to the 31st of October last, not including sales of mineral lands, have also been prepared and will be found at the end of this report.

The total revenue of the Winnipeg office amounted to $36,678.90, being an increase of $1,823.28, as compared with the previous year.

The price of lumber within the Winnipeg agency varies from $9 to $18 per thousand feet, B.M., according to the quality and kind of the lumber. There are twenty-one mills in operation within the agency cutting under Government license.

The revenue received from the British Columbia Crown Timber agency during the last year was $30,916.22, being a decrease of $15,078.09. Of the amount collected, the sum of $2,626.50 has been received for bonuses of berths put up to public competition. The total area acquired was about 13:45 square miles, averaging a bonus of $195.18 per square mile. The total quantity of lumber manufactured for the year amounted to 20,062,680 feet, B.M., as compared with 30,507,439 feet, B.M., for last year, and sold at the rate of $9 to $10 per thousand. There were fourteen mills within this agency operating under license from the Dominion Government. Their capacity, etc., are shown in the schedule annexed to the agent's report.

The total amount of dues collected within the Calgary agency during the year amounted to $14,769.78, being an increase of $2,863.74. The price of lumber at Calgary was from $10 to $18; at Fort McLeod, from $10 to $39, and at Cypress Hills, $10. Ten saw-mills were operating within this agency last year under Government license.

The total amount of dues collected within the Edmonton agency was $5,291.25, being an increase of $1,276.55, as compared with the previous year. The price of lumber at Edmonton during the year was $16 to $23 per thousand feet, B.M. The agent reports three saw-mills in operation within his agency.

The total amount of dues collected within the Prince Albert agency was $12,019.05 being an increase of $5,894.21 as compared with the previous year. Lumber sold at Prince Albert from $17 to $40 per thousand. There are two saw-mills in this agency cutting timber under license.