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company is not successful where they are drilling at present, that the effort to obtain petroleum in that district may for the present be abandoned, though there is no reason why this should be the case, as the best oil-producing regions have more dry than oil-producing holes.

It is almost if not absolutely certain that there are large areas of petroleum producing basins on the Athabaska River, and from specimens of rocks obtained it is probable that the basins extend to the neighborhood of Edmonton and possibly even further south. In that region with the prospect of railway communication in the near future, there should ere long be developments. The discovery of that substance would, more than anything else, hasten the construction of such railway or railways. The location of the beds is admirable; the Pacific ports, it is stated, take the majority of the oil now produced in Pennsylvania, and the probable exhaustion of the basins of that State in the near future increases materially the prospective value of those of our North-West.

Some very rich mineral leads have been opened in the Selkirks, near Illecillewaet station, Canadian Pacific Railway, but they are located so high up the mountain that without the construction of some means of communication, probably, say suspended cables, the ore is too expensively brought to shipping points, and the short season during which it can be packed renders development very difficult. Sufficient, however, has been shown of these leads to warrant the belief that very shortly a large mining town will spring up there. The attention of capitalists during the past season has been directed to many other points in the country, and if once the right class of smelters are established, there will be seen a boom in mining which few now anticipate.

Smelting and Reduction Works.

There has been considerable discussion during the past three months over the erection at various points of these works. As yet there is not one in Canada, and any ore requiring treatment other than what can be obtained by an ordinary stamp mill has to be sent either to the United States, Great Britain or Germany. Let once the proper kind of works be established at any point on the Canadian Pacific Railway between, say Calgary and Vancouver, and in a very short space of time there will be such an impetus given to mining that at least half a dozen of the better class of reduction works will be started at as many different points, with, in every mining camp, one or more of the works utilized in the preliminary smelting. Nature has supplied everything necessary, superior cooking coal, iron and copper ores, limestone, and the timber suitable for the manufacture of charcoal.

Lumber trade of the Canadian Pacific Railway Company in British Columbia.

The past twelve months have witnessed the shipments of very large amounts of timber from British Columbia to the east; some of it has gone as far east as Montreal. Sawn timber upwards of 90 feet in length has been shipped to that point. There is a very large amount of wealth in timber in the railway belt, if it be not destroyed by forest fires, which, however, there, as at very many other points on the continent, have been more than usually severe during the past summer. It is only by the utmost vigilance that our valuable heritage in timber there can be preserved, and it is desirable that every step possible should be taken to prevent its destruction. Many imagine that forest fires cannot be successfully fought, but the experience gained in the eastern lumber regions shows that they can be to a very considerable extent. The resinous nature of a large percentage of the British Columbia timber will render that operation difficult, but organization would no doubt tend to minimize the destruction.

Mormon Settlement.

On Lee's Creek, south of the Blood Indian Reserve, in June last, several families of Mormous made a settlement. Notices have appeared in the press relative to these,

and in some cases the probable injurious effect of their religious belief has been dilated upon, adversely to the encouragement of such settlers.

No complaint has been made against this sect because of its many large and flourishing settlements in Montana, Idaho, Washington Territory, Oregon and other places. They have, on the contrary, received every encouragement, so that no fear need be entertained by Canada on that head, particularly if they are made to comply with our laws from the commencement. It may not have been generally known that there was for some years and possibly is yet in existence a Mormon settlement in Manitoba. It was started in 1875 and 1876, but it was not in 1878 at all in a flourishing condition owing to misfortune in the choice of location. The leaders of it were not like the leaders of this community south of McLeod, well qualified to manage and to carry their enterprise to a successful conclusion.

I have not personally visited this settlement, but hope to do so shortly. In another part of this report allusion is made to the example they will probably show in the way of irrigation.

Canadian Pacific Railway Experimental Farms.

The results from the establishment of these have been, on the whole, very satisfactory, and it is stated that at each section house between Moose Jaw and Calgary next year that corporation intends conducting what might be termed a large garden, devoted, to a considerable extent, to experiments in vegetables, shrubs, trees, plants, &c., and to be conducted under intelligent superintendence. If such be done thoroughly and intelligently, though probably there will be many failures. the information obtained will prove of incalculable benefit to the country. Each of these will become representative points of the various localities, and the intending settler will learn what vegetables, grains, trees, plants, &c., are suitable or will grow there I have the honor to be, Sir,

Your obedient servant,

WM. PEARCE, Superintendent of Mines.

14-21*

No. 3.

OFFICE OF THE DOMINION LANDS COMMISSION,

WINNIPEG, 31st October, 1887.

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

In the month of November, 1886, I inspected the Land Offices at Deloraine, Brandon and Regina, and the Land and Timber Offices at Calgary.

During the month of December I was engaged at Ottawa on work connected with the Agencies.

Early in January, 1887, I returned to Winnipeg and took charge of your office while you were attending to the business of the Land Board.

In February I visited the office at Brandon.

In April I visited the Land and Timber Offices at Calgary, the Rocky Mountains Park at Banff, and the Land Offices at Regina and Lethbridge.

In May I visited the Land Offices at Manitou, Deloraine and Carlyle, and the Intelligence Office at Moosomin.

In June I went to Prince Albert and Battleford, and inspected the Timber and Land Offices at those points.

During July and August I took charge of your office while you were absent with the Deputy Minister.

In September I inspected the Land Offices at Minnedosa, Birtle, Brandon, Deloraine and Manitou; and, during the current month, I visited the Land and Timber Offices at Calgary, Edmonton and New Westminster.

The results of these inspections, which have from time to time formed the subjects of reports for the information of the Minister, have, as a general thing, been satisfactory.

The work of the Agencies is in a satisfactory condition, and I have found a desire on the part of the officials to perform their duties faithfully.

I submit, herewith, a schedule setting forth the business transacted at the several Agencies during the past year. This schedule deals only with the business transacted at the Agencies and does not, therefore, include entries and sales of lands effected in the tracts of colonization companies.

A statement showing the contingent expenditures of the several Agencies accompanies this report. I have the honor to be, Sir,

Your obedient servant,

H. H. SMITH, Esq.,

Commissioner of Dominion Lands,

Winnipeg.

J. M. GORDON,

Inspector of Agencies.

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REPORT showing work performed at the various Agencies for Year ending 31st October, 1887.-Continued.

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