ANCIENT BLOCK-HOUSE, ALASKA.

Unless this method of Western settlement is comprehended, it is not possible to understand the old Granger movement and the more recent legislative conflicts between the farmers of Iowa, Nebraska, Kansas, Minnesota, and the Dakotas, on the one hand, and the great transportation and grain-handling corporations on the other. It was fundamentally a question of the division of profits. The railroads had "made" the country: were they entitled to allow the farmers simply a return about equal to the cost of production, keeping for themselves the difference between the cost and the price in the central markets, or were they to base their charges upon the cost of their service, and leave the farmers to enjoy whatever profits might arise from the production of wheat or corn? Out of that protracted contest has been developed the principle of the public regulation of rates. The position of these communities of farmers with interests so similar, forming commonwealths so singularly homogeneous, has led to a reliance upon State aid that is altogether unprecedented in new and sparsely settled regions, where individualism has usually been dominant, and governmental activity relatively inferior.

TRANSPORTATION AND OTHER INDUSTRIES.

But agriculture, while the basis of Northwestern wealth, is not the sole pursuit. Transportation has become in these regions a powerful interest, because of the vast surplus agricultural product to be carried away, and of the great quantities of lumber, coal, salt, and staple supplies in general, to be distributed throughout the new prairie communities. The transformation of the pine forests into the homes of several million people has, of course, developed marvelous sawmill and building industries; and the furnishing of millions of new homes has called into being great factories for the making of wooden furniture, iron stoves, and all kinds of household supplies. In response to the demand for agricultural implements and machinery with which to cultivate five hundred million acres of newly utilized wild land, there have come into existence numerous great establishments for the making of machines that have been especially invented to meet the peculiarities and exigencies of Western farm life.

Through Illinois, Iowa, Nebraska, and Kansas, Indian corn has become a greater product in quantity and value than wheat; while in Wisconsin, Minnesota, and North and South Dakota the wheat is decidedly the preponderant crop. Although in addition to oats and barley, which flourish in all the Western States, it has been found possible to increase the acreage of maize in the northern tier, it is now believed that the most profitable alternate crop in the latitude of Minneapolis and St. Paul is to be flax. Already a region including parts of Wisconsin, Minnesota, Iowa, Nebraska, and the Dakotas has become the most extensive area of flax culture in the whole world. The crop has been produced simply for the seed, which has supplied large linseed oil factories in Minneapolis, Chicago, and various Western places. But now it has been discovered that the flax straw, which has heretofore been allowed to rot in the fields as a valueless product, can be utilized for a fibre which will make a satisfactory quality of coarse linen fabrics. Linen mills have been established in Minneapolis, and it is somewhat confidently predicted that in course of time the linen industry of that ambitious city will reach proportions even greater than its wonderful flour industry, which for a number of years has been without a rival anywhere in the world.

THE "TWIN CITIES."

The railroad system of the Northwest has been developed in such a way that no one centre may be fairly regarded as the commercial capital of the region. Chicago, with its marvelous foresight, has thrown out lines of travel that draw to itself much of the traffic which would seem normally to belong to Minneapolis, St. Paul, and Duluth on the north, or to St. Louis and Kansas City on the south. But in the region now under discussion, the famous "Twin Cities," Minneapolis and St. Paul, constitute unquestionably the greatest and most distinctive centre, both of business and of civilization. They are beautifully situated, and they add to a long list of natural advantages very many equally desirable attractions growing out of the enterprising and ambitious forethought of the inhabitants. They are cities of beautiful homes, pleasant parks, enterprising municipal improvements; advanced educational establishments, and varied industrial interests. Each is a distinct urban community, although they lie so near together that they constitute one general centre of commerce and transportation when viewed from a distance. Their stimulating rivalry has had the effect to keep each city alert and to prevent a listless, degenerate local administration. About the Falls of St. Anthony, at Minneapolis, great manufacturing establishments are grouping themselves, and each year adds to the certainty that these two picturesque and charming cities have before them a most brilliant civic future.