This might become a more important industry, though now practised to a considerable extent. It has been customary to burn a section of forest at the close of summer, February, to get rid of the underbrush, and later to cut down the trees, which must have suffered some injury. The forest area is below the Bio-Bio River. On a tract of 100 square miles extending from near Valdivia north to Temuco, the timber averages about 9000 feet to the acre. Farther south the woods are denser, as on the Island of Chiloé. The greatest extent of forest is in Valdivia, the next in Llanquihue and in Chiloé. On this Island a 60 mile railway was constructed by the Government from Ancud at the northwest to Castro south, on the east side, making a part of the forest accessible. Oak, Chilian mahogany, laurel, ash, pine, and other hard and soft woods are available. There are in Chile 3000 saw-mills and some pulp and shingle mills. The first and second grades of wood, used for floors and finished boards, bring $12-$18 per 1000 feet, ash $25; the third grade is worth $8. Shingles are $3 per thousand. From the forests comes the _quillay_ bark with a soapy substance for cleaning silk and fine linen, of which $200,000 worth is annually exported to France, after being prepared by two Chilian factories. Tannin, of which 15,000 tons are annually used, is derived from bark of several kinds. With additional railways planned and Government data furnished, there is opportunity for good investments with moderate capital. STOCK RAISING Stock raising of various kinds is carried on quite extensively by some large companies under British, German, or Chilian control, often paying 20 per cent dividends. Sheep are in the lead, numbering probably 6,000,000, cattle 3,000,000, horses 725,000, half as many goats, a third as many pigs, fewer donkeys, mules, alpacas, and llamas. The horses are good, larger than those in Peru, and noted for their excellent trotting, some making this as easy as a good pace or canter. In 1916, 20,000,000 pounds of wool were produced, half of this in Magallanes Territory not far from Punta Arenas, where there are more than 3,000,000 sheep. The meat is of the finest quality; the farther south the better the wool in thickness and length of staple. The cattle are improving with the introduction of Shorthorns and Herefords; there is some export, especially to Bolivia. The 3,000,000 at present might be increased ten fold. A British company is constructing a frigorifico at Puerto Montt. The dairy industry is important, with good cheese, bottled milk, and some condensed. Goats are numerous in the mountains. Apiculture is practised and fine honey is made. Fisheries are of great importance and value, at Juan Fernandez, as also along the coast. MANUFACTURING