=Canelones= is directly north and east of Montevideo, extending along the River Plata. In proximity to the Capital and with good rail connection, fruit growing and agriculture are important, viticulture is common; but even here the pastoral industry leads. Canelones boasts of several towns of 8000-10,000 population, one of which, Pando, a pleasant agricultural centre, is connected with Montevideo by a good macadamized road. =San José=, west of Montevideo and Canelones, has industries similar to the latter with timber in addition, supplying wood for fuel and for building. The capital, San José, with a population of 15,000, has the distinction of being the largest of the country towns as distinguished from the ports. It has a good macadam road to the capital, Montevideo, 60 miles, and an up-to-date flour mill. =Colonia=, west of San José, running up to the entrance of the Uruguay, is called the richest Department of the Republic. Agriculture, dairy farming, fruit and viticulture are well developed; its stone quarries are worked; and lying opposite Buenos Aires, with good steamship service to that city as well as rail connection with Montevideo, it is certain of increasing prosperity. The capital city of Colonia is a quiet old town with historic associations; a new town three miles east has been created as a pleasure resort. Colonia Suiza, with 4000 people and many Swiss chalets, is devoted to the dairy industry; one enterprising proprietor who began as a milk peddler now turns out from his factory in the spring one ton of butter daily. =Soriano= on the Uruguay River, nevertheless has its chief town, Mercedes, population 18,000, on a tributary, the Rio Negro, here one-fourth of a mile wide. The main industry is cattle raising; the town has a saladero and is also a centre of charcoal making. Stone quarrying is carried on in the Department and some minerals exist, topaz and amethyst in considerable abundance. A peculiar water stone is of curious and undetermined origin. =Rio Negro= follows on the north of the Negro River, the chief centre for the breeding of live stock, as might be expected from the fact that the capital is Fray Bentos, the original home of the Liebig industry, beginning in 1865. The company now owning nearly 5,000,000 acres, and establishments elsewhere, Fray Bentos is of less relative importance than formerly; yet with 180,000 cattle slaughtered here in a single season, the business is considerable. It is quite a model town, with good streets and homes for employes, schools, etc. =Paysandú=, the next Department north, has a larger population of which the capital of that name contains nearly half, 22,000, being the second city of the Republic in commercial importance. Electric lights and telephones are in service, also horse cars. Here the stream narrows and this is the last port of call for ocean steamers. The chief employments in the Department are agricultural and pastoral; there are some meat curing factories.