<P> Neither were sufficient to offset the negative effects of Santa Fe having been bypassed by the main railroad route . It suffered gradual economic decline into the early 20th century . Activists created a number of resources for the arts and archaeology, notably the School of American Research, created in 1907 under the leadership of the prominent archaeologist Edgar Lee Hewett . In the early 20th century, Santa Fe became a base for numerous writers and artists . The first airplane to fly over Santa Fe was piloted by Rose Dugan, carrying Vera von Blumenthal as passenger . Together the two women started the development of the Pueblo Indian pottery industry, helping native women to market their wares . They contributed to the founding of the annual Santa Fe Indian Market . </P> <P> In 1912, New Mexico was admitted as the United States of America's 47th state, with Santa Fe as its capital . </P> <P> In 1912, when the town's population was approximately 5,000 people, the city's civic leaders designed and enacted a sophisticated city plan that incorporated elements of the contemporary City Beautiful movement, city planning, and historic preservation . The latter was particularly influenced by similar movements in Germany . The plan anticipated limited future growth, considered the scarcity of water, and recognized the future prospects of suburban development on the outskirts . The planners foresaw conflicts between preservationists and scientific planners and set forth the principle that historic streets and structures should be preserved and that new development must be in harmony with the city's character . </P> <P> After the mainline of the railroad bypassed Santa Fe, it lost population . However, artists and writers, as well as retirees, were attracted to the cultural richness of the area, the beauty of the landscapes, and its dry climate . Local leaders began promoting the city as a tourist attraction . The city sponsored architectural restoration projects and erected new buildings according to traditional techniques and styles, thus creating the Santa Fe Style . </P>

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