Wash beans and put in a large pot. Add enough water to cover beans by twice their depth. Cook over low heat, covered, until tender, 2 to 3 hours. Add enough water during cooking to keep beans covered by about 1/2 in. (they should be a little soupy).
While beans are simmering, cook bacon in a medium frying pan over medium-low heat until crisp, 10 to 15 minutes. Add onion and chili powder and cook another 10 minutes. Stir in green chiles and minced garlic, and cook until flavors have mingled, 5 minutes more.
When beans are tender, gently stir in onion mixture, salt, pepper, and garlic salt. Simmer, stirring occasionally, until liquid has thickened slightly but beans are still quite soupy, 10 to 15 minutes.
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