E.—2a.

10

be used in pushing on this length of line in order to obtain stone, several months must elapse before these works could afford material protection. Temporary means should therefore be at once devised to prevent further encroachment both from the river and sea. On the shore, brushwood fascines, well tied down, would in a measure prevent the gradual melting away of the bank that now goes on at high watermark. On the bank of the river, the reserves previously proposed should be at once fenced off, and all places denuded of timber re-planted with willows. The bank across the overflow channel at Snag Fall should also be constructed at once, otherwise, before the possible completion of the proposed works, the port of entrance might be at the mouth of the Orawaite. I have, &c, H. P. Higglvsox, 3rd July, 1873. Superintending Engineer.

Memorandum on Mr. lligginson's Keports on Ngakawau Coal Eailway and Buller Eiver. I ageee with Mr. Higginson that the best means of opening up the coal field at Ngakawau is to build a railway from the mine to the Buller, and to improve the wharf accommodation at the latter port; also, that the best way of protecting the banks of the Buller is, as recommended by him, to build a stone wall (of somewhat similar design to that built at the Grey), the stone to be brought from the terraces to the north. The importance of making at once the stop-bank across the overflow channels, and of preventing the destruction of timber on the river banks, cannot, I think, be over-estimated, and I beg to recommend that Mr. Higginson's suggestions on these subjects receive early consideration. Mr. Higginson's estimates are— Eailway ... ... ... ... ... ... ... £55,355 Eiver Works ... ... ... ... ... ... ... 40,176 £95,531 It will be well to look forward to a further expenditure of about £55,000 for harbour works, beyond the immediate river protection, or a total expenditure of, say, £150,000. If these works were carried out and the mines opened up, so as to yield the very moderate quantity of 50,000 tons a year, the financial position would be as follows : — Expenditure. Interest on £150,000 at 5 per cent. ... ... ... ... £7,500 Working expenses of Eailway ... ... ... ... ... 7,000 Total annual charges ... ... ... ... ... £14,500 Revenue. 50,000 tons coal, at ss. ... ... ... ... ... £12,500 Passengers, timber, and goods ... ... ... ... 2,000 14,500 Showing that the railway would pay interest on its cost, but no sinking fund to repay capital. This would probably be the position of the mine during the first few years after it was opened. The output may be assumed then gradually to rise to 100,000 tons a year, when the financial position would stand thus :— Expenditure. Interest on £150,000 at 5 per cent. ... ... ... ... £7,500 Working expenses of Eailway ... ... ... ... ... 13,500 Total annual charges ... ... ... ... ... £21,000 Revenue. 100,000 tons of coal, at ss. ... ... ... ... £25,000 Passengers, timber, and goods ... ... ... ... 2,500 27,500 Amount annually placed in sinking fund for refund of capital... £6,500 This would, with compound interest, repay the whole of the capital in sixteen years, so that no loss would occur even if the mine were worked out in that time. The quantity of coal which would have to be taken from the mine to produce the above results would be— Tons. 16jyears at 100,000 tons ... ... ... ... ... 1,600,000 6;years at 50,000 tons ... ... ... ... ... 300,000 Total tons ... ... ... ... ... ... 1,900,000 The quantity which the mine is estimated to contain is enormously greater than this, so there is no fear of its being worked out before the capital could be refunded. On the whole, it appoars from the above, that if the mines are worked with energy, the constructionjof a railway to the Buller, and the necessary harbour works, would be a very good investment of