E.—s

2

In arriving at it, the greatest care has been used to ascertain the quantity correctly, and to adopt the highest scale of prices paid on the most recent similar works undertaken by the Government. The fault in previous estimates for water-races in Westland has been not so much a want of care as a want of time, and an absence of such accurate information in the matter of surveyed details as would afford an opportunity of going into detail. It had therefore to be assumed that the prices would be similar to those paid on the then existing examples, and that the races themselves would also be similar to existing ones in the character of their works ; but the rate of wages increased very considerably, and the Government races were constructed on a scale of efficiency and durability, particularly in the matter of the class of timber used, which had never previously been attempted in the locality, so that there was no real relation between the basis assumed for the estimate and the works as carried out. In the present case, however, the most minute detail has been gone into, and the only elements of any degree of uncertainty existing in the estimate are the cost of the head-works and the price of the long tunnel. The former of these is necessarily uncertain, as surveyors were most difficult to get, and there was not time for those obtainable to do more than lay out and plot the race-line itself. I have, however, inspected the site on the ground, and observed that the head-works necessary there will be far simpler and less in extent than those at Lake Hochstetter, so that the sum put down for them, being nearly same as cost of Lake Hochstetter head-works, should be ample. In the case of the long tunnel, the element of uncertainty is the question of the hardness or otherwise of the rock which may be met with, for although I have no doubt miners could be got here who would tender for it at a reasonable price, and take all the risk, it has to be borne in mind that, not being capitalists, they would have to throw it up if the price did not keep them in food. As the rate estimated, however, for it is 30s. per cubic yard, I do not think that there would be much danger of that contingency arising. Having already, in a report dated Ist August, 1872, given an estimate of the probable returns which might be expected from the sale of water if this race were brought in, it is not, I presume, desired that I should go further into that phase of the matter ; but it is perhaps desirable that I should state, as the report itself I find bears no evidence of the fact, that it was made to and by the direction of the Government, but at the instance of Messrs. Brogden, who liad it in contemplation at that time to undertake the work; and, in accordance with their request, the matter was viewed from a purely monetary point of view as a commercial undertaking and reported on accordingly, so that the report cannot be looked upon as at all favouring the merits of the scheme. Even from the point of view from which the subject was then regarded, however, I should have been much more inclined to have given it a hearty recommendation had the then proposed line presented a reasonable prospect of security from slips and from damage which might cause heavy expenses for repairs; but it did not do so, and hence the large sum which I estimated for maintenance and supervision. It is in this element of security perhaps more than in any other that the new line has the advantage over the old one, as tunnels are the most durable of all classes of water-race constructions, and iu the new route tunnelling prevails. There was also another item which I omitted to consider sufficiently when writing report of Ist August, 1872, above alluded to, —namely, the probability of the race water being used in connection with high-pressure turbines for the drainage of the Eoss Flat, which drainage has since had to be abandoned in consequence of the great cost of steam power there. Eoughly estimated, if the water were applied with the full head available, and carrying through reasonably large pipes, each head of water would be equal to 30-horse power net, and, if sold for £20 per head per week, the cost to the purchaser would be about 13s. per horse-power per week; and when it is put in comparison with that fact that the cost of steam-power averaged over £2 per horse-power per week, which I have ascertained from several inquiries to have been the case, it is evident that £20 per head per week would be a low charge for all water used iu pumping. The anticipated returns, however, which were given in my report above alluded to, were based on a rate of £5 per head per week, so that, if some water were sold at £20, the returns would be considerably in excess of those estimated. There is, finally, one more important point which I presume it is my duty to mention, as it has come prominently before me during the time I have been engaged on the supervision of this survey — namely, the very depressed condition of Eoss at the present time, and the .effect which this is producing on the trade of Hokitika. Since the earliest settlement on the gold fields here the activity or otherwise existing in the mining of the Totara District has always been sensibly felt in Hokitika, and this is more evidently the case now than it has ever been before, so that I believe that if the workings in and about Eoss were to entirely collapse, without reasonable prospect of their being resumed again, a large proportion of the population of Hokitika, who are dependent on the earnings of the Eoss miners, would have to leave the country. So far, however, the miners at Eoss, though working under great disadvantages, have been imbued with such an amount of confidence in the ultimate richness of the district that they have held on there at a lower rate of remuneration than they would have done elsewhere. This they have done in the hope that some economical and efficient means might be adopted for draining the flat to the lower levels, which are at present almost .untouched; but they cannot continue to live upon this hope for an indefinite period. So far the Mikonui Water-race has been looked upon as the most effectual and probable means of getting this done, and latterly the hopes of the miners have almost centered upon it. If it is undertaken, or a guarantee given that it will be undertaken, the population in Eoss will probably remain as at present until it is completed, when it would no doubt largely increase; but if it is finally determined not to undertake it, the majority of those now at Eoss would leave the West Coast altogether, carrying with them a large number of the inhabitants of Hokitika, and thus a useful body of trained miners— trained, too, in the particular class of work required at Eoss —would be lost to the country.