D.—9

8

however, the money already spent is left out of consideration, it would appear that anything up to, say £10,000, might, if required, be paid for the Ross Flat Gold Mining Company's race and water rights ; and that if this were done, and the race finished to Donnelly's Creek, the venture would probably return 5 per cent, interest (and recoup capital,) on the money yet to be spent, but not on the money spent or contracted for. It is very improbable, however, that the Company would sell for that price. The altitude of the Mikonui Race above Ross Flat is about 480 feet, and that of the Company's race about half that height. The effect of raising the water would be that about 2 heads at the higher elevation would do the drainage for which 4 heads would be required at lower elevation ; and, as these quantities represent approximately what would probably be required for purpose at present, the monetary value will be, say, the capital price of 2 heads of water released for sluicing purposes, or, say £2,000 on same basis as former computations of value herein. It is not likely that more than twice the power above provided for would be required at any one time in the future, so the utmost money value that could be placed on the higher elevation from the " power " point of view, would not exceed. £4,000. Of course, however, the higher elevation would enable the water to command more ground, and the greater pressure would add largely to its efficiency in sluicing operations, and so cheapen them and render them more profitable. F. W. Martin, Greymouth, 15th March, 1882. Resident Engineer.

Enclosures. A.—Map. B.—Copy Regulations Westland County Council re subsidies to head water-races. C. —Copy Messrs. Brogden's application for protection. D.—Copy Report C. Y. O'Connor to the Engineer-in-Chief, dated Ist August, 1872.

B.— Regulations of the County Council, under which Read Water Maces Companies may receive Guarantees from the Council. [Adopted by the County Council, 22nd February, 1869.] 1. That in such cases as those alluded to in these Regulations, one-half the necessary capital should be guaranteed by the Council for the construction of head water-races. 2. The other half of the necessary capital shall be subscribed for, and at least one-fourth of the subscribed capital paid up by bond fide shareholders, such money to be paid into a separate account, in the names of the company and some person to be appointed by the County Chairman, and not to be withdrawn, except by cheques signed by the manager of the company and the person appointed by the County Chairman, as above. 3. All money received by the company, from whatever source, shall be paid into the account of the company alluded to in Regulation 2, and be subject to the restrictions contained in that section until the capital of the company be fully paid. 4. The company, applying for aid to the Council, shall be composed of at least twenty persons. 5. Each race, to be constructed under these regulations, shall carry not less than thirty Government heads of water. 6. Each company applying for a guarantee shall be registered, or be, in the course of registratration, under " The Mining Companies Limited Liability Act, 1865." 7. Each race, which shall be constructed under these regulations, shall be constructed and maintained under the supervision and subject to the approval of the Government Engineer and Mining Surveyor of the District. 8. The capital of each race company, applying to the Council for a guarantee, shall be not less than £10,000. 9. No company shall be guaranteed unless the race to be constructed by it shall be first approved by a Board, to be appointed by the Council, consisting of two of its members (not including the Chairman), the County Engineer, and another Engineer not employed by the Government. 10. The water brought in by any company, obtaining the guarantee of the Council, shall be sold to the miners at rates to be fixed by the Council in each case. 11. No company shall receive a guarantee except on a vote of the Council. 12. In case the Council be called upon to pay any guarantee made under, or by virtue of, these Regulations, and have to pay the same, the property held by the company, for whom the said guarantee shall be paid as aforesaid, shall become the property of the County Council and inhabitants of the County of Westland in the same degree and to the same extent as the said property was held by the said company at the time of the forfeiture of the said guarantee.

C— Extract from "County of Westland Gazette," No. 10, of 16th April, 1872, page 56. APPLICATION FOR A WATER RIGHT LICENCE. To the Warden of the Totara District.- —Sir, —We herewith deposit the sum of twenty pounds (£2O), as required by the Water Race License Regulations, and we agree, if our application (the particulars of which are hereunder set forth) be investigated, that such sum shall, in all respects, be held subject to the terms of such Regulations, so far as they are not at variance with the proposals undermentioned. We are, &c, John Brogden & Sons, (by their Agent, Geo. H. Tribe).