C—4a

34

The thirty claims now using the channel are represented by 160 men instead of by 168, as in previous year. The cause of this is that odd shareholders sell out to the party, and by doing so reduce the number of men in each claim, as after a claim is opened up only a limited number of men can be profitably employed. By the number of parties using the present channel being reduced, this will be a saving to the Government in the cost of channel-maintenance, as the parties interested in the construction, and who are to use the second channel, undertake to maintain and supervise it at their own cost. The present sludge-channel has been used twelve hours each day; but, if water be available to admit of both channels being worked at the same time with full shifts, the working-hours can be reduced to nine, making three shifts of three hours each day, in place of four, which would answer all parties during the winter months, when the days are short. Complaints were made last winter by the first and last-shift men— and with some degree of reason —that the short days did not afford sufficient light to work safely. Paving Channel. —The greatest part of the main channel is now paved with stone blocks, which answer the purpose better than wood where there is constant wear. They are not so smooth when first put in as wood; but do not get so easily out of order, and will last over twelve months with a little patching. Suitable stones are not so plentiful as when first used; but a sufficient supply lias always been obtained to meet the requirements. The first cost of stone is greater, and it is more expensive to move about than wood 'blocks 14in. deep, which are used for paving the different branches. They are lighter to handle than stone, and as one branch gets worked out of fall they can be lifted and used in another branch until they are worn out. Tailings-site. —The extension of the several branches of the channel has filled up the tailingssite rapidly of late, and forced the Teremakau River-channel hard up against the north bank of the stream; but, with frequent freshes in the river to effect a scour to keep the channel clear, and by utilizing the vacant ground at disposal, a sufficient space for tailings may be obtained to last for some time. The Dams. The carrying-capacity of the dams is equal to a month's supply. The lower dam was emptied during the dry weather and found in good order. Loopline Dam. —During the time of the recent flood this dam has shown a weakness at the outlet-box through the embankment, but has now been repaired and strengthened. Herewith please find tables showing the revenue and expenditure on account of the Waimea-Kumara Race and Sludge-channel, maintained by the Government, from the Ist April, 1885, to the 31st March, 1886; also, the number of men employed by the races, their average earnings (approximately), and the quantity of gold obtained by them after deducting watercharges. I have, &c, James Dand, The Under-Secretary of Mines, Wellington. Manager, Water-races.

The following statement shows the receipts and expenditure on maintenance of the Waimea and Kumara Water-races and Sludge-channel for the year 1886, together with the number of miners employed and the approximate amount of gold obtained : Receipts, £14,498 7s. 2d.; expenditure (maintenance), £8,802 10s. 6d.; number of men employed, 343; approximate amount of gold obtained, 17,376j0z.; value, £66,029 15s.

No. 22. Mr. D. DoyiEj Manager Argyle Water-race, to the Under-Secretary of Mines. Sir,— Charleston, Ist April, 1886. I have the honour to forward the report for the twelve months ending 31st March, 1886, on the working and maintenance of the Argyle Water-race. The receipts are not so satisfactory as I anticipated at the beginning of the year, owing to many causes, such as the non-completion of the extension of race, and delay in getting the piping across Ballarat Creek; also the continued breaking of old syphon. Another great cause is that the parties taking water from race are working but very poor time as far as Ballarat Creek—• so very low as an average of 7266 days in the year, or, taking the whole time worked by all parties, it does not average more than 84"47 days in the year. So that only by using very strict economy in expenditure on the maintenance am I able to show a small profit balance for the year; otherwise, if anything like average time had been worked, it would have been much better. Although there is but a small number of men using water directly out of the race, I may say there is a large number of men receiving great benefit indirectly from the use of such water; for, if it is not using in the first instance, those parties who receive benefit by it lower down Darkies' Creek would be virtually idle, as without a large body of tail-water coming down they would be able to get do tailing to pass over their table except in flood-time. Therefore those parties, although not paying anything for the use of water, derive as much profit from it as the parties in the first instance who pay for it.