c.— %

26

This table shows the sales of water last year amounted to £6,716 6s. 10d., while the year previous they were £7,169 10s. 2d. This shows a decrease in the sales of £453 3s. sd. This decrease can be accounted for to the extent of £427, which is the value of water given to some of the claimholders for substituting iron piping in lieu of flumes and for the purchase of a tailings-site; so that this £427 ought in reality to be added to the sales. This would reduce the decrease in sales of water last year to £26 3s. sd. The expenditure on maintenance for the year amounts to £1,024 Is. 9d., as against £982 12s. for the year previous, or an increase of £41 9s. 9d. This extra expenditure was caused by having to construct a new tunnel across the Dillman's Town Boad for the lower water-supply, which cost £53 155.; so that, deducting this amount from the cost of maintenance, it shows a reduction for the last year of £12 ss. 3d. Taking the sales of water and the expenditure, as shown in the table, it leaves a profit on the year's working of £5,692 ss. Id., as against £6,183 18s. 3d. The net profits, therefore, for the last year are £491 13s. 2d. less than for the year previous. The value of free water given to the miners to open out their claims last year was £292. The average number of miners employed in claims worked with water from the race is 174, and the approximate amount of gold obtained by them last year was about 9,8250z., representing a value of £37,335, which will make their average earnings, after deducting the value of sales of water and channel-fees, £3 6s. 4d., or 2s. less than the earnings last year. Taking the net profit on the working of the race last year—namely, £5,692 ss. Id.—and the cost of construction, which was £37,400 2s. lid., it is 15£- per cent, on the capital expended. Kumaea Sludge-channel. The tailings reserve is now getting filled up to such an extent that it depends on floods in the river to carry a portion of the deposit away in order to be able to work with this channel; and the bed of the river is filled up to such an extent now that very soon it will be impossible to use the channel with any advantage to the miners. The tailings coming from the channel have forced the river against the northern bank, and the result is that a large portion of it on this side is washed away, and now forms the river-bed. Judging from where the river was four or five years ago, the bed has now shifted fully twelve chains further northwards, and the river-bed down at the Teremakau bridge seems to be about 7ft. higher than it originally was. The grass-paddocks belonging to Messrs. Keech and Malloy are cut away to a great extent on the southern side below the bridge, and the one on the northern side is now nearly all a bed of shingle. Indeed, it is only a question of time when the bed of the Teremakau will be raised to such an extent that the bridge will be liable to be carried away in flood-time. Beprosentations have been made from time to time to the department that a wing-dam constructed on the north bank of the river would allow the channel to be worked for several years yet; but a wing-dam would not get over this difficulty : besides, it would cost from £3,000 to £4,000 to construct, and portions of it would always be liable to be washed away in flood-time. This is a work that would be useless to undertake, and it would not prevent the bed of the river from being raised by the continual discharge of tailings. The whole of the miners that use the sludge-channel are now unanimous in their opinion that a wing-dam would be of permanent benefit to them, and now want a new channel constructed, with less fall, at a higher level. The fall of the present channel is 2ft. 6in. to the chain —or about 3ft. 9|-in. to 100 ft.—in the tunnel, and about 2ft. Of in. to the chain from the mouth of tunnel to the end of the boxes at the river. The miners now propose to construct a new channel for 34 chains from the mouth, and join on to the upper end of the present channel, with a fall of 4in. to every 12ft., and increase the grade some distance before it joins the upper end of the present channel. This fall equals Ift. lOin. to the chain, %r Bm. less fall than the present channel has, which would give a drop of about 22ft. Bin. at the mouth of the present tunnel. With reference to the channel working with the proposed grade, the miners would have to be careful not to put so large stones in their boxes as they do at present; but if the width of the new portion of the channel were increased to 4ft. it would work perfectly well. This seems to be the

Month. Sales of Wator. Cash received for Expenditure. Sales of Water. Outstanding Moneys due at End of each Month. Number of Men employed. Approximate Amount of Gold obtained. Valuo of Gold. 1888. £ s. d. 3,328 16 0 1,257 16 0 3,499 16 0 3,879 16 0 3,807 12 •_ 3,233 16 0 3,040 8 0 3,340 4 0 2,093 16 *0 April May June July August September October.. November December 1889. £ s. a. 490 6 8 338 7 7 532 1 1 626 19 10 667 8 3 542 8 4 702 12 6 664 1 7 395 12 3 £ s. a. 419 14 10 252 17 0 598 15 3 550 9 10 718 11 3 656 2 0 510 14 8 031 14 10 504 9 11 £ s. d. 84 19 6 59 1 1 129 1 10 70 0 5 92 7 6 65 6 5 78 6 1 86 5 8 94 13 0 £ s. d. 62 3 3 66 8 1 55 13 3 58 14 10 66 7 10 54 1 1 68 16 9 61 14 2 74 18 9 180 180 177 174 170 170 175 171 169 Oz. 876 331 921 1,021 1,002 851 958 879 551 January February March .. 465 2 1 623 18 4 667 8 4 440 6 7 555 16 7 665 19 11 86 4 7 81 2 9 96 12 11 58 6 11 66 6 2 63 17 3 169 174 178 615 859 961 2,337 0 0 3,264 4 0 3,651 16 0 Totals .. 6,716 6 10 6,505 12 8 1,024 1 9 2,087 9,825 37,335 0 0