C—2.

only solution of the difficulty. If a new channel has to be constructed it should be handed over to the minors, and constructed on the same basis as No. 2 channel, which is working very satisfactorily, being managed and maintained by trustees appointed by those who are using it. The following table shows the channel-fees, value of gold-dust obtained from the channel, amount of cash received for channel-fees, expenditure, outstanding moneys due at the end of each month., and number of men employed using the channel, for the year ending 31st March, 1889 :—

This shows the channel-fees amount to £1,095 3s. 3d., while for the year previous the fees were £1,075 6s. 7d. This shows an increase last year of £19 16s. Bd. The value of gold-dust obtained from the channel last year was £570 14s. 9d., making the total receipts £1,665 18s.; while the expenditure was £4,285 6s. 2d., as against £4,260 12s. Id. for the previous year. The actual loss on the working of the channel last year was £2,619 Bs. 2d., or £158 15s. lid. more than the preceding year. The annual loss on the working of this channel has always been great. The following statement shows the results of working this channel during the last six years:—

This shows the actual loss on working the channel during the last six years to be £21,045 14s. 3d.; but this does not show the whole of the loss, as a large number of sluice-heads of water are required for flushing-water to keep the channel clear, and if the value of this water be taken into consideration the loss is augmented by at least £1,964 per annum, which would be £11,784, making the loss at least £32,829. It may be said, were it not for this channel the water could not have been sold ; but when it is borne in mind that time after time complaints have been made that the supply of water was insufficient, and that large sums of money have been at various times spent in enlarging the channel, and in constructing a reservoir at the loop-line road, it will be evident that the existence of the channel has been a cause rather of expenditure than of revenue. Therefore, in dealing with the question the value of flushing-water must be taken into account. This flushing-water is given away for the benefit of those who are using the channel, and whatever profit has been derived from the Kumara water-race has been obtained from those who have private tail-races of their own. It is therefore only fair that those parties who are using the channel should bear the whole expense of maintenance. The following table shows the sales of water to parties using the channel, channel-fees, gold-dust obtained from channel, number of men using channel, approximate amount of gold obtained, value of gold, expenditure, number of weeks per month flush-water is used, number of heads, and value of flush-water,vfor the year ending 31st March, 1889 :—

27

Month. Channel-fees. Value of Golddust obtained from the Channel. Cash receivea for Channel-fees. Expenaiture. Outstanding Moneys due at End of each Month. Number of Men using - the • Channel. 1888. £ 8. a. 79 7 11 49 0 9 94 17 6 104 19 8 110 8 2 73 17 6 115 1 3 114 5 10 57 1 11 £ s. a. 47 13 0 25 6 3 39 19 0 39 1 0 45 17 6 41 6 0 75 14 0 06 17 6 35 13 0 £ s. a. 52 14 2 24 0 0 97 12 0 98 0 8 127 11 3 95 1 0 87 6 6 102 16 8 42 9 7 £ s. a. 306 5 11 437 13 4 359 0 8 448 16 11 415 19 8 371 0 10 291 9 7 368 5 5 280 11 8 _ s. a. ipril Hay lune iuly iugust September October November December 'l889. 0 4 7 0 13 2 4 4 2 0 9 2 88 88 88 88 84 84 84 80 76 3 9 2 1 14 2 3 18 1 ranuary February Vlareh 71 15 0 107 0 6 117 1 3 44 0 0 41 3 0 68 4 0 103 9 5 94 18 5 114 15 1 299 5 3 374 15 2 332 1 9 3 12 4 2 13 80 80 80 1,095 3 3 570 14 9 1,040 14 9 4,285 6 2

Year ended 31st March. Value of Channelfees and Golddust obtained from Channel. Expenditure in Maintenance. Loss on Working the Channel. .883-84 .884-85 .885-86 .886-87 .887-88 .888-89 £ s. 2,128 18 2,163 16 2,219 18 2,262 2 1,800 0 1,665 18 d. 3 4 7 8 1 0 £ s. 6,405 10 6,161 14 6,215 13 5,957 11 4,260 12 4,285 6 a. 8 7 0 5 4 2 £ s. 4,276 12 3,997 18 3,995 14 3,695 8 2,460 12 2,619 8 a. 5 3 5 9 3 2 Total 12,240 13 11 33,286 8 2 21,045 14 3