C—2.

Tenancy-man without incurring any extra expenditure beyond the purchase of timber for this purpose, which will cost about £20. The siphon across Ballarat Gully on the main race is liable at any time to burst in places; still, it might stand for many years. This siphon was constructed during'the time the county had charge of the work, and is of a very defective character, the pipes being rolled with the grain of iron instead of across it, and the result is that when a burst takes place it rips up along the line of rivet-holes from one end to another of each length of plate that the pipes are made of. " In regard to the future prospects of this water-race, the principal ground that the race commands about Candlelight and on the south-western side of Ballarat Gully is getting pretty well worked out —that is, as far as the principal leads of gold have been found; still, there is plenty of ground in the flat outside of those leads that could be worked with water from this race, if there is sufficient gold to pay for working. The principal ground that is now worked by the aid of this water-race is in Ballarat Gully, Sardine Terrace, and the Back Lead ; but some of the ground in this locality is reputed to be very poor, while in some of the claims the owners make very good wages. One of the best customers for water —namely, the Dublin City Company —had at the time of my visit suspended their operations pending the erection of a crushing-battery to crush the cemented sand, which contains the most of the gold. They expect, however, to be able to commence work again in six weeks or two months. Unless a different system of working be adopted on this field, and the creek-beds be worked, there is no prospect of the receipts from sales of water being larger than at present. The following table shows the receipts and expenditure for the year, as well as the approximate amount of gold obtained, and number of men employed : —

The sales of water last year amounted to £497 ss. 2d., as against £455 12s. 9d. for the previous year, which shows an increase last year of £41 12s. sd. The expenditure on maintenance last year was £396 19s. 10d., while for the year previous it amounted to £398 3s. lOd. This shows a decrease last year of £1 4s. 6d. The net profit on the working of the race last year was £100 ss. 4d., which is the largest profit made for the last five years. The average number of men employed in claims worked with water from the race last year was twenty, being the same number as the year previous ; and the average number of days that the claims ware worked with water was eighty-five; while the approximate amount of gold obtained by those using the water was 6280z., representing a value of £2,402 2s. Deducting from this amount the value of the sales of water, it leaves the average earnings of the miners to be £1 16s. 7d. per week, as against £1 17s. 3d. per week for the previous year. Taking the net profits on the working last year and the total cost of construction, which was £14,701 15s. 3d., it amounts to per cent, on the capital expended. Mikonui Wateb-eace. This water-race is leased to the Mont dOr Company at an annual rental of £50. The tunnels have bean retimbored, and the race is now in good repair. The expenditure on this work has been £25,644 9s. 6d. Mount Ida Watee-bace. This water-race is managed by the Mount Ida Trust. The working of this race last year shows a considerable loss, owing to heavy floods which occurred in the spring, and an unusually dry summer. A largo slip took place last August at the Wedderburn, which.carried away a portion of the ditching, and iron piping was substituted at an expanse of £70. Not only does the mere cost of this affect the expenditure, but the loss of the sales of water is a great item, especially in the season when plenty of water was available. Tha Trust had also to construct a channel in Homo Gully, to prevent the tailings from getting on to freehold property. This cost £175 :of this amount £25 had to be paid as compensation for damage done to freehold property. The simply of water during the summer months, and also in midwinter is not equal to the demand, and the Trust strongly advocates the construction of a large reservoir at the Wedderburn, which would cost from £8,000 to £10,000. This reservoir is estimated to hold thirty sluice-heads

30

Month. Sales of Water. Expenditure. Number of Men employed. Approximate Amount of Gokl 1 obtained. Value of Gold. 1888. £ s. a. 53 13 5 54 10 2 44 15 2 42 10 4 37 8 11 36 15 8 40 10 4 45 13 0 37 8 11 £ s. a. 39 8 9 33 11 0 33 17 10 29 18 0 38 2 7 28 15 0 32 1 3 31 5 8 30 15 6 Oz. 56 55 45 48 52 60 61 59 80 £ s. d. 214 4 0 210 7 6 172 2 6 183 12 0 198 18 0 229 10 0 233 0 6 225 13 6 306 0 0 April May June July August .. SeptemberOctober .. November December 21 21 20 19 20 23 24 21 19 1889. 20 15 3 38 17 2 32 0 10 31 1 0 35 5 3 32 18 0 18 18 18 35 45 32 133 17 6 172 2 6 122 8 0 January.. February March .. Totals i 497 5 2 396 19 10 242 628 2,402 2 0