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ss. 5d.; and the value of water given towards the construction of deviation and extension of the race was £793 os. 5d., making a total of £1,202 ss. lOd. The average number of men employed in claims worked with water from this supply during last year was 155, and the approximate quantity of gold obtained was 9,9350z., representing a value of £37,750; deducting from this amount the value of the sales of water, it leaves the earnings of the men employed in the claims to be £194 13s. 3d. per annum, or £3 14s. lOd. per man per week, which is £1 4s. 6d. a week per man more than the earnings for the previous year. The following summary will show the results of working this water-race for eight years ending the 31st March last. [For summary, see page 16a.] This shows that during the last eight years the value of water sold amounted to £58,412 Bs. 6d.; the value of free water given towards opening-out and assisting in working the claims, £5,580 12s. Bd. ; towards deviations, £1,485 os. 5d.; towards the construction of deviation of sludge-channel, £2,406 Is. 2d. The total value of water supplied being £67,884 2s. 9d., while the expenditure on maintenance for same period was £11,860 15s. Kumara Sludge-channel. The new deviation of this channel was completed in the beginning of July, 1890, and handed over to trustees appointed by the miners, to be held in trust as a public tail-race for the benefit of the miners on the field. The new deviation, 30 chains in length, is constructed 3ft. 6in. wide, and has a fall or gradient of lin 36, or Ift. lOin. per chain, and is found to work very well. As soon as the new deviation was constructed the gold was taken out of the upper portion, and also the abandoned portion, this realised £843 6s. Bd.; and the abandoned portion was strengthened by centre-props, so as to prevent any portion of it breaking down, which might have the effect of weakening the new portion by making the ground heavier on the caps. The total expenditure in connection with the construction of this deviation, including the costs of the inquiry and compensation, amounted to £4,963 Bs., making the total cost of the channel up to the time it was handed over to the trustees, £21,964 18s. 2d.; in addition to this the loss on its maintenance during about eight years and a half that the Government kept it in repair has been £23,798 19s. 5d., making the total loss £45,962 19s. lid. This shows that works of this description should not be undertaken by Government unless by the way of assistance towadss their construction in the first instance. The loss on the maintenance of this channel has always been a drag on the results of working the water-race, which otherwise, notwithstanding the large expenditure on its construction, would have paid moderate interest on the cost of the construction. There is no doubt the miners will keep the channel in repair at a much less rate than it was costing the Government. They have made regulations which limit the fall of tail-races coming into it, and also the quantity of water that the different parties can use in their sluices in proportion to the fall or gradient of their boxes. The following table shows the value of channel-fees ; the gold recovered from the channel; also the expenditure for the year ending the 31st March, 1891: —

It will be seen from the above statement that the value of channel-fees amount to £274 ss. 5d., and the value of gold recovered from the channel £843 65., making the total receipts £1,017 lis. 5d,; while the expenditure amounted to £1,108 Is. Id., showing a profit of £9 10s. 4d. A portion of the expenditure was incurred in recovering the gold, and in placing centre-props in the part of the abandoned channel. The following statement will show the results of working the channel for the last eight and a half years, or since its construction : —

Month. Channel-fees liaid towards Value of Construction of ! Gold obtained the New from the Deviation of the i Channel. Channel. Expenaiture. Outstanding Nul M en' Of I employed. 1890. £ s. a. 86 2 9 80 6 10 73 13 10 34 2 0 £ s. a. 38 4 0 49 8 0 57 16 0 105 14 0 101 16 0 214 15 0 275 12 6 s s. a. 209 19 5 191 7 11 189 2 10 173 2 6 129 4 4 87 12 1 121 6 0 6 0 0 £ s. a. April May June July August .. September October December 67 67 61 55 Totals 274 5 5 843 6 0 1,108 1 1 62J

Year ended 31st March. Value of Channelfee and Golddust obtained from the Channel, Expenditure on Loss on Working Maintenance. the Channel. 1882-83 .883-84 .884-85 .885-86 .886-87 .887-88 .888-89 .889-90 .890-91 £ s. 925 13 2,128 18 2,163 16 2,219 18 2,262 2 1,800 0 1,665 18 1,228 18 1,117 11 a. 4 3 4 7 8 1 0 2 5 £ s. d. 1,703 11 1 6,405 10 8 6,161 14 7 6,215 13 0 5,957 11 5 4,260 12 4 4,285 6 2 3,213 15 11 1,108 1 1 £ s. 777 17 4,276 12 3,997 18 3,995 14 3,695 8 2,460 12 2,619 8 1,984 17 *9 10 a. 9 5 3 5 9 3 2 9 4 Total 15,512 16 10 39,311 16 3 23,798 19 5 * This shows a profit for the half-year 1890.