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Whangarei-Kamo Extension Eailway. Kamo to Hikurangi Section (8 miles). —Work on this section was begun on the co-operative principle about the beginning of January, 1892. The formation, bridges, and culverts over the whole length are now in progress, and will probably be finished within about three months. The fencing also is in progress. The works are being satisfactorily carried out by the co-operative parties at a reasonable cost. The average wage earned by the men during the year was 7s. Of d. per day of eight hours, and the total expenditure on the work up to 31st March last amounted to £15,309. There are about seventy-nine men now at work on tho ground. Bails and sleepers are being provided, and arrangements are being made for obtaining ballast, so that the platelaying maybe put in hand as soon as possible after the formation is completed. Land-plans. —The survey for acquiring the land for this section is being done by the Engineer in charge of the co-operative works, in conjunction with the other works under his charge. Helensville Northwards Eailway. Makarau Section (3 miles 6 chains). —Formation and permanent-way: The formation of this section outside the tunnel is in a forward state, and about a mile of the permanent-way is laid. As previously reported, the first 7-§ chains of the tunnel was through papa rock and soft sandstone, easily worked, but this was succeeded by very bad ground, being compressed sea-mud, which slacks when exposed to the air and clamp. This renders timbering and brick lining, including an invert, necessary. The work of driving and lining was proceeded with steadily up to January last, when the work was stopped by the timbering giving way. The contractors then sunk a shaft so as to gee at the " creep" at both ends, but, owing to the nature of the ground, they have made very little progress as yet. The tunnel is pierced from the south end for a length of about 22 J chains, leaving about of chains, or 126 lineal yards, still to do. Surveys. —As previously reported, the survey of a continuation of this line from the end of the Makarau Section, at 46 miles 36 chains to 49 miles 54 chains (Tahekeroa Section), is ready for contract, and from 49 miles 54 chains to 56 miles (Komokoriki Section) the line is located, and the plans so far advanced that they could be got ready for contract at short notice. A trial survey was also made between 56 miles and 67 miles 60 chains, which shows a good easy line, except for a length of about two miles of very rough and broken ground, through the Hoteo Gorge. Land-plans. —The survey and plans of the land required for the Makarau Section were completed during the year, and the land was taken by Proclamation in February last. Kaihu Valley ; Eailway. The traffic and maintenance of this line were continued under the control of this department until the Ist January, 1893, when the railway was vested in the Eailway Commissioners by Order in Council dated the 29th December, 1892, under the provisions of " The Eailways Authorisation and Management Act, 1891." Waikato-Thames Eailway. Paeroa-Tc Aroha Section (13 miles 3 chains.) —Tho formation of 12 miles 3 chains of this section —viz., from the north side of the Ohinemuri Eiver, at 20 miles, to Te Aroha, at 32 miles 3 chains—was begun on the co-operative principle in January, 1892, and the works have progressed steadily, but, owing to the very wet winter last year, they have not made such good progress as was anticipated. The formation is now well advanced. The bridges and culverts are also well in hand, and the whole line, from 20 miles, or within a mile of Ohinemuri, should be ready for platelaying about the end of October next. The work has been satisfactorily done, and the net wages earned by the co-operative workmen averaged 7s. 7d. per day of eight hours. The construction of the mile of line to connect with Paeroa Township involves the bridging of the Ohinemuri Eiver. Plans for this bridge will be prepared shortly. Thames Valley-Eotorua Eailway. Tarukenga Contract (4| miles). — Formation and permanent-way: Contract let to Messrs. J. McLean and Son on the 11th January, 1892. Steady progress has been made with this contract, and it will probably be finished in August or September next. About 100 men are employed on the contract. Formation Completion Contract. —The formation of the line between the termination of the Tarukenga contract and Eotorua—about 9 miles in length—was partially done by Maoris, by piece-work, some years ago, and a contract for the completion of tho same, in all about 2J miles of formation, was let to Mr. M. Fallon, on the 13th February last, for £3,286 7s. The contractor commenced work without delay. He has now about seventy men on the ground, and fair progress is being made. Bridges Contract. —This contract, which is for the construction of bridges on the section of the railway between the Tarukenga contract and Eotorua, was let to Messrs. Nicol and James on the 16th May, 1893 ; amount, £2,982 ss. It comprises seven bridges, namely : One bridge, consisting of six 30ft. and two 16ft. spans; one of three 30ft. and two 16ft. spans; one of six 20ft. and two lift, spans; one of one 20ft. and two lift, spans; one of two 20ft. and two lift, spans; one of one 20ft. and two lift, spans; and one of three 20ft. and two lift, spans. Water-supply at Tarukenga. —Arrangements have been made to put this in hand, and authority for the estimated cost of same (£850) was issued last month. It is expected that the whole of the line from Putaruru to Eotorua can be completed and ready for traffic about April next.

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