D.-7.

Lake Monowai. —This peculiar boomerang-shaped lake seems a very likely place to develop, and I would suggest that a survey be made to determine its value. Otira River. —This stream is very famous by reason of the remarkable scenery along its course. Its main value will be in connection with the construction and operation of the Arthur's Pass tunnel. For this purpose it will furnish ample power to operate all the construction machinery and the trains themselves after the tunnel is completed. For any large quantity of power it will be quite expensive per horse-power developed. There would have to be a good deal of tunnelling to avoid the shingle-slides, which are quite frequent and dangerous. Rolleston River. —This stream is quite similar to the Otira, and is valuable mainly in connection with the same work, the idea being to combine their waters and utilise them in one large plant. It would require considerable tunnelling to make safe and constant service. The main trouble here would be from frosts in winter decreasing the flow seriously. Observations on this subject would be very valuable. Lake Kanieri. —We were not able to visit this site, but from the information gathered we judged it to be the most suitable place to develop for furnishing Greymouth, Hokitika, and Ross Flat. The surveys we could find, however, were not complete enough to form a basis for any calculations. I think it is worth while to have complete surveys made of the location. Inangahua. —This stream will probably not be used for power purposes on account of any works that could be constructed to advantage flooding very valuable agricultural and pastoral land. Butter. —Near Lyell there is a place in the river where works could be established, but the lack of a market and the very great variation of the stream from low water to " flood " will be a very serious drawback. Lake Rotoroa and the Gowan River. —This is the most, valuable location in the district, and, I think, could be developed to better advantage than any other in the Buller watershed. However, there is but a very limited market for its energy within a reasonable distance. Maitai River. —This stream has no value whatever for power purposes. Wairau River. —This is another of the wide shingle rivers that is very difficult to deal with. If, however, a suitable place can be found to divert the water without starting new troubles, it is probable power enough for the district could be provided from this stream easily. It is not wise to do anA'thing with this stream except after extremely careful consideration. Waihopai River. —It is probable that for the small amount of power needed in this district a small stream like the above will answer the purpose admirably; this, however, will have to be determined by surveys. Awatere River. —Another of the wide shingle rivers, with the additional defect of muddy water. Dams can be built in several places, but the expense and lack of market for so much power does not warrant their construction. This list of places examined is a wonderful showing for a country of this size. The fact that the North Island of only 45,565 square miles and the South Island with only 59,054 square miles contain such a wealth of power speaks volumes for their future. It is wonderful how the development of our present-day civilisation has been made on a fuel basis. The greatest industries of to-day, aside from the agricultural and pastoral, are metallurgy and manufacturing, and they have reached the greatest degree of perfection where coal was cheap; in other words, near the coal-mines. Thus the black diamond of England and America, stored ages since and held for our time, has contributed wonderfully to the latter-day material wealth. The full sway of this monarch has now been challenged by a new claimant that has only lately appeared. Electricity has accomplished so much in metallurgy that one is almost amazed. In manufacturing it has made terrible slaughter —slaughter of those who resisted and stuck to old methods. In other fields, too, it is advancing, and, supported by a powerful ally from the mountains, the white diamonds of the waterfall, it is making an attack all along the line. What the ultimate result will be no one can foresee. Thus the development of your water-powers —your white diamonds —will not injure any industry; on the contrary you will find a still greater demand for coal, wood, and all kinds of fuel. The reasons for this are many; the main one is that works of this kind bring into existence trades and industrial undertakings that are ranked as manufacturing, and this is what New Zealand needs. She can produce food and clothing of unequalled quality and quantity, considering her area; now she must encourage classes that will consume these products so that she will not have to go so far for a market; in other words, create at home, as far as possible, a market for your products. Encourage manufactures; make concessions to them for a term of years to get them started. If necessary, give them land, remit their taxes, and in different ways encourage industry. With this cheap power available wonders can be accomplished for the colony. It has been found in a good many cases that industries spring up in a locality where there is an abundance of cheap power, and judging from conditions in the colony this will be true of any development you may put in. Every city, town, and hamlet can be furnished not only with power and light, but with heat also. The supplying of power from large systems, where they pass through the small towns, at rates that could not be thought of hitherto, will help in a wonderful way to build them up. Industries that thrive best in small places will be encouraged, the population will be better distributed, and many of the evils of a crowded city avoided. This immense supply will enable each home in the colony to enjoy luxuries that in other countries are enjoyed only by the rich. The home, when electric cooking, heating, and lighting are installed, will be a model of convenience and comfort. The servant question will be nearer solution, and the drudgery largely done away with. In the factory and shop electricity will do the work that is now so wearing, and in every department of life applications of it will be used that will bring about material advancement to a wonderful degree. The manufacturing of all Australasia and a great portion of the Orient could be done here better and cheaper than anywhere else. Being so near these markets with this unlimited power,

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