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GOVERNMENT WATER-RACES. Mr. James Rochpord, Manager Waimea-Kumara Water-races, to the Under-Secretary, Mines Department, Wellington. SIR — Kumara, 19th May, 1906. I have the honour to forward the following report on the working of the Waimea-Kumara Water-races for the financial year ending the 31st March, 1906: — Waimea Bace. The cash received for sales of water from this race for the year ending the 31st March, 1906, was £623 19s. 2d., and the expenditure for the same period on gauging, maintenance, and repairs amounted to £658 ss. Id., showing a debit balance of £34 ss. lid. on the transactions for the year. The average number of miners supplied with water from the race for sluicing purposes during the year was 27-91, showing an increase of 7-66 as compared with the previous year ; and the approximate quantity of gold obtained by them was 1,760 oz., having a value of £6,864. The total sales of water for the year amounted to £585 4s. 4d., or £28 ss. lid. less than the previous year. This does not mean that a smaller quantity of water was supplied during the year—on the contrary, a much larger quantity was sold. The falling-off in the value of the sales of water is accounted for by the fact that the price was reduced by 50 per cent, from the Ist May, 1905, or eleven months of the present financial year. Had this reduction not taken place the value of water supplied from this race would have shown an increase of £521 9s. 2d. on the previous year. The quantity of gold obtained was approximately 70 oz. less than the preceding year, representing a decrease in value of £273. Notwithstanding the reduction in the price of water above alluded to, the cash received for sales of water was £102 18s. 9d. greater than during the previous year. The expenditure on gauging, maintenance, and repairs was £22 2s. lid. less than during the preceding year, and the headworks at Kawhaka, the Waimea Siphon, the fluming and tunnels, and the main and branch races have been maintained and repaired, and are now in good working-order. The only parties using water from the Stafford portion of the race are Chinamen, and the revenue received from this section shows a slight improvement on last year. As there is still a considerable area of unworked ground in this locality that should pay fair wages there is very little likelihood of the demand for water falfing off for some time to come. At Tunnel Terrace, in the Goldsborough portion of the district, there are seven parties using water from the race, and as far as I can learn the results for the year have been fairly satisfactory. There is still a large area of ground in this locality commanded by the Government race which will pay for working at the present price of water. The Waimea Hydraulic Sluicing Company have still their claim and plant let on tribute. The tributers used water during the whole of the year, with payable results, and they are still sluicing on the terrace above Goldsborough, where there is a large extent of unworked ground. Should the ground prove payable as they get further in from the face of the terrace this claim will last for some considerable time. A party of Chinamen at Bed Jack's started to take water from the race in September last, and they have been using it continuously ever since. One or two short stoppages from breaks took place during the year, but repairs were promptly effected and the water again turned on. There was an excellent supply of water throughout the year. The Waimea Siphon, which carries about thirty-two heads, was practically running full all the time. Notwithstanding this fact, the present demand for water greatly exceeds the supply, and during the year one or two applications for water were made by parties who proposed to open up new claims. Authorised free water to the value of £11 was supplied from this race during the year to parties opening out new ground. The following tabulated statement shows the sales of water, the cash received, and the cost of maintenance of the Waimea Water-race for the year ending the 31st March, 1906, and also the approximate quantity of gold obtained by parties using water from the race :—

Month. Sales of Water. Cash received for Sales Expenditure, of Water. Outstanding Moneys at the Knd of each Month. Number of Men employea. Approximate Quantity of Gold obtained. Value of Gold obtained. 1905. £ b. d. 36 9 3 53 15 0 56 19 10 57 6 8 45 II 1 57 2 7 60 3 1 50 15 6 37 14 3 £ s. d. 85 3 9 61 13 0 65 10 6 66 2 0 41 5 1 41 8 7 62 1 0 22 1 3 80 5 9 £ s. a. 59 16 8 57 11 8 58 10 5 57 10 0 48 2 6 46 9 6 45 10 0 48 3 3 64 8 11 £ s. a, 108 10 0 100 13 8 93 12 3 84 12 3 90 2 0 105 5 8 70 10 0 97 11 10 55 4 4 April May June July August September October.. November December 21 31 80 23 26 26 30 30 30 Oz. 109 159 171 171 135 171 180 153 114 £ s. a. 425 2 0 620 2 0 666 18 0 666 18 0 526 10 0 666 18 0 702 0 0 596 14 0 444 12 0 190G. 28 6 3 43 15 4 57 5 6 20 9 0 37 15 3 40 4 0 January February March .. 70 5 9 51 6 3 50 11 0 62 16 7 68 16 10 85 18 4 30 '27 31 84 142 171 327 12 0 553 16 0 666 18 0 Totals .. 585 4 4 623 19 2 658 5 11 27-91 (average) 1,760 6,864 0 0