C—3.

Kumara Race. The cash received for sales of water from this race for the year ending 31st March, 1909, was £364 2s. lid., and the expenditure on gauging, maintenance, and repairs was £601 10s. 7d., showing a debit balance of £237 7s. Bd. on the year's transactions. The average number of miners supplied with water from this race during the year was 10-25, a decrease of 1-41 as compared with the previous year ; and the approximate quantity of gold obtained by them was 757 oz., of the value of £2,952 6s. The total sales of water for the year amounted to £380 4s. 7d., a decrease of £1 os. lid. on the preceding year, and the cash received for sales of water shows a decrease of £47 13s. Id. The expenditure on gauging, maintenance, and repairs was £76 10s. 9d. less than during the previous year, and the head-race tunnel, the main and branch races, and the siphons are now in good repair. There has been no sluicing done in the No. 3 Channel during the year, but the sum of £158 lis. Bd. was expended for labour, timber, and other material in effecting urgent repairs. In October last the Long Tunnel Company and Shannan and party gave a written guarantee to open out three claims in the No. 3 Channel deviation as soon as the outside extension was completed. This work was immediately put in hand, and is now sufficiently advanced to allow the parties to start driving their tail-races. The Long Tunnel Company was the on'y party that sluiced into the No. 4 Channel during the year. This company has still a large area of ground, but by far the greater portion of it must be sluiced into the No. 3 Channel deviation, as the No. 4 Channel is too high to work it to advantage. F. G. Thorn and party's claim was the only one sluicing into the No. 5 Channel for the first six months of the year. As a man had to be employed by them to keep the channel in repair, the maintenance was found to be too heavy to be borne by one .party, so they opened out another face in October last. This had the effect of considerably reducing the cost of maintenance per claim, and the results since that time have been fairly satisfactory. McGrath and Co.'s was the only private tail-race supplied with water from this race during the year. Corbett Bros, used no water for their flax-mill since September, 1908. The No. 1 and No. 2 Kapitea dams were empty for ten working-days during the month of March. This is the first time for nine years that the miners on the Kumara field were idle for the want of water. Authorised free water to the value of £142 was supplied from this race during the year. This amount includes a special grant of £127 to the Wheel of Fortune Company for the construction of a branch water-race from the Kumara Supply-race to their reservior at the head of Fox's Creek. The usual quantity of flushing-water authorised by the Department was supplied to the No. 4 and No. 5 Channels, and water was supplied to the Borough of Kumara for fire-brigade and other purposes free of charge. The following is a summary of the revenue and expenditure of this race for the financial year ended 31st March, 1909: Sales of water, £380 4s. 7d. ; cash received, £364 2s. lid.; expenditure, £601 10s. 7d. ; approximate value of gold obtained, £2,952 6s. ; average number of men employed, 10-25. Waimea-Kumara Water-race. The following is a summary of the revenue and expenditure in regard to this race for the financial year ended 31st March, 1909 : Sales of water, £1,519 19s. 4d.; cash received, £1,493 17s. 3d.; expenditure, £1,788 2s. sd. ; approximate value of gold obtained, £13,306 16s. ; average number of men employed, 50-5. In addition to the above amount, the sum of £74 10s. was expended on extension and new work during the year. It will be seen by the above summary that the value of sales of water from the combined races for last year was £1,519 19s. 4d., as against £1,505 ls. sd. for the previous year, thus showing an increase in the value of sales of water for the past year of £14 17s. lid. The expenditure on gauging, maintenance, and repairs was £1,788 2s. 5d., as against £1,971 lis. 3d. for the previous year, thus showing a decrease in the cost of maintenance last year of £183 Bs. lOd. The cash received during the year was £1,493 17s. 3d., as against £1,533 ls. sd. for the previous year, thus showing a falling-off in revenue of £39 4s. 2d. Although the cash received was £26 2s. Id. less than the sales of water for the year, no bad debts were incurred, the whole amount being recoverable. The loss on working the races for the year was £268 3s. Id.; but taking into consideration the large demand for water from the Waimea Race since its extension to Lower German Gully in October last and the probable opening-up in the near future of new ground at Callaghan's Flat and Kumara (commanded by Haney and party's channel and the No. 3 deviation respectively), there is every reason to conclude that the combined races will show a profit for the ensuing year. Wainihinihi Water-race. The supply of water from this race has been excellent throughout the year, and with the water from the Kawhaka Race has kept the Waimea siphon full, except during the month of March, when the quantity was reduced from thirty-three to eighteen or twenty heads. No breaks occurred, and the race has been well maintained and is now in a thorough state of repair. I have, &c, James Rochford, Manager Water-races.

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