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Loan Account. 31st March, 1913. £ a. d. I Ist April, 1912. £ s. d. To Balance .. .. .. .. 118,941 7 4 ! By Balance due to Loans to Local Bodies , Account (on original loan of £31,000) .. .. .. 34,729 1 7 31st March, 1913. Year's interest at 4 per cent, per annum .. .. .. 1,389 3 3 Advances made by the New Zealand State - guaranteed Advances OfficeNo. 1 Loan—Balance .. .. 4,784 7 6 No. 2 „ „ .. .. 4,784 7 6 No. 3 „ „ .. .. 4,821 17 6 No. 4 „ „ .. .. 9,643 15 0 No. 5 ~ „ .. .. 24,293 15 0 No. 6 „ „ .. .. 9,790 0 0 No. 7 „ „ .. .. 9,868 15 0 No. 8 „ „ .. .. 9,868 15 0 No. 9 „ „ .. .. 4,967 10 0 £118,941 7 4 £118,941 7 4

REPORT BY LAND DRAINAGE ENGINEER. Sir — I have the honour, in accordance with the provisions of the Hauraki Plains Act, 1908, to report upon the various operations carried out for the year ending on the 31st March, 1913. As in previous years, the development and maintenance of the land-drainage system has been actively carried on, and every effort has been made to improve the existing drainage and road works. Naturally, with such a great mileage of this class we have had to, carefully allocate available funds, and when the different details hereafter are considered it will be seen that the calls for maintenance are now considerable and ever increasing. As no county rates are paid by settlers on Hauraki Plains, naturally the upkeep of roads is a charge upon special grants and the Hauraki Plains Settlement Account. During the past year some 2,540 acres of excellent drained country was made available for selection and is now in occupation. The total area now reclaimed and settled is 30,010 acres, and this area is occupied by some 199 selectors. This result may be fairly claimed as being very satisfactory, and represents the transformation of previously useless swamp into what will in the near'future be some of the most valuable dairying-land in the district. Very great strides have been made by the settlers in improving and grassing their holdings, and a considerable amount of cream has been sent away to the factories during the past year. Fortunately these selectors are very enthusiastic and progressive, which is a matter for congratulation, and every reasonable effort is being made to help them. In each particular work dealt with hereafter, totals are given showing the position the various works have reached as at the 31st March, 1913, and details of all classes of work executed during the year are shown separately under the heading of " Works performed." Peiestman Dredges. Both dredger No. 1 and dredger No. 2 have been actively engaged during the past year in connection with the improvement of the Piako River, a total of 140,262 cubic yards of alluvial clay being excavated and deposited on the river-banks during the year, at an average cost of 3-05 d. per cubic yard. This cost includes every charge against wages, supplies, repairs, idle time, holidays, and maintenance. The dredges operated on the widening of some 4J miles of the Piako River between the Awaiti Stream and the Waikaka Canal. Between these points there was.great restriction of the river crosssection, and this has been increased in width by an average of 20 ft. throughout. The flood-waters will now readily discharge instead of being " banked up " as in the past. The Awaiti* Stream was also dredged and widened for some 10 chains. It may be mentioned that considerable trouble was experienced in dealing with the many willowtrees met with en route. The spoil excavated will in the future serve for stop-banks when developing the area in the locality. Our dredgemasters have, as in the past," evinced great interest in their work, which has been excellent and, moreover, economical. Waitakaruru-Matjkoro Canal. No work has been done on this canal by dredgers during the past year, as they were required for urgent work on the Piako River. However, the policy of stripping the peat for full width of 42 ft. by 5 ft. in depth has been prosecuted, and a length of 75 chains has been executed during the year. Trouble is experienced in carrying out this work throughout the year, as in midwinter the men cannot work up to their waists in " slurry " because of the cold, and in summer there is a scarcity of water for sluicing purposes.