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ANNEXURE B. SUMMARY OF REPORT OF GOVERNMENT WATER-RACE MANAGER. Waimea-Kijmaea Watee-baoes (Me. Jambs Rochfoed, Manager). Waimea Water-race. The cash received for sales of water from this race for the year ended 31st March, 1926, was £200 25., and the expenditure on management, gauging, maintenance, and repairs amounted to £795 os. 6d., showing a debit balance of £594 18s. 6d. on the year's transactions. The average number of miners supplied with water was 1-83 a decrease of 3-42 on that of the previous year, and the approximate quantity of gold obtained was 80 oz., valued at £314, a decrease of £1,008 14s. 6d. on that of the previous year. The sales of water, which only amounted to £287 18s. Bd., were the smallest for the past twenty-seven years, and showed a decrease of £251 16s. 3d. as compared with the previous year. In addition to the above sales, water to the value of £10 was supplied free of charge to Blackmun and party and Parker Bros, and Williams as remuneration for work done by them in connection with repairing the break in the race at Hatter's Terrace. The falling-off in the sales of water was principally due to the fact that the Linklater Sluicing Syndicate s claim at Scandinavian Hill, Stafford, which was under lease to Mr. W. Linklater, only used water during the first four months of the yoar, after which he abandoned the property owing to non-payable gold returns, and presumably for the same reason, Blackmun and party ceased sluicing operations early m January, 1926. A contributory cause of the reduced sales was the two rather serious breaks in the race, one in a tunnel at Pox's which took place on the 24th August, and the other in the open ditching at Hatter's Terrace, near Stafford, which occurred during the big flood on the 21st November. These two breaks had the effect of completely cutting off the supply of water from Blackmun and party and Parker Bros, and Williams, sawmillers, for forty and twenty-five days respectively. As this goes on, however, it becomes increasingly evident that practically all the payable sluicing-ground commanded by the old original Waimea Wator-race, which was completed about the end of 1874, has been worked away, and there appears little probability of a mining revival taking place in the vicinity of this oncefamed gold-producing locality. ' Messrs. Parker Bros, and Williams worked their sawmill at Gillam s Gully throughout the year, but owing to loss of time occasioned by the breaks previously mentioned, and the lack of orders during two or three months of the year, when they carried on with half a team of men, they only purchased water to the value of £185 25., a reduction of £20 on the previous year. The different sections of open ditching and flummg on this race are in fair order, but some of the old timbered tunnels in the vicinity of Fox's and Goldsborough will require careful supervision and occasional repairs, otherwise serious breaks can be expected. There was an excellent supply of water from the race, and the Waimea inverted siphon was practically running full all the year. The cash received was £216 lis. 2d. less than the previous year, and the expenditure showed a decrease of £14 12s. 2d. Branch Race to Callaghan's and Middle Branch Flat. The cash received for sales of water from this race for the year ended 31st March, 1926, was £64 lis. Bd., and the expenditure on management, gauging, maintenance, and repairs amounted to £482 Bs. 6d., showing a debit balance of £417 16s. lOd. on the year's transactions. The average number of miners supphed with water was 2-25, and the approximate quantity of gold obtained was 146 oz., having a value of £573 Is., a decrease of £439 12s. on that of the previous year. . , . Havill's claim was worked throughout the year, and a certain amount of sluicing was done m each month, but they only purchased water to the value of £64 lis. Bd., a reduction of £37 ss. lOd. on the previous year. As pointed out in previous reports, this party is seriously handicapped owing to lack of pressure from the Callaghan's Water-race, but, even taking this drawback into consideration, the quantity of water purchased by them was far from satisfactory, o • ~,• During the year a considerable amount of repair work was carried out by the staff to the fiumings on this race, but further repairs will be necessary from time to time, as the superstructure of most of them is m a rather bad state. , , . . . ~ ... The cash received was £37 Is. less than the amount received during the previous year, and the expenditure for the same period showed an increase of £6 7s. 3d. Kumara Water-race. The cash received from sales of water from this race amounted to £130 13s. 4d., for royalty on timber cut on the Reservoir Reserve £428 Is. 3d., and for sale of old 26 in. pipes £90 18s., making a total revenue of £649 12s. 7d. The expenditure on maintenance and repairs amounted to £21 6s. 5d., thus showing a profit of £628 6s. 2d. on the year's transactions. , , . . . , , No miners were supplied with water from this race during the year, the whole of the revenue derived from sales was received from the Okuku Sawmill Company for water supplied for power-development. A small number of intermediate sets of timber and some linmg-boards were placed m position m the Kumara Head-race Tunnel during the year, but there are still some dangerous sections in this tunnel, and at the present time a number of additional intermediate sets are required to ensure safety. With the exception of the sections of tunnel above referred to, the Kumara Water-race and the Nos. 1 and 2 Kapitea Reservoirs are in good order. Kumara-Trans-Taramakau Water Races. The only party supphed with water from this race was the Payne's Gully Sluicing Company, which carried on sluicing operations from the beginning of the financial year until the middle of November, when a serious break took place in the trans-Taramakau pipe-line on the river-flat on the north side of the pipe-bndge, which completely cut off their water-supply. By arrangement with the Mines Department this company had to maintain the pipe-line in question and do its own gauging, and in consequence was being supplied with water at a reduced rate. The maintenance of the pipe-line has been a rather expensive proposition for the company, owing to the frequently recurring breaks in the steel sections of piping, which, apart from the cost repair, were°a serious drawback to the efficient working of their property. The water supplied to the Paynes Gully Sluicing Company is not included in the sales, as it was supplied in lieu of cash expended by the company on repairs to the trans-Taramakau pipe-line some years ago. Wainihinihi and Waimea Additional Supply Water-races. During the year a number of intermediate sets of hewn timber Were prepared and placed in position in the tunnels by the staff, but a further number will be required in the near future to ensure safety. The open ditching in both races is in good order. Waimea-Kumara and Callaghan's Water-races. The following is a summary of the revenue and expenditure of the above water-races for the year ended 31st March, 1926°: Sales of water, £483 3s. Bd.; cash received, £914 6s. 3d. (including royalty on timber and sale of pipes); expenditure, £1,298 15s. sd. ; approximate value of gold obtained, £1,283 9s. 6d.; average number of miners omployed, 6-08. The sales of water show a decrease of £309 2s. Id., and the cash received a decrease of £316 Is. The total expenditure on the combined races amounted to £1,298 15s. 5d., as against £1,318 19s. sd. a decrease of £20 4s. Comparing the cash received with the expenditure, the combined races show a loss of £384 9s. 2d., but from this should be deducted the sum of £64, for water supplied to the Payne s Gully Sluicing Company in reduction of its account, which reduces the net loss to £320 9s. 2d.