H.—ls.

race is running from the outer end of the power-house, or below the spillway, which is between the power-house and the Canterbury side of the river. The salmon appear to prefer to keep in the strong current and to be unattracted by the comparatively weak stream issuing from the fish-ladder. One is led to the conclusion that the failure of the fish-ladder to serve the purpose for which it was designed is due principally, if not entirely, to the relatively small volume of water that it carries and that the only remedy would be to enlarge it very considerably. Atlantic Salmon. Very excessive floods prevailed in the Upokororo Biver during the whole of April and May, 1934, the two "months which normally provide a good start for the trapping of Atlantic salmon for the Te Anau Hatchery season. The water was so high that it was not possible to get a rack constructed till 29th April, and the pound net that was set up to trap salmon pending the completion of the rack was more often submerged than not. A very high flood on 15th May carried away the rack. The river did not return to normal till 27th May, and a new rack was ready on 31st May. The major part of the run of salmon had passed up the river in the meanwhile. The floods were followed in June by lowwater conditions with very few fish moving, and at the beginning of July by heavy falls of snow which for some time prevented traffic along the Te Anau road. The following statement shows the numbers of fish trapped and ova taken : —

Only fifteen females were stripped, yielding 44,000 ova, of which 21,500 were sent to Tasmania. The remainder were handed over to the Southland Acclimatization Society to be hatched out and the fry liberated in the Upokororo River. The occurrence of further excessive floods in August render it doubtful whether the propagation from naturally deposited spawn in the Upokororo River would provide a very appreciable addition to the stock. The location of the rack and fish-trap was changed this year to a position below the traffic bridge some hundreds of yards nearer the river-mouth, where the river-bed is wider. It was considered that this would relieve the pressure on the rack in times of flood, but this winter's floods were so much higher than usual that no comparison is possible. The rack was well inundated 'before it finally carried away. Salmon angling in the 1934-35 season is reported to have been unsatisfactory. The total number caught is estimated to have been below 150, with an average weight of about 3| lb. A few odd fish were taken in the tidal waters, even as far as the breakers in Te Wae Wae Bay. The river conditions were for the most part unfavourable for salmon-angling, the Waiau being too high for long periods. It would appear that the Atlantic-salmon stock is deteriorating in size and number, while rainbow trout, without any assistance from artificial stocking, are definitely on the increase in the Waiau. Doubtless the later spawning habit, and possibly other biological characters of this species, render it better fitted for the environmental conditions existing in the Waiau watershed. To what extent the factor of rainbow-trout competition may operate in bringing about the apparent deterioration of the Atlantic salmon stock is a question on which light could be thrown only by biological investigations, which at present we have no means of making. Fresh-water Eels. In my last report, in recording the commencement of a commercial enterprise, based at Greytown in the Wairarapa district, for the purpose of utilizing the abundant supplies of eels that are found in most of our New Zealand lakes and rivers, I gave a general account of the occurrence of these fishes, the means whereby they could be taken, their potential economic value and a discussion of their high dietetic value. I pointed out that, though greatly esteemed by many civilized races and of high commercial value in certain countries, the eel as a food-fish did not at present commend itself to the majority of British people. The same bias has temporarily stood in the way of the proper utilization of many other food-fishes and, it is to be hoped, will similarly fade out when we are educated to a more rational understanding and appreciation of the qualities of what we eat. Of the progress of the above-mentioned enterprise I can say nothing further at this stage. It may be mentioned, however, that what was formerly regarded as the principal drawback to most of our New Zealand eels and the chief difficulty in the way of their exportation as a profitable trade—namely, their large size—may very likely prove to be their most valuable quality. The utilization of eel-skins for the manufacture of a very fine leather most suitable for ladies' gloves of the best quality, is now an accomplished fact in Europe. The tanning of the skins to make " kid " of the requisite quality and value is a process that calls for highly specialized technical processes which have already been successfully developed in Europe. European eels are of small size compared with those of New Zealand. Consequently our eel-skins have an appreciably higher value for this particular purpose. There is therefore scope for the development of a minor industry for the manufacture, in the Dominion, of this eel-skin leather. The industry is not one that

19

Males. Females. Totals. April ........ 2 5 7 May . . . . • • • • 4 4 June ........ 13 15 28 July ........ 4 1 5 Totals ...... 19 25 44