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D.—l

the ensuing year. So far as can be judged from the small floods that have occurred since their construction, these works will afford protection to the town and railway from the serious damage that is done by great floods; and they have had the immediate effect of stopping the encroachment of the river on its bank, which threatened to carry away, piecemeal, the peninsula occupied by Balclutha and the railway. In addition to ordinary extensions of a minor character, the following larger station works have been carried out: Refreshment-rooms and extension of passenger-station at Oamaru; and goods-sheds at Lovell's Flat, Waiwera, and East Gore. Preparations are also being made for enlarging the enginesheds at Oamaru, Palmerston, and Balclutha, and building a new one at Invercargill. Duntroon Branch. —After a considerable delay, satisfactory arrangements have just been made for acquiring the land on the extension of this line across the Maerewhenua River. Instructions have therefore been given to finish the works as soon as possible. It is expected that they will be completed to admit of the line being opeued early in June. The Duntroon and Hakateramea Railway is a continuation inland of the Duntroon Branch ; so the completion of the link across the Maerewhenua River opens up railway communication between Oamaru and the Waitaki Valley as far as the Hakateramea junction. * Ngapara-Livinqstone Branch. —The works on this line, originally opened for the " unemployed " in July, 1879, and stopped in January, 1880, were re-opened in April, 1880, and finally closed in December last. During last year the number of men employed ranged from 75 to 175. The total expenditure to date—including the year 1879-80—is about £34,600, and the total quantities executed of the principal works are : Earthwork, 325,500 cubic yards ; rock-cutting, 51,700 cubic yards ; and masonry, 4,200 cubic yards. The average cost has been : Earthwork, lljd. per cubic yard for labour only; rockcutting, Is. sd. for labour and blasting-powder; and masonry, 30s. per cubic yard for labour and materials. With the exception of the tunnels and approaches, which are not yet begun, the formation on the first twelve miles of the Ngapara-Livingstone Branch is nearly finished. Palmerston-Waihemo Branch. — With the view of dispersing them through the country, about 50 of the men on the Livingstone line were transferred to the Palmerston-Waihemo Branch in October. They were kept on till December and then paid off, other work being plentiful. A small quantity of excavation taken out by them is the only work done on this line during the past year. Catlin's River Branch. —The Invertiel contract, which was in progress at the end of last year, was satisfactorily completed a short time afterwards. As in the case of the Palmerston-Waihemo Branch, a lot of the " unemployed " were transferred from the Otago Central to this line during summer, and shortly afterwards discharged : the quantity of work done by them was very small. The detailed survey of the remainder of this branch from the seventh mile to the terminus at Catlin's River is in progress. Waipahi-Heriot Burn Branch. —The Tapanui section, comprising the first 154 miles of this branch, and extending from the main line to Kelso, was opened for traffic on the Ist December last. Some minor station works, which were then incomplete, have since been provided, so the line is in good working order and well equipped. Edendale-Toitois Branch. —The Wyndham contract —the first section on this line—was finished satisfactorily in June, 1880. A gang of the "unemployed" was sent from Hindon in November, and kept on this line for a month and then discharged. The small quantity of excavation done by them is the only new work undertaken during the year. The detailed survey of another section of this branch from Wyndham towards Toitois is in progress. The line adopted is the one known as the inland route. It leaves the Mataura Valley at the crossing of the Wyndham River, and runs up the small lateral valley at Brand's Homestead and the Kuriwao Valley to near the Glenham Station; then follows the low undulating ground to near the Pine Bush Hotel, and from thence into the Waimahaka Valley. Otago Centbal Railway. General. —The working survey of this line is finished from its commencement to near Hyde, and again from the Rough Ridge to the Hawea Lake; but the preliminary survey is only made of the intervening length from Hyde to Rough Ridge. The party that was engaged in making the working survey on the latter section, was recalled in August last. Wingatui Contract. —The formation is practically completed, with the exception of the tunnels and approaches, on which little has yet been done. The works are being carried out in a very satisfactory manner, and there has hitherto been no serious difficulty from slips or similar mishaps. Hindon Section. —This is the section on which the great majority of the "unemployed" in Otago were set to work. At the end of last financial year the number of men on the works was about 400. They increased during April to 500, and the maximum was reached in August, when there were 700 at work. The wages of single men being then reduced to 18s. a week, about 120 left of their own accord. After this, gangs were sent to Port Chalmers, Catlin's River, Edendale, and Orepuki, and gradually discharged; so in December none remained on the works except about 115, who had contracts for the whole of their cuttings. A number of these contracts have since been worked out, and there are now only about 60 men on the works. These also will leave piecemeal within the next few months, as their contracts get finished. The total expenditure to date on the Hindon section, including the year 1879-80, is about £64,9U0 ; and the total quantities of the principal works executed are : Earthwork, 450,900 cubic yards ; rock-cutting, 291,700 cubic yards ; and masonry, 4,700 cubic yards. The average cost has been : Earthwork, 10fd. per cubic yard for labour only ; rock-cutting, Is. s|d. per cubic yard for labour and blastingpowder ; and masonry, 30s. per cubic yard for labour and materials. With the exception of the small tunnels —which are untouched —nearly all the formation on the Hindon section will be finished to the Deep Stream, when the small contracts above referred to run out. The Deep Stream is 20 miles from the commencement of the railway at the Chain Hills.