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holidays or when the miners are not using water. The timber in the tunnels is now getting greatly decayed, and has to be replaced ; but the present condition of the race is such that it is not likely to require much being done for the next twelve months. The maintenance-man at the head-works generally gets and prepares the timber for the flumes and tunnels, and has always a supply on hand ready for use when required. The inaccessible character of the country where the timber has to be obtained on this race, without any roads, and all the adjacent timber being cut down, makes the cost of repairs considerable, or, as the manager puts it, " the cost of effecting repairs, including the cost of timber, is about four times as great as the cost of repairs to the Kumara Water-race." One of the tunnels leading from Stony Creek towards Fox's is in very bad condition. This tunnel is 2-| chains in length, and about half a chain of this distance, in the centre, goes through soft puggy ground : the legs of the timber have sunk into the bottom to such an extent that it is hardly possible to get through. If this gets in a much worse state an open ditch will have to be constructed for about 2|- chains as a new deviation, to avoid sending the water through the tunnel. The ground in the centre of the tunnel is very bad, and to raise it would necessitate the water being left out of the race for some time ; besides it would cost as much to effect repairs as to construct the open ditch. The quantity of water sold from this supply about Waimea and Stafford is very limited. During the past year it has averaged about fifteen and a half sluice-heads of day water and fifteen heads of night water, and this is in no way commensurate with the dimensions of the water-race, or the cost of construction, amounting to £118,762 lis. Bd. In addition to the quantity of day and night water sold at the current price, there has, on an average, been about six sluice-heads given to the miners as waste water at £2 per head per month, as it cannot be sold at the ordinary rates. This waste water could be turned into the supply race leading to the reservoir at the loop-line road and sold at current rates at Kumara. The following statement will show the value of the sales of water, the amount of cash received, the expenditure on maintenance, the outstanding moneys, the number of men employed, and the approximate quantity of gold obtained from claims worked with water from this supply, and the value of the same, for the year ending the 31st March last: —

The amount derived from sales of water for the year has been £1,388 17s. 5d., as against £1,240 9s. 7d. for the year previous; and the expenditure has been £933 3s. 3d. last year, as against £795 7s. 7d. for the same period. This shows that, although the value of the sales of water was increased last year to the extent of £148 7s. 10d.,the expenditure on maintenance was also increased £137 15s. Bd. ;so that the increase in the profits is only £10 12s. 2d. The actual profit on the working of this water-race last year has been £455 14s. 2d. The value of free water given to the miners amounted to £18 15s. 7d., and the average number of men employed in claims w r orked wdth water from this supply was eighty-eight. The approximate quantity of gold obtained was about 3,0720z., representing a value of £11,673 12s. Deducting from this amount the value of the sales of water, the average earnings of the men would be £116 17s. sd. per annum or £2 4s. lid. per week, which shows an increase of Bs. 4d. a week per man over the earning of the previous year. Taking the actual profits on the working of the water-race for last year, it has paid about 3*5 per cent, on the cost of construction, which amounts to £118,762 lis. Bd. Kumara Watee-race. This water-race is in good order, but its carrying capacity is limited by the dimensions of the tunnel from the Kapitea Creek into Larrikins, which at present conveys about 100 sluice-heads. Out of this quantity there has to be supplied to the No. 3 Sludge-channel twenty-three sluice-heads and to the No. 2 channel ten sluice-heads as flushing-water, for which no payment is received ; leaving about sixty-seven sluice-heads for supplying the different claim-holders with sluicing-water. This number of heads is varied, however, in accordance with the number of shifts the sludge-channels are used. The maximum quantity of sluice-heads sold for one day during the past year was seventyfive. In dry weather the tunnel is sufficiently large to carry all the available water, but in ordinary weather a much larger quantity could be got if the tunnel were of sufficient carrying capacity. The average quantity of water sold last year, reckoning 280 working-days of twelve hours each, was 62-7 sluice-heads. This is the largest average for the last eight years, as will be shown by a tabulated statement giving the results of working this water-race every month for that period

Month, Sales of Water. Cash received for Sales of Water. Expenditure. Outstanding Moneys at the Bud of each Month. Number of Men employed. Approximate Quantity of Gold obtained. Value of Gold. 1890. ipril May .. Fune fuly lugust September October November December £ a. d. 116 12 8 121 4 3 125 2 2 127 5 3 125 6 5 123 7 0 139 3 0 126 12 3 93 5 8 £ s, d. 147 1 5 116 10 7 125 5 10 116 7 7 133 13 11 133 0 10 136 6 3 112 11 9 68 2 5 £ s. d. 55 19 6 59 13 6 49 19 2 59 17 6 67 0 4 64 6 2 70 18 3 84 3 0 102 8 10 £ s. d. 61 2 10 61 2 10 58 7 10 60 18 6 60 13 9 59 14 9 58 12 3 57 9 2 59 15 5 97 96 94 91 92 92 89 85 85 Oz. 277 290 261 294 267 280 295 280 200 £ s. d. 1,052 12 0 1,102 0 0 991 16 0 1,117 4 0 1,014 12 0 1,064 0 0 1,121 0 0 1,064 0 0 760 0 0 1891. 76 7 0 96 8 2 118 8 7 120 3 3 86 10 1 97 7 8 154 13 1 82 15 2 81 8 9 58 7 11 57 2 11 59 7 11 77 81 7:1 169 225 234 642 4 0 855 0 0 889 4 0 fanuary February .. Harch Totals 1,388 17 5 1,393 1 7 933 3 3 88 3,072 11,673 12 0