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Under ordinary conditions, and allowing for a small margin of timber being met with, the capacity of each dredge is about (i..">(«> cubic yards pel month, but where much timber is encountered the capacity of each dredge would be about 4,(KM) cubic yards per month. Heavy timber is successfully handled by the dredgers, aided, of course, by explosives where the timber is long or deeply rooted. The Department is fortunate in having the services of two capable dredgemasters who thoroughly understand their business. It is interesting to note that while dredger No. 1 is now covering more length per month than dredger No. 2, yet the cubic yards lifted are about equal, as the former dredger excavates to a lesser depth than dredger No. 2. Puhanga Canal Overflow, The above work was let in two contracts to Messrs. Onion and Dtifty, but they later on transferred their interests to .Mr. R. R. McGregor. It is a matter for cegrei that more progress has not been made with this work, but what has been completed has been well done. The contractor, however, on instructions having been given him, stripped the peat throughout for a considerable width, so that in the event of a flood a decided easement will be effected in the locality. The total amount of material so far excavated under both contracts, and used to form combined road and stop-bank, totals some 28,780 cubic yards. No doubt scarcity of labour has materially contributed to the slow progress made by the contractor. Two motor-machines, operating buckets filled by hand, and hoisted and run round on a jib, are being used in addition to other labour. Dredger No. 2 constructed some 25 chains of this canal, excavating 20,709 cubic yards of material, prior to letting contract for balance. Waitakaruru-Maukoro Canal. The excavation of this canal is being done by Priestman dredger No. 1, and a total length of 142 chains by 12 ft. in width is now completed. This shows a distance of 92 chains dredged during the past year. The construction of a dam some months ago materially assisted dredging operations, the water thereby always being kept at one level, instead of, as formerly, being subject to rise and fall of tides. A very great deal of heavy timber has been met with, which materially affected the rate of progress. There is still some 30 chains ahead of dredger stripped of peat, and the timber is exposed to view. As required, explosives are used to break up the heavier logs and deep-seated roots. As regards this canal, it will pay well to push it through so long as the automatic chutes can handle the spoil, but should the face of peat ultimately become too high and the chutes be unable to cope with same, it might be necessary to discontinue this method of working. This contingency, however, is not to be anticipated for some considerable time, and as the canal progresses the face of the country drops, being relieved of the water. The depth of peat at head-works is not as much as was anticipated, being about o<) per cent. less. ' Waikaka Canal. This is being cut by dredger No. 2, and will on completion greatly relieve the flood-waters, and shorten the distance on Piako River by one mile. A very ugly bend will be cut off by our operations, and navigation assisted. A total of 35 chains by 42 ft. wide has been completed, some 40,005 cubic yards having been excavated. A lot of timber has also been met with. Owing to the Piako River being very low this season, dredging had to be carried to a greater depth than was anticipated, but as soon as the winter rains come on less depth will be necessary, as there will be more water to work in. Stop-banks. The total length of stop-banks completed to date is 27 miles 2 chains, and these are continuous as to the several localities of same. Flood-gates are placed therein at fairly frequent intervals throughout, but more will be added as circumstances permit. These stop-banks will require materially strengthening in places, and from time to time must be raised as the banks settle and consolidate. Naturally, some small local failures must be expected from time to time until the adjacent countrydries and the subsoil becomes less " soupy." Considerable trouble has been experienced in connection with the stop-banks extending for about one mile in from the mouth of the river, on account of the very unstable and " soupy" ground upon which stop-banks had to be constructed. This is generally experienced in estuaries where tidal conditions are prominent. The ground is practically a crust for a depth of 4 ft., and under that lies soft blue mud which, upon pressure of the banks, oozes up and causes trouble. All lands disposed of are now protected by stop-banks up to the level of ascertained ordinary flood conditions. Formed Roads. The total length of completely formed cart-roads — i.e., drains on both sides of road, and formation full width —is 19 miles 23 chains. Road-banks. The total length of road-banks —i.e., spoil from road-drains removed 4 ft. from edge thereof and spread 12 ft. in width—is 27 miles 63 chains. As circumstances allow another drain will be placed on opposite side of road, and the properly constructed cart-road duly made. Drains in Operation. The total mileage of drains in operation on the Hauraki Plains is now 211 miles 69 chains, and includes stop-bank drains, road-drains, subdivisional drains, service-drains, and outfalls of all descriptions. Snagging Piako and Waitoa Rivers. Two.special votes arc being expended very satisfactorily upon the snagging of the above rivers. That of the Piako River is being done by special contract, while day labour is being utilized on the Waitoa River. Both works are progressing well, as the season has been a very dry one. The work will, of course, be discontinued when the floods set in, but will be taken up again when circumstances