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No. 2 contract (6 m. 70 eh. to 7m. 2 eh.): During the year the cutting on this contract has been almost completed ; 10,460 cubic yards have been excavated. The bottom drive (12 ft. by 8 ft.) in the tunnel is in 2 chains. The material, though fairly hard rock, will require timbering. An average of nine men were employed during the year. No. 3 contract (7 m. 3 eh. to 7m. 13-5 eh.): This contract is well on towards completion, about 12.400 cubic yards of solid rock having been taken out. An average of seven men have been employed. No. 4 contract (7 m. 13-5 eh. to 7m. 21 eh.) : 16,000 cubic yards of material, partly rock, partly soft material, have been taken out. Two large blasts of 1,5001b. of gelignite each were successfully fired. An average of seven men have been employed. No. 5 contract (7 m. 22 eh. to 7m. 33 eh.) : This contract was commenced in September, 1910. 10,970 cubic yards of rock have been excavated. Excavation of a further 800 cubic yards will complete ihe contract. An average of nine men have been employed. No. 6 contract (7 m. 33-5 eh. to 7 m. 38-30 eh.) : Work is well on towards completion, 10,000 cubic yards of rock having been taken out. A slip of 2,000 cubic yards came down into the cutting and has been removed. The material in the cutting is fairly hard rock but very much broken. An average of eight men have been employed. No. 7 contract (7 m. 46-6 eh. to 8 m.) : This work was commenced in May last, and 4UO cubic yards have been taken out. The rock is very hard. No. 8 contract (Bm. to 8 id. 38'5ch.) : Work lias not yet been commenced. No. 9 contract (8 m. 42-4 eh. to Bm. 50-5 eh.) : About 280 cubic yards have been excavated. Work was commenced in June. Nos. 10 and 12 contracts (8 m. 50-5 eh. to Bm. 79 eh.) : These two contracts have only just been started. No. 11 contract (7 m. 38-50 eh. bo 7 in. 46-6 eh.) : Excavation on this contract has only just been commenced. The average number of men employed on these contracts so far has been forty-five. <;<>od progress is nofl being made by all the contractors, and the work promises to be done at a satisfai fcory rate. Ngahere Blackball Railway (3m. 40ch. in length). This line, with the exception of a gatekeeper's cottage at Ngahere Bridge and gates to the bridge. both of which are now in course of erection, was completed and handed over to the Working Railways Department on the Ist August, 1910. Greymouth- Point Elizabeth Collieries Railway Extension. Coal Creek Section (3 m. 69 eh. in length). —Fine weather enabled good progress to be made with this line. All the earthworks and platelaying on the main line have been completed, with the exception of the Fell brake rail. On the back-shunt at the terminal station, however, slips have caused a considerable amouni of trouble and extra work. Formation is well in hand, but a good deal of work yet remains to be done. Formidable slips are threatening, but by deviating the line somewhat it is hoped to considerably reduce the amount of work to be carried out. With the exception of one mi wo doubtful places, the main line is standing well, and will be almost free of slips of any magnitude. Work has been commenced on the Seven-mile Creek Bridge on the back-shunt line. Two piers are in course of erection, and foundations are ready for three more. The foundations for this bridge have opened jout disappointingly, and consequently involved considerably more work than was anticipated. Catlin's Waimahaka Railway. Catlin's End. Papatupu Section (24 in. 8 eh. h> '-/ m. 50ch. 3m. 12ch. in length). Work on this section has been completed, and the line is now ready to hand over to the Railway Department. The Public Works Department is, however, retaining control so as to facilitate haulage of ballast from Houipapa quarry, (ioods traffic for the convenience of settlers is being run. Puketiro Section (27m. 50ch. to -il n<. 30ch. 3m. 60ch. in length). Earthworks on this section have been very heavy, and numerous large slips have occurred. This part of the work is, however, now practically finished, the portion remai finished at the end of last year, being between 28 m. t0 eh. and 31 m. 26 eh., having been completed arid trimmed, except for a small amount of work in the Puketiro Station yard. Side ditching and water-tabling has been done to •';! tn. and also all creek-diversions. Puketiro Station has been formed by widening the cutting on saddle, and is practically finished excepi for south end approaches. Metalling will be dune when platelaying is carried to this point. Fencing on both sides is nearly complete, and various crossings hav< in. A pi loadingbank, and shelter-shed have been buih ai Papatupu Station, and a platelayer's cottage'erected at Puketiro. Rails have been laid from 28m. 44ch. to 30m. sch., and Papatupu sidings have been completed. Ballasting (two lifts and boxing) has been carried from 28 m. to 29 m. 73 eh., except on the high banks, which will receive attention when further subsidence has taken place. Both platelaying and ballasting would have been completed to Puketiro i>v this time had it not been for the delay in the supply of sleepers, which, though under co rom Australia .:ud six months overdue, have not arrived, the explanation being given that the floods over there have prevented them being obtained to time. Papatowai Section (31 m. 30 eh. to 37 m. — 5 tn. 50 eh. in length). —This section runs through very rugged country featured with the deepest gullies that have been met with on the line. Bushfelling,

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