B.— 3-,

2

Therefore, to the original cost must be added £52,526 9s. 7d. as interest accruing on the capital, thus making the total cost to be £225,670 Is. 3d.

Receipts and Expenditure. Since the completion of the first portion of the works in July, 1876, up to the 31st August, 1884, the sales of water from the Waimea-Kumara Water-race, and the expenditure on maintenance have been as follows:—

This shows a profit of £22,234 18s. 6d., but this is considerably diminished by the working of the Kumara Sludge-channel. This channel was completed in March, 1882; and from that date to the 31st August last, the channel fees and expenditure on maintenance have been as follows: —

The working of the sludge-channel, therefore, shows a direct loss of £7,564 3s. 10d., during a period of two years and five months. To take the water-races and sludge-channel conjointly, the sales of water and channel fees amount to £46,124 ss. Id., and the expenditure on maintenance to £31,453 10s. 5d., leaving a balance in favour of sales of water and channel fees of £14,670 14s. Bd. ; but from this amount there is a deduction to be made before arriving at the direct profits. There are bad debts written off the books amounting to £96 55., and the amount of outstanding accounts on the 31st August last amounted to £2,506 14s. lid. The outstanding accounts to the amount of £2,000 are considered good, and may be calculated as such in making any statement with reference to the benefits derivedjby the construction of these works. Therefore A a deduction of £602 19s. lid. has to be made from the sales of water and channel fees, which leaves £14,067 14s. 9d. direct profit on the undertaking. As accrued interest has been added to the original cost of construction, the amount of direct.profits, £14,067 14s. 9d., will have to be deducted from £225,670 Is. 3d., which makes the actual cost of the works to be £211,602 6s. 6d. The profits from this undertaking having extended over a period of seven years and five months, they amount to about £1,897 per annum, or about f per cent, on the capital invested.

Date. Amount of Expenditure at the End of the Year. The Mean Expenditure on which Interest is payable. +3 o CD Amount of Interest accrued. "une, 1873, to June, 1875 „ to „ 1876 „ to „ 1877 „ to „ 1878 to „ 1879 „ to „ 1880 „ to „ 1881 „ to „ 1882 „ „ to „ 1883 . to „ 1884 £ 78,004 98,118 117,961 128,827 141,619 144,590 151,366 162,598 164,556 173,044 £ 78,004 88,061 108,039 123,394 135,223 143,104 147,978 156,982 163,577 168,800 4 4 4 4 4 4 4 4 4 4 £ 3,120-li 3,522-4. 4,321-51 4,935-71 5,408-9! 5,724-H 5,919-1! 6,279-2! 6,543-01 6,752-01 Total accrued interest 52,526-41

Date. Sales of Water. Expenditure on Maintenance. August, 1876, to 30th June, 1878 .st July, 1878, to 30th June, 1879 .st July, 1879, to 31st March, 1880 st April, 1880, to 31st March, 1881 st April, 1881, to 31st March, 1882 .st April, 1882, to 31st March, 1883 .st April, 1883, to 31st March, 1884 .st April, 1884, to 31st August, 1884 £ s. d. 4,213 13 6 4,567 0 8 3,736 11 9 4,453 16 4 4,344 8 10 5,623 13 4 10,414 6 5 4,804 8 1 £ s. a. 2,299 19 8 2,000 0 0 1,892 0 0 3,208 19 1 3,483 14 6 2,702 15 6 3,174 13 4 1,160 18 4 Totals 42,157 18 11 19,923 0 5

Date. Channel Pecs. Cost of Maintcnanco. 1st April, 1882, to 31st March, 1883 1st April, 1883, to 31st March, 1884 lat April, 1884, to 31st August, 1884 £ s. a. 925 13 4 2,127 18 3 912 14 7 £ s. a. 1,703 11 1 6,405 10 8 3,421 8 3 Totals 3,966 6 2 11,530 10 0