D.—3

Collateral Advantages. The approximate amount of gold, as far as can be ascertained, obtained by means of these works, and the number of miners employed since the first portion of them was completed, have been as follows:—

This shows that there has been £13,830 18s. paid in gold duty; and, taking the yearly number of miners employed, it shows that 3,890 miners' rights have been taken out, as every miner has to hold a miner's right before he can obtain any certificates for rights on the gold fields. Therefore, adding the amount received for miners' rights to the gold duty, it makes £17,720 18s. To this amount may justly be added the Customs duty and other taxation; and in making up this amount every miner's right will at least represent four of the population, inasmuch as the mining community is a migratory population, following the different rushes on the gold fields, and travelling from colony to colony, in accordance with circumstances. If they have payable claims, they will stop in one place for a certain time; but, when any other field offers inducements, they are off at once. Very few of this class settle down to agricultural pursuits. Adopting the basis of population as four for every miner's right issued, and taking £3 7s. per head as the average amount of taxation annually, it makes £42,126 paid under this head. This, added to gold duty and the amount received for miners' rights, makes the total collateral advantages amount to £59,846 18s. Genebal Advantages. Taking the whole as a colonial venture, it shows the direct profits to be £14,067 14s. 9d., and the collateral advantages £59,846 18s., making the total amount £73,914 12s. 9d. that has been collected by means of these works during a period of seven years and five months, which equals £9,966 per annum. Taking the total cost of construction to be £211,602 6s. 6d. it amounts to about 4f per cent, per annum on the total outlay. Water-races on gold fields are properties that are yearly decreasing in value. They are not like roads and railways, which open up the country and become more valuable every year. Waterraces are constructed to command a certain area of auriferous ground, and beyond that area they are of no value : therefore the ground they command is every year being steadily washed away, and consequently diminishing their value. Fifteen years may be fairly set down as the maximum life of a water-race, in order to provide for the redemption of capital. Tailings Difficulty. There is a large area of ground in the vicinity of Kumara that is likely to pay the miners for working it on the hydraulic principle; but the time is not far distant when the question of tailings will crop up. The present tailings site is filled up to near the edge of the Teremakau Eiver, and will soon be depending on the river to wash the tailings away. This will gradually raise the bed of the river and cause it to overflow its banks, and any private land there is on the low flats on either side of the river between the sludge-channel and ocean beach is liable to be damaged by the action of the tailings. However, there is very little agricultural or pastoral land in this locality. Eecapitulation. The original cost of the works was £173,143 lls. Bd.; adding accrued interest, and deducting the profits, the actual cost at the present time is £211,602 6s. 6d. The direct profits from the working of these water-races from the Ist August, 1876, to the 31st August, 1884, have been £14,067 14s. 9d., and the collateral advantages during same period, £59,846 18s.; making a total of £73,924 12s. 9d.: and the amount of gold, as far as can be ascertained, that has been obtained by the aid of these undertakings is 138,3090z. Henby A. Goedon, Inspecting Engineer.

ByAuthority: Gbobge Didsbuby, Government Printer, Wellington.—lBB4.

3

Number of Miners employed Yearly. Amount Date. of Gold obtained. July, 1876, to June, 1877... „ to „ 1878... „ to „ 1879... „ to 31st March, 1880 .at April, 1880, to „ 1881 „ to „ 1882 „ to „ 1883 „ to „ 1884 1884, to 31st August, 1884 No information 740 723 570 511 500 297 384 395 oz. No information 24,000 22.415 19,730 18,917 16,880 11,900 17,305 7,162 Total 138,309