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The expense in cleaning out the race and fixing the creek-crossings, as already described, will be very considerable, but unless this had been done it was a hopeless case to expect sufficient revenue from the sales of water to pay the cost of maintenance. As soon as the portion of the race is cleaned out, and repairs completed as far as the east branch of the Manuherikia Biver, the water from all the streams below this will be turned in and sent down to Naseby, and the water which is being sent down to Blackstone Hill from the upper creeks will then be cut off and the upper portion of the race repaired, and the miners at work at Blackstone Hill can then be employed in doing these repairs. Contracts have been let for repairing 40 miles 15 chains 79 links of the race. These contracts amount to £894 3s. 6d. The different creek crossings had to be fixed by day-labour. The race purchased from B. Johnstone's estate has been cleaned out and widened, from Johnstone's Creek to the crossing of the Mount Ida Bace, so that water can be supplied from this creek when the same is available after supplying the miners at Blackstone Hill- Up to the 31st of March last £343 Bs. 9d. was paid on contracts, and £301 16s. 9d. for wages, also 14s. for advertising: making the total expenditure to the end of March last £645 ss. 6d. The upper portion of the race is still to be cleaned out and repaired, and, as the ditch crosses a number of shingle-beds of creeks, where a large amount of water escapes, unless these are fixed in the same manner as the creek-beds between the east branch of the Manuherikia and Naseby, a regular supply of water cannot be depended on; however, there is no immediate necessity for fixing the head creeks, as these are only required to be turned into the race after the snow gets pretty well off the range —that is, after Christmas. Up to that time there is generally plenty of water available from Sheppard's Creek downwards. The whole of these creek crossings should be fixed as soon as can conveniently be done. In January last the water-races and water-rights previously held by B. Johnstone was purchased from the Official Assignee —Mr. Johnstone's estate being in bankruptcy—for £1,000. These races receive their supply from the east branch of the Manuherikia Biver and Hill's Creek, which are both good supplies, and have far more water in them for several months of the year than what Mr. Johnstone's races will carry. Arrangements have been made with the miners at Hill's Creek to pay a certain amount per annum for the first year for the use of the water in these races, they taking their chance of the dry seasons, when there is not sufficient water in the east branch of the Manuherikia Biver and Hill's Creek, and each party pays the proportion of the amount arranged for monthly. Before finally arranging the price that each party had to pay, the miners came to an agreement among themselves as to the priority of the use of the water. The priority and prices arranged are as follows : —lst right, Charles Bose, one head, £50 per annum; 2nd right, Bobert Johnstone, one head, £37 10s. per annum; 3rd right, Wheeler and Wade, one head, £25 per annum; 4th right, Charles Bose, £1 per head per week when required; sth right, W. Wade, £1 per head per week when required, or a cradle-head, say, Bin., £5 per annum; Dillon Brothers, tail-water, £15 per annum. Arrangements have been made with B. Johnstone to clean out the races and keep them in repair on consideration of receiving one head for three months from the 7th February last, from the high-level race, free of charge, and the use of the water from one of the low-level races, to open out a claim and work it for twelve months. This arrangement will reduce the amount Mr. Johnstone has to pay during the year £25. The revenue, however, from these races will be further reduced the first year, as the water will be turned out of the race during the time repairs are being effected to the upper end of the Mount Ida Water-race; but, during such time as the water is turned off, the men will have an opportunity of going to work in executing the repairs. The following statement shows the receipts and expenditure on the race, also the approximate quantity of gold obtained, for the year ending the 31st December last, when the works were taken over by the Government: —

Mount Ida Water-race, 1892.

It will be seen that the sales of water for the past year was £1,396 os. 4d., as against £1,023 15s. 7d. for the year previous, thus showing an increase in the revenue of £372 4s. 9d. for the year. The expenditure for the last year was £1,403, as against £1,110 13s. Bd. for the previous year, which shows an increase of £292 6s. 4d. Taking the sales of water and the cost of maintenance it shows a loss on the working of the race last year of £6 19s. Bd. In addition to this there were liabilities to the extent of £520 4s. sd. on the 31st December, which have since been paid by Government, which makes the total loss on the working last year £527 4s. Id. The average number of miners employed in claims worked with water from this race is 130, and the approximate

Months. Sales of Water. Cash received for Sales of Water. Expenditure. Amount of Outstanding Moneys at End of each Month. Number of Men employed. l« ■ lis! |h ° Value of Gold. 1892. £ a. d. 100 6 3 70 15 0 50 6 7 108 15 0 147 13 4 138 1 8 119 3 4 125 15 0 137 15 0 158 12 6 129 6 8 109 10 0 £ a. d. 103 4 1 24 7 6 85 9 10 93 16 11 157 8 8 180 16 10 93 7 8 89 13 0 105 18 8 151 0 0 110 15 2 156 11 7 £ a. d. 105 18 2 186 10 10 181 17 8 76 7 6 151 8 6 97 19 0 103 7 10 77 13 6 113 3 8 71 12 4 118 1 10 118 19 2 coo 1 " cq a °o lace, CO CQ 0 CD £ hV3 -U CO HH <3 ca n CD a§g rt . •§ afi<s o CQ rH +3 9 o rQ Coin O OO bo Ci U co > a < Oz. 300 250 200 320 400 380 340 350 400 450 350 310 £ s. a. 1,155 0 0 962 10 0 770 0 0 1,232 0 0 1,540 0 0 1,463 0 0 1,309 0 0 1,347 10 0 1,540 0 0 1,732 10 0 1,347 10 0 1,193 10 0 January February March April May June July August September .. October November .. December .. Totals 1,396 0 4 1,379 9 H 1,403 0 0 4,050 15,592 10 0

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