Proof. FABIAN TRACT No. 81. MUNICIPA L WATER. MANY of the smaller municipalities of England and Wales remain without a municipal water supply ; but of the large towns only in London, Bristol, Newcastle-on-Tyne, Norwich, Gateshead and Portsmouth does the supply remain under private control. In Scotland and Ireland all the large towns enjoy a municipal service. Legal facilities for the transfer of a water supply from private to public control do not exist. Sometimes it is possible to introduce a new supply. Richmond, for instance, severed itself from the Metropolitan Water District in 1876, and established a municipal supplydrawn from wells and other sources. Very frequently Urban Districts and small townships are supplied by the corporation of a neighboring municipality. Bolton, Bury, Nottingham and Salford, for example, supply wide areas beyond the city boundaries. Ossett obtained an Act enabling it to construct a reserve or distribution reservoir ; the water is purchased in bulk from the Dewsbury and Heckmondwike Water Board. Often an agreement is arrived at before the necessary Act of Parliament is obtained. Powerful companies have frequently been able to insist that purchase be effected under the provisions of the Lands Clauses Consolidation Acts, which ensure a large bonus to the shareholders. From the public point of view the most satisfactory course is to insert in the Act authorizing purchase a special clause defining the basis on which the price paidfor the undertaking is to be calculated. In most municipalities the Corporation administers the water supply, and experience shows that body to be the most suitable authority. Edinburgh has a Water Trust. The Belfast supply is controlled by a Water Commission, but the Commission and the Corporation appear apt to come into conflict and to oppose each other's policy. The proposal to place London's supply in the hands of a Trust was received with general disfavor by the authorities concerned. Birmingham's Municipal Supply. In 1874 Mr. Joseph Chamberlain, Mayor of Birmingham, conceived a scheme for the municipalization of the city's water supply. In those days Mr. Chamberlain's schemes had the happy knack of becoming accomplished facts in comparatively brief spaces of time, and the Bill authorizing the purchase of the undertaking of the local water company was passed in 1875. In supporting that Bill in the House of Commons, Mr. Chamberlain laid down this excellent d?ctrine : " It seems to me absolutely certain that what Pr?fessor Stmon called 'the power of life and death,' should not be m the ~1-11 1-'HLEMtt. 1 II ('bl ) ~) ~ 2 ..~.? of a mmercial c mpany, but should be cntru t~d nly to the r •pr •ntative f the peopl •. I think the supply f water sh uld not be directly r indir ·ctly dependent n the profits of a private associatiou." Th • rp ration were cmp wcred to require th • ' mpany l< sell the undertaking by arbitrati n, failing agree- m ·nt. Th • har ·hold ·rs receiv •d paym nt by annuitie ·, to extin- guish which aft ·r five y •ar ·a sinking fund was establi ·bed. A reserve lund ol £so,ooo was< Is formed. Wh ·n the undertaking wa · taken over by the orporation, the authoriz •cl capital of the ompany wa ' £756,0001 Of which .l671,975 had b · ·n i ·su ·d. The l urcha ·• Bill I ·ft the II u e f omm ns r ·t, ining th · ·p ·cia! clause inserted by th ' rp rati n f r the d •t ·rmination of th • terms of purcha ·c. The Ilou ·e f Lords insi 'l •d thnt purchase should be e!Tected under th' provi ions of the L nds lf th · annu,\l valu • of £2,376 in resp •ct f p s ible profit n capital authoriz·d but n t ·all ·d up, and £875 as compemation ~ r unpaid I a k divicl •ncls. Yet water r •ntals w •r ' greatly r ·duccd by the 'orpmatinn, aud Lh ' r •s •rv · lund formed in accordan e with the ct i ·Ids an in ·om · f :lz,o o a y •ar for the alleviati n of the rat'S. Th ·growth of th • population has cnmp ·ll ·d the rporation to s ·<:1 fr · h sour s I supply. [n 1 llq~ Parliam •nt sancti ned ,\ ·cheme for bringing wat ·r by an aqu ·clu t eighty mil •s in length from an uuinh. bit ·dar•a of hinh Vv •I·h 111 rlaml. Th • auth riwd expcn- ditur · IS £6, oo,ooo ; but this will imp ·e 11 burd •n on the rat •pay ·rs. Th • rporation hav0 r ·du ·d wat •r rents by .{33,000 a y •ar ·in ·t• th · supply cam • into th •ir hand ·. By re-imp ·ing.4-.:q.,oo ofthat ann uc1l ' LIIn .II clurg·· on tht.! \;V •l·h sch •me will be 111 ·t. Th • dam · and r ·sen irs ar' b •ing constructed by th · rp r- ation; but th · aqu ·tlu t , tunn ·1 and railways ar • lt:t to coutract rs. Glasgow. in•enuit . ~1-11 1-'HLEMtt. 1 II ('bl ) ~) ~ 2 ..~.? of a mmercial c mpany, but should be cntru t~d nly to the r •pr •ntative f the peopl •. I think the supply f water sh uld not be directly r indir ·ctly dependent n the profits of a private associatiou." Th • rp ration were cmp wcred to require th • ' mpany l< sell the undertaking by arbitrati n, failing agree- m ·nt. Th • har ·hold ·rs receiv •d paym nt by annuitie ·, to extin- guish which aft ·r five y •ar ·a sinking fund was establi ·bed. A reserve lund ol £so,ooo was< Is formed. Wh ·n the undertaking wa · taken over by the orporation, the authoriz •cl capital of the ompany wa ' £756,0001 Of which .l671,975 had b · ·n i ·su ·d. The l urcha ·• Bill I ·ft the II u e f omm ns r ·t, ining th · ·p ·cia! clause inserted by th ' rp rati n f r the d •t ·rmination of th • terms of purcha ·c. The Ilou ·e f Lords insi 'l •d thnt purchase should be e!Tected under th' provi ions of the L nds lf th · annu,\l valu • of £2,376 in resp •ct f p s ible profit n capital authoriz·d but n t ·all ·d up, and £875 as compemation ~ r unpaid I a k divicl •ncls. Yet water r •ntals w •r ' greatly r ·duccd by the 'orpmatinn, aud Lh ' r •s •rv · lund formed in accordan e with the ct i ·Ids an in ·om · f :lz,o o a y •ar for the alleviati n of the rat'S. Th ·growth of th • population has cnmp ·ll ·d the rporation to s ·<:1 fr · h sour s I supply. [n 1 llq~ Parliam •nt sancti ned ,\ ·cheme for bringing wat ·r by an aqu ·clu t eighty mil •s in length from an uuinh. bit ·dar•a of hinh Vv •I·h 111 rlaml. Th • auth riwd expcn- ditur · IS £6, oo,ooo ; but this will imp ·e 11 burd •n on the rat •pay ·rs. Th • rporation hav0 r ·du ·d wat •r rents by .{33,000 a y •ar ·in ·t• th · supply cam • into th •ir hand ·. By re-imp ·ing.4-.:q.,oo ofthat ann uc1l ' LIIn .II clurg·· on tht.! \;V •l·h sch •me will be 111 ·t. Th • dam · and r ·sen irs ar' b •ing constructed by th · rp r- ation; but th · aqu ·tlu t , tunn ·1 and railways ar • lt:t to coutract rs. Glasgow. in•enuit . 3 posed, and statistics prove that the consumer shows no disposition to waste the water simply because he has plenty of it. The companies that once controlled the supply charged a water rental of fourteen pence in the £. The municipal rate has been gradually reduced to sixpence, and hospitals and fountains are supplied free of charge. The annual profit is about £ 4o,ooo, which sum is applied to the sinking fund for the extinction of the water debt of nearly£3,ooo,ooo. Moreover, in the use of soap, and vegetable infusions such as tea, soft water is much more efficient and economical than hard. An ingenious statistician has calculated that £so,ooo a year is thus saved by the people of Glasgow in tea and soap. Various Municipal Supplies. Leeds acquired its water supply in I852. In I865 the Corporationentered on the scheme which has given the city abundant water, and the Corporation is able to make a considerable profit by selling water to several neighboring towns. In 1847 Manchester bought the then existing undertaking, and in I879 the Corporation acquired Lake Thirlmere, in Cumberland, in no way dismayed by the fact that an aqueduct ninety-five miles in length would have to be constructed. The history of many other large towns is on similar lines, and small towns and urban districts have followed their example. Hereford paid £I3,ooo for the supply. In I895-6 the expenditure, including interest and contributions to sinking fund, was £3,I62. The income was £4,9 r 8, so that a considerable profit was made. On the other hand, Kendal, which acquired its supply in I894 for £33,96I, derived an income of only £2,895 to meet a total expenditure of£3,356. Ludlow expended £283 on account of its municipalsupply in I 89s-6, and received £332. Its water rate is only 3d. in £, and is probably lower than in any other municipality in the country, with the exception of Montgomery, where no charge is made for water used for domestic purposes. Municipal versus Private Control. Croydon is supplied partly by the Corporation and partly by the Lambeth Company. A house with a rateable \·alue of £25, which uses municipal water, pays a water rental of 16s. 4d. A house of the same rateable value, in the same city, but within the area of the Lambeth Water Company, has to pay a water rental of £I ISS. Before embarking on its policy of municipalization, the London County Council made enquiries as to the experience of other municipalities which had carried that policy into effect. All declared municipal water a success. A public body, in fear of the electorate, t~kes stringent precautions against pollution, and is careful to make timely provision for a growing population. Water rentals can be reduced to a minimum, and any profit earned is appropriated for the relief of the rates. London has to thank a private company for its East-End water famines and its high water rates ; and to a private company Maidstone owes its typhoid epidemic. 4 London's Fight for Municipal Water. The history of London's struggle for a municipal water supply is parallel with the history of the London County Council. The Council at first found itself powerless to spend money on the promotion of Bills enabling it to purchase the undertakings of the eightMetropolitan water companies. The necessary powers were obtained, and in 1894 Purchase Bills were lodged. -They passed a second reading and had reached an advanced stage in Committee, when the Liberal Government fell and the Bills lvere lost. The fight in Committee had been severe ; but a compromise had been arrived at between the friends of the water monopolists and the representativesof the Council. It was agreed that in deciding the price to be paid for the undertakings certain considerations should be kept in view. The chief were the condition of the property of the companies, their legal rights and responsibilities, their ability to provide for a continually increasing population, and the arrangement by which competition had been eliminated. The Purchase Bills were broughtforward a second time in March, 1896, but Mr. Chaplin would onlyallow their passage on condition that purchase should be effected under the provisions of the Lands Clauses Consolidation Acts, which would give the companies the full market value of their undertakingsplus 10 per cent. for compulsory purchase. Compulsory disturbance of business premises or compulsory purchase of land usually entails loss, and in such cases the Lands Clauses Acts are relevant ; but the only loss likely to be suffered by the holders of shares in water companies through compulsory purchase is the cost of re-investing their money. The Council's representatives in Parliament refused to giveseveral millions of the ratepayers' money as a bonus to the companies, and again the Bills were lost. The conditions under which the Council agreed to purchase are contained in a resolution adopted in December, 1895, setting forth that: "the purchase price of the existing water undertakings shall not be assessed under the provisions of the Lands Clauses Consolidation Acts, but shall be based upon the fair and reasonable value of those undertakings, due regardbeing had to the rights, special circumstances, and obligations of the companies." A third time the Bills were brought forward in the House of Commons, and a third time they failed to pass. Instead of municipalwater, Mr. Chaplin gave London a superfluous Royal Commission. It has been London's misfortune that the question of her water supply has become a pawn in the game of party politics, and apparently she will have to continue to drink impure water supplied at exorbitant and unjust rates, and suffer the dangers and inconveniences of recurring water famines, until the balance of parties is altered in the Council and the Commons. London: Printed by G. STANDRING, 7 & 9 Finsbury-street, E.C.; and published by T HE FABIAN SOCIETY, 276 Strand, W.C.