e Fabian Municipal Program, No.""h.._ n's ~afc~ ~~ioufe. It costs less than £700,000 a year to supply London with water; but London has to pay over £1,700,000 for the water so supplied. The balance pays dividends to shareholders on stock, of which the market value is probably now £33,000,000. But this nominal capital value of thirty-three millions sterlingis ;nerely the inflation due to fond anticipations of purchase bythe public at an extravagant price. The actual capitalexpenditure has been only a little over fourteen millions sterling. Twenty years ago the proprietors valued their investment on the Stock Exchange at not more than £140 for each £100 of outlay. In 1883, aftti!r the Conservative Government's prodigal offer of 187H-80, it stood at £213, and now it stands on an average at about £227 per £100, But London is not bound by these extravagant estimates; and the London County Council may, if it chooses, give the companies the go-by, and imitate Manchester and Liverpool in seeking for itself an unpolluted supply from afar. London is at present supplied with water from the works of eight companies of private shareholders, whose expenditure, largely swollen by the former reckless competition between rival companies, by legal and Parliamentary charges, and by the wasteful extravagance engendered by abundant wealth. It is probable that duplicates of the existing works, mains and other plant could be constructed for a much smaller sum-say, ten millions sterling, which could be raised on the credit of the County Council at about 3 per cent. Even on the inflated outlay, a splendid dividend is paid. The companies make an annual profit of more than a million sterling, equal to over 7~ per cent. on the whole, notwithstandinglavish pay and pension to all the superior employes, and handsome fees to directors. The ordinary shareholders often get as much as 11 per cent., as, for instance, in the case of the New River Company for the last five years.• RATES PER CEMT. OF DIVIDENDS. (Corrected from the Stock Excha11ge Year Book, 1891. Company. Dividend 1~87. Dividend 1888. Dividend 1889. Chelsea .................. ... East London ............ Grand Junction ......... Kent ........................ Lambeth .................. New River ............... Southwark &Vauxhall West Middlesex ......... Per Cell'!,!! 10 8~ £11 18s. 9d. G 10 Per Cent. 9 7 9 10 81 £11 18s. 9d. G 10 l Per Cent. ~t 9 10 and ~ per cent towards back divtdends. 9 £11 18s, 9d. 6 10 • The shareholders of the New River Company possess, moreover, anomalous electoral privileges. The owner of ever S? .small a fractional part (providedthat it produces £2 a year) of o~e of the. on~p~al shares possesses a vote as a freeholder in every county const1tuency m wh1ch the comp<~ny owns property, or through which its pipes pass. These shares also escap~ yrobate duty, and pay only succession in place of legacy duty. One of the ongmal" Adventurer's Shares" was sold by auction in 188!! for £1 2:.!,800. The original capital contributed on tbis share was probably about £100. .By the end of 1889 the number of houses supplied had grown to 758,335, and the water rentals to £1,764,047. Whilst tile number of houses supplied in 15 years rose 46 per cent., the rental received increased 71 per cent. The average payment per house rose from £1 18s. Od. to £2 4s. 5d., whilst the quantityof water supplied to each house, has, on the whole, positively <.lecreased. The result is shown in the growing profits of the companies Net Water Rental of the Metropolitan W ater Compa11ies for the Years 1884 a11d 1887 to 1889. 1888. 188'1. 1889. Company. 1884. £ s. d. £ s. d. £ s d. £ s. d. 122,889 12 8 123,290 10 8 126,570 11 10 109,376 16 9 Chelsea ........................ 6,132 3 8 4,022 7 5 400 18 0 3,280 1 2 The year's increase ... 249,517 6 8 257,191 3 9 241,873 711 251,3G7 12 10 East London .................. 6G9 1 10 5,149 4 9 5,823 10 11 The year's increase ... 1,850 6 2 (Decrease) Grond Junction ...... ...... The ) ear's increase... 1L2,5G6 574 7 2 011 172,838 11 3,178 2 3 8 172,RS8 15 50 4 3 0 173,761 17 873 2 5 2 Kent ......... ..................... The year's increase.. . 109,251 1 4,293 17 3 7 118,3€8 8 5,549 15 1 3 120,002 1,614 9 1 8 7 123,013 10 3,011 1 9 1 Lambeth........................ T he year's increase... 184,363 311 6,898 12 3 200,645 16 6 5,957 16 10 204,823 15 4,177 19 6 0 209,367 18 10 4,544 3 4 New River .. .... ......... ...... The year's increase ... 431,613 11 6,259 2 0 8 447,880 8 10 3,283 18 10 453,015 ll 5,135 3 3 5 464,563 14 ll,fi48 3 3 0 Southwark & Vauxhall ... The year's increase... 195,046 13 771 15 9 8 191,809 8 7,220 14 8 4 197,188 2 10 5,378 14 2 203,800 6,G75 611 4 1 \Vest Middlesex ............ Tbt year's increase... 200,268 15 3 16,615 811 211,856 12 6,446 11 0 5 204,747 14 7,108 17 (Decr,as8 4 e) 205,714 1~ 966 19 9 1 T otal W ater Rental ... T otal Increase .. . Total Decrease... 1,634,359 17 0 41 ,555 1 8 669 1 10 1,715,826 4 40,813 11 ........ . 8 6 1 '727 ,324 12 18,G07 5 7,108 17 8 4 4 1,764,046 17 6 36,722 4 10 .... .... Net Increase...... 40,885 19 10 40,813 11 6 11,498 8 0 36,722 4 10 - These excellent receipts are earned owing to the extraordinary legal rights possessed by the companies, under their private Acts of Parliament, to levy a water rate in proportion to the rental, without reference to the amount of water supplied. As London houses increase in number or size (about 2 per cent. per annum) and those already built rise in value (about 1 per cent. per annum), so the water revenue goes up. It rose 58 per cent , (more than half as much again) between 1872 and 1883, thoughthe number of houses only rose 32 per cent., and the quantity of water delivered per house was nearly always less than in 1872. Tl.cre is no limit to the possible tribute thus leviable npon L ondon, in return for a supply of an article of prime necessity to its inl1abitants. The actual figures for 1887 to 1889 are given below. The water supplied is, moreover, often of doubtful quality. Five companies derive it wholly or partially from the River Thames; the two largest mainly from the River Lea; and only one (Kent) from deep wells. As the population in these river valleys increases, and as the extensive use of manures on the land becomes more general, the sources of supply become steadil ,. <: more polluted.* Lcndon must, ere long, imitate Glasgow, Liverpool, and Manchester in seeking a supply of water from ~orne lonely lake. We want an aqueduct from the Vv'elsh hills, to bring us a constant supply of pure, soft water. But the existing "water lords" will not wiHingly see their polluted supplymade obsolete. . Number of Honses and AveMge Daily Amou1tt of Water supplied by the Met,.opolifa~t Water Compan£es in the Years 1887, 1888, and 1889. Average Number of Houses &c. supplied./ Averag~ Daily Supply for ' ' Domesuc purposes only. Name of Company. 1~. 1 1888. 1889. 1~. ~~~ Gallons. Gallons Gallons 34,435 34,8J6 35,226 2.33 215 21G Chelsea ....................... . 1G0,252 East London ............... 1G3,368 166,369 190 19G 198 53,8:!1 55,093 55,870 251 241 250 C rand Junction........... . 70,119 Kent ........................... 71,461 73,230 140 1.32 132 SG,418 Lambeth .................... . 88,314 90,209 170 15G 154 149,457 New Ri\'Cr ................ .. 151,775 15:1,133 1t;I 159 1G3 108,741 Southwark &Vauxhall. .. 110,407 111,n G 176 169 17o W,908 '\Vest Middlesex ......... 71,095 72,5G2 173 1CG 170 73.3,1G1 I m 3ll ~~~-.m-1m1 • Mean of the Averages. The necessity for their suppression by a public authority is admitted; and as long ago as 1879 the Conservative Government -decided upon this course. The price proposed to be paid (£33,118,000) was, however, so outrageous that the Government was obliged, by the public outcry, to abandon the scheme. After 13 more years' extortion, the companies would now, no doubt, demand even heavier terms than in 1879. The water companies possess, however, no legal monopoly. In the past, indeed, active rivalry frequently existed between them; and even now two companies, in several instances, supplythe same area. It is quite open to the County Council to obtain Parliamentary powers to construct a competing supply; and the defunct Metropolitan Board of Works had fully decided to take this step. The London County Council should promptly seek power to construct a new supply, and, at the same time, to arrange to take over the existing service at a fair price. There being no legal monopoly, the shareholders can have no " vested interest" in the present excessive dividends. It is accordingly quite unnecessary to offer them anything more than the actual value of their mains and other street plant. E ven if they were l"eimbursed their whole extravagant outlay (£14,140,434), the interest payable by the County Council on a loan of this amount would not exceed £ 425,000, or £650,000 less than is now paid to the share and bondholders, irrespective of the saving likely to accrue from unification of management. This amount is equal to 6d. in the pound of London's rates, and would amply suffice to provide any improved service required, as well as afford a useful surplus towards the cost of London government. The • " Farnham, Guildford, and Woking still deliver untreated sewage into feeders of the River Thames. Staines continues to pollute the main stream . . . . Instances of the pollution of the River Lea are not wanting." (P. 137, Local Government Repon , 11<87-8, C-ii,521i). metropolis should no longer lag behind nearly every important provincial town, in permitting its water supply to remain in private hands. · With a municipal water supply, the present survivals of the evil cistern arrangement must disappear, and a "constant supply" be made universal. The present statistics on this point are as follows : Statistics of the Number of Houses SupPlied, and Proportion of them u·ith a " Co11stant Supply" of Water, and the Average Daily Supply. c: I I ~-1889._ Constant Supply. Number of Houses. -~ 0"' .... c:c:-Average Daily Total Supply ~8~~ for Domes tic -c:-6 NAME OF COMPANY. Purposes. § 0 g:~ 1889. 1889 1886 1886 ~~~c Slst Dec. Per Per Slst Dec. Slst Dec. 31st Dec. House. Head. "'::s0 -"' Gallons Gallons. :t c;:; 216 34,251 '15,226 20 7,217 27 50 ch elsea .................. 5,160 198 21i ·46 158,025 156,588 166,369 95 E ast London ............ 137,238 250 44,043 52,79-1 55,870 79 2i ill Grand Junction ......... 40,493 132 22·04 35,336 41,231 68,136 7~.2~0 56 I(ent ........................ 154 47,694 84,406 90,209 22 01 L ambeth .................. 40,333 53 163 62,448 153,133 :H·72 42,458 148,0!54 41 N ew Rivt:r ............... 2::! 8.) 170 107,191 111 ,736 Southwark & Vauxhall 25,180 66,098 59 68,486 72,562 2:l74 20,493 24,i37 3-i 170 West Middlesex.. ....... 758,335 23·93 451,493 719,906 59 177 Total.. ............. 346,691 The existing "water-rate," equalised and properly graduated, might continue to be levied as part of the County Council rate~ but there is no reason why any special charge should be made for water, any more than for roads, drainage, police, or other services of public utility. We can, at least, afford" Communism in water." T T HE FABIAN SOCIETY consists of Socialists. A •tatement of its Rules, etc., and a list of its Lecturers, can be obtained from the Secretary, at the Fabian Office, 276, Strand, London, W.C. Also the following publications: " FABIAN ESSAYS IN SOCIALISM." library Edition, 6s.; or rlirect from the Secreta~y for Cash, 4/6 (postage, 4!d.) Cheap Edition, published by Walter Scott, Pa.per Cover, 1s. Cloth, 2s. At all booksellers, or post free from the Secretary for 1s. and 2s. respectively. FABIAN TRACTS. No. r, Why are the many Poor? No. 12, Practicable land N"tlonalisation. No. 13, What Socialism Is. No. r6, A Plea for an Eight Hours Bill. No. rg, What the Farm labourer Wants. No. 20, Questions for Poor law Guardians. No. 22, The Truth about leasehold Enfranchisement. No. 24, Questions for Parliamentary Candidates. No. 25, Questions for School Board Candidates. No. 26, Questions for london CountyCouncillors. No. 27, Questions for Town Councillors. Each 4 pp., 6 for rd. orr/· per roo. Tracts No. s, Facts for Socialists. No.7· Capital and land. No. g, An Eight Hours Bill. No. 11 , The Workers' Political Program. No. 14, The New Reform Bill. No. 15, Engllsn progress towards Social Democracy. No. 17, Reform of the Poor Law. No. 231 The Case for an Eight Hours Bill. Each r6 pp. or 20 pp., rd , each or gd. per dozen. No. 29, What to Read, a list of Books for Social Reformers. 3d. each or 2/3 per dozen. No. 8, Facts for Londoners. Cd. each, or 3s. per dozen. No. ro, Figures for Londoners. 6 for 1J., or rs. per hundred. Tracts Nos. 30 to 37.-THE FABIAN MUNICIPAL PROGRAM. No I. The Unearned Increment. No.5· London's \Vater Tribute. 2. Ll>ndon's Heritage in the City 6. l\1 unicipalization of London's Guilds. Docks. , 3· Municipalization of the Gas .. 7· TheScandal 0fLondon's Markets Supply. .. 8. A L abour Policy for Public , 4· Municipal Tramways. Authorities. Each 4 pp., the eight for rd.; or r/-per roo. 1:3'" The whole Set Post Free for Two Shillings.