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87
to retain their landed estates with reversions of unascertained
but very considerable value. The total capital outlay
of the Companies in 1880 was nearly 12½ millions, and
in; this outlay was included the acquisition of the landed
estates by the New River Company. The value of the
Water Companies' stock in the open market immediately
before it was inflated by the negotiations undertaken by
direction of Sir R. Cross was approximately 26 millions, so
that Sir R. Cross practically offered a bonus of seven millions
sterling and the landed estates of the New River
Company, probably worth three or four millions more. It
is apparent then that the terms proposed by Sir R. Cross
were not such as could generally be accepted by prudent
purchasers.
It has also often been asserted that extravagant as were
the terms proposed in 1880, the public would still have
been the gainers. Mr. Samuel Wood, the accountant, a
leading authority on the Water Companies' Accounts, however,
gave evidence at the recent inquiry at the Guildhall,
showing that this is not the case. He states that the deficiency
during the nine years would have amounted to
£365,307, made up as follows:—
£ £
In the year 1880-1 deficiency 9.220
1881-2 gain 3,771
1882-3 ,, 13,98(5
1883-4 „ 24,058
„ 1884-5 deficiency 18,070
1885-6 „ 69,647
1886-7 „ 75,684
1887-8 „ 108,615
1888 9 ,, 125,886
407,122 41,815
Nett deficiency £365,307