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3. That anything approaching the terms proposed by Mr. E.
J. Smith in 1880 is "not a satisfactory or admissible
basis of purchase." *
4. That, upon present information, the most equitable
mode of assessing the value of the undertakings
appears to be a calculation upon the profits either
of the last completed year, after allowing for any
extraordinary receipts or expenditure during such year,
or the average of the last three years.
5. That the purchase-money should be paid in the form of.
stock in preference to cash.
6. That taking the Birmingham Waterworks as a guide,
the purchase of the Water Undertakings ought to be
accomplished at a price less than, or not greatly
exceeding £28,000,000.
7. That the London County Council should be authorised
by Parliament to negotiate with the several Water
Companies for the purchase of their Undertakings,
with power to establish an independent, or competing
or additional supply either in the whole or any
portion of a district now supplied by a Water Company.
With regard to the seventh of these resolutions, theVestry
have seen occasion in the light of further information
to somewhat modify their views.
This Report was adopted, and circulated among the
various Vestries and District Boards of the Metropolis, with
a request that they would appoint representatives to attend
a Conference to discuss what action it might be expedient
to take with a view to placing the Water Supply of London
on a more satisfactory basis. Thirty-two of the thirty-nine
*Report of Select Committee, Sess. 2, 1880, par. 6.