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99
In 40 years, say, a new source of supply must
be adopted.
In 40 years, the rate of interest is reduced to
2½ per cent., and the annual charge on
the original purchase Stocks stands at £837,500
The principle of a varying rate of interest is adopted in preference
to power of redemption at intermediate periods, which, so far as can be
foreseen, would probably yield at least as favourable results to the
Water Trust, because an ascertained (though diminishing) rate of
interest for the whole period of the stock would tend to maintain its
market value at a more equable price, and thus be advantageous to
bond fide investors.
Current expenses, interest on debt, &c.—It is anticipated that
these will be met by the revenue derivable from water rental, but
provision is made for raising any deficiency by precept upon the local
Eating Authorities (clause 21). The provisions of the Elementary
Education Act, 1870, are followed in cases where the Eating Authority
make default in paying the precept. Water rentals are to be collected
by the Local Eating Authorities in the same manner as the poor rate,
and subject to the like audit (clause 27). Surplus income of the Trust
is to be applied to the equalization of water rents throughout the area
of supply ; the improvement of the existing system of supply; and the
reduction of water rents. The following table* shows the present inequality
in the charges for water supply in the districts of the different
companies. In each case a house of £50 rateable value, with one
water-closet, is taken:—
In the district of the:— £ s. d.
Chelsea Company the annual charge is 240
East London ,, ,, 2 14 0
Grand Junction ,, ,, 240
Kent ,, ,, 2 10 0
Lambeth „ ,, 3 17 0
New Eiver „ ,, 2 4 0
Southwark and Yauxhali ,, 2 14 0
West Middlesex ,, ,, 2 4 0
It will thus be seen that the charge upon a £50 house varies from
£2 4s. to £3 17s. per annum.
* Evidence of Mr. S. Wood, Guildhall Inquiry, 1890.
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