| Company type | Joint-stock company |
|---|---|
| Industry | Water supply, Property |
| Founded | June 21, 1619 (1619-06-21) inLondon, England |
| Founder | Hugh Myddelton |
| Defunct | July 25, 1904 (1904-07-25) |
| Fate | Municipalised |
| Successors | Metropolitan Water Board The New River Company Limited |
| Headquarters | New River Head |
Area served | North and Central London |
TheNew River Company, formallyThe Governor and Company of the New River brought from Chadwell and Amwell to London, was a privately-ownedwater supply company inLondon, England, originally formed around 1609 and incorporated in 1619 by royal charter. Founded byHugh Myddelton with the involvement ofKing James I, it was one of the firstjoint-stock utility companies, and paved the way for large-scale private investment in London's water infrastructure in the centuries which followed.
The New River Company was formed to manage theNew River, a 42-mile (68 km) artificialaqueduct which had been completed a few years earlier by Myddelton, with the backing of the King and theCity, to supply fresh water to London. During its history, the company maintained a large network of pipes to distribute water around much of North London, collecting rates from water users.
The company's headquarters were atNew River Head inClerkenwell, Islington, and the company became a significant landowner in the surrounding area, laying out streets which take their name from people and places associated with the company, including Amwell Street, River Street, Mylne Street, Chadwell Street andMyddelton Square.
The company was finally dissolved in 1904 when London's water supply was taken into municipal ownership, and its assets were acquired by the newly-formedMetropolitan Water Board.
Although London's water supply infrastructure dates back at least to the construction of theGreat Conduit in 1247, by the early 17th century water was still scarce, and most Londoners relied on pumps orwater carriers which supplied increasingly polluted water. TheCity of London had funded several early water works in the 16th century, which supplemented the conduit system by drawing water from thetidal Thames, but these were small operations, and London's population continued to grow.
| New River Act 1605 | |
|---|---|
| Act of Parliament | |
 | |
| Long title | An Acte for the bringing in of a freshe Streame of running Water to the Northe parts of the City of London. |
| Citation | 3 Jas. 1. c. 18 |
| Other legislation | |
| Amended by | New River Act 1606 |
| Text of statute as originally enacted | |
| New River Act 1606 | |
|---|---|
| Act of Parliament | |
| |
| Long title | An Act for explanation a statute made the third year of the reign of King James, intituled, "An Act for the bringing in of a fresh stream of running water to the north parts of the city of London." |
| Citation | 4 Jas. 1. c. 12 |
| Dates | |
| Royal assent | 4 July 1607 |
| Other legislation | |
| Amends | New River Act 1605 |
Edmund Colthurst originally conceived a scheme to build an artificial waterway from springs nearWare inHertfordshire to supply water to London. In 1604 he was granted a patent fromKing James I to construct the New River. By early 1605, after Colthurst had dug 3 miles (4.8 km) of channel, the City intervened, and began the process of obtaining an act of Parliament despite Colthurst's protests.[1]: 9 [2]: 41 In 1605, an act of Parliament, theNew River Act 1605 (3 Jas. 1. c. 18) was passed, granting the City the power to construct the New River, but without making any provision for funding, or providing any powers ofcompulsory purchase.[L 1]
A second act, theNew River Act 1606 (4 Jas. 1. c. 12) was passed the following year, making further provisions about the construction of the New River.[L 2][1]: 10 In 1609,Hugh Myddelton agreed to construct and fund the project. As the New River wasunincorporated, the agreement was phrased in terms ofproperty law, with investors owning a share of freehold in the whole project.[1]: 12–13
By early 1610, the project had stalled after around 10 miles (16 km), with some landowners refusing to allow the New River to be built over their land, and members of the public concerned about a public utility being privately-held. A bill was put before Parliament to abolish the project, but before this could be considered, theBlessed Parliament was dissolved, and Parliament was not to productively meet again until 1621.[1]: 15
Once Parliament was dissolved, Myddelton obtained permission from the City to extend the works for five more years, although the objections to the project still remained. On 2 May 1612, Myddelton reached an agreement withKing James I, where the king (who was trying to become less financially dependent on Parliament at the time) committed to funding half of the project in return for a share of the profits, and promised his support.[1]: 15–16 [2]: 57 The king's support was crucial in convincing the remaining landowners to allow the New River over their property.
By this point, Myddelton was short of money, and needed a way to raise more funds for his half of the project. He split his holding of the New River into 36 parts; the modern concept of a share had not yet fully formed, and the New River shares were a novel concept which could not promise a return of capital, more akin to "tenants in common" in property law.[1]: 3–4 These shares were sold to "adventurers" (shareholders), the first of whom wasHenry Neville. Four shares, without any liability forcapital calls, were given to Colthurst for the "greate labour and endeavour by him bestowed about the said worke".[1]: 18–19
The New River was officially opened on Michaelmas Day 1613, with a celebration atNew River Head, after £18,524 16s had been spent on the project,[1]: 17, 22 but the New River Company's investment continued as they laid wooden pipes made ofelm throughout the city to distribute the water. The king wrote to the City to encourage them to increase uptake of the New River water, as he was becoming anxious about the return on his investment.[1]: 23–26
The New River Company was incorporated byroyal charter on 21 June 1619 with Myddelton as governor. However, the charter left a number of aspects unclear: it effectively granted a monopoly on water supply in London, and the City had conferred their water supply rights to Myddelton personally, which had never been transferred. These legal ambiguities would take many years to be resolved.[1]: 31, 51
By the time of incorporation, the company had over 1,000 customers, and the water provided by the springs was becoming insufficient. In 1620, the company decided to divert water from the nearbyRiver Lea into the New River, although this was not permitted by either the statutes or the company's charter, and caused complaints from bargemen and the public in the area until this arrangement was eventually approved by Parliament in theRiver Lee Navigation Act 1738 (12 Geo. 2. c. 32).[L 3][1]: 32
In 1631,King Charles I, who was unhappy with the returns made by the king's share of the company, negotiated an agreement where Myddelton would buy the share back, in return for a lump sum of £500 and an annual payment of £500 in perpetuity. This became known as the Crown Clog.[1]: 191–192
The king's share was divided into 36 parts to match the adventurers' shares, and although the Crown Clog was originally paid by Myddelton personally, it subsequently came to be attached to 29 of the king's shares and two of the adventurers' shares. The king's shares also did not confer the right to appoint a director to the board, so these shares traded at a discount to the adventurers' shares.[1]: 196 [2]: 57
The New River Company originally owned 50 acres (20 ha) of land aroundNew River Head to allow for the many wooden water mains running outward from there. With the advent of iron pipes around 1811, the company was able to run larger water mains underground, taking care to run them in a pattern where streets could be laid out above. As the district ofClerkenwell grew up in the area, the New River Company started making significant income from leasing land, as well as supplying water. Many of the streets in the area still bear the names given to them by the New River Company, and the company's chief engineer,William Chadwell Mylne, was the architect of the local church,St Mark's.[1]: 109–111
In 1904, the water supply business of the New River Company was taken into public ownership under the provisions of theMetropolis Water Act 1902, and transferred to theMetropolitan Water Board. A total of £6,000,534 was paid to the shareholders and directors in compensation, which was paid in "water stock", paying a 3% annual dividend.[1]: 186 Throughmunicipalization the New River Company became a direct ancestor of the currentThames Water company, the main water supplier to London today.
Over the 292 years since Myddelton divided his holding in the New River Company into shares, and taking the purchase price into account, theannual yield on an original New River share has been calculated at over 267%.[1]: 67
Aftermunicipalization, the Crown Clog came to be paid by the water board, which paid it until 1956 when it was bought out for £8,230. Had the Crown retained the king's share for the lifetime of the New River Company, it would have made fifty times more than the Clog paid.[1]: 193-195
The company's unrelated property holdings were transferred to a new company, the New River Company Limited, which survives today as a subsidiary ofDerwent London.