An instance of this nature is so striking in its relations and so pertinent to the present discussion that attention is asked to it. In the reign of James I water was supplied by two or three conduits in the principal streets of London, and the river and suburban springs were the sources of supply. Large buildings were furnished with water by tapping these conduits with leaden pipes, but other buildings and houses were supplied by "tankard bearers," who brought water daily. A jeweler of the city, Hugh Myddleton by name, believed something better could be done, and he proposed to bring water from Hertfordshire by a "new river." He embarked in the undertaking, sank his fortune in its conduct, and appealed to the king for assistance. James granted this aid, taking one half of the shares of the company—thirty-six out of the seventy-two shares into which it was divided. The shares that remained received the name of "adventurer's moiety." The work was completed in 1613, and water was then let into the city.
So little was the measure appreciated that its first years were troublous ones for the shareholders. The squires objected to the river, believing it would overflow their lands or reduce them to swamps and destroy the roads. The city residents adopted the use of the water slowly. The shares were nominally worth £100 apiece, but for nearly twenty years the income was only 12s., or $3, per share. In 1736 a share was valued at £115 10s., and by 1800 it had risen to £431 8s. With the first years of this century the company prospered, and its benefits were widely applied, reflecting this change in the value of its capital. In 1820 a share was worth £11,500 and in 1878 the fraction of a share was sold at a rate which made a full share worth £91,000. In 1888 the dividend distributed to each share was £2,610. Eleven years later, in July, 1889, a single share was sold for £122,800, or nearly $600,000. The nominal capital of the company in 1884 was £3,369,000, and besides its water franchise it holds large estates and valuable properties. While the actual real estate controlled by the corporation accounts for some of this remarkable rise in the value of the shares, a greater and more lasting cause was the possession of an almost exclusive privilege or franchise which assured a handsome and ever-increasing return on the investment. Had all the other property been deducted from the statement of the company's assets, there would have remained this intangible and unmeasurable right created and conceded by its charter and long usance.
A definition of a franchise has been given by the Supreme Court in terms of sufficient general accuracy to be adopted: "A franchise is a right, privilege, or power of "public concern which ought not to be exercised by private individuals at their mere will and pleasure,
