Construction of the New River
Edmund Colthurst originally conceived a scheme to build an artificial waterway from springs near Ware in Hertfordshire to supply water to London. In 1604 he was granted a patent from King James I to construct the New River. By early 1605, after Colthurst had dug 3 miles of channel, the City intervened, and began the process of obtaining an act of Parliament despite Colthurst's protests. In 1605, an act of Parliament, the (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 of compulsory purchase.
A second act, the (4 Jas. 1. c. 12) was passed the following year, making further provisions about the construction of the New River. In 1609, Hugh Myddelton agreed to construct and fund the project. As the New River was unincorporated, the agreement was phrased in terms of property law, with investors owning a share of freehold in the whole project.
By early 1610, the project had stalled after around 10 miles, 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, the Blessed Parliament was dissolved, and Parliament was not to productively meet again until 1621.
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 with King 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. 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. These shares were sold to "adventurers" (shareholders), the first of whom was Henry Neville. Four shares, without any liability for capital calls, were given to Colthurst for the "greate labour and endeavour by him bestowed about the said worke".
The New River was officially opened on Michaelmas Day 1613, with a celebration at New River Head, after £18,524 16s had been spent on the project, but the New River Company's investment continued as they laid wooden pipes made of elm 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.
