Guardian Of Interests:the Development Of Water Supply In Modern Shanghai International Settlement Under The Supervision Of Shanghai Municipal Council (1868-1911)

By singing agreements with Shanghai Waterworks Company, Shanghai Municipal Council authorizes the franchise of water supply to Shanghai Waterworks Company. At the same time, Shanghai Municipal Council has custodial right to Shanghai Waterworks Company. By this way, Shanghai Municipal Council maintains the health of the Shanghai International Settlement and achieves its function, meanwhile make water supply become public utility from ordinary business activities. The franchise also makes Shanghai Waterworks Company become a monopoly enterprise. But because of the indispensability and importance of water supply, the price of water can’t be fixed arbitrarily by Shanghai Waterworks Company. Under the circumstances, Shanghai Municipal Council not only restricts the highest profit of the Company, but also stipulates the price of water in the agreements. They also deal with the price disputes which they encounter according to the agreements. At the time of supervising the Company, Shanghai Municipal Council also helps the Company greatly, for example the municipal water supply. There are conflicts as well as interests in common between Shanghai Municipal Council and Shanghai Waterworks Company. For example, the two parts both devote themselves to occupy the spaces outside of Settlement. But the aims of two parts are absolutely different: the aim of Shanghai Municipal Council is to expand the Settlement, while Shanghai Waterworks Company’s aim is to get more profit. This makes the water supply cast a veil of political weapon. Regardless of conflicts or interests in common, Shanghai Waterworks Company don’t attempt and accomplish nothing during the whole process, but interacts with Shanghai Municipal Council actively on the basis of the agreements to maintain the economic interests of Company. The two parts both make the agreements as the basis of their actions, which fully demonstrate their spirit of contract and law. The successful management mode of Shanghai Waterworks Company is also the example of the success of water supply in Shanghai International Settlement. The successful management mode is that the public utility is operated by private enterprise and supervised by Shanghai Municipal Council via agreements. By this mode, Shanghai Municipal Council safeguards the interests of all parties, including Shanghai Municipal Council, the consumers and Shanghai Waterworks Company, and executes its own duties.