FRANCHISES to public service corporations for the carrying on of public service industries have been granted liberally, even lavishly, by American communities. In many cases such franchises lhave been of great value immediately, and in other cases they have grown to have immense value in time, as the btusiness has increased in volume and the cost of rendering service has declined, without corresponding decrease in charges for service. There is rapidly growing in the public mind a conviction that the values and benefits inherent in public franchises of right belong to the public, and that such franchises ought not to be granted to private corp)orations on terms that carry to the recipient corporations values that miglht be reserved to the public itself, in one form or another. A franchise, as understood in this connection, is not the conferring of a right to be a corporation, but is a grant by public authorities to a private corporation or individual of a privilege to use public streets or ground for the carrying on of a business that could not be prosecuted but for such grant of privilege. Strictly, such a franchise ought not to be a thing of great value. It is contrary to correct notions of public policy that it should be so. It must be presumed that the corporation or individual securing a franchise or grant of special privilege to perform a public service obligates itself to render such service at reasonable rates. This is the view of the matter taken by the courts, which construe reasonable rates to be rates that will permit a reasonable profit on money invested in the undertaking. If this presumption were constantly adhered to in practice, franchises would not have enornmous value. The great value of a franchise is due to the very large earning power of the company holding the franchise; and this large earning power in turn is due usually to the maintenance of clharges for service