d be to give these somewhat novel industrial
agents a more prolonged and thorough test than any they have yet
received. If they survived for some generations and increased in
efficiency and strength, it could only be because the advantages they
enjoyed in the way of natural resources, abundant capital, organization,
terminals, and responsible management were decisive and permanent; and
in that case the responsibility of the state could not be limited to
their automatic regulation and partial assimilation. A policy must be
adopted of converting them into express economic agents of the whole
community, and of gradually appropriating for the benefit of the
community the substantial economic advantages which these corporations
had succeeded in acquiring. Just in so far, that is, as a monopoly or a
semi-monopoly succeeded in surviving and growing, it would partake of
the character of a natural monopoly, and would be in a position to
profit beyond its deserts from the growth of the community. In that
event a community which had any idea of making economic responsibility
commensurate with power would be obliged to adopt a policy of gradual
appropriation.

The public service corporations in the large cities have already reached
the stage of being recognized natural monopolies. In the case of these
corporations public opinion is pretty well agreed that a monopoly
controlling the whole service is more likely to be an efficient servant
of the city than a number of separate corporations, among whom
competition in order to be effective must be destructive and wasteful.
American municipal policy is consequently being adapted to the idea of
monopolized control of these public services. The best manner of dealing
with these monopolies, after they have been created and recognized, is
not settled by any means to the same extent; but the principle of
restricting the franchises under which they operate to a limited term of
years is well established, and the tendency is towards a constant
reduction of the length of such leases and towards the retention of a
right of purchase, exercisable at all or at certain stated times. The
American city has come to realize that such privileges possess a value
which increases automatically with the growth of the city and with the
guarantee against competition; and this source of value should never be
alienated except for a short period and on the most stringent terms.
Wherever, consequently, a city has re