by simply increasing the rate of fare (or decreasing 
the service) on its roads; for, as the above writer 
suggests, it is absolutely necessary for the people 
to use the street railway whatever the rate of fare or 
the condition of the service. This very fact, how 
ever, has caused the courts to rule that this ques 
tion of fares and service is a public question to be 
decided not by the company, but by the public 
through their official commissioners, and thus with 
in the last few years in many cities “the goose that 
lays the golden eggs” has been killed. 
The Franchise 
Although franchises should not be capitalized, 
yet they are absolutely necessary to the operation 
of all public service corporations. A charter of a 
street railway company differs little from the char 
ter of a manufacturing or business corporation. 
The charter is obtained from the state, and is 
simply a permission to organize a company for 
carrying on a certain line of business without 
inflicting personal liability upon the owners. 
Although in some states the charters are for a 
limited number of years, yet they can almost 
always be renewed, and practically speaking, are 
perpetual. The fact, however, that a charter is 
perpetual is usually of no special interest to the in 
vestor. What the investor is interested in is the 
franchise, which is an entirely different matter. 
To obtain a charter for a company is usually a 
matter of form; but after the charter is obtained 
and the company is organized, to obtain a franchise