THE FIXING OF RATES IAT
control other corporations operating for profit, they are accorded
certain rights and privileges which give them a quasi-public
character. They have the right of eminent domain, i.e., the
privilege of taking, under due process of law, private property
for their uses (subject, of course, to the making of adequate
compensation therefor) and they may be accorded the privilege
of occupying streets, roads and public places subject to reasonable
 regulations.
The tendency of the day is to give the public service corporations
 more and more monopolistic character and to trust to
regulation and control for the protection of the public interest.
This seems wise and should make for good service at reasonable
rates, always provided that regulation be not too stringent and
onerous and that the public service corporation be allowed to
make a fair profit.
The Disadvantage of Frequent Modification of Rates. — In
some of the States, as until within recent years in California,
the right to regulate has found its main expression in laws requiring
 the rates of certain utilities to be fixed annually. The
water and gas rates have thus been under annual investigation
in San Francisco, and the occasional establishment of rates
which were thought inadequate has led to much long drawnout
 litigation which has rarely resulted satisfactorily to either
of the litigants.
As the result of such litigation relating to water rates established
 by San Francisco for 1902-03 and for the years subsequent
thereto, the court has allowed, temporarily, the collection of rates
by the Spring Valley Water Company in excess of the limit
fixed by the city authorities and the excess collected has been
impounded and now (1915) amounts to over $1,500,000. It is
only fair to say, however, that by recent amendment of the
charter of the city, the rates will hereafter be subject to regulation
 by the California State Railroad Commission (Public
Service Commission).
When the established rate is made subject to frequent change
and the owner of the utility is not allowed to earn more than