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 retained any control over such franchises, it is converting the public service corporations merely into temporary tenants of what are essentially exclusive economic privileges.
During the period of its tenancy the management of a corporation has full opportunity to display any ability and energy whereof it may be possessed; and such peculiarly efficient management should be capable of earning sufficient if not excessive rewards.

In the meantime, any increase in value which would result inevitably from the possession of a monopoly in a growing community would accrue, as it should, to the community itself.
The only alternative to such a general scheme of municipal policy in relation to public service corporations would be one of municipal operation as well as municipal ownership; and municipal operation unquestionably has certain theoretical advantages.

When a corporation enjoys a tenancy for a stated term only, there is always a danger that it will seek temporarily larger profits by economizing on the quality of its service.