Note 234 — Chapter XXIV · PUBLIC UTILITIES AND PUBLIC OWNERSHIP

These payments are arranged in a variety of ways. Sometimes a gas company pays the city so much per year for every mile of gas-mains or so much per million cubic feet of gas sold. Street railway companies occasionally pay so much each year per mile of track. More commonly the payment is based upon gross earnings or upon the value of the company’s capital stock, or upon the estimated value of its franchise. In some instances the franchise is sold to the highest bidder, that is the company which offers to pay most for the privilege of using the streets gets it.