Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm LifeFairchild, Geo. T. (George Thompson)
Science
Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm Life
Fairchild, Geo. T. (George Thompson)
Agriculture -- Economic aspects; Economics
_Franchises._—A still more noticeable monopoly is granted by
municipalities under what is called a franchise for the establishment and
maintenance of water supply, public means of artificial lighting and
heating, or means of public transportation. These are under government
control usually in cities, because they employ the public streets for
carrying on the enterprise. The franchise is really an extension of the
license in particular directions. This is usually issued with the
expectation of great public benefit from a large investment of capital
which would not be made without relief from competition, because not
immediately profitable. The franchise usually carries with it certain
restrictions as to use of public highways and limitation to a term of
years. It necessarily involves the right of government inspection and
control for the general welfare.
_Difficulties from monopoly privileges._—All of these monopolies are
granted for the purpose of conferring upon the whole community benefits
that could not otherwise be secured. They are wise only so far as they
secure this result. If the patent right system wastes the energies of
inventors in contrivance of useless devices, there is loss; if it builds
up a class of mere speculators, there is waste; if it fosters monopoly
beyond the giving of a fair reward for invention, it is robbery. The exact
limit of time during which a patent is good stimulates to the utmost
exertion for wide introduction of its benefits, and at the same time
prevents the burden of lasting monopoly. The dangers are chiefly in the
administration of patent laws, from the careless issue of undeserved
patents, or in a combination under a series of patents to maintain a
constant monopoly. It is a safe rule to issue patents only for particular
applications of scientific principles and not for the discovery of the
principle, which can be protected in publication by copyright. Departures
from this rule cut off the possibility of more perfect contrivances and
fair competition in devices and methods. There can be no question of the
general advantage of protecting a genuine inventor from the trespass of
others to secure him a fair compensation. No other plan for a fair
exchange of such services has even been suggested. The unsettled question
is the proper limit of time for a patent to run.
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