The Just Value of Monopolies, and the Regulation of the Prices of Their Products

Recent industrial development has produced a large number of enterprises, among them those supplying transportation, communication, light, heat, and power, which are to a considerable extent natural monopolies; that is, their products or services are sold at prices not governed by competition. Excessive prices have resulted therefrom. To secure fair prices to the public, various commissions have been established to control them, and many Court decisions have been rendered for the same purpose; but all these decisions have been insufficient to establish clearly the principles which should govern the determination of fair prices of monopolized products. The Courts hold that a monopoly, if properly managed, is entitled to such prices for its products as will secure a fair profit on the just value of its property.