CHAPTER XI THE CONTROL OF ECONOMIC INTERESTS 68. REFERENCES Hart, Actual Government (American Citizen Series), Part IX., "Commercial Functions,” pp. 480-534; Bullock, Introduction to the Study of Economics, chs. 11, 14 and 16; Hadley, Economics, chs. 12 and 13; Adams, Finance, Part I. chs. 2 and 3; Howe's Historical Collections of Ohio, I. pp. 128-136, "The Public Lands of Ohio;" Ibid. pp. 100-110, Townshend on "The History of Agriculture in Ohio;" Burkett, History of Ohio Agriculture; Howe (as above), I. pp. 59-89, Orton on "The Geography and Geology of Ohio;" Ibid. pp. 110-118, Roy on "The Mines and Mining Resources of Ohio;" Adams, "Relation of the State to Industrial Action" (in Proceedings of the American Economic Association, I. No. 6); Jevons, The State in Relation to Labor; Levasseur, The American Workingman; Kelly, “An Effective Child-labor Law" (in The Annals of the American Academy of Political and Social Science, May, 1903, pp. 96–103; Ibid., “Child-labor Legislation,” pp. 104-109; Farrer, The State in Relation to Trade; Ely, Monopolies and Trusts; Ford, American Citizen's Manual, Part II. pp. 67-82, "Corporations;" Hobson, The Evolution of Modern Capitalism. Bates, Annotated Ohio Statutes, §§ 3107-59 to 3107-125, "Public Lands;" §§ 405 to 409, 4216 to (4221-6), (6968-1) and (6968-2), "Fish;" §§ 6959-6968b, "Birds, Game and Fish;" 88 (409-15) to (409-19), "Forestry Bureau;" §§ (3691-25) to 3713-11, (4446-7) to (4446-15), 4210 to 4212, "Agriculture;" 884364-62 to 4365, 6984, (6986-1), 307 to 310, "Labor;" §§ 142-146, 1054 to 1057, 1051, 1062, 4428 to 4446, "Weights and Measures;" §§ 2582 to 2596-9, 4277 to 4355c, "Inspection;" §8 (4227-1) to (4427-12), "Trusts; §§ 4615 to 4946, "Public Ways and Bridges;" §§ 218-66 to 218-304, "Canals;" §§ 4380 to 4385, "Navigation;" §§ 3141 to (3170-7), "Partnerships;" §§ 3232 to (3884-6), "Corporations;" Constitution of Ohio, Relations of to economic interests. Art. XIII., "Corporations;" 97 Ohio Laws, see index under the following subjects,-"Birds, Fish and Game," "State Board of Agriculture," "Agricultural Experiment Station," Commissioner of Labor Statistics," "Chief Inspector of Workshops and Factories," "Labels and Marks," "Bridges," "Board of Public Works," "Corporations," "Insurance Companies," "Superintendent of Insurance," "Railroads and Railway Companies,” etc.; Reports of the Agricultural Experiment Station, the Board of Public Works, the Canal Commission, etc. 69. ECONOMIC FUNCTIONS OF The State Governments bear a twofold relation to economic acgovernments tivity: (1) they render certain economic services to society; (2) they exercise a limited control over the economic services rendered by individuals. While there is much difference of opinion as to the extent to which governments themselves should own productive property, there is a general agreement that certain classes of property should be owned and controlled by the State. The public benefit derived from some enterprises is valuable, but at the same time of too indefinite a nature to engage private capital. There are other industries of such a character as to make it undesirable to leave their control to private corporations or to individuals. Such economic interests as these naturally fall to the State. The State itself supports and manages them. Basis of the State's control of enterprises. The State's relation to the economic interests of individuals, on the other hand, is expressed in governmental regulation of private business enterprises. How far the State may go in its regulation is a matter of contention. The welfare of society is the end of industrial organization, and this principle determines in large measure the extent of public control. It is on the basis of this principle that the State guarantees the validity of contracts, regulates the hours and conditions of labor in mine and factory, protects industrial property, regulates freight rates and rates of interest, provides for the inspection of food products, and does many other things. economics. As economics deals with the production, exchange, Subject distribution, and consumption of wealth, the State is matter of concerned with whatever will promote production, facilitate exchange, bring about a fair distribution, and prevent a wasteful consumption of wealth. The production of all wealth involves a coöperation Forms of of land, labor, and capital. These factors are combined industry. in four forms of industrial undertakings, agriculture, manufacture, mining, and commerce. It is the purpose of this chapter to point out what Ohio is doing to promote these industrial interests. The State's relation to the three factors, land, labor, and capital, will be taken up in order. 70. LANDS Public The State owns but little land except what is needed for the operation of its canals and for the use of its pub- lands. lic institutions. This is accounted for by the fact that most of the public lands were early disposed of at a sacrifice to actual settlers for the purpose of developing the resources of the State. The lands were sold to the pioneers at a discount of seventy-five per cent. of their appraised value. The lands remaining were for the most part either lands lying near the public works of the State or swamp, marsh, and over-flow lands that were unfit for occupancy. The former were located by the board of public works, under an act of 1868, and were reported to the State auditor, who was authorized to sell them at not less than their appraised value. The latter were recorded by the canal commission, under an act of State parks and pleasure resorts. Lands of State institutions. Private lands. The geological survey. 1889, and were likewise reported to the auditor, the canal commission being empowered to sell these lands to the highest bidder in tracts not larger than a quarter section. A law regulating the sale of the swamp lands more recently reclaimed stipulates that the selling price must not be less than three-fourths of the appraised value.i Certain State lands and reservoirs have been set apart for the use of the public as parks and pleasure resorts. Such are "Buckeye Lake," "Indian Lake" and "Portage Lakes." These have been placed under the supervision of a joint board for the control and management of lakes, reservoirs, and State lands, consisting of the board of public works, the chief engineer of public works, and the Ohio canal commission.2 The law designates the State auditor as land agent for the State. The lands belonging to the various State institutions are generally under the charge of the boards of trustees of those institutions, but in several instances special officers are designated in the laws as custodians, as, for example, in the case of the State House grounds, which are in charge of the adjutant general. The State exercises a general oversight over all private lands within its borders by virtue of its police power; it taxes these lands; and when the public welfare demands, it enforces its right of "eminent domain" to compel landowners to sell their lands at the appraised value. On failure of heirs private lands revert to the State. It was in 1837 that the State first recognized the importance of bringing to light the geological structure 1 1 Bates, Statutes, §§ (3107-59), (3107-95), (3107-96), (3107121), (3107-122). and resources of the Commonwealth. The State geological survey was first organized in that year, but was not maintained continuously. In 1881 Professor Edward Orton, of the Ohio State University, was made State geologist and director of the survey, and so remained until his death in 1899. During this period many researches were made, and much was done to acquaint the people with the great mineral wealth of the State. commission. 71. PROTECTION OF BIRDS, FISH, GAME AND FORESTS The economic interests of the State are also concerned Fish in the protection of birds, fish, and game. This is done and game by a fish and game commission of five members appointed by the governor and Senate. This body is entrusted with all matters pertaining to the protection and propagation of fish and game, besides insectivorous, game, and song birds within the State. It appoints a chief warden, together with special and deputy State wardens, to enforce the game laws and prosecute offenders. The hunting and catching of certain kinds of birds, game, and fish are confined by law to certain seasons, and heavy fines are imposed for the illegal use of traps and nets. of forestry. The preservation of forests is likewise a matter of Bureau public concern. The destruction of woods and groves removes man's natural protection against severe storms, helps to destroy the supply of game by leaving it without proper shelter and food, and so affects the drainage of the earth as to increase greatly the danger of freshets and floods. These and other considerations led to provision being made for a forestry bureau of three members. This board was to collect the |