USA > Ohio > Ohio legislative history, 1913-1917 > Part 3
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"Government through the law is intended to control society. That is the first fundamental in our civilization. Then why should it not likewise regulate business, which is simply the material product of society? So long as schools and churches and universities, so long as a greater civilization that spurs every fiber of humanity, continue to make life better and sweeter, so long as science continues its subtle play on human development, so long as we are lifted to a higher moral outlook, government must go on with us. It is to be a constant aid, not a bar to our better destiny.
"The way will not be easy in Ohio in carrying out our program of progress, but if the responsibility be cast upon me, I have the faith that the admitted righteousness of our cause will be written in the gratitude of a contented people and a prosperous commonwealth."
CHAPTER VI
Inaugural Address of Hon. James M. Cox, Governor, to the People of Ohio, Monday, January 13, 1913
To the People of Ohio:
I INDULGE the hope that endorsement will be given to a change in custom, made this day, in taking from the inaugural address that part which deals entirely with recommendations to the Gen- eral Assembly, and submitting my views to that body in writing. The growth in the activities and scope of our government entails a legislative message of such length as to encroach on the proprieties of this solemn occasion, and work a distinct inconvenience and discomfort to the organizations and individuals, who in patriotic fervor, desire to partici- pate in the arrangements that are to follow.
Every impulse of my nature responds to the highest sense of obliga- tion for the honor now conferred, in compliance with the suffrage ex- pression of the electors, and yet, an appreciation of the responsibilities which go with it, reminds us of human limitations, and inspires the hope that our endeavors along the lines of justice and honesty, in the vision of the Ruler of all governments, will gain the benediction of His favor and assistance.
While the executive station is one of generally accepted distinction, to me it does not bespeak elevation above my fellows. The relation of private citizenship establishes an equal base, but when one assumes the duties incumbent upon this office, a proper conception of the situa- tion makes him the servant of the people, and unless he responds to full appreciation of the superior rights and powers of those he agrees to serve, he begins either with false vision, or with a species of treason in his heart.
There is much in the theory of the ancients that nothing makes stronger appeal to the Almighty than the congregation of people under peaceful auspices for the purpose of refining government to the needs and advancement of the race. If that were a spectacle of such omen in olden days then this day holds every portent for good, because every community is represented in the festivities of the occasion and without regard to class or creed, they exhibit their attachment to our institutions of government.
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Ohio is a wonderful state and rich in the traditions that inspire a proud citizenship. Her fertile soil, picturesque beauties and delightful climate, attracted to her borders a sturdy race of people, and they have here builded an empire in extent and treasure. Its continued growth is dependent, in many ways, upon government, and every change made, bears direct influence upon our social and economic life. We are enter- ing upon a new day. The evolutions and processes of time are work- ing great advances in every activity of man. The forces of human intelligence have carried us to a point of higher moral vision, and it would have been a distinct anomaly of history if government had not been carried on in the progress of the time. It requires considerable faith in the righteousness of a cause to turn face from the old order of things, mindful that in the plans and policies of government about to be adopted, are involved the hopes and aspirations, the happiness and general welfare of five million human souls.
I sense therefore the sublime responsibility of this hour!
But history tells us that while we can profit immeasurably by the experience of the past, every government that has endured, kept its face toward the sunrise and not the sunset of civilization. We must feed on the vitality of growth; not on the decay of decline. We rever- ence the works of our fathers, and seek to prove ourselves the worthy sons of worthy sires, by making as great development in our time as they made in theirs. Ours is not the creed of the cynic, looking with scorn upon the institutions of yesterday. Civilization is simply a relay race, and unless we take it up with the freshness of spirit with which our fathers began it, the generation is in a condition of certain decay. Mistakes will be made, because government is the creature of man. But if civilization from its beginning had followed the course of least resistance and not approached uncertainty with experimentation, this old world of ours would present a far different aspect.
An advanced civilization does not refine government from caprice, but from necessity. The savage needs no government, because the inter- dependence of human units is not a characteristic of his existence. As a race progresses dependence on each other increases, and the meaning of exact justice to all is understood and the enforcement of that prin- ciple in government is demanded.
The genius of man has invented no system better fitted to work a greater national destiny than the even balanced relation of our federal and state governments. In our commonwealth there is now a marked tendency toward a larger measure of home rule for municipalities, and an increased opportunity in their community affairs. At the same time there is exacted an increased police power from the state in the projects
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of general human welfare that can only be kept uniform in their benefi- cence by operation of the state unit. Experience has demonstrated the soundness of the theory. In practice it brings added responsibility with reference to matters of closer contact, and as we stimulate interest in the plain duty of citizenship, we are, by improved community life, building a state structure of greater strength and usefulness. The gov- ernment belongs to the people and their co-operation is needed at this hour in upholding the arm of the executive, so long as his stewardship is faithful. I now dedicate my services to the cause of the state, and duty will be met as the Almighty gives me the lights of conscience to follow.
CHAPTER VII
First Message of Governor Cox to the General Assembly
To the Members of the Senate and House of Representatives:
I CONGRATULATE you upon your membership in the General Assembly at one of the most auspicious moments in the history of our state; at a time when public intelligence is awakened as never before to the real importance of the relation of government to our social and economic life, and when it is responsive to the organic changes which our developing civilization clearly suggests.
The new order of things puts to the severest test the theory of governmental control over the diversified affairs of the race, but we are strengthened in the face of uncommon responsibilities by the re- flection that every crisis has been met with successful achievement, so long as the principle of exact justice to all remained the controlling consideration.
Within the last year the constitution of the state has been changed in many important particulars. A convention whose delegates were elected by the people, without regard to partisanship, framed forty-two amendments. Of these thirty-four were adopted at the special election held September 3, 1912. A part of them go automatically into effect. Others grant the legislature discretionary authority, while a third class are mandatory in nature and are by common acceptance regarded as a command from the people. There can be no justification for any departure from the intent of these amendments in the detail of legislative compliance. Much has been said for and against the constitutional changes, but no unprejudiced person fails to recognize that their adop- tion is a distinct symptom of social and economic conditions. If the active forces which oppose several of the so-called major amendments had directed like energy in co-operation with the constitutional conven- tion the situation would have been improved, at least with respect to a fuller measure of confidence in the conditions to be developed by the departures we are taking from the beaten paths. This observation prompts the further thought that if every interest exhibited a patriotic co-operation in the legislative task ahead of you, compliance with changed conditions and public sentiment will be greatly facilitated and the state will enjoy an era of social and industrial peace, unknown in the last two decades at least.
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Progressive government, so called, which means in its correct understanding, constructive work, along the lines pointed out by the lamps of experience and the higher moral vision of advanced civilization, is now on trial in our state. Every constitutional facility has been provided for an upward step and Ohio, because of the useful part it has played in the affairs of the country, is at this hour in the eye of the nation. The state has the resources, human and material, to make a thorough test of the principle of an enlarged social justice, through government, and the results of our labors will extend beyond state borders. A thorough appreciation therefore of the stupendous re- sponsibility before you, and full recognition of the probable insidious resistance to be encountered, will add immeasurably to your equipment to meet the emergency. If I sense with any degree of accuracy the state of public mind, I am correct in the belief that a vast preponder- ance of the people of all classes have faith both in the wisdom and the certain results of a constructive progressive program of govern- ment. Let us in full understanding of the consequences of our acts maintain this measure of public confidence and encourage the faith of those who are honestly skeptical because of the apprehension gene- rated in their minds by a third class, which may be unconsciously prompted by sordid impulses developed by unbroken preferences of government. No fair-minded person will dispute the logic nor question the equity of any plan which contemplates legislative action entirely within the limitations of suffrage endorsement. If the legislature, in the passage of a single law, runs counter to public desire or interest, the people through the referendum have the means to undo it. No greater safeguard can be devised by the genius of man, and to question either the moral or practical phase of this arrangement, is to admit unsoundness in the theory of a republic. In other days changes in . government such as are made necessary everywhere by our industrial and social conditions, would have been wrought by riot and revolution. Now they are accomplished through peaceful evolution. He must be indeed, a man of unfortunate temperamental qualities who does not find in this a circumstance that thrills every patriotic fibre of his being.
Even students of government in their research, find surprising historic analogies to the conditions through which we are passing, the only difference being the scene and the displacement of violence by the arbitrament of reason. Civilization develops along the same lines, substantially. The first task is the necessity of food and raiment compelled by nature, and then common interest through society creates government. With this development comes also the economic organ- ization growing out of social interdependence. If man as a social unit
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submits himself to regulation by government then property cannot be above the same restrictions. This is so fundamental in justice that its acceptance as a sound principle is a compliment to the ruling thought of the day, rather than an indication that we are taking a dangerous step. This enforces, however, the problem of ascertaining just how far governmental regulation of business should go, and not trespass upon the rights of the individual. My observation leads me to the firm conviction that this is in considerable degree a personal equation, in administration at least. It matters not how sound a law is in theory, if in practice its enforcement is delegated to incompetent hands, then government becomes a travesty and the cause of progress is in- jured. Business in Wisconsin after several years resistance of regula- tion, now accept it in good grace, and frankly admits the widespread benefits that have accrued. But this result has been achieved only by the highest standard of personnel on the administrative boards. This must be an important consideration in our state. A policy of appoint- ments induced largely by spoils or friendship, will prevent the ac- complishment of what our people now demand. At the same time prudence suggests that the controlling policy of these administrative organizations is safest in the hands of those who recognize and respect the responsibility placed upon the party in power. The success of administering government under our board of commission plan, rests in large measure upon the heads selected by the executive. Each board has its peculiar requirements. Experience in fact teaches that the exactions of the personnel are as rigid as in the professions, and ap- pointments should be made with this understanding. Every employe of the state should feel that regardless of what circumstances bring his appointment about, he must meet the highest requirements in in- tegrity and capacity. Our state government in an administrative sense, to be successful as a state unit, and through the vigilant eye of its police power assist the communities, must be maintained on a base having in view these considerations, namely :
First - The placing of experts in theory and practice on the state boards of administration and regulation.
Second - The orderly and systematic combination of departments which deal with the same subjects and problems and which are dupli- cating and in some instances triplicating both labor and expense.
Third -The fullest legitimate and wholesome exercise of the police power of the state in matters of human welfare, health conserva- tion and food regulation, where the local authority is remiss.
Fourth - The enforcement of the same requirements as to economy, system and efficiency that join to private enterprises.
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With these observations the executive department would in the exercise of its constitutional prerogative submit sundry recommenda- tions :
Conditions not only justify but demand a drastic anti-lobby law. Any person interesting himself in legislation will not, if his motive and cause be just, object to registering his name, residence and the matters he is espousing, with the secretary of state or some other au- thority designated by your body. If his activities be of such nature that he does not care to reveal them in the manner indicated, then the public interest is obviously endangered. It is no more than a prudent safeguard to have it known what influences are at work with respect to legislation. There ought to be no temporizing with this situation. Lobbying without registration should be an offense punishable by im- prisonment.
The platform adopted by the Democratic party in convention at Toledo, June 4-5, 1912, is the contract made between the people on the one hand and the state officers and majority members of the legis- lature on the other. Every instinct of common honesty demands that ti be carried out in good faith without interference from other legislation. The specifications in this covenant are:
First -"A short ballot in the selection of administrative officers as a means for insuring greater scrutiny in the selection of public officials and for fixing and centralizing responsibility."
The purpose of this is to simplify voting. The suffrage responsi- bility is so vital that confusion at the polls should be reduced to the nearest possible minimum. The ballot should be shortened by abolish- ing as elective the less important offices. The amendments to the constitution which abolish the positions of commissioner of common schools and the board of public works and place these departments under the control of the governor through appointment by him of the administrative heads, indicate the trend of thought on this subject. In keeping with the intent of the short ballot provision, the legislature should abolish as elective the offices of dairy and food commissioner and clerk of the supreme court, both of which are of legislative origin, making the former position appointive by the governor and the latter by the members of the supreme court. An amendment to the constitu- tion should be initiated making the positions of secretary of state, attorney general, treasurer and auditor, executive departments to be filled through appointment by the governor. This would leave only the governor, lieutenant governor and judges of the supreme court to be elected. The result would insure harmony of action in the state de- partments and center responsibility in the executive. The several
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executive department heads could then act in an advisory capacity with the governor, as his cabinet. This is identical with the federal plan, which is conceded to be efficient.
Second - "Separate ballots for state and national officers."
This is induced by the desire to separate two distinct issues at the election booth, and the wisdom of the suggestion is obvious.
Third -"Home rule for cities."
This principle is now a part of our constitution. The home rule amendment, in addition to authorizing cities to form their own charters, grants the General Assembly the right to pass alternative or optional laws which cities may adopt without going through the expense and burden of calling charter conventions and enacting charters for them- selves. The whole question of municipal organization is now in a ferment throughout the country, several plans being tried out. Up to this time there is nothing approaching a universality of opinion with respect to the most efficient scheme. I would therefore recommend to the legislature the adoption of such laws as will enable cities with the minimum of expense and trouble to make such selection as their respec- tive needs might suggest, either the so-called Business Manager plan, the Commission plan, or the Short Ballot Federal plan. The last named is obtained by a simple revision of the existing municipal code. It is proper in this connection to call your attention to the fact that the Ohio League of Municipalities, which drafted the home rule amendment to the constitution, represents so much of the best informed opinion of the cities of the state that its recommendations, to be made to you, might profitably be seriously considered in your deliberations on this subject.
Fourth - "The immediate valuation of property, tangible and in- tangible, of all public utilities."
The state regulation of public utilities has been of such benefit to every interest concerned that every possible legislative facility should be extended to this administrative branch of the government. Regula- tion is beginning to shed its real meaning in this state as elsewhere. While business interests at first regarded the operation as an unwar- ranted trespass upon property rights they have, by experience, found in the state a co-operative aid just so soon as the main objective of satisfactory service and reasonable rates was attained. It is also re- garded as more than a coincidence that wherever supervision is had over the issuance of securities the market yields better prices and readier demands. Public confidence is naturally stimulated in our state utilities by official certification to the legitimacy of the project. There * is no department of our service, however, where public station calls
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for a higher order of efficiency than this. Constructive progress in government consists in large degree in determining the limitation of control over the great industrialism of the day, and this must be ap- proached in fairness and intelligence. Whenever regulation is not the highest expression of human intelligence then government becomes a travesty and public opinion is very apt to swing back in favor of the old order. If, however, a regulatory commission balances evenly the elements of successful practical experience, profound and correct theory, and a courageous adherence to fairness both to the state and to business, the result is so self-evidently just that public confidence is enduring and the plea for the old days of inequitable preference by government is useless. The existing law gives to the commission the right to make a physical valuation. This should be made mandatory. The utility and tax commissions have made considerable headway in working out the detail of valuation. But their labors in this particular have been confined almost, if not entirely, to cases which came to their notice by requests for increased capitalization or complaints with respect to taxation values. There can be no permanent nor logical base for the successful operation of these departments without a physical valuation of utilities. After considerable investigation, which has taken in the experience of other states, I am convinced that a state engineer of utilities should be employed under the direction of the utilities com- mission. His operations would prevent much duplication in work, because his findings would be available to the tax commission also. For taxation purposes the inquiry often of necessity along different lines, but every valuation made by the state engineer would serve as a base for both commissions. The state is educating at public expense several hundred engineers in the university. These students need prac- tical work in connection with their class room studies. The state can use their services, so that the reciprocal situation suggested is so logical that one need not wonder at the splendid results achieved in Wisconsin by co-ordinating the government and the university. Under supervisory aid from the engineer's office these students would render tremendous service to the state and at a minimum of cost. Sufficient provision is made for the utilities commission, through fees and appropriations, to set this work in motion, and the legislature should render the earliest possible co-operation. The utilities commission, so called, was created as a railroad commission and many laws relating to it were made with special regard to the specific subject of railroad supervision. Since then a general utilities law has been passed and the administrative work, tremendous in volume and detail, has been consigned to the original commission. I would strongly recommend such changes in
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the laws as the experience of the commission clearly suggests. The home rule amendment gives the municipality the right to own and operate utilities. Because of this the utilities commission should have the right to enforce the same system of uniform accounting on munici- palities operating utilities as are now imposed upon private enterprises, otherwise the public would have no means of knowing whether the municipality plants were conducted along the lines of efficiency and economy. It would be a simple matter to charge certain operating expenses to betterments and an apparently profitable operation by the municipality might in fact be a losing one. There must be the greatest possible safeguard established or there can be no accurate test of municipal ownership. Besides, plain fairness suggests that in the opera- tion of utilities both private and public ownership must be subject to the same standards of ethics and government.
One development of the railroad and utilities laws which has been very unfair to the state should be corrected. Under present practice the commission establishes or revises a rate. The utilities company if it desires, makes objection and is given a hearing, which is ex- haustive and extensive. The commission then either amends or retains the rate previously fixed, whereupon, the corporation, in many instances, goes into court, assk for and receives an injunction. The delays of the law are well known and the issue remains unsettled for a year or more. The law should be so changed that the court cannot issue an injunction in these rate matters without an investigation. This is the practice elsewhere and should be adopted in Ohio.
Fifth - "Home Rule in Taxation."
This requires constitutional changes and nothing can be done save the adoption of a resolution in behalf of an amendment to the state charter.
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