Sec. 10. #State ownership of various kinds#.  The movement toward public ownership by the American states has been much less marked than that by the municipalities.  The commonwealths have retired from some fields where once they were engaged in industry.  Students of American history know that between the years 1830 and 1840 some states engaged largely, even wildly, in canal building, railroad construction, banking and in other enterprises.  The undertaking of these industries was determined often by political and by selfish local interests, and their operation often was wasteful.  A few enterprises succeeded, the most notable of these being the Erie Canal in New York.  The unsuccessful ones remained worthless property in the hands of the state or were sold to private companies, as in the case of the Pennsylvania Railroad.  This reckless state enterprise was a bitter lesson in public ownership, and continued for three quarters of a century to have such an effect on public opinion, that few proposals for public ownership could have a fair hearing in America, But railroads and canals are publicly owned, and more or less successfully operated, by many foreign states, as in Prussia and other German states, in Switzerland, and in the new states of Australia, and this policy is rapidly extending to other countries and to varied industries.

There has been recently a greatly increased interest in forestry shown by the American states.  This is especially likely to be a state enterprise wherever the forest tracts are entirely within the limits of the state, as is the case in New York and Pennsylvania which have been foremost in this work.  At present at least 32 states have forestry departments.  Most of the forests in Germany are either communal or state-owned.  The schools, a great industry for turning out a product of public utility, are largely conducted by the American states and by local units rather than by the nation or by private enterprise.  The state encourages researches in the arts and sciences, and gives technical training.  A variety of minor enterprises have been undertaken by states to supply salt, phosphate, banking facilities, even some manufactures.  One after another the states are adopting the “state use” system of labor in the prisons and public institutions, engaging in agriculture and manufacturing on a large scale, and using the products, amounting to millions of dollars annually, almost entirely for public purposes.

Sec. 11. #National ownership#.  The national governments everywhere appear to be enlarging the field of their ownership.  This policy has its roots far in the past.  Some industries grow out of the political needs of government.  Established as a means of communication with military outposts, the post became a convenient means of communication for merchants and other citizens and grew into a great economic institution.  In most countries the telegraph is publicly owned and has been annexed to the post, to which it is very closely related in purpose.  National ownership of railroads is the rule, and our policy of private ownership the great exception in the world to-day.  Many persons, even some in railroad circles, believe that national ownership of railroads is sure to develop out of our present policy of regulation.