by this:

Oh, guys, explain to the dilettant, people have kings, elves have kings, dwarves have kings, even orcs have a ruler, but the hobbies have the ruler of everything, or are they anarchists?
Hobbits are the head of the council.

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And in fact (if anyone is interested in it), the Hobbit is governed by the mayor of Shirah and the sheriffs. Try to read the book.

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And in the same case, the hobbies are legally subordinated to King Arnor (later - Artaudine, but in the Fourth Age Arnor was revived). The other issue is that they have the widest autonomy.