APPENDIX. 473 



taking one or two hired aids ; but this does not prove 

 in the least that the small industries carried on with 

 the aid of machinery should be on the wane. The 

 census of 1907 proves quite the contrary, and all 

 those who have studied it are bound to recognise it. 



" Of a pronounced decay of the small establishments 

 in which five or less persons are employed, is, of 

 course, no sign," writes Dr. Zahn in the afore-men- 

 tioned work. Out of the 14-3 million people who live 

 on industry, full 5'4 million belong to the small 

 industry. 



Far from decreasing, this category has considerably 

 increased since 1895 (from 732,572 establishments 

 with 1,954,125 employees in 1895, to 875,518 establish- 

 ments and 2,205,539 employees in 1907). Moreover, 

 it is not only the very small industry which is on the 

 increase ; it is also the small one which has increased 

 even more than the preceding namely, by 47,615 

 establishments and 812,139 employees. 



As to the very great industry, a closer analysis of 

 what the German statisticians describe as giant 

 establishments (Riesenbetriebe) shows that they belong 

 chiefly to industries working for the State, or created 

 in consequence of State-granted monopolies. Thus, 

 for instance, the Krupp Shareholders Company employ 

 69,500 persons in their nine different establishments, 

 and everyone knows that the works of Krupp are in 

 reality a dependency of the State. 



The opinions of the above-named German authors 

 about the facts revealed by the industrial censuses 

 are very interesting. 



In speaking of the small industries in Germany, 

 W. Sombart writes in the article, " Verlagssystem 

 (Hausindustrie)," in Conrad's Handwortezbuch : " It 

 results from the census of 1907 that the losses in the 



