power, in 1895 to 2,358,000 horse power and in 1907 to 5,190,000 horse power. During this period of 25 years, therefore, the capacity in creased more than fourfold, and in the 12 years from 1895 to 1907 it was more than doubled. In the whole German Empire, for which comparative figures are available only since. 1895, the development was similar. In the year 1907 the census showed 124,000 steam engines with a capacity of 7,587,000 maximum horse power, or 5,185,000 effective horse power. What these figures mean becomes clearer when mechanical and human capacity for work is compared. The effective capacity of one me chanical horse power is about the physical labor equivalent of 10 men. Upon this basis the actual work done by German steam engines in the year 1907 was equivalent to the work done by 52,000,000 men, and the increase of actually effective steam horse power from 1895 to 1907 persons employed in the various industries, with the increases in output previously given. From the following table it will be seen that while the number of persons employed has in creased, the increase has been very much smaller proportionally than the increase of out put.
Another valuable index of the progress of German industry is seen in the increase in the use of power for industrial purposes. In Prussia's industries the capacity of steam en gines amounted in 1882 to 1,222,000 horse was equivalent to an increase of the working population by about 28,000,000 men.
These figures should be placed in juxtaposi tion with those of the working population of the empire, which showed 18,900,000 persons for 1895 and 24,600,000 for 1908. In the year 1895 there was, accordingly, for each person engaged in labor, not much more than one equivalent of his labor represented by steam power. But whereas the laboring population increased from 1895 to 1907 by 5,700,000 per sons, the steam engines of Germany under went an increase of 2,800,000 horse power; hence the steam power in 1907 represented more than two equivalents of human labor for each person employed in gainful occupations. In reality the increase of mechanical labor power was even considerably greater than finds expression in the above figures, for whereas steam was, along with water power, which was relatively little developed, almost the ex clusive source of power for motor purposes till into the last quarter of the 19th century', the development of the electrical industry and the invention and improvement of explosive motors has, during the 25 years under consid eration, raised up a new and rapidly. develop ing competitor of steam power.
The preceding detailed table shows the rela tive use of power among different industries. In addition to steam power, there is given a column covering the use of electrical power, and this substantially augments the total. No
figures showing the increase of electrical power are given, as electrical power only began to be used to any appreciable extent about the middle of the last decade of the 19th century.
A summary of the operations of individual corporations in Germany for the year 1911 shows their prosperous condifion. The total reserve fund amounted to 23 per cent of the outstanding capital stock and an average divi dend of 8.1 per cent was paid. Since German corporations are organized on a sound stock basis, the figures are a real index of conditions.
The rapid development of German industry during the last generation has been accom plished for the most part by the larger estab lishments. The smaller establishments, though they have not decreased actually, have gained little ground while the large establishments have grown rapidly both in number and size.
Hand industries, the operations of which are carried on by individual workers or small groups of workers in their homes, have existed in Germany for many centuries and do not readily yield to the encroachments of the larger units, but they have not been gaining proportionately. The factory has absorbed all the increase and in some cases has made in roads on the home industries. More recently, the improved facilities for the distribution of electrical power have given the home indus tries a new advantage as manufacturers and electric central station concerns find it profitable to install small, electrically operated machinery in the workers' homes, which enables the serv ices of certain of the members of the family to be utilized, keeping the machines constantly at work in specialized operations, producing parts, which are assembled in the factory into the finished product.
This is a modern phase of home industry quite unlike that of olden times in which the home workers were highly skilled and produced finished products which could not be matched by the factories. Home industry varies widely according to location. In the cities such prod The figures in the various tables given are only up to 1911, hut are the latest obtainable. They were compiled from original governmental sources, but as such figures are available only in reports from various departments, often not in published form, the assembling of the com parative figures demands considerable work and time and the interruption of the war makes later data unavailable. In iron and steel and certain other lines production was greatly augmented by the war so that the conclusion of the conflict saw largely increased facilities in many lines of industry.