SOCIALIZED GERMANY 
 
SOCIALIZED GERMANY 
 
 BY 
 
 FREDERIC C. HOWE, LL.D. 
 
 AUTHOR OP "THE CITY: THE HOPE OF DEMOCRACY," "THE BRITISH CITY: 
 BEGINNINGS OF DEMOCRACY," "PRIVILEGE AND DEMOCRACY IN 
 AMERICA," "EUROPEAN CITIES AT WORK," ETC. 
 
 NEW- YORK 
 
 CHARLES SCRIBNER'S SONS 
 1915 
 
COPTRIGHT, 1915, BY 
 
 CHARLES SCRIBNER'S SONS 
 
 Published September, 1915 
 
PREFACE 
 
 MUCH of the material for this book was ready 
 for publication in the fall of 1914. It is the product 
 of rather intimate knowledge of German life during 
 the past quarter of a century. When the war broke 
 out the manuscript was laid aside to await its ter- 
 mination, but as the contest wore on and the ex- 
 traordinary resources of Germany were disclosed, it 
 seemed to me the book should be published, partly 
 as an explanation of the efficiency of Germany, but 
 primarily as a suggestion of a new kind of social 
 statesmanship which our own as well as other coun- 
 tries must take into consideration if they are to be 
 prepared to meet the Germany whiofe -in victory or 
 defeat, emerges from the war. For the "German 
 peril" is only in part a military peril. It is a peace 
 peril as well. The real peril to the other powers of 
 Western civilization lies in the fact that Germany is 
 more intelligently organized than is the rest of the 
 world. The individual German receives more from 
 society. He is better protected in his daily life. 
 The gains of civilization are more widely distributed 
 than they are with us. His dignity and his per- 
 
vi PREFACE 
 
 sonal liberty are on a different, and from our point 
 of view on a lower, plane than in America and Great 
 Britain, but his daily and his hourly needs, and those 
 of his wife and family, are better cared for. And 
 the individual man is more efficient. He is better 
 prepared for his work. He enjoys a wholesome lei- 
 sure life. He is assured protection from la misere 
 in old age. The workhouse does not await him if 
 he falls by the wayside. 
 
 It is my belief that Germany had just reached the 
 beginning of her greatest achievements. Had not 
 the war intervened, the next generation would have 
 seen her competitors in industry, trade, and com- 
 merce outdistanced at an accelerated speed that 
 would have soon left them far and possibly perma- 
 nently in the rear. 
 
 If this is to be averted, new ideas of the obliga- 
 tions of the state must animate our legislators. 
 There must be an abandonment of the old concep- 
 tion that the only business of organized society is 
 to protect the individual from domestic and foreign 
 aggression. There must be a wide extension of pub- 
 lic ownership, a greater control of the aggressions of 
 privilege and property, a big programme of social 
 legislation, a change in our system of education, and 
 the exclusion of privileged and business interests 
 from the long ascendancy which they have enjoyed 
 
PREFACE vii 
 
 in our political life. It required the war to make 
 this clear to Great Britain. It should shake us from 
 our complacency as well. 
 
 I desire to acknowledge the invaluable aid re- 
 ceived in the preparation of this volume from the 
 works of William Harbutt Dawson, whose books, 
 "The Evolution of Modern Germany," "Industrial 
 Germany," "Social Insurance in Germany," and 
 "Municipal Life and Government in Germany," offer 
 mines of information as well as a sympathetic in- 
 terpretation of the constructive political and social 
 statesmanship of that country. 
 
 I am also indebted to Miss Gertrude Borchard for 
 valuable assistance and research in the collection of 
 material and its preparation for publication. 
 
 FREDERIC C. HOWE. 
 
 NEW YORK, September, 1915. 
 
CONTENTS 
 
 PAGE 
 
 PREFACE v 
 
 CHAPTER 
 
 I. INTRODUCTORY THE DUAL GERMANY 1 
 
 II. THE BACKGROUND OF MODERN GERMANY ... 8 
 
 III. THE CONSTITUTION OF THE EMPIRE 24 
 
 IV. THE ECONOMIC FOUNDATIONS OF CLASS RULE . . 36 
 V. RECENT ECONOMIC PROGRESS 52 
 
 VI. THE THEORY AND EXTENT OF STATE SOCIALISM . 80 
 
 VII. THE STATE-OWNED RAILWAYS 95 
 
 VIII. CANALS, WATERWAYS, AND FREE PORTS .... 121 
 
 IX. HARBORS AND RIVER SHIPPING 133 
 
 X. MINES, FORESTS, AND AGRICULTURAL LANDS . . 146 
 
 XI. THE ATTITUDE OF GERMANY TOWARD THE SOCIAL 
 
 PROBLEM 161 
 
 XII. CARING FOR THE UNEMPLOYED 172 
 
 XIII. LABOR AND INDUSTRIAL COURTS 182 
 
 XIV. SOCIAL INSURANCE AND SOCIAL DEMOCRACY . . 192 
 XV. HIGHER EDUCATION PROVIDING THE EXPERT . . 208 
 
 XVI. ELEMENTARY EDUCATION 220 
 
 XVII. VOCATIONAL EDUCATION PREPARING THE CHILD 
 
 FOR LIFE 231 
 
 XVIII. SANITATION AND HEALTH 248 
 
 XIX. THE WAB UPON DISEASE 258 
 
 ix 
 
x CONTENTS 
 
 CHAPTER PAGE 
 
 XX. GOVERNING CITIES BY EXPERTS 265 
 
 XXI. MUNICIPAL SOCIALISM 280 
 
 XXII. THE BUILDING OF CITIES 298 
 
 XXIII. MUNICIPAL LANDOWNERSHIP AND HOUSING PROJ- 
 
 ECTS 313 
 
 XXIV. THE GERMAN CONCEPTION OF THE STATE . . . 321 
 INDEX . , 337 
 
SOCIALIZED GERMANY 
 
CHAPTER I 
 INTRODUCTORY THE DUAL GERMANY 
 
 THIS is not an apologia pro Germania. It is not a 
 defense of militarism nor a glorification of the Prus- 
 sian idea of the state. Nor is it a plea for socialism, 
 although the experience of Germany disproves many 
 of the arguments against the possibility of a social- 
 ist state. I am one of those who still believe that 
 with special privileges abolished and industrial 
 freedom assured, society would realize an approach 
 to economic justice that would exclude the necessity 
 of socialism. And I believe in democracy, and all 
 that democracy implies. 
 
 Germany has adopted a mixed programme, a 
 programme of state socialism which insures a large 
 degree of industrial freedom. It is not the socialism 
 to which the Social Democratic party aspires; it 
 does not involve control by the working classes. It 
 is the socialism of the ruling caste, the great estate 
 owners and the capitalists. And it is through state 
 socialism that efficiency as well as a large measure 
 of freedom has been secured. 
 
 With many other Americans I have an affection 
 for the German people, for the orderliness, finish, 
 and perfection of administration that makes for 
 
2 SOCIALIZED GERMANY 
 
 personal comfort and convenience. I like the Ger- 
 man cities, and have affectionate memories of 
 Munich, Dresden, Diisseldorf, Frankfort, and Nu- 
 remberg, with their generous provision for art, 
 drama, music, and the cultural things of life. I have 
 a veneration for the traditions and glories of the 
 principalities and free cities that existed for cen- 
 turies as autonomous states prior to the organiza- 
 tion of the empire. I have unbounded respect for 
 the German educational system, for the universities, 
 for the wonderful elementary, vocational, and high 
 schools, as well as for the technical colleges for 
 training in industrial arts, in commerce and admin- 
 istration. I admire the far-seeing legislation for the 
 protection of the worker from the costs of industrial 
 and urban life, the social measures promoted by Bis- 
 marck, and the many municipal services like town- 
 planning, municipal ownership, and the other public 
 activities that explain in large measure the charm 
 of the German city. 
 
 The following chapters are an attempt to under- 
 stand the conflict between these achievements and 
 the things we do not like in Germany; they are an 
 endeavor to explain the militarism and the human- 
 ity, the paternalism and the large degree of freedom 
 which paternalism has secured to all classes. It is 
 an attempt to understand Germany at work as well 
 as at war; to portray the background which in large 
 measure explains the military efficiency of the em- 
 
THE DUAL GERMANY 3 
 
 pire. And I have tried to write the book as though 
 there were no war. 
 
 And the underlying fact about Germany is that 
 the old Germany of a score of independent states 
 has been submerged by the new Germany of Prussia. 
 For Prussia is Germany, and Prussia in turn is feudal. 
 The confusion we feel about Germany is traceable 
 to the fact that much of the beauty and charm of 
 old Germany has been crushed under the heel of the 
 feudal autocratic caste which under constitutional 
 forms has projected its ideas into the very life of 
 the empire. It is a Germany that has lost much of 
 the individuality, much of the freedom, and much 
 of the liberalism of a century ago, for which has 
 been substituted a commercial and landed feudal- 
 ism having for its foundations the political and so- 
 cial concepts of an earlier age. 
 
 We may deplore the Prussianizing process but at 
 the same time admit that there is much that is won- 
 derful in the structure that has been erected during 
 the past generation ; a structure like that of ancient 
 Rome in the institutions that have been created, 
 and the big-visioned ideas of legislation, of educa- 
 tion, and of social activities that have been given to 
 the world. These ideas will only be ignored by 
 those who will not see. And it will be an unfortu- 
 nate thing for the nation that refuses to see. For 
 once the war is over, the pace for industrial suprem- 
 acy will be fierce and rapid. The race for recovery 
 
4 SOCIALIZED GERMANY 
 
 will be to the strong and well-equipped. And there 
 is no doubt but that Germany will turn from war 
 to peace with much of the preparedness that she 
 turned from peace to war. Her state-owned rail- 
 ways and waterways, her mines and mineral re- 
 sources, her shipping and other commercial agencies, 
 with the highly trained men at her command, will 
 respond to an electric button when the treaties of 
 peace are agreed upon, and her mills, factories, and 
 workshops, her financial resources and credit agen- 
 cies, will respond to the imperial will just as did the 
 armies which were set in motion by the mobilization 
 orders in the summer of 1914. I have no doubt but 
 that to-day, in the midst of encircling wars, Ger- 
 many is making ready for peace, and the problems 
 then to be met, just as for a quarter of a century 
 she has been preparing for war. And just as France 
 and England found themselves unprepared on the 
 battle line, so they, and possibly America, will find 
 themselves equally unprepared for the new struggle 
 when the war is over. 
 
 And whatever we may think of German milita- 
 rism, of German autocracy, of German Kultur, the 
 fact remains that Germany has developed wonderful 
 efficiency, not only in the production of wealth, but 
 in the distribution of the advantages of civilization 
 as well. There is efficiency in transportation, scien- 
 tific thought to every process and every social and 
 industrial problem; there is the greatest concern for 
 
THE DUAL GERMANY 5 
 
 human life, for health and well-being, for the educa- 
 tion and training of workers, artists, commercial men, 
 and scientists, and the co-ordination of the individual 
 into a machine of national rather than purely per- 
 sonal dimensions. All Germany, in fact, acts as a 
 unit. The individualism of England and America 
 does not there exist. There is an official realization 
 that the division of labor is no longer confined to a 
 single establishment; it is nation-wide in its scope. 
 Along with this is the conviction that many things 
 must be done by the state to insure a free field for 
 industry; to guarantee to every man a fair chance 
 to realize upon his abilities and his powers. 
 
 All of this is of especial significance to America at 
 the present time. Our public domain is gone. A 
 great part is held out of use. Opportunities in the 
 West are closed forever. Our unbounded resources 
 have been appropriated. Monopoly has closed many 
 industries to effective competition. The means of 
 transportation are in private hands. Financial credit 
 is still largely a matter of personal favor. And 
 credit is still monopolized, as are the raw materials 
 of production. Unemployment is chronic. It is 
 likely to increase rather than diminish, for the op- 
 portunities for labor are under the control of the 
 few. The city, the state, and the nation are still 
 largely police agencies rather than agencies of ser- 
 vice. 
 
 Public officials are still animated by the individual- 
 
6 SOCIALIZED GERMANY 
 
 istic laissez-faire philosophy of an earlier generation, 
 and as a consequence the public service is negative 
 in its ideals, while the men who are attracted to it are 
 untrained to constructive effort. Of skilled admin- 
 istrators with social vision, there are comparatively 
 few, while the universities and the schools offer but 
 little training in this field. There is no big state- 
 craft, no commanding idea of statesmanship, and 
 only grudging social legislation. Instead we have 
 the struggle of economic groups, each seeking to 
 promote a programme of narrow class interest. 
 
 Many of these problems have been worked out by 
 Germany in a thoroughgoing way. Administrative 
 and industrial efficiency are a scientific study in 
 which hundreds of thousands of the best minds of 
 the state are engaged. The same is true of com- 
 merce and trade. The rest of the world is a quarter 
 of a century behind Germany in social conscious- 
 ness, in an understanding of the new statecraft, in 
 appreciation of the necessity for social legislation, 
 and for adjusting education in all of its branches to 
 life. 
 
 Germany has given a new conception of the state 
 to the world. It may not be a beautiful conception. 
 It certainly violates our ideas of personal and polit- 
 ical freedom. But at least the idea is a successful 
 one. It is in harmony with modern industry, and 
 finds its counterpart in the trusts, the syndicates, 
 and the ideas of scientific production with which we 
 
THE DUAL GERMANY 7 
 
 are familiar. Germany is a recrudescence of the 
 Greek idea of the state adjusted to twentieth-cen- 
 tury conditions. It is a state that thinks primarily 
 in terms of the ruling class; but it thinks as well in 
 terms of the whole population. Politically Germany 
 is an oligarchy, but an oligarchy concerned about the 
 well-being of the people, about their health, educa- 
 tion, comfort, and efficiency. And viewed from this 
 standpoint, Germany is a democratically minded 
 country. It is a state organized on the ideals of 
 Frederick the Great, but guided by the scientific 
 ideas of the twentieth century. It is a feudal state 
 with the view-point of benevolent paternalism. And 
 the result of this policy has been efficiency, power, 
 and a high average of well-being, coupled with ad- 
 ministrative control of the lives, thoughts, and 
 liberties of the people. 
 
CHAPTER II 
 THE BACKGROUND OF MODERN GERMANY 
 
 WITH all of the books that have been written on 
 the subject, Germany still mystifies us. She evades 
 Anglo-Saxon analysis. She differs from other coun- 
 tries in the most unexpected ways and challenges 
 most of our theories of politics. We find difficulty 
 in understanding the psychology of the people, their 
 attitude toward the war, the Kaiser, and the ruling 
 classes. There are many other anomalies that the 
 Anglo-Saxon, and especially the American mind, 
 cannot explain. Governed by an almost feudal 
 aristocracy with a detachment and disdain for all 
 other classes, Germany has worked out the most 
 elaborate programme of social legislation and state 
 socialism of any country in the world. Admit- 
 tedly a people with but little aptitude for politics 
 in the common acceptation of the term, the states 
 and cities have perfected their administration and 
 carried government ownership beyond the pro- 
 grammes of any except the extreme socialists of other 
 countries. Oppressed by the anti-socialist laws of 
 Bismarck, there has grown up the most highly or- 
 ganized revolutionary type of socialism in Europe, 
 with a total vote of over 4,000,000 electors. Up to 
 
 8 
 
BACKGROUND OF MODERN GERMANY 9 
 
 1870 almost exclusively an agricultural nation, Ger- 
 many has developed her resources, diversified her 
 industries, expanded her trade and commerce, and 
 pushed herself to the front rank as an industrial 
 power in the face of the almost complete occupa- 
 tion of the markets of the world by other countries. 
 
 These are but suggestive of the many political 
 and social riddles which Germany presents. These 
 are some of the anomalies which challenge the 
 teachings of history and our currently accepted 
 theories of politics. 
 
 What is the explanation of the German people? 
 What lies back of the prowess of the nation not 
 only in war but in the arts of peace as well? By 
 what means has a peasant country been able to 
 project its life into industry, commerce, and finance, 
 and extend its conquests into every corner of the 
 earth? How has an autocratic state, the most 
 autocratic in western Europe, been induced to 
 think in terms of the peasant and the artisan, and 
 to provide social insurance and education, state 
 socialism and protection for the weaker members 
 of the state, far beyond any programme yet de- 
 veloped by any of the democratic nations of the 
 world? What is the social psychology of the Ger- 
 man people that apparently denies the materialistic 
 interpretation of politics enunciated by socialists 
 and largely confirmed by the contemporary experi- 
 ences of other countries? 
 
10 SOCIALIZED GERMANY 
 
 A people cannot be analyzed in a few paragraphs, 
 and cannot be understood by an outsider even with 
 the most sympathetic of intentions. It is difficult 
 to understand one's own country the changes in 
 sentiment and conviction, the swift abandonment of 
 one position tenaciously held for another. Even 
 in America the political and social currents elude 
 us. And the social psychology of Germany is par- 
 ticularly baffling. It has confused even the students, 
 artists, and travellers who during the last generation 
 have gone to Germany for an education, for cultural 
 things, and the leisure life which Germany offers. 
 
 Possibly the most important influence in the mak- 
 ing of modern Germany and in moulding the mind of 
 the nation is the persistence even down to present 
 times of the feudal idea of the state with its eight- 
 eenth-century relation of classes. The German 
 people, especially the Prussians, still think in terms 
 of an earlier age; they accept the divine right of 
 kings and the only less divine right of the feudal 
 aristocracy to rule. And they accept this with but 
 little intellectual protest. Up to a generation ago 
 there were but two classes in Germany: the feudal 
 estate owners and the peasants working upon the 
 soil, whose relations had not materially changed in 
 centuries. The great feudal estates still persist in 
 Prussia, and a quasi-feudal system is the economic 
 mould of Germany. It is this that is responsible 
 for caste, for the division into classes; it is this 
 
BACKGROUND OF MODERN GERMANY 11 
 
 that explains the social cleavage and the accep- 
 tance of authority. It is this, too, that explains the 
 paternalism of Prussia, just as it is the wide distri- 
 bution of the land under peasant proprietorship 
 that explains the gemutlichkeit of South Germany. 
 
 Feudal conditions have projected the traditions 
 of an earlier age down to the present day. They are 
 responsible for the autocratic power of the Bang of 
 Prussia, who remains a great landlord, the first 
 among other great landlords. His possessions have 
 been in the Hohenzollern family for centuries. The 
 Mark of Brandenburg, extended by force of arms 
 into the kingdom of Prussia and later under Bis- 
 marck into the empire, is an expansion of the feudal 
 state. The constitution of 1871 is a legal crystalli- 
 zation of eighteenth-century conditions, as is the 
 earlier constitution of Prussia. While suggesting 
 parliamentary forms, in reality they but legalize, 
 through the limitations upon the suffrage, the un- 
 just distribution of seats and the ascendancy of the 
 feudal class, the control of the old aristocracy in the 
 life of the nation. 
 
 And this old feudal class is the ruling class. It 
 fills all the higher offices of the state. From it come 
 the chancellors and ministers of the empire. It 
 officers the army and navy. It moulds public opin- 
 ion and controls legislation. The feudal class is 
 society. But this class is not Germany. It has 
 little interest in or appreciation of the Germany 
 
12 SOCIALIZED GERMANY 
 
 which many Americans know and love. And we 
 cannot understand Germany without understanding 
 this duality. The confusion we feel, the mental 
 conflict of so many people, is traceable to the fact 
 that there are two Germanys: the Germany of poli- 
 tics, militarism, and aggression, and the Germany 
 of culture, sweetness, efficiency, and life. Official, 
 feudal Germany is separate and apart from the 
 real Germany. The voice of the class which rules 
 is not the voice of the people. It does not represent 
 the worker, the peasant, the merchant, or even the 
 great majority of the property-owning classes. 
 
 It is this persistence of an earlier organization of 
 society that explains the sense of dependence on the 
 part of the people, and the respect and veneration 
 for authority which affects all classes. No other 
 nation has so completely subordinated the individual 
 to the state; nowhere does such unchallenged author- 
 ity attach to so large an official class; and nowhere 
 does the official command such unquestioned obedi- 
 ence. 
 
 There are two explanations for this persistence of 
 the mediaeval idea of the state an anachronism in 
 the twentieth century. In the first place the French 
 Revolution did not penetrate into Prussia as it did 
 into Italy, Belgium, South Germany, and even 
 Scandinavia. Prussia was sparsely settled. There 
 were few cities, and the system of feudal landowner- 
 ship was too nearly universal for the revolutionary 
 
BACKGROUND OF MODERN GERMANY 13 
 
 forces to gain a footing. Nor did the later revolu- 
 tionary movements of the nineteenth century pene- 
 trate into that part of Germany that lies to the east 
 of Berlin, into East Prussia, Posen, and Pomerania. 
 And when the constitution of Prussia was formed 
 the liberal forces were too weak to make their in- 
 fluence felt. The constitution then adopted was 
 merely a recasting in legal form of the old feudal 
 order. There was no provision for direct universal 
 suffrage or even an approach to it, for a responsible 
 ministry, or for real constitutional forms. Later, 
 when Prussia became the dominating state in Ger- 
 many, she impressed her feudal will and control by 
 the feudal classes upon the imperial constitution. 
 Manhood suffrage, it is true, was provided in elec- 
 tions to the Reichstag, but this is only a semblance 
 of popular power. The King became the Kaiser, 
 and along with the Bundesrat, or Senate, the final 
 repository of authority. There is no suggestion of 
 popular control over the government, and popular 
 opinion does not influence the ruling classes. Even 
 in the Prussian cities the great majority of the peo- 
 ple have but little voice. Politically Germany is 
 but little changed from what it was a century ago, 
 and the explanation is to be found in the fact that 
 the traditions of the people and the constitution of 
 the state repose the government in the hands of the 
 great landowners, who remain almost as powerful 
 as they were in an earlier age. 
 
14 SOCIALIZED GERMANY 
 
 A second explanation of the persistence of the 
 feudal state and the eighteenth-century relation of 
 classes is found hi the fact that the industrial revolu- 
 tion did not reach Germany until very recently. 
 The factory system with a large industrial urban 
 population dates back to the Franco-Prussian War. 
 It was almost a century old in Great Britain before 
 it appeared in Germany. In the former country 
 it had built great cities and created a powerful 
 financial class, which insisted on political and social 
 recognition, and through its influence on legislation 
 and public opinion it put an end to much of the 
 personal and political subjection of earlier times. 
 The new commercial aristocracy broadened the 
 suffrage as early as 1832. It abolished the rotten- 
 borough system, which still prevails in Prussia. It 
 repealed all limitations on admission to the Com- 
 mons, and in 1910 it took away the veto from the 
 House of Lords. Freedom of conscience, of speech, 
 and of the press were guaranteed, and these are of 
 the very essence of popular government. The 
 ministry was made responsible, not to the King, but 
 to Parliament and the party in power. Far more 
 important, the commercial classes became rich and 
 powerful a generation before they appeared in Prus- 
 sia. The members entered Parliament. They married 
 into the old aristocracy. And, one by one, they took 
 away the privileges of the old feudal class. 
 
 Through the growth of industry England became 
 

 BACKGROUND OF MODERN GERMANY 15 
 
 predominantly an industrial and trading nation, 
 until to-day four-fifths of her people live in cities. 
 And through manhood suffrage industry became 
 articulate in legislation. It broke down the old 
 feudal concepts of the state and changed the psy- 
 chology of Great Britain. A new aristocracy was 
 elevated alongside of the old landed aristocracy, 
 and in securing political equality for itself it secured 
 equality for the rest of the people as well. 
 
 In Germany, on the other hand, the old regime 
 was crystallized into constitutional form long before 
 the commercial classes had risen to prominence in 
 the empire. The commercial aristocracy is of recent 
 appearance; it has never been admitted to the old 
 aristocracy, and under the constitutions of Prussia 
 and the empire it has but little voice in the affairs 
 of the nation. 
 
 The second influence in the moulding of modern 
 Germany is the complete ascendancy of two power- 
 ful individuals who have dominated the life of the 
 nation for over fifty years. These individuals are 
 Prince Bismarck and William II. And these two 
 men were consistent in their ambitions and alike in 
 their traditions. They had the same vision of the 
 paternal state. And both reflected the ideals of an 
 earlier age. Bismarck came from the ruling classes, 
 the aristocracy. He loved Prussia and his King. 
 And he loved only less the Junker class from which 
 he came. He was trained to statecraft, and just as 
 
16 SOCIALIZED GERMANY 
 
 Stein and Hardenberg were entrusted with power 
 following the humiliation of Prussia by Napoleon, 
 so Bismarck was given almost sovereign authority 
 by William I in the years prior to the Franco- 
 Prussian War, as well as in the period of construc- 
 tion which followed it, when the results of military 
 conquest and the French milliards were made the 
 basis of a political, industrial, and social programme 
 that has been carried on since Bismarck's retire- 
 ment by Emperor William II. 
 
 These two men have guided the destinies of Ger- 
 many. They framed constructive legislation and 
 directed the state in the same general direction. 
 Both were possessed of boundless imagination as 
 to the ultimate destiny of the German people. 
 They were not seriously distracted by political con- 
 troversy. They ruled by party coalitions when that 
 was possible; and when it was not, they ruled without 
 parliamentary sanction. Their control over Prussia 
 was absolute, and through Prussia their control of 
 the empire was almost equally so. They chose their 
 own associates, and they chose them from the feudal 
 class. And they fashioned Germany to their liking, 
 not for military purposes alone but for industrial 
 and commercial aggression as well. The legislation 
 which they promoted, even the social legislation for 
 the protection of the working classes, was in har- 
 mony with the early traditions of Prussia. The laws 
 they insisted on involved no violent break with the 
 
BACKGROUND OF MODERN GERMANY 17 
 
 past. Rather they were a continuation of the pa- 
 ternalism, of the feudalism, of the ascendancy of the 
 state over the individual, to which Germany had 
 long been accustomed. 
 
 A third influence in the making of Germany is 
 education an education which begins with the 
 cradle, that is compulsory, and is open even to the 
 poorest, who are able to make their way through 
 the secondary schools, the academies, technical col- 
 leges, and the university, if they have the ambition 
 and the ability to do so. Nowhere, not even in 
 America, is university training so universal as in 
 Germany; and nowhere are there fewer obstacles 
 to cultural opportunity. Moreover, education is a 
 matter of the most serious official concern by states- 
 men and experts. It is adjusted to every activity, 
 to every industry, and every scientific need. And 
 it is a public rather than a private function. The 
 appropriations for this purpose are generous. The 
 standards of elementary education are prescribed 
 by law, to which all communities must conform. 
 Elementary education is obligatory. Above the 
 minimum requirements prescribed by the state 
 local authorities may go as far as they choose, and 
 the greatest diversity exists in the development of 
 higher education not only between the universities, 
 which are found in almost every state of the empire, 
 but among the municipalities as well. Cities main- 
 tain a great variety of high schools and academies, 
 
18 SOCIALIZED GERMANY 
 
 in which provision is made for all kinds of mechan- 
 ical, vocational, and artistic study. There are 
 gymnasia for classical training, for science, for the 
 fine arts. In addition, the larger cities maintain 
 colleges of commerce and technology, through which 
 thousands of students are trained for industry, 
 commerce, and state activities. There are 21 uni- 
 versities, with 66,000 students, giving higher post- 
 graduate degrees in philosophy, law, and medicine, 
 and a dozen technical colleges, with 17,000 students 
 pursuing similar advanced courses in engineering 
 and science. Provision is made for training in state- 
 craft and administration. Diisseldorf has a col- 
 lege of city administration and Berlin a college of 
 town-planning, while Frankfort has recently opened 
 a municipal university planned on an ambitious 
 scale. There are numerous technical colleges and 
 laboratories for mining, architecture, forestry, and 
 agriculture, and hundreds of industrial and vocational 
 high schools. And these educational institutions 
 are all closely identified with the state. Their pro- 
 fessors and scientists co-operate with the civil and 
 military authorities, while the civil servant is 
 everywhere trained to meet the needs of adminis- 
 tration and statecraft. Education, in fact, is a pre- 
 requisite of admission to the higher positions in the 
 civil service, while the universities and technical 
 schools are consciously allied with the administra- 
 tion of the empire. 
 
BACKGROUND OF MODERN GERMANY 19 
 
 Education in Germany, from the primary school 
 to the higher endowments for scientific research, is 
 an adjunct of the state, not an isolated, detached 
 thing. And it is consciously organized to promote 
 efficiency. A large part of Germany's industrial 
 achievement is traceable to the system of educa- 
 tion, just as her international trade is traceable to 
 the commercial colleges, in which thousands of men 
 are trained for the conquest of the trade of the 
 world. Official and industrial Germany is a product 
 of the trained administrator. Education has had a 
 profound influence on the development of the past 
 generation. It has made Germany a land of experts. 
 
 All of these influences have reacted upon one 
 another. Obedience is a product of feudal tradition 
 as is the universal ambition for state service which 
 affects all classes. Education gave the Kaiser and 
 the civil service a body of highly trained men, de- 
 voted to the Fatherland and condemned by the 
 pressure of competition to a calling chosen early in 
 life. Education supplied industry with scientific 
 assistants and millions of trained hands and brains, 
 prepared from childhood for a definite calling. A 
 respect for authority, coupled with a constitution 
 that legalizes autocratic power, made it possible for 
 the Kaiser to carry through a colossal internal pro- 
 gramme, even against the temporary wishes of the 
 nation. There was no responsible ministry to check 
 his will and no popular party to be satisfied, while 
 
20 SOCIALIZED GERMANY 
 
 the press and discussion were under the strictest 
 surveillance. Intelligent leadership, an overcrowded 
 scientific class, a wonderful system of trade educa- 
 tion, and a people trained by generations to respect 
 authority combined in the building of a nation that 
 in a generation's time has become one of the most 
 powerful in the modern world. 
 
 All of these influences combined to make the 
 mind of modern Germany what it is, to create a 
 psychology quite different from that of two genera- 
 tions ago, quite different from that of any other 
 nation in Europe. Still other influences contributed 
 in the same general direction. The traditions of a 
 patriarchal feudal state made it easy for Bismarck 
 to carry through his programme of state socialism. 
 The universities and public opinion accepted with- 
 out protest the taking over the railways, the develop- 
 ment of canals and waterways, and the acquisition 
 of mines and other industrial properties. State 
 socialism fell in with the traditions of the state, with 
 the will of the governing classes, as well as the opin- 
 ions of the academic world. For had not the state 
 owned great landed possessions and forest preserves 
 for centuries and operated them at a profit ? Legis- 
 lation in the interest of the working classes, the old 
 age, sickness, and accident insurance schemes were 
 all part of the traditions of an earlier age and found 
 a sanction in similar activities promoted by the 
 Great Elector and Frederick the Great. New Ger- 
 
BACKGROUND OF MODERN GERMANY 21 
 
 many accepted state socialism just as it accepted 
 interference with the lives and property of the indi- 
 vidual by the state. It was in harmony with the tra- 
 ditions of the people. 
 
 And state socialism has reacted on the people. 
 It has not only increased their dependence on the 
 state; it has created affection for the state as well. 
 One explanation of the devotion of the German 
 people to the Fatherland is the devotion of the 
 Fatherland to the people. This is a most important 
 factor in the psychology of modern Germany, a 
 factor that has been generally overlooked. We in 
 America find this difficult to comprehend. For 
 with us the state performs but few services for the 
 citizen. Our political philosophy permits every one 
 to do pretty much as he pleases. Neither the 
 nation, the States, nor the cities engage in many 
 positive helpful activities. Germany has the other 
 point of view. The common good is a matter of 
 constant concern, and the state is the greatest of all 
 agencies of service. More than 3,000,000 persons 
 are in civil service. This is one person out of every 
 twenty. And state positions are highly prized. 
 They carry dignity, social position, permanent 
 tenure, and a pension on retirement. These em- 
 ployees and those dependent on them believe in the 
 Fatherland and all that it stands for. It is their 
 whole life to an extent that is difficult for us to 
 understand. In addition, and this is very impor- 
 
22 SOCIALIZED GERMANY 
 
 tant, the state looks after the individual in count- 
 less ways. It serves him all the time. The service 
 is of a paternal sort, it is true, but it is satisfactory 
 to the German people. And this in turn creates a 
 reciprocal love on the part of the people for the 
 state. In addition they have a sense of common 
 ownership in the railroads, the telegraph, the mines, 
 forests, and the agricultural estates. There are 
 insurance funds which provide against accident, 
 sickness, and invalidity, as well as the old-age pen- 
 sions. If a citizen lives in a city, as 49 per cent, of 
 the people do, he is a joint owner of the street rail- 
 ways and gas, water, and electric-lighting plants, as 
 well as numerous other activities which touch his 
 life in many ways. He is educated in the public 
 schools; the teacher, the health officer, and even the 
 relief committees come to him as aids to his am- 
 bition and his well-being. Even the taxes are ad- 
 justed so as to fall most heavily upon those best 
 able to bear them. For the bulk of the revenues 
 of the cities and a large part of the revenues of the 
 state come through the income tax, a tax that is 
 paid directly and that is consciously felt by the 
 payer. The payment of direct taxes in turn creates 
 an interest in the state and its many activities. 
 And nowhere in the world do people pay taxes with 
 more willingness than in Germany. 
 
 The devotion of the German people in the pres- 
 ent struggle is far more than a feudal tradition. It 
 
BACKGROUND OF MODERN GERMANY 23 
 
 is not inspired alone by fear or coercion or venera- 
 tion for authority. Rather it is largely a product of 
 the action and reaction of the state upon the daily 
 lives of the people. The psychology of Germany 
 has a strong economic as well as a historical back- 
 ground. The state may not be dedicated to a good 
 cause, and it may be mistaken in its conception of 
 the value of German Kultur to the world. But the 
 people have been so indissolubly merged into the 
 state, so identified with it by tradition, education, 
 and the common ownership of so many things that 
 there has been created a social psychology that is 
 unique in the history of the modern world; a social 
 psychology, too, that is so different from anything 
 with which we are familiar that it is difficult, if not 
 impossible, for us to comprehend the conflicting 
 meanings which Germany presents to the world. 
 
CHAPTER III 
 THE CONSTITUTION OF THE EMPIRE 
 
 WILLIAM I became King of Prussia in 1861. He 
 appointed Bismarck as his chancellor and entrusted 
 him with large powers. Bismarck loved his King 
 and his Prussia. He had no sympathy with democ- 
 racy, with socialism, or with representative institu- 
 tions. And with the approval of his master he pro- 
 ceeded to weld North Germany into a federation 
 and later into an empire under the leadership of 
 Prussia. This was his overmastering idea, and from 
 the very beginning he seems to have had a vision 
 of the Germany of to-day under the dominion of 
 Prussia and the Hohenzollerns. 
 
 In the process of empire-building his method was 
 one of "blood and iron." In 1864 Prussia and Aus- 
 tria made war on Denmark and annexed the duchies 
 of Schleswig and Holstein. Prussia took Schleswig 
 and Austria Holstein. Two years later Prussia 
 occupied Holstein under a pretext which led to war 
 with Austria, a war for which Bismarck had been 
 preparing for years. A single battle sufficed for the 
 humbling of Austria, and Prussia annexed Holstein 
 and also Hanover, Hesse, Nassau, and the free city 
 
 24 
 
CONSTITUTION OF THE EMPIRE 25 
 
 of Frankfort-on-the-Main, which had sided with 
 Austria in the struggle. This was done to round out 
 Prussia. It made her ascendant in the new North 
 German Federation, which was formed in 1867 
 under the hegemony of Prussia. The Prussian par- 
 liament protested that force was not an adequate 
 justification for the annexation of independent 
 states, to which Bismarck replied: "Our right is 
 the right of the German nation to exist, to breathe, 
 to unite; the right and duty of Prussia to give to 
 the German nation the foundation for her existence." 
 
 The war with Austria made Prussia supreme in 
 Germany. No humiliating terms were imposed upon 
 Austria, nor was any territory exacted in the treaty 
 of peace. Austria was needed as a potential ally in 
 case of war with France. Following the war a 
 constitution was adopted, under which Prussia 
 became the ascendant force in the North German 
 Federation. The King of Prussia was made per- 
 manent president. There was an upper house made 
 up of delegates from the individual states and a 
 lower house elected by universal suffrage. Into 
 this federation the larger states of the south, Ba- 
 varia, Baden, Wurtemberg, and Hesse-Darmstadt, 
 refused to enter. 
 
 The war with France followed shortly after. It 
 converted the North German Federation into the 
 German Empire, made up of twenty-five sovereign 
 and semi-independent states and Alsace-Lorraine, 
 
26 SOCIALIZED GERMANY 
 
 which were voluntarily or forcibly united under a 
 written constitution. In the formation of this 
 union the people of the several states were not con- 
 sulted. Bavaria, Baden, Wiirtemberg, and Hesse- 
 Darmstadt, which had previously stood aloof, were 
 now incorporated into the empire. 
 
 Under the constitution adopted at Versailles the 
 King of Prussia is permanent Emperor. As King 
 of Prussia he has almost autocratic power over 
 three-fifths of the empire, but as German Emperor 
 his powers are defined by the constitution. Certain 
 limitations were placed upon his powers as a neces- 
 sary concession to the smaller kingdoms, which 
 were loath to lose their sovereign independence. 
 Still the powers of the Kaiser are very great. He is 
 commander-in-chief of the army and the navy and 
 minister of foreign affairs as well. With the consent 
 of the Bundesrat (or council of delegates from the 
 Kings and princes of the federated states) he can 
 declare war and serve execution against any of the 
 federal states when ordered to do so by the Bundes- 
 rat. He summons and dissolves the sittings of the 
 Reichstag, with the consent of the Bundesrat. He 
 appoints the chancellor and all other higher cabinet 
 officials, who are his personal representatives. There 
 is no semblance of parliamentary control over the 
 ministry or of responsible party government, such 
 as prevails in England, France, Italy, and other 
 constitutional monarchies. Neither the chancellor 
 
CONSTITUTION OF THE EMPIRE 27 
 
 nor the ministry resigns in the face of a vote of lack 
 of confidence. They are not changed upon an ad- 
 verse election. Neither do they necessarily come 
 from the majority party. The chancellor is such 
 by grace of the Emperor rather than by virtue of 
 any popular selection. He presides over the de- 
 liberations of the upper chamber, is the fountain- 
 head of much legislation and has the right, which 
 he constantly exercises, of appearing and speaking 
 in the Reichstag. By these provisions the King of 
 Prussia enjoys almost as great powers in the empire 
 as he does in Prussia. He has back of him the sup- 
 port of his own state, the control of the army and 
 the navy, and the appointment and recall of all of 
 the ministers of the empire. 
 
 The power of the Kaiser as well as the influence 
 of Prussia has been greatly strengthened by the 
 personality of the present Emperor. The confedera- 
 tion has become a nation in every sense of the word. 
 The particularism of the individual states of a 
 generation ago has been succeeded by a sense of 
 solidarity which has closely knit the people into a 
 nation. The laws of Bismarck contributed greatly to 
 this end, as has the phenomenal industrial progress 
 of the past generation. Just as Alexander Hamil- 
 ton moulded the thirteen colonies into a nation by 
 his tariff and internal revenue policy, by the national 
 bank act, by the nationalization of the debt, and the 
 location of the capital at Washington, so Bismarck 
 
28 SOCIALIZED GERMANY 
 
 and later William II cemented the twenty-five sepa- 
 rate states which form the empire into an indissoluble 
 union, in which Prussia is supreme. The federation 
 of a generation ago has become a nation. 
 
 The ascendancy of Prussia is further assured by 
 her place in the Bundesrat or Senate of the empire. 
 This is really a council of ambassadors from the 
 twenty-five kingdoms, principalities, and free cities 
 which comprise the empire. The members are not 
 elected by the people; they are appointed by the 
 rulers of the individual states. The vote of each 
 state is cast as a unit and under instructions from 
 the states which the delegates represent. In the 
 Bundesrat Prussia has 20 out of 58 votes, her quota 
 having been increased from 17 by contracts made 
 with smaller states subsequent to 1871, by which 
 they relinquished their representation. Only 14 
 votes in the Bundesrat are required to defeat any 
 proposed change in the constitution, so that Prussia 
 has more than enough votes to prevent any curtail- 
 ment of her power. By these provisions the sover- 
 eignty of the other states has been relinquished or 
 forcibly taken away by Prussia. Politically, at least, 
 Prussia is Germany, although some of the trappings 
 of sovereignty remain with the constituent states. 
 
 The Reichstag is the popular chamber of the 
 imperial parliament. It was a concession to the 
 liberal element of the nation, which had been agitat- 
 ing for a constitution since 1848. It is an escape 
 
CONSTITUTION OF THE EMPIRE 29 
 
 valve for public opinion and little more. It offers 
 a forum for discussion and as such exerts real in- 
 fluence, but it has never been really democratic in 
 its personnel, and under the constitution it has little 
 real power and authority. It is the only body in 
 Germany, however, that is elected by manhood 
 suffrage. This explains the large Socialist represen- 
 tation which it contains. Here alone have the Social- 
 ists been able to secure an effective representation in 
 politics. 
 
 Members of the Reichstag are elected for five 
 years by direct universal suffrage and a secret 
 ballot, members being chosen by districts. But 
 even if the Socialists or radical parties controlled the 
 Reichstag, they would be impotent to carry out their 
 policies, for they could not impose their will on the 
 Bundesrat or the Emperor; they could do nothing 
 to alter the constitution, and they could not estab- 
 lish the cabinet or responsible-ministry system which 
 is of the essence of parliamentary government. 
 
 The chancellor, appointed by the Emperor, has 
 the right to appear in the Reichstag to urge govern- 
 ment measures. The Reichstag can do as it wills 
 with the chancellor's proposals, but, whatever its 
 action, it does not affect the position of the chan- 
 cellor, who is responsible to the Emperor alone. If 
 the Reichstag becomes too refractory, he may cause 
 it to be dissolved, and a new election ordered on 
 issues of the chancellor's choosing. This was done 
 
30 SOCIALIZED GERMANY 
 
 by Bismarck after the attempts on the life of Em- 
 peror William I. It has been done on subsequent 
 occasions. 
 
 The power of Prussia through the King, the chan- 
 cellor, and the Bundesrat is further strengthened by 
 her preponderating representation in the Reichstag, 
 where she has 235 members out of 397. Even in 
 the popular branch of the government Prussia is 
 supreme. No coalition of all the other states could 
 overcome her control. 
 
 The distribution of seats in the Reichstag is almost 
 as unfair as in the Prussian parliament. Electoral 
 districts have not been changed since 1871, when 
 Germany was almost exclusively agricultural. Dur- 
 ing the intervening years great cities and industrial 
 centres, from which socialism recruits its strength, 
 have come into existence. But the country dis- 
 tricts still enjoy representation apportioned to them 
 nearly fifty years ago. And they are strongly Con- 
 servative. Greater Berlin, for instance, sends but 
 8 members to the Reichstag, whereas it should 
 send 20. All of the members from Berlin are 
 Socialists. The same number of electors in agri- 
 cultural districts return six times as many mem- 
 bers. The same disproportion exists in other in- 
 dustrial centres, all of which, with the possible 
 exception of Cologne, are now represented by 
 Socialist members. In the election of 1907, 20 
 seats were won by the Conservative party, with an 
 
CONSTITUTION OF THE EMPIRE 31 
 
 average vote of but 10,500, while 6 Socialist seats 
 were won with an average vote of 77,500. The 
 average vote per seat won by the Socialists was 
 69,020, and the average per seat won by the Con- 
 servative party was 25,680. Were a system of 
 proportional representation introduced, as in Bel- 
 gium, or were the seats distributed according to any 
 just basis, the representation of the Socialists would 
 have been 115 in 1907 and 127 in 1903. Nor are 
 the members paid. This is a further check on 
 democracy. Bismarck insisted upon this provision, 
 and^ the Bundesrat has repeatedly rejected mea- 
 sures passed by the Reichstag providing salaries for 
 the members. 
 
 From the foregoing it is apparent that the con- 
 stitution does not essentially change the character 
 of the eighteenth-century feudal state or greatly 
 impair the power of the feudal classes. Rather it 
 strengthened and legalized them. It gave the ruling 
 classes the sanction of popular approval, even though 
 the nation was not consulted. The constitution 
 crystallized feudalism into legal form. Privilege, 
 which was previously subject to protest or revolu- 
 tion, as in 1830 and 1848, is now authoritative. It 
 has the backing of the nation rather than of the 
 King, and can be enforced by the courts and the 
 army with every show of legality. 
 
 The constitution of Germany made concessions 
 to the forms of representative government but safe- 
 
32 SOCIALIZED GERMANY 
 
 guarded the ruling classes against any real exercise 
 of popular power. The actual power was kept in 
 the hands of an economic class. Privileges enjoyed 
 in an earlier age by force of arms are now en- 
 joyed by law. The German people were given a 
 charter, but the charter contained few rights. 
 Neither the states nor the empire reflect the popu- 
 lar will to any appreciable degree. 
 
 Prussia, and, through Prussia, Germany, reflects 
 the economic interests of the great estate owner or 
 Junker. He in effect is the government. He 
 maintains his power in Prussia through a reaction- 
 ary constitution, the three-class system of voting 
 and the open indirect ballot, which Bismarck him- 
 self termed "the worst of all electoral systems. " 
 Through these political limitations the Junker 
 controls Prussia and through Prussia the empire 
 as well. He forms a class by himself. And he uses 
 his power to promote his own interests, which are 
 mainly agrarian, to shift the taxes onto others, to 
 maintain the army and the navy, and to resist all 
 electoral reform. 
 
 Throughout all Europe government by~political 
 parties came in with the written constitution. The 
 system had its origin in Great Britain in which 
 country the line of division was originally between 
 the greater and lesser landlords. In the early half of 
 the nineteenth century, however, the commercial 
 classes obtained control of the Liberal party which 
 

 CONSTITUTION OF THE EMPIRE 33 
 
 had previously represented the lesser barons and 
 yeomen. They became ascendant under the regime 
 of Cobden, Bright, and Gladstone, when the Liberal 
 party came to represent the capitalist and trading 
 classes. The Conservative or Tory party, on the 
 other hand, has always been the party of the old 
 aristocracy, the feudal classes. 
 
 The German Junker has a party of his own, the 
 Conservative. It has ever been the agent of the 
 landed aristocracy. It reflects the will of this class 
 in financial, military, industrial, and social legis- 
 lation. The Junker is strongly imperialistic; he 
 stands for a powerful army and navy, for all legis- 
 lation that will preserve his privileges and power, 
 and he stands for little else. 
 
 The German manufacturers, the captains of 
 industry, and commercial classes formed another 
 party, the National Liberals. The Clerical or 
 Catholic group, whose strength comes almost ex- 
 clusively from Bavaria, Baden, and the Rhine 
 Provinces, has still another party, the Centre. Its 
 primary concern is religious and it has used its 
 power for the promotion and protection of the 
 interests of the Catholic Church and the peasant 
 class from which the party derives its support. 
 
 Over against these parties are several parties 
 which are much more liberal. The Freisinnige or 
 Radical group is a party of the lesser capitalists, 
 tradesmen, and shopkeepers. It is a free-trade 
 
34 SOCIALIZED GERMANY 
 
 party. Its controlling philosophy is laissez-faire. 
 It is in opposition to the Conservative and Liberal 
 parties on agrarian legislation and a protective tariff. 
 It would liberalize the constitution, democratize 
 the suffrage, free the state from the shackles of 
 feudalism, and rely upon the laws of nature and 
 freedom in the development of the nation. The 
 Radical party is very like the present Liberal 
 party in Great Britain. From this liberal group 
 members of the Reichstag taper off into the Social- 
 ists, who form the strongest party in opposition and 
 have the largest vote of any at the polls. The 
 support of socialism comes almost exclusively from 
 the cities and mining districts. Practically every 
 city in the empire elects all or some of its represen- 
 tatives from the Socialist party. It is a party of the 
 proletariat and has been more class-conscious and 
 revolutionary in its doctrines than any socialist 
 group in Europe. Up to the outbreak of the 
 present war it stood aloof from all party alliances 
 and co-operated with none in legislation. It is 
 frankly against all governments save that of the 
 working classes. It is only less hostile to the Radical 
 group than to the Conservative and Liberal ones. 
 It fights its battles alone, is inspired by the class 
 war and the materialist conception of history and 
 politics. It is generally opposed to militarism, a 
 large navy, the "hunger tariff," and the present 
 constitution. It advocates more or less revolution- 
 
CONSTITUTION OF THE EMPIRE 35 
 
 ary changes, although the younger men of the party 
 are far more moderate than the contemporaries of 
 Marx and Engels, who continue to control the 
 councils of the party. Socialism has spread all over 
 the empire. Wherever industry has changed sleepy 
 rural districts into communities with an alert 
 working-class population, there social democracy 
 has its adherents organized into branches of the 
 party, or of trade-unions influenced by the spirit 
 of the party. 
 
 Divided roughly, the present membership of the 
 Conservative groups in the Reichstag is 74; of the 
 Centre and Nationalist groups of Poles, Guelphs, 
 Danes, etc., 124; of the National Liberals and 
 Progressive and Radical parties 89, and of the Social 
 Democrats 110. Each party reflects an economic 
 class with the possible exception of the nationalist 
 groups. 
 
CHAPTER IV 
 
 THE ECONOMIC FOUNDATIONS OF CLASS 
 RULE 
 
 THE wars against Austria and France created 
 the German Empire. They made Prussia ascen- 
 dant. This ascendancy was made permanent by 
 the constitution, adopted after the defeat of France. 
 In the affairs of the empire Prussia has a controlling 
 voice, first, by the hereditary position of the King, 
 as Emperor; second, by the vote of Prussia in the 
 Bundesrat and the Reichstag; and, finally, through 
 the control which Prussia enjoys over any changes 
 in the constitution. Prussia is further supreme by 
 reason of her size, for she contains three-fifths of 
 the population and most of the wealth and industry 
 and almost all of the large cities of the empire. 
 
 Prussia rules Germany. And Prussia in turn is 
 ruled by the old feudal aristocracy, by the Junkers, 
 or great estate owners. This, too, is written into 
 the constitution and laws of the land. Privileged 
 class rule, in fact, is the German idea of politics. 
 This is true of the empire, the individual states, and 
 the cities. The class is not the same in the different 
 states, but the rule is always by a limited class. 
 
 36 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 37 
 
 And over and above them all is the ruling class in 
 Prussia, the old feudal nobility, whose estates are 
 for the most part east of Berlin, in East Prussia, 
 Posen, and Pomerania. In this part of Germany the 
 land is divided into great estates, which have re- 
 mained much as they were in the seventeenth and 
 eighteenth centuries. There are but few cities and 
 but little organized industry. The industrial re- 
 gions are to the west, along the Rhine and the North 
 Sea. In 1895 and conditions have not changed 
 materially in the meantime 31 per cent, of all the 
 land in Prussia was in estates of more than 250 
 acres, while in the eastern provinces of Posen and 
 Pomerania the great estates rose to 55 per cent, and 
 52 per cent, respectively. The average size of the 
 8,365 greater estates in East Prussia was 1,132 
 acres, while the average size of 2,793 estates in 
 Pomerania was 1,380 acres. Many of these estates 
 are of far greater extent, and they are owned by the 
 descendants of the feudal barons of previous times. 
 In France, northern Italy, Switzerland, Denmark, 
 and Scandinavia as well as along the Rhine and in 
 South Germany feudal land ownership was converted 
 into peasant proprietorship by the French Revolution 
 or subsequent legislation. It was scarcely touched in 
 Great Britain, Russia, Prussia, and southern Italy. 
 And it is in these countries that reaction persists. 
 In Prussia especially the feudal aristocracy has re- 
 mained almost untouched by the liberalizing influ- 
 
38 SOCIALIZED GERMANY 
 
 ence of the nineteenth century. It has not inter- 
 married with the commercial classes. Nor have the 
 members entered industry or the professions. Con- 
 tent with the old order, they have preserved many 
 of their privileges and almost all of their political 
 and social power. 
 
 In this part of Germany the conditions are greatly 
 changed from those described by the great liberator 
 Baron von Stein in the early part of the nineteenth 
 century. He said: 
 
 "The appearance of the country displeased me 
 as much as the cloudy, northern climate. Great 
 fields, of which a considerable part lies in pasture 
 and fallow, extremely few people, the whole laboring 
 class under the pressure of serfdom, the fields 
 attached to single farms, seldom well built; in one 
 word, a uniformity, a deadly stiffness, a want of 
 life and activity fused over the whole, which op- 
 pressed and soured me greatly. The abode of the 
 Mecklenburg nobleman who keeps down his peas- 
 ants instead of improving their condition strikes me 
 as the lair of a wild beast, who desolates everything 
 around him and surrounds himself with the silence 
 of the grave. " 
 
 Stein and Hardenberg attempted to put an end 
 to the old feudal abuses as was done in other coun- 
 tries, but their reforms did not penetrate beyond 
 the southern states. The landowners of Prussia de- 
 clined to permit the agrarian reforms to be adopted. 
 And during the intervening century they have con- 
 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 39 
 
 tinued so ascendant in the government that their 
 feudal privileges remain much as they were a hun- 
 dred years ago. Upon their estates they still 
 exercise independent manorial jurisdiction, in which 
 the estates are the administrative units. There is 
 little semblance of self-government, such as prevails 
 in the south, while the economic power of the land- 
 lords over the lives of the workers and the restric- 
 tions of the suffrage preclude the peasants from 
 exercising any real influence in politics. 
 
 Still other influences have divorced East Prussia 
 from the liberalizing influences of modern life. 
 There is but little industry and comparatively little 
 intercommunication in this part of Germany. The 
 great landowners live upon their estates (where they 
 enjoy something like sovereign powers) and have 
 only occasional contact with the city. Here they 
 rule with feudal authority, while in the legislative 
 halls they resist all legislation which threatens their 
 privileges or powers. 
 
 " So long as Junkerism exists in Germany and is a 
 leading factor in politics," said a German political 
 leader recently, "there is no possible hope of prog- 
 ress." For the German Junker is a reactionary. 
 He is ultimately responsible for the militarism and 
 jingoism which seem to characterize the whole 
 nation. Land monopoly is the economic framework 
 of Prussia, and through Prussia of the empire as 
 well. 
 
40 SOCIALIZED GERMANY 
 
 The supremacy of the Junker is insured in Prussia, 
 first by property qualifications of the suffrage and 
 second by a distribution of seats in the Prussian 
 parliament, which lodges practically all power in the 
 large property owners and particularly the landed 
 aristocracy of the eastern provinces. In elections 
 to the Prussian parliament the voting strength of 
 the individual is determined by the amount of in- 
 come taxes paid by him. This applies to state and 
 city elections. The electoral power of the individual 
 is ascertained roughly as follows: The total amount 
 of income taxes paid by all persons is first divided by 
 three. Then those who paid one-third of the taxes 
 are permitted to choose electors, who in turn elect 
 one-third of the deputies to parliament. Then 
 those who paid another third of the taxes elect 
 another third of the deputies by the same indirect 
 process, while the great mass of the people, who have 
 paid the remaining third of the taxes, elect the re- 
 maining third of the members. 
 
 Under these provisions the poorer classes are 
 practically disfranchised. They have only a sem- 
 blance of a voice in the government. As the system 
 works in practice, from 3 to 5 per cent, of the 
 electors choose one-third of the members of parlia- 
 ment; from 10 to 12 per cent, elect another third, 
 while about 85 per cent, of the voters elect the re- 
 maining third, or would do so were the ballot a 
 secret one and the districts fairly distributed ac- 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 41 
 
 cording to population. It is said that in no less 
 than 2,200 electoral districts the first-class electors, 
 who choose one-third of the deputies, consist of 
 but a single voter. This is the electoral basis of the 
 Prussian oligarchy. 
 
 Every effort to change this system has been re- 
 sisted by the great estate owners. The continuance 
 of their power depends upon the preservation of a 
 system of voting which rests on property rather than 
 on men. It is against this inequality that the 
 Socialist and Radical parties are protesting. It was 
 this that aroused the demonstrations all over Prus- 
 sia in the spring of 1910. 
 
 The unrepresentative character of the Prussian 
 electoral system appears from the election returns 
 of 1908. Two million, two hundred and fifteen 
 thousand, nine hundred and sixty-one persons par- 
 ticipated in the election. The Social Democrats 
 polled 601,093 votes and elected 7 members, but 
 should have had 105, under a one-man one-vote 
 system, while the Conservatives, or agrarians, cast 
 356,110 votes and elected 152 members instead of 
 62 to which manhood suffrage would entitle them. 
 The Clericals cast a vote of 502,594 and secured 104 
 seats. They should have secured 88, while the 
 Liberal People's party elected 28 members but were 
 entitled to 40. 
 
 In addition the ballot is open rather than secret. 
 The choice of the voter is declared viva voce. In 
 
42 SOCIALIZED GERMANY 
 
 consequence the peasant and agricultural laborers do 
 not dare to vote convictions that are contrary to 
 the wishes of the great landowner, while the workers 
 in the city are under the same fear. As a conse- 
 quence many remain away from the polls. 
 
 In addition to the three-class system of voting 
 and the open ballot election districts bear no relation 
 to the present population. They are distributed so 
 as to give the landed aristocracy an overwhelming 
 advantage. In spite of the growth of cities, more 
 rapid than our own, there has been no distribution 
 of parliamentary seats since before the Franco- 
 Prussian War. In the districts to the east, where 
 the aristocracy controls the elections, the number 
 of inhabitants to each representative is 63,000, while 
 in Socialist Berlin it is nearly three times as much, 
 or 170,000. Berlin has 9 members in the Prus- 
 sian parliament, but should have 24 under a uniform 
 distribution of seats. One election district in Prus- 
 sia has 34,000 inhabitants, while another has 323,000. 
 One-fourth of the population in the sparsely popu- 
 lated districts elects 161 deputies, while another 
 fourth in the cities elects only 41. The Prussian 
 peasant who blindly votes as his landlord orders has 
 many times the electoral power of the far more in- 
 telligent elector of the cities. As a consequence while 
 the Socialists polled 18.8 per cent, of the vote in 1903 
 they failed to elect a single member. In 1908 they 
 returned 7 representatives, at which time, had the 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 43 
 
 election districts been fairly apportioned, they would 
 have elected 81. On the other hand, the conserva- 
 tive land-owning classes elected 161 members, while 
 the business or commercial classes of the cities elected 
 but 17. The situation is not unlike that which pre- 
 vailed in Great Britain before the Reform Act of 
 1832, which swept away the rotten boroughs. 
 
 By these devices, the three-class system of voting, 
 the open ballot, and the unequal distribution of seats, 
 the land-owning aristocracy rules Prussia. This is 
 in spite of the commanding importance of industry, 
 of trade, and of commerce, which form the strength 
 and power of the state. 
 
 Through the ownership of the land and the con- 
 trol of politics the great estate owners control the 
 lives of the peasants. They not only control their 
 wages but their political and social life as well. 
 They elect their own class to parliament, while 
 through an almost complete control over the peas- 
 ants they dictate local administration as well. As a 
 class, the Junker is opposed to education for the 
 peasant; he is opposed to every evidence of liberty 
 or democracy, and clings tenaciously to the divine 
 right of the King and his own class to rule. 
 
 This is the class that rules Prussia, and through 
 Prussia the empire as well. And the rule is as ab- 
 solute as though it had been expressed by law. In 
 effect it differs only in form from that of feudal times. 
 
 The Junker has always been willing to sacrifice 
 
44 SOCIALIZED GERMANY 
 
 the commercial classes to his own advantage. He 
 opposed the development of the system of water- 
 ways and frankly admitted that his opposition was 
 to prevent the reduction of inland transportation 
 costs, and the consequent competition of foreign 
 farm products. Measures for popular education 
 have been resisted, as well as expenditures for im- 
 proving the condition of the peasant classes. The 
 Junker would limit elementary education; he would 
 check ambition, either intellectual or otherwise, and 
 prevent the peasant from acquiring any knowledge 
 that will awaken dissatisfaction with his station in 
 life. 
 
 From the great estate owners come the chancellors 
 and higher officers of the empire. The Junker 
 officers the army and fills the higher civil service. 
 He moulds the imperial policy and accepts only 
 under protest such small concessions to democracy 
 as Germany enjoys. The merchant class, no matter 
 what its wealth, has never merged with the landed 
 aristocracy as in Great Britain. It has remained 
 separate and apart. 
 
 The power of the Junker is further strengthened 
 by a class sympathy and understanding with the 
 Bang, who is of the Junker class. He, too, is a great 
 landlord. His traditions are those of the landed 
 aristocracy. For the King comes from that class. 
 The relations of the crown and the aristocracy have 
 never been sundered by conflict as in England, in 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 45 
 
 which country the feudal aristocracy was in a con- 
 stant struggle with the King from the thirteenth to 
 the end of the seventeenth century. The contro- 
 versy began with Magna Charta. It was renewed 
 whenever the King endeavored to assert his feudal 
 rights as against the great barons. For the crown 
 was maintained and supported by dues and obli- 
 gations payable by the great estate owners. During 
 centuries of struggle the right of the King to feudal 
 dues and taxes was encroached upon by the aris- 
 tocracy, until the King became a mere figurehead 
 dependent on the consent of his greater vassals for 
 revenue, his army, and his power. Such is the posi- 
 tion of the King of England to-day. In addition, 
 his ancestors disposed of the crown landholdings to 
 favorites or squandered the great estates taken from 
 the monasteries and the guilds under Henry VIII. 
 This made the King dependent upon the landowners 
 in Parliament for revenue, for the King had no per- 
 sonal revenue of his own. In this long struggle over 
 dues and taxes the British constitution was evolved. 
 It ended in the subordination of the crown to Parlia- 
 ment, which up to 1909 was, in effect, subordination 
 to the landed aristocracy. 
 
 The King of Prussia, on the other hand, kept his 
 feudal landholdings. He remained the first of the 
 great barons. His kingly power was but an evolu- 
 tion of feudal primacy. His private estates were 
 the largest in the kingdom. He escaped the civil 
 
46 SOCIALIZED GERMANY 
 
 wars of England and France largely because he was 
 economically independent of the landed aristocracy. 
 He did not need to go to them for taxes. The bulk 
 of the Prussian revenues came from domain lands, 
 just as the bulk of the revenues to-day come from 
 these and other productive undertakings. 
 
 Thus the King and Junker have been in harmony 
 from the beginning of the Prussian Kingdom. Their 
 interests have been identical. The King retained 
 his kingly power because he had no controversies 
 with his barons. The feudal nobility has also re- 
 tained its economic privileges, while the King has 
 increased his royal prerogatives. This has given 
 Junkerism a sympathetic ally in court and the King 
 a body of supporters unlike that of any other coun- 
 try in Europe except Austria and Russia, where sim- 
 ilar conditions prevail. 
 
 Here again is an unnoticed explanation of the 
 unity of Germany. It explains the rise of Prussia, 
 the power and the persistence of early feudal con- 
 ditions. While France and England were involved in 
 civil wars and parliamentary conflicts between the 
 King and the barons, Prussia, by reason of the 
 identity of interest and the absence of conflict, 
 remained unchanged by the currents of modern life. 
 And when it came to framing a constitution the old 
 regime was translated into constitutional forms, 
 with but little essential alteration in the relations of 
 classes. This is one of the most important in- 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 47 
 
 fluences in the making of modern Germany as well 
 as in the unity of her ambitions. 
 
 The Prussian city is also ruled by an economic 
 class, just as is the state. This rule is secured 
 through the same three-class system of voting, which 
 lodges power in the large taxpayers, who in munici- 
 pal elections are the business men and property 
 owners. Here, too, from 3 to 10 per cent, of the 
 electors choose two-thirds of the members of the 
 city council. Here, too, the Socialists and Labor 
 members are excluded from power. While under 
 manhood suffrage nearly all the cities send Socialist 
 representatives to the Reichstag, the Socialists have 
 practically no representation in the administration 
 of the cities, where they are in an overwhelming 
 majority, and they are never elected to the mayoralty 
 or to the magistrat. 
 
 The ruling class in the city is the business men. 
 They control the elections and select men of their 
 own class or view-point to the higher administrative 
 positions. And the business men who rule are not 
 the shopkeepers or the tradesmen, they are the men 
 of large means, the real-estate owners, and house 
 owners. And just as the Junker rules Prussia in 
 his own interest, so the business men mould the city 
 to their interest. But strangely enough they have 
 a far more generous outlook than the aristocracy 
 or the business classes of other countries. Only in 
 matters obviously prejudicial to real-estate interests 
 
48 SOCIALIZED GERMANY 
 
 do they promote their own advantage. As de- 
 scribed elsewhere, 1 they assume a large share of the 
 local taxes, they have municipalized many of the 
 more profitable lines of business, they regulate 
 property in the interest of the community, and build 
 and plan in a far-visioned, patriotic way. No ruling 
 class in the world seems to negative the idea of class 
 control of politics as do the business men of the 
 German cities, for they rule for the city rather than 
 for themselves. 
 
 Prior to 1870 Germany was profoundly influenced 
 by the southern states, by Bavaria, Wiirtemberg, 
 Baden, and the Rhine Provinces. It was from this 
 part of the old confederation that the agitation for 
 representative government came. It was from the 
 Rhine Province and the South German states that 
 the revolutions of 1830 and 1848 drew their inspira- 
 tion. And these states, like Prussia, reflect the 
 economic foundations of the people. But these 
 states, though monarchical in form, are democratic 
 in spirit. And this democracy in turn is traceable 
 to the wide distribution of land ownership among the 
 peasants, who, through ownership, affect the quality 
 of the government. 
 
 This part of Germany was profoundly influenced by 
 the French Revolution. Here many of the reforms 
 of Napoleon were accepted. It was in these states, 
 too, that Stein and Hardenberg abolished many of 
 
 1 See chapters XXI, XXII, and XXIII. 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 49 
 
 the abuses of the feudal regime and brought about 
 the division of the land into small farms, for the most 
 part free from the feudal conditions of an earlier time. 
 As a result of these reforms these states are liberal 
 minded. Even the electoral provisions are more 
 generous to the non-propertied voter. Whereas 
 the three-class system of voting prevails in Prussia, 
 Bavaria has a system of proportional representation 
 under which each party elects representatives in 
 proportion to its voting strength. As a consequence, 
 the Socialists have returned many representatives to 
 the parliament and the city councils, who in turn 
 have elected members of their own party to the 
 magistrat, or executive department of the city. 
 
 And just as the politics of South Germany reflect 
 the economic foundations of these states, so the 
 psychology of the people is a mirror of the same 
 influence. The South German is easy-going and 
 genial. He is gemutlich. He takes life simply and 
 easily, and, while he recognizes the advantages of the 
 empire and admires the power and forcefulness of 
 Prussia, he chafes somewhat under her arrogance. 
 Even the court life is simpler, more democratic and 
 progressive than in Prussia, while the relations of 
 classes have little of the caste-like hardness which 
 characterizes North Germany. All this is traceable 
 to the long traditions of a home-owning peasantry, 
 whose psychology reflects the sense of freedom which 
 home ownership, wherever it be found, creates a 
 
50 SOCIALIZED GERMANY 
 
 psychology not dissimilar to that of France, of Hol- 
 land, of Switzerland, or of Scandinavia. 
 
 Just as East Prussia differs from South Germany, 
 so western Germany differs from both of them. 
 West Germany is the centre of the great industrial 
 development which has taken place during the last 
 forty years. Here are the great iron, steel, cotton, 
 woollen, silk, and chemical industries which have 
 given Germany such eminence. Here are the cities 
 of Essen, Cologne, Dusseldorf, Duisburg, Barmen, 
 Elberfeld, and Crefeld, that form a series of great 
 communities closely related to one another and all 
 dependent upon the iron-ore and coal fields of the 
 Westphalian district. Beyond are the great mari- 
 time cities upon the North Sea and the Baltic, with 
 their splendid harbors and shipping facilities. This 
 is the centre from which the new aristocracy of 
 capital has come an aristocracy which, like the 
 Liberal party in England, struggles with the landed 
 classes for the control of the government. Here is 
 the source of Germany's power in the struggle for 
 world empire; here are many of the most wonder- 
 ful cities the world has known. Yet, despite the 
 preponderance of wealth and energy and the excess 
 of population, this part of Germany remains sub- 
 ordinate to the landed classes of the east, which 
 still dominate the empire. To some extent the cap- 
 italist classes have received social recognition; some 
 of them have reached high places in the ministry. 
 
ECONOMIC FOUNDATIONS OF CLASS RULE 51 
 
 They are strongly represented in the Reichstag 
 and Prussian parliament. But for the most part 
 their political power is confined to the cities and 
 the lesser governmental positions into which they 
 have entered in recent years. The commercial classes 
 of Germany have not yet achieved the political and 
 social eminence which they enjoy in Great Britain 
 and the United States. 
 
CHAPTER V 
 RECENT ECONOMIC PROGRESS 1 
 
 PRIOR to 1870 Germany was an agricultural coun- 
 try. There was little factory industry, little foreign 
 trade, only a rudimentary navy and the beginnings 
 of a merchant marine. The traditions of the coun- 
 try were those of the soil, of peasant proprietorship 
 in the south, and of agricultural laborers attached 
 to great landed estates in Prussia, Pomerania, and 
 Posen. The urban population was relatively small. 
 The towns were capital cities, Hauptstaedte, or sea- 
 ports. As late as the middle of the century only 
 4 per cent, of the population of Prussia lived in 
 cities of more than 100,000 people, while in 1871 
 68 per cent, were still engaged in agriculture. 
 
 Fifty years ago Germany did not suggest a great 
 empire challenging the world for supremacy, and 
 believing in its destiny as an irresistible power. Aside 
 from the memories of the Great Elector and Fred- 
 erick the Great there was little in her history to 
 justify such dreams of commanding place. The 
 
 1 Much of the material contained in this chapter is taken from 
 Germany's Economic Progress and National Wealth, 1883-1913, by 
 Doctor Karl Helfferich, director of the Deutsche Bank. Where 
 no other acknowledgment is given the statistics of trade and in- 
 dustry are taken from this work. 
 
 52 
 
RECENT ECONOMIC PROGRESS 53 
 
 contributions of the country were of poetry, phi- 
 losophy, music, education, the inner things of life. 
 The great names of which the world was proud were 
 Goethe, Fichte, Schiller, Lessing, Kant, Mozart, 
 Beethoven, and Heine. Outside of the Prussian 
 aristocracy political leaders aspired to a constitu- 
 tional government like that of England rather than 
 to extended dominion. A score of states were kept 
 asunder by jealousy, differences of temperament, 
 and economic interest, while the rival ambitions of 
 Austria and Prussia seemed to forever preclude a 
 permanent union of the Germanic peoples. There 
 were few natural resources. The soil was far from 
 rich; in many sections it was barren waste. In- 
 dustry was undeveloped, and England, the United 
 States, and France had so occupied the field that 
 successful competition seemed out of the question. 
 There were no natural harbors like those of Great 
 Britain and the United States. Most of the ports 
 have been constructed at colossal cost. 
 
 It was on such unpromising foundations that the 
 German Empire has been reared. Yet, despite these 
 limitations, the progress of the last generation is 
 without parallel in the history of the world. There 
 is nothing in ancient or modern times to compare 
 with it. So rapid has been the development that 
 the estimated wealth of Great Britain in 1907 was 
 300,000,000,000 marks, while that of Germany was 
 350,000,000,000 marks. And this wealth creation has 
 
54 SOCIALIZED GERMANY 
 
 come about in the short space of a generation, and 
 for the most part during the reign of the present 
 Emperor. 
 
 Following the formation of the empire a series of 
 laws were enacted that swept away the remnants of 
 the old state individualism and cleared the way for 
 a great forward movement in trade and industry. 
 In 1873 an Imperial Bureau of Railways was estab- 
 lished to control and unify railway transportation. 
 The same year a currency reorganization with gold 
 monometallism as the basis superseded the confusion 
 of coinage of a score of states. The Imperial Bank 
 was started in 1875, and two years later a series of 
 laws were passed covering bankruptcy, judicial 
 reorganization, a civil code, and the reform of 
 criminal and civil procedure. Local government 
 was reorganized. In 1878 the traditional low-tariff 
 policy was discarded and a protective tariff adopted, 
 designed to protect the agricultural classes of the 
 east and provide more adequate revenue. Much of 
 this legislation was inspired by Prince Bismarck. It 
 was almost as comprehensive as that of Napoleon I. 
 
 Increasing population is an indication of national 
 greatness only when the well-being of the people keeps 
 pace with growing numbers. And increasing popu- 
 lation in Germany has gone hand in hand with in- 
 creasing per-capita wealth, increasing health and 
 well-being, and the universalization of educational 
 opportunities. During the forty-two years from 
 
RECENT ECONOMIC PROGRESS 55 
 
 1871 to 1913 the population of Germany increased 
 by 62 per cent. The growth from 1871 to 1888 was 
 7,000,000, or from 41,000,000 to 48,000,000, and 
 from 1888 to 1913 it was 18,000,000, or from 48,- 
 000,000 to 66,000,000. The most rapid growth has 
 been coincident with the reign of the present Kaiser, 
 Emperor William II, 
 
 Germany's excess birth-rate over the death-rate 
 is higher than in any other country where similar 
 statistics are kept, with the exception of Russia. 
 The annual increase in population due to this excess 
 has remained for a considerable number of years at 
 approximately 800,000, the increase in 1912 being 
 839,887. The excess of births over deaths in 1912 
 was 12.7 per thousand. In 1911 the rate in Eng- 
 land and Wales was 9.8, in Italy 10.1, in France .9, 
 in the United States, where proper vital statistics 
 are kept, 5.4 to 9.9, and in Russia 17. Not only is 
 Germany a prolific country, but wonderful sanitary 
 provisions and scientific health protection co-oper- 
 ate with a high birth-rate in stimulating population. 
 
 Most of the growth of the last generation has 
 been absorbed by the cities. In fact, almost the 
 whole increase, or about 24,000,000, has been added 
 to the urban population. Agriculture claims a 
 diminishing percentage of the people. In 1871 68 
 per cent, were employed on the land. In 1882 the 
 rural population had fallen to 42 per cent., and in 
 1907 to 28.5 per cent. During the period from 
 
56 SOCIALIZED GERMANY 
 
 1882 to 1907 the proportion engaged in industry 
 rose from 35.1 per cent, to 42.5 per cent., and in 
 trade and commerce from 9.9 per cent, to 13.3 per 
 cent. 
 
 As a consequence of this shift in population Ger- 
 many has become an urban nation. Great cities 
 line the river Rhine from the Dutch frontier to 
 Switzerland. They have grown about every harbor 
 on the North Sea and the Baltic. Wherever natural 
 resources or transportation facilities offered an op- 
 portunity there a city has appeared. And these 
 cities are not straggling, unkempt collections of 
 factories and work-people, they are cities of com- 
 manding beauty, of fine architecture, of spacious 
 streets, and of splendid public structures. The 
 growth in urban population has been even more 
 rapid than in the United States. In 1871 there 
 were only 9 cities of more than 100,000 population, 
 while in 1885 there were 21. To-day there are 48. 
 In 1885 8,600,000 people, or 18.4 per cent, of the 
 total, lived in cities of more than 20,000 people. 
 In 1910 there were 22,400,000, or 34.5 per cent, of 
 the whole. In 1885 there were 21 cities of more than 
 100,000 people with a total population of 4,400,000, 
 or 9.4 per cent, of the total, while in 1910 there were 
 48 cities of more than 100,000 people with a total 
 population of 13,800,000, or 21.1 per cent, of the 
 whole. In a short generation Gemany has become 
 a nation of great cities, and with few exceptions, 
 
RECENT ECONOMIC PROGRESS 57 
 
 such as the industrial centres of the Rhine region, 
 they are cities of beauty, charm, and great dignity. 
 This growth in urban population has been ac- 
 companied by many of the evils with which we are 
 familiar. 
 
 "That this shifting of the centre of gravity of the 
 population from country to town, from agriculture 
 to industry, trade and transportation, has its dark 
 side, is generally recognized, and is denied by no- 
 body. But none the less, the fact cannot be over- 
 looked that it was only the expansion of our indus- 
 tries, our trade, and transportation, that made it 
 possible on German soil to give labor and sustenance 
 to the vastly increased population, to protect us 
 from the misery of overpopulation, and to trans- 
 form the natural growth of the population into a 
 source of increasing wealth." 1 
 
 Agriculture in Germany partakes of a science. 
 It is not so well developed as in Denmark or Hol- 
 land. There is not that universal intensive culti- 
 vation that prevails in these countries, or in France, 
 Belgium, or Switzerland. For much of the land in 
 Prussia is owned in great estates, worked by agri- 
 cultural laborers. But scientific agriculture has 
 made great progress. It is a matter of state con- 
 cern. The landed estates belonging to Prussia and 
 the other states are used as experiment stations. 
 They are leased as model farms or operated by the 
 
 1 Germany's Economic Progress and National Wealth, 1888-1913, 
 p. 20. 
 
58 
 
 SOCIALIZED GERMANY 
 
 state itself. And while the acreage under culti- 
 vation and the number of people engaged in agri- 
 culture remained stationary from 1883 to 1912, new 
 methods of cultivation brought about a great in- 
 crease in the yield. Fertilizers are extensively and 
 intelligently used, while mechanical power has 
 taken the place of hand labor. In certain sections 
 district central power stations furnish electric power 
 for the operation of all kinds of machines at very 
 low cost, while modern farm machinery has been 
 widely introduced. 
 
 How materially these new methods of production 
 have increased the productivity of German agricul- 
 ture is indicated by the following table: 
 
 
 AVERAGE FOR THE 
 YEARS 1883-7 
 
 AVERAGE FOR THE 
 YEARS 1908-12 
 
 AREA 
 PLANTED 
 HEC- 
 TARES 
 
 YIELD 
 TONS 
 
 YIELD 
 PER 
 HEC- 
 TARE 
 TONS 
 
 AREA 
 PLANTED 
 HEC- 
 TARES 
 
 YIELD 
 TONS 
 
 YIELD 
 PER 
 HEC- 
 TARE 
 TONS 
 
 Bye 
 Wheat 
 Summer barley 
 Potatoes 
 
 5,830,000 
 1,918,000 
 1,737,700 
 2,912,800 
 3,785,000 
 5,905,100 
 
 5,867,800 
 2,585,200 
 2,232,800 
 25,459,200 
 4,291,000 
 16,874,600 
 
 1.00 
 1.34 
 
 1.28 
 8.74 
 1.13 
 
 2.85 
 
 6,168,261 
 1,911,768 
 1,604,116 
 3,315,137 
 4,317,753 
 5,949,237 
 
 11,012,171 
 3,962,390 
 3,220,066 
 44,220,213 
 8,189,062 
 25,024,865 
 
 1.78 
 2.07 
 2.01 
 13.34 
 1.90 
 4.21 
 
 Oats 
 
 Meadow hay . . 
 
 In some crops the gain has been extraordinary. 
 In the case of rye, in which there was a gain of only 
 5.8 per cent, in acreage from one five-year period 
 to the other, the increase in the yield was 87.7 per 
 cent., and the increase in yield per hectare was 77.7 
 per cent. 
 
RECENT ECONOMIC PROGRESS 
 
 59 
 
 Similar methods of cultivation give a yield of 
 22.6 metric cwt. (220 Ibs.) per hectare of wheat, as 
 compared with 6.9 for Russia, 13.8 for France, 10.7 
 in the United States, and 9.3 in Argentine. 
 
 Similar results are obtained in the other staples, 
 as shown in the following table : 
 
 HAR- 
 VEST 
 YEAR 
 
 COUNTRY 
 
 YIELD PER HECTARE IN METRIC 
 CWT. (220 LBS.) 
 
 WHEAT 
 
 BYE 
 
 BAR- 
 LEY 
 
 OATS 
 
 POTA- 
 TOES 
 
 1912 
 1912 
 
 1912 
 
 1911 
 1912 
 1912 
 
 Germany 
 
 22.6 
 6.9 
 ( 15.0 
 I 12.7 
 13.8 
 13.7 
 10.7 
 
 18.5 
 9.0 
 14.6 
 11.6 
 14.3 
 12.0 
 10.6 
 
 21.9 
 8.7 
 16.0 
 13.9 
 14.3 
 16.7 
 16.0 
 
 19.4 
 8.5 
 13.0 
 10.4 
 12.6 
 15.0 
 13.4 
 
 150.3 
 81.7 
 100.2 
 84.4 
 74.2 
 115.8 
 76.2 
 
 Russia 
 
 Austria-Hungary .... 
 France 
 
 Canada 
 
 United States 
 
 
 From Germany's Economic Progress and National Wealth, 1888-1913, 
 Helfferich, p. 55. 
 
 All this is the more remarkable in view of the fact 
 that neither the soil nor the climate of Germany is 
 particularly favorable. Much of the land has been 
 worked for generations, much of it in the north and 
 east is far from fertile. Moreover, Germany has 
 had to compete with the virgin soil of newer coun- 
 tries, whose surplus produce has been thrown on the 
 European markets during the past few decades at 
 very low prices. But while the land in the United 
 States has been exhausted by careless cultivation 
 and millions of acres of good farming land have been 
 abandoned, in Germany lands far less fertile and 
 cultivated for generations remain in a high state of 
 
60 
 
 SOCIALIZED GERMANY 
 
 fertility. There are no deserted farms in Germany. 
 In addition great stretches of waste-land, such as 
 marshes, heaths, etc., have been brought into till- 
 age. It is claimed that the area of wheat-land is 
 being doubled by these methods and a comfortable 
 living provided for hundreds of thousands of fam- 
 ilies. 
 
 To some extent Germany has been shielded from 
 foreign competition by a protective tariff, but the 
 tariff has not encouraged agricultural inefficiency, 
 as it has in other countries. 
 
 The sugar contents of the beet-root were discov- 
 ered by a German scientist, and the growth of this 
 industry in recent years has been phenomenal. 
 Improved methods of cultivation as well as manu- 
 facture have created a great industry, in which 
 Germany stands foremost. In the year 1912-13 
 the beet-sugar production amounted to 2,701,000 
 tons; 'in Russia, the next largest producer, it was 
 1,374,000 tons. 1 In twenty-five years the production 
 
 1 The rapidity of the growth of this industry as well as the con- 
 stantly advancing efficiency of manufacture is shown in the follow- 
 ing table: 
 
 
 
 
 
 
 AVERAGE 
 
 CHOP YEAR 
 
 BEETS 
 WORKED 
 UP 1,000 
 TONS 
 
 AREA IN 
 BEETS 
 HECTARES 
 
 YIELD OF 
 
 BEETS 
 
 PER 
 
 HECTARE 
 TONS 
 
 RAW 
 
 SUGAR 
 PRO- 
 DUCED 
 1,000 
 TONS 
 
 OP BEETS 
 REQUIRED 
 TO MAKE 
 1 KILO- 
 GRAM 
 OP SUGAR 
 
 
 
 
 
 
 KILOS 
 
 1888-89 
 
 7,896 
 
 149,411 
 
 28 
 
 991 
 
 7.97 
 
 1910-11 
 
 15,749 
 
 477,909 
 
 33 
 
 2,590 
 
 6.08 
 
 
 
 
 
 
 
RECENT ECONOMIC PROGRESS 61 
 
 of beets has doubled, while the sugar-refining from 
 beets has increased two and one-half times. 
 
 Similar improvement has been made in the live- 
 stock industry, with the exception of sheep, which 
 require large pastures for grazing. The number of 
 swine, on the other hand, rose from 9,206,195 in 
 1883 to 21,805,073 in 1912. During the same period 
 the number of cattle rose from 15,786,764 to 20,- 
 158,738. Impressive as these statistics are, they 
 fail to tell the whole story because of the great im- 
 provement in the quality of cattle, brought about 
 through scientific breeding and the consequent in- 
 crease in the production of meat and milk. 
 
 Germany is far less generously endowed with 
 natural resources than is the United States. Coal 
 and iron are plentiful, while salts, zinc, lead, and 
 copper ores are found in considerable quantities. 
 In recent years these minerals have been mined and 
 utilized most economically and form the bases of 
 the remarkable progress in the manufacture of 
 finished products. From 1888 to 1913 the value of 
 mining products, such as coal, ores, and salts, in- 
 creased from 700,000,000 marks to considerably 
 more than 2,000,000,000 marks. The coal produc- 
 tion in 1887 amounted to 76,200,000 tons, with a 
 total value of 351,300,000 marks. By 1911 the pro- 
 duction had risen to 234,500,000 tons, and the value 
 to 1,756,100,000 marks. In 1912 the production 
 had risen to 254,400,000 tons. Germany is the 
 
62 SOCIALIZED GERMANY 
 
 third largest producer of coal in the world, having 
 almost overtaken England, which a quarter of a 
 century ago produced more than twice as much 
 coal as Germany. 
 
 The same is true of iron ore, in which production 
 increased threefold from 1887 to 1911. But the in- 
 dustrial development of the country outran even the 
 production of raw materials, and as a consequence 
 an excess of 9,810,500 tons of iron ore was imported 
 in 1912. 
 
 Pig-iron production increased from 4,024,000 tons 
 in 1887 to 15,574,000 tons in 1911, an increase of 
 287 per cent., an increase larger than that of the 
 United States with its almost untouched ore de- 
 posits. The United States produced 6,520,000 tons 
 in 1887 and 24,028,000 tons in 1911, an increase of 
 268.5 per cent. Great Britain and Ireland, which in 
 1887 produced more than either of the other two 
 countries, produced less than either in 1911, her 
 percentage of increase being only 30.6 per cent. 
 The same phenomenal progress took place in the 
 finished product. The steel production of Germany 
 increased from 954,600 tons in 1886 to 13,698,600 
 in 1910, an increase of 1,335 per cent. In 1912 it 
 increased still further, to 15,019,300 tons, the only 
 other country approximating this increase being the 
 United States, in which the increase was 910.3 per 
 cent, from 1886 to 1910. 
 
 The enormous potash deposits of Germany, 
 
RECENT ECONOMIC PROGRESS 63 
 
 greater than those of any other country in the 
 world, are another element in her natural resources. 
 And the production of potash has increased with 
 phenomenal rapidity. At the end of the year 1910 
 the production exceeded 8,000,000 tons, worth over 
 100,000,000 marks, as compared with 1,000,000 tons, 
 worth 25,000,000 marks twenty years earlier. Phos- 
 phate from iron ore is also used as a fertilizer, while 
 the recovery of cyanamide from the atmosphere, 
 supplying the soil with needed nitrogen, is another 
 advance in which Germany has made great progress. 
 
 Many by-products have been developed by Ger- 
 man science in the upbuilding of her industries. 
 These include the substances taken from mineral 
 coal. The recovery of illuminating-gas in making 
 coke out of mineral coal was one of the earliest dis- 
 coveries, as was the utilization of coal-tar, a by- 
 product in the making of coke. Compounds of 
 carbon produced from coal-tar are the bases of 
 many important industries, such as dye-works, phar- 
 maceutical preparations, etc., in which Germany is 
 the acknowledged leader. 
 
 The industrial progress of Germany is suggested 
 by the increase in steam-power, which in Prussia 
 alone expanded more than fourfold from 1882 to 
 1907, in spite of the competition of other kinds of 
 motive power. And if we estimate the efficiency of 
 one mechanical horse-power as equal to the labor 
 capacity of ten men, the effective horse-power in 
 
64 SOCIALIZED GERMANY 
 
 1907 was equivalent to the physical labor of 52,000,- 
 000 men. 
 
 Water-power and electricity have also been 
 highly developed, along with the gas-engine, in 
 which development Germany is ahead of other 
 countries. Many wonderful improvements have 
 taken place along these lines, by means of which 
 gases are generated from peat, lignite, etc., which 
 are distributed through district stations to manu- 
 facturing plants and transportation systems. Am- 
 monia is a by-product secured in the conversion of 
 peat into gas. The utilization of peat for these pur- 
 poses has opened up a source of power of enormous 
 extent, especially in the extensive moors of Germany. 
 This new source of energy is the more important in 
 that the utilization of peat transforms great stretches 
 of land into arable territory which had before been 
 almost worthless. 
 
 Science is the handmaiden of industry in Ger- 
 many, as in no other country. Wonderful develop- 
 ments have taken place in iron and steel processes, 
 due to scientific improvements, and iron and steel 
 are fundamental to the manufacture of machinery, 
 railroads, bridges, and structures. They are the 
 bases of modern civilization. Science has co-oper- 
 ated with industry in countless ways in every line 
 of industry. 
 
 "The compounds of carbon that can be produced 
 from coal-tar have become the bases of important 
 
RECENT ECONOMIC PROGRESS 65 
 
 new industries, in which Germany, owing to its 
 scientific progress has hitherto enjoyed the unchal- 
 lenged leadership. It is only necessary to mention 
 the most important coal-tar products, like aniline 
 and alizarin dyes, pharmaceutical preparations like 
 aspirin and phenacetin, saccharine and the various 
 coal oils." 1 
 
 Similar improvements to those made in the work- 
 ing up of iron and in coal products have been made 
 in other metals. The application of electricity re- 
 covered aluminum from the earth and made it into 
 a great industry. It is of great importance in the 
 development of the modern air-ship and aeroplane 
 industries. 
 
 "The splendid development in the utilization of 
 coal-tar has its counterpart in the synthesis of or- 
 ganic dye-stuffs (artificial indigo), in the chemical 
 manipulation of wood (cellulose), in the recovery 
 of cyanamide from the atmospheric air, ... in the 
 improvements based on progress in biochemistry, 
 and in the industries based on fermentation pro- 
 cesses (brewing, yeast manufacture, etc.). 2 
 
 In 1912 Germany's exports were 8,900,000,000 
 marks, of which 5,800,000,000 were in manufactured 
 goods. 
 
 "It would be a mistake, however, to assume that 
 the increase in our producing capacity in manufac- 
 tured goods is fully expressed in the gain of exports. 
 
 1 Germany's Economic Progress, p. 33. 2 Idem, p. 33. 
 
66 SOCIALIZED GERMANY 
 
 General observation and scientific investigations of 
 a detailed character combine to show that the home 
 market for our industrial products has developed 
 even more rapidly than our foreign sales. It would 
 be rather a too low than a too high estimate if we 
 assume that the producing capacity of German manu- 
 facturing industries has been increased threefold in 
 the past twenty-five years." 1 
 
 The progress of German industry has been ac- 
 companied by concentration of production into 
 larger and larger units. A far larger proportion of 
 the workers are now employed in great concerns 
 than formerly. In 1907 there were 5,350,025 em- 
 ployees in establishments having over 50 employees, 
 as against 1,613,247 in 1882 and 3,044,267 in 1895, 
 an increase of more than threefold from 1882 to 
 1907. 
 
 Consolidation has developed along other lines just 
 as it has in the United States. Of such consolida- 
 tions the Krupp works is the greatest example an 
 establishment which includes coal-mines, coking 
 plants, iron-mines, smelting-works, steel workings, 
 ship-building, the manufacture of machines, cannon, 
 armor-plate, and munitions of war, as well as elec- 
 trical works, river vessels, and fleets for the high 
 seas. 
 
 The following table indicates the growth in the 
 more important industries, both as to the number 
 of persons employed and the steam-power applied. 
 
 1 Idem, p. 67. 
 
RECENT ECONOMIC PROGRESS 
 
 67 
 
 INDUSTRIES 
 
 PEBSONB EMPLOYED 
 
 1882 
 
 1895 
 
 1907 
 
 PER- 
 CENT- 
 AGE 
 IN- 
 CREASE 
 1882- 
 1907 
 
 Mining, smelting, and salt- 
 works (also wire-drawing 
 for 1882) 
 
 430,134 
 349,196 
 459,713 
 356,089 
 71,777 
 
 42,705 
 910,089 
 100,156 
 121,532 
 469,695 
 743,881 
 1,259,791 
 533,511 
 
 85,394 
 
 536,289 
 558,286 
 639,755 
 582,672 
 115,231 
 
 57,909 
 993,257 
 152,909 
 160,343 
 598,496 
 1,021,490 
 1,390,604 
 1,045,516 
 
 147,746 
 
 879,600 
 747,057 
 905,868 
 1,171,783 
 167,670 
 
 95,957 
 1,094,955 
 225,046 
 206,313 
 736,424 
 1,260,580 
 1,562,382 
 1,576,804 
 
 243,262 
 
 104.5 
 111.1 
 97.1 
 229.1 
 133.6 
 
 124.7 
 20.3 
 124.7 
 69.8 
 56.8 
 69.5 
 24.0 
 195.6 
 
 184.9 
 
 Stone and earths 
 
 Metal-working 
 
 Machinery 
 
 Chemicals 
 
 Illuminating materials (fats, 
 oils soap etc ) 
 
 Textiles 
 
 Paper 
 
 Leather 
 
 Wood and wood- working. . . 
 Foods, beverages etc.. 
 
 Clothing trade and cleaning 
 Building trade 
 
 Printing, art reproduction, 
 etc 
 
 
 
 STEAM I 
 
 >OWER (IN H 
 
 . P.) 
 
 
 
 1895 
 
 1907 
 
 PER- 
 CENT- 
 AGE 
 IN- 
 CREASE 
 1895- 
 1907 
 
 ELECTRICAL 
 POWER 
 1907 
 IN 1,000 
 KILOWATTS 
 
 Mining, smelting, and salt- 
 works (also wire-drawing 
 for 1882) 
 
 995,069 
 
 2,332,968 
 
 134.5 
 
 422,782 
 
 Stone and earths 
 
 197,796 
 
 503,682 
 
 154.7 
 
 88,570 
 
 Metal-working 
 
 142,141 
 
 443,224 
 
 211.8 
 
 128,909 
 
 Machinery 
 
 184,821 
 
 1,215,512 
 
 557.7 
 
 225,026 
 
 Chemicals 
 
 83,587 
 
 192,905 
 
 118.9 
 
 42,288 
 
 Illuminating materials (fats, 
 oils, soap, etc.) 
 Textiles 
 
 29,942 
 515 583 
 
 77,265 
 886,373 
 
 158.1 
 71.7 
 
 13,368 
 75,126 
 
 Paper 
 
 201 422 
 
 412,908 
 
 104.9 
 
 54,966 
 
 Leather 
 
 32 377 
 
 85,304 
 
 163.5 
 
 19,302 
 
 Wood and wood- working. . . 
 Foods, beverages, etc 
 
 203,235 
 686,263 
 
 346,024 
 1,185,819 
 
 70.3 
 
 72.8 
 
 56,325 
 152,763 
 
 Clothing trade and cleaning 
 Building trade 
 
 19,235 
 46,274 
 
 54,852 
 189,117 
 
 185.2 
 308.7 
 
 18,999 
 21,497 
 
 Printing, art reproduction, 
 etc 
 
 18 793 
 
 35,974 
 
 91.4 
 
 40,950 
 
 
 
 
 
 
68 
 
 SOCIALIZED GERMANY 
 
 Along with the internal development of the coun- 
 try has gone a remarkable development of overseas 
 trade. Germany has reached out for the markets 
 of the world. In this competition she has rapidly 
 distanced not only Great Britain but America as 
 well. The foreign trade has reached colossal pro- 
 portions in a few years' time. The growth in the 
 value of exports from 1887 to 1912 in three leading 
 industries is as follows: 
 
 YBAKS 
 
 COKE 
 
 ANILINE AND 
 OTHER COAL- 
 TAR DYES 
 
 ARTIFICIAL 
 INDIGO 
 
 1887 
 
 Marks 
 9,400,000 
 
 Marks 
 42,500,000 
 
 Marks 
 6,300,000 
 
 1913 
 
 126,400,000 
 
 133,800,000 
 
 45,200,000 
 
 
 
 
 
 In 1912 the foreign trade of Germany amounted 
 to 19,600,000,000 marks, of which 10,700,000,000 
 was of imports and 8,900,000,000 of exports. Of 
 the imports, however, only 1,600,000,000 marks was 
 in finished goods, the rest being in food products, 
 raw materials, and semimanufactured goods, upon 
 which labor was subsequently employed. At the 
 same time over two-thirds of the exports, or 5,800,- 
 000,000 marks was in manufactured goods. 
 
 Machinery holds the first place in value in the 
 export trade, and amounted in 1912 to 630,300,000 
 marks, as compared with 52,800,000 marks in 1887. 
 The export value of coarse and fine iron goods rose 
 from 16,000,000 marks in 1887 to 580,980,000 marks 
 
RECENT ECONOMIC PROGRESS 69 
 
 in 1912. Motor-car exports amounted to 65,000,000 
 marks alone in 1912. The value of coal exported 
 grew from 79,900,000 marks in 1887 to 436,600,000 
 marks in 1912. 
 
 The export values of certain finished and semi- 
 finished textile goods increased in a scarcely less re- 
 markable degree, as is indicated by the following 
 table: 
 
 
 VALUE IK 
 
 r MAKKS 
 
 
 1887 
 
 1912 
 
 Cotton goods 
 
 67,300,000 
 
 421,600,000 
 
 W^oollen goods 
 
 177,600,000 
 
 253,400,000 
 
 Silk goods 
 
 16,100,000 
 
 190,900,000 
 
 
 34 000 000 
 
 84,200,000 
 
 
 17 700 000 
 
 64,100,000 
 
 
 
 
 The growth of Germany's overseas trade is fur- 
 ther indicated in the tonnage arriving in German 
 ports. In 1887 the aggregate tonnage of ships regis- 
 tering in German ports was 1,675,498, as compared 
 with 5,917,242 in other European ports. In 1911 
 the ships registering in German ports had increased 
 to 5,397,913 tons, as against 15,330,757 tons in 
 other European ports. In the vessels cleared the 
 registered tonnage amounted to 1,661,471 in Ger- 
 man ports in 1887 and 4,467,353 from other ports. 
 In 1911 the tonnage had risen to 5,495,791 from 
 German ports, as compared with 8,975,665 from 
 other European harbors. This tonnage refers only 
 to merchant vessels carrying cargoes. In 1913 there 
 were only two ports whose foreign traffic exceeded 
 
70 
 
 SOCIALIZED GERMANY 
 
 that of Hamburg, and these ports were Antwerp, 
 whose import and export trade is largely for German 
 account, and the port of New York. Despite many 
 limitations, a restricted seacoast and difficult har- 
 bors, Germany has won a dominant position on the 
 sea, surpassed only by that of Great Britain. 
 
 In the matter of commercial fleets Germany's 
 proportion of the total seagoing commerce at the 
 
 GKOUP OP SAILING AND STEAM VESSELS AND TONNAGE 
 
 OF GERMANY, THE UNITED KINGDOM, AND THE 
 
 UNITED STATES. 
 
 
 SAILING AND 
 
 STEAM VESSELS 
 
 i 
 
 COUNTRY 
 
 YEAR 
 
 NUMBER 
 
 1,000 REGISTER TONS 
 
 Germany : 
 
 1885 
 
 4 102 
 
 1 275 5 
 
 
 1911 . . . 
 
 4 732 
 
 3 023 7 
 
 United Kingdom: 
 
 1885 
 1911 
 
 23,662 
 20 919 
 
 7,430 
 11 682 
 
 United States- 
 
 1885 
 
 23 963 
 
 4 265 
 
 
 1912 
 
 21,278 
 
 4,618 3* 
 
 
 
 
 
 * Gross tons. 
 
 STEAMSHIPS 
 
 COUNTRY 
 
 YEAR 
 
 NUMBER 
 
 1,000 REGISTER TONS 
 
 Germany: 
 United Kingdom: 
 United States: 
 
 1885 
 
 664 
 2,009 
 6,644 
 12,205 
 5,399 
 10,309 
 
 420.6 
 2,513.7 
 3,973.0 
 10,711.4 
 1,494.0 
 2,470.6 
 
 1911 
 
 1885 
 
 1911 . . . 
 
 1885 
 
 1912 
 
 
 outbreak of the war was far behind that of Great 
 Britain and considerably behind that of the United 
 States, although the steam tonnage of Germany 
 was somewhat ahead of the latter country. But it 
 is the rate of growth that is most significant, and 
 
RECENT ECONOMIC PROGRESS 71 
 
 in this respect the progress of Germany has been 
 greater than either of the other two powers. 
 
 Germany's overseas trade has been accompanied 
 by a policy of colonial expansion, upon which the 
 country entered about 1885. England had already 
 appropriated the greater part of the available 
 colonial possessions and concessions during her 
 uninterrupted supremacy on the seas. A similar 
 policy had been pursued in a more limited field by 
 France, Italy, Holland, and Belgium. It was in 
 the face of great difficulties that Germany entered 
 on a colonial policy, which began in Africa and the 
 South Seas in a very modest way. By 1913 the 
 colonial empire of Germany amounted to 2,900,000 
 square kilometres, about five times the area of the 
 German Empire, in which there is a native popu- 
 lation of more than 11,000,000 people. In these 
 colonies, which are situated in South Africa and the 
 southern Pacific, the white population is still negli- 
 gible, being only about 27,000. As a matter of fact, 
 the colonial policy of Germany has been a failure 
 even from the point of view of the empire itself. 
 However, there has been a considerable extension 
 of railway building and commercial development. 
 The aggregate trade of the African colonies and 
 of the South Seas grew from 46,000,000 marks in 
 1898 to 263,000,000 marks in 1912, while the trade 
 of Kiao-Chau, the most successful of all German 
 colonies, rose from 34,500,000 marks in 1902 to 
 
72 SOCIALIZED GERMANY 
 
 195,000,000 marks in 1911. But the colonial ex- 
 pansion of Germany is but incidental to other fi- 
 nancial and commercial overseas undertakings. Im- 
 mense sums have been invested in development 
 projects like the Bagdad railway and the Shantung 
 railway in China, which opened up extensive regions 
 and gave promise of developing great sources of 
 supply for German products. And in this colonial 
 development, foreign exploitation and merchant- 
 marine promotion the resources of the whole nation 
 have been interlocked as a great engine of promo- 
 tion, including vocational and technical education, 
 the development of trade-schools and colleges of 
 commerce, the sending of thousands of trained men 
 into every section of the globe to familiarize them 
 with commercial needs, to which is added govern- 
 mental encouragement of every possible kind. 
 
 With rapidly growing industry at home and an 
 increasing population came the need of creating 
 "permanent and well-anchored supports beyond 
 our frontiers." The solid basis of Germany's com- 
 merce is in her home industry, but to a large extent 
 she is dependent on foreign parts for the supply of 
 raw materials for manufacture and markets for the 
 disposal of her surplus. For the purpose of keeping 
 foreign markets open to her goods Germany de- 
 veloped a system of long-term commercial treaties. 
 That this policy has not altogether satisfied her 
 needs is shown in the following significant para- 
 
RECENT ECONOMIC PROGRESS 73 
 
 graph of Doctor Karl Helfferich, director of the 
 Deutsche Bank, written in 1913: 
 
 "With the negotiation of treaties for securing 
 the interests of our commerce and shipping, how- 
 ever, we have not been, and dare not be, satisfied 
 to stop. Our dependence upon foreign countries, 
 the counterpart to the great advantages derived by 
 us from having taken our place in world-economy, 
 calls for stronger counterpoises. Such a counter- 
 poise can be created by German enterprise and 
 German capital establishing a field for their activ- 
 ity beyond the borders of our country, and thereby 
 gaining a direct influence over foreign territories 
 that may be important to us as sources of supply 
 and as markets. This can be done in an effectual 
 way by acquiring oversea colonial possessions; for 
 in such case economic influence is secured and 
 strengthened in the most effective manner possible 
 by political domination. In so far, however, as this 
 way is limited or barred up altogether for when 
 Germany, after the restoration of its political power, 
 first cast its eyes over the seas, it found unfortu- 
 nately that the colonial world was already for the 
 most part occupied our end must be reached by 
 means of a far-sighted financial and economic 
 activity." 
 
 Germany's industrial prosperity has been ac- 
 companied by a great increase in wealth and a gen- 
 eral improvement in the standard of living of all 
 classes. In 1870 the standards of the country were, 
 for the most part, those of agricultural workers, of 
 peasants, for there were but few large cities and 
 little industry. Wages were for the most part low, 
 
74 
 
 SOCIALIZED GERMANY 
 
 the division of labor had not been carried to any 
 appreciable extent, and the number of workers re- 
 ceiving substantial incomes was relatively small. 
 The improvement in the last twenty-five years has 
 been striking. It is confirmed by such Socialists as 
 Bernstein. It is evidenced not only in the income- 
 tax returns but in the per-capita consumption of 
 standard articles, such as tea, coffee, and cocoa- 
 beans. 
 
 TABLE SHOWING THE CONSUMPTION OF COFFEE, COCOA- 
 BEANS, TEA, AND RICE 
 
 YEAR 
 
 COFFEE 
 
 COCOA-BEANS 
 
 TEA 
 
 RICE 
 
 TOTAL 
 TONS 
 
 PER 
 
 CAPUT 
 KILO 
 
 TOTAL 
 TONS 
 
 PER 
 
 CAPUT 
 KILO 
 
 TOTAL 
 TONS 
 
 PER 
 
 CAPUT 
 KILO 
 
 TOTAL 
 TONS 
 
 PER 
 
 CAPUT 
 KILO 
 
 1886-90. 
 1912 
 
 114,263 
 168,158 
 
 2.38 
 2.53 
 
 4,954 
 53,601 
 
 0.16 
 0.81 
 
 1,912 
 4,126 
 
 0.04 
 0.06 
 
 84,375 
 161,072 
 
 1.76 
 2.43 
 
 The consumption of cotton in the year 1912 was 501,660 tons, or 7.56 
 kilograms per caput. Germany's Economic Progress and Wealth, p. 124. 
 
 The per-capita consumption of cotton increased 
 from 4.19 kilograms, the average for the years 
 1886-90, to 7.56 kilograms in 1912, an increase of 
 80 per cent. Cotton is the most important of all 
 the raw materials in the clothing trades, and this 
 increase mirrors the greater variety of wants and 
 their increasing satisfaction by the people. 
 
 The same thing is indicated by the savings-banks 
 deposits, which in 1888 amounted to 4,550,000,000 
 marks, while twenty-five years later they had grown 
 to 18,000,000,000 marks, or an increase of nearly 
 
RECENT ECONOMIC PROGRESS 75 
 
 400 per cent. The total deposits for the whole 
 country in banks, saving funds, and the co-opera- 
 tive societies increased from 6,500,000,000 marks in 
 1888 to more than 30,000,000,000 marks in 1913. 
 
 Inasmuch as the income-tax system did not be- 
 come fully operative until 1896, although it was pro- 
 vided for in 1892, the statistics of income-tax re- 
 turns are available for only sixteen years. They 
 show a growth of nearly 100 per cent, in this period. 
 The total incomes, including those exempt, in Prus- 
 sia alone, amounted in 1896 to 12,855,261,000 marks. 
 In 1901 they amounted to 15,347,548,000 marks, 
 in 1906 17,467,934,000 marks, in 1911 21,629,650,000 
 marks, and in 1912 22,311,749,000 marks. But even 
 under the thoroughgoing system of collection which 
 prevails in Prussia, a certain amount of taxable in- 
 comes inevitably escapes, which is estimated at 10 
 per cent, on the total taxable incomes for 1912, or 
 15,240,000,000 marks. There should be added 
 1,524,000,000 marks, which should be increased by 
 further additions, which would raise the aggregate 
 income for Prussia alone to about 24,000,000,000 
 marks. 
 
 The population of Prussia in that year was about 
 40,000,000, which would give an average income of 
 nearly 600 marks per capita, or between 2,500 and 
 3,000 marks per family. This is about the average 
 income in the other states of the empire, although 
 in the Hansa cities, Hamburg, Bremen, and Liibeck, 
 
76 SOCIALIZED GERMANY 
 
 it amounts to nearly 1,000 marks per capita, while 
 in the Thuringian estates it is considerably lower. 
 The total private incomes for all Germany is esti- 
 mated at between 39 and 40 billion marks. The 
 increase in the aggregate income for the past six- 
 teen years amounts to about 80 per cent., and the 
 increase in the average per-capita income to about 
 45 per cent. 1 
 
 It is also claimed that the distribution of earn- 
 ings shows a similar favorable change. From 1896 
 to 1912 the number of persons in Prussia alone 
 exempt from taxation, including their dependants, 
 because their income was less than 900 marks, fell 
 from 21,066,000 to 16,105,000; while the number of 
 taxpayers, including their dependants, increased 
 from 10,283,000 to 24,232,000. In 1896 more than 
 two-thirds of the people were exempt from the in- 
 come tax, while in 1912 not quite two-fifths enjoyed 
 incomes below the exemption point. 
 
 Similar increases in taxable income are shown in 
 the various groups during these years. Thus the 
 number of taxpayers in the group enjoying incomes 
 from 900 to 3,000 marks increased from 2,321,000 to 
 6,123,000, and their total incomes from 3,197,000,000 
 marks to 8,584,000,000 marks, an increase of about 
 250 per cent. It was in this group that the greatest 
 increase is registered. The number of taxpayers 
 and the total incomes in the group of those receiving 
 
 1 Germany's Economic Progress and Wealth, p. 97. 
 
RECENT ECONOMIC PROGRESS 77 
 
 from 6,000 marks to 9,500 marks per annum was 
 nearly doubled. 
 
 The wages of miners increased nearly 200 per 
 cent, from 1888 to 1912. The wages in the mine- 
 inspection district of Upper Silesia, for instance, 
 rose from an average wage of 516 marks in 1888 to 
 1,053 marks in 1912. In the mine-inspection dis- 
 trict of Dortmund it rose from 863 marks the first 
 year to 1,586 in the latter year. These figures are 
 for net wages, after deductions have been made of 
 the payments for various kinds of insurance, which 
 have increased greatly during the last few years. 
 In the Rhenish-Westphalian district the payments 
 for the various forms of insurance amounted to 204 
 marks per capita in 1912. Comparing wage in- 
 creases in Germany with those in England, Doctor 
 Helfferich says: 
 
 "The increase in wage incomes in Germany be- 
 comes more striking through a comparison with 
 England: The average yearly earnings of the Eng- 
 lish coal miner in 1900 amounted to 1,732 marks, 
 against 1,332 marks for the German miner in the 
 Ruhr (Essen) district. In the year 1912, on the 
 other hand, the English average was 1,622 marks, 
 and the German 1,586 marks. Besides this, the 
 German figures here given represent net earnings; 
 whereas the British miner has to pay out of his 
 earnings all the contributions to various forms of 
 insurance, except 20 marks a year per caput which 
 the employers must pay as their average con- 
 tribution for accident insurance. If we add these 
 
78 SOCIALIZED GERMANY 
 
 20 marks to the earnings of the British miner, and 
 the 204 marks mentioned above as insurance con- 
 tributions to the earnings of the German miner, 
 we get an average wage of 1,642 marks for the Eng- 
 lish miner in 1912, but 1,790 marks for the German 
 miner in the Ruhr district. The difference in favor 
 of the German miner in 1912 was therefore about 
 148 marks, whereas it had been in 1900 also after 
 taking into account the insurance contributions of 
 that time 278 marks in favor of the British miner." 
 
 These are some of the achievements of peace 
 under a system of universal military conscription, 
 which takes every able-bodied man from wealth 
 production for from two to three years of his most 
 active life. It was achieved under heavy and in- 
 creasing tax burdens for naval and military prepara- 
 tion as well as for education and other purposes. 
 It was accompanied by colossal expenditure for the 
 building of the most wonderful cities of the modern 
 world, the construction of great railway systems, 
 of thousands of miles of canals and navigable water- 
 ways, of docks and harbors, as well as millions ex- 
 pended in unproductive enterprises and activities for 
 the health and well-being of the people. 
 
 How has this been achieved? By what states- 
 manship has an agricultural state, only emerging 
 from eighteenth-century feudalism a half century 
 ago, been raised to a position of commanding in- 
 dustrial, commercial, and agricultural importance? 
 How has the face of the nation been changed, its tra- 
 
RECENT ECONOMIC PROGRESS 79 
 
 ditional policies and activities reversed, and an in- 
 dustrial empire erected in a few short years upon 
 such unpromising foundations? This it will be the 
 purpose of the succeeding chapters to answer. 
 
CHAPTER VI 
 
 THE THEORY AND EXTENT OF STATE 
 SOCIALISM 
 
 AMERICA and Germany have widely divergent 
 ideas as to the nature and functions of the state. 
 We emphasize the right of the individual. His prop- 
 erty and his privileges are jealously protected by 
 the Constitution and the laws. The powers of the 
 state are limited. They are carefully enumerated 
 in the constitution. It is assumed that the state 
 should have as little as possible to do with business ; 
 it should leave productive industries to private in- 
 itiative and should give the individual the greatest 
 possible freedom on the assumption that this is the 
 best way to promote the common good. It is gen- 
 erally assumed, too, that the state is incompetent; 
 that its functions should be limited to those of 
 protection from domestic and foreign aggression. 
 
 This is the philosophy of individualism, of laissez- 
 faire; a philosophy born of pioneer conditions and 
 later written into our organic law. This philosophy 
 was the product of freedom in America. In Europe 
 it was a reaction against the feudal conditions 
 which prevailed prior to the French Revolution. 
 
 80 
 
THEORY AND EXTENT OF STATE SOCIALISM 81 
 
 There was universal supervision of trade and in- 
 dustry. Internal and external tariff barriers every- 
 where prevailed, while privileges and restrictions on 
 commerce and trade interfered with the freedom of 
 the individual. France abolished many of these 
 restraints with the Revolution. The idea of indus- 
 trial liberty was carried into England and de- 
 veloped into a philosophy by Adam Smith and 
 Ricardo, the fathers of political economy in that 
 country. Later the teachings of these economists 
 became the working philosophy of the commercial 
 classes who desired free trade and relief from the 
 mediaeval restraints on the individual which the 
 feudal classes struggled to retain. 
 
 We in America have carried these ideas to even 
 greater extremes. As time went on they were crys- 
 tallized into law and made permanent by our con- 
 stitutions and judicial decisions. The public opinion 
 of the nation became identified with this philosophy. 
 As a nation we still think and act in terms of an 
 earlier age, just as do the Germans. We, however, 
 think in terms of pioneer conditions, they in terms 
 of feudal conditions. We have so weakened the 
 state that great aggregations of wealth have be- 
 come more powerful than the community, while 
 Germany has so strengthened the state as to de- 
 vitalize the individual. 
 
 There have never been any presumptions in 
 Germany against the state. From earliest times 
 
82 SOCIALIZED GERMANY 
 
 great landed estates and forests have been owned 
 and operated as part of the fiscal system. The 
 lives and property of the individual have been 
 regulated with inquisitorial officialism. The state 
 has been supreme in the eyes of all classes. It has 
 been feudal, paternalistic, agrarian. There has 
 been no bill of rights for the courts to construe or 
 jealous insistence on personal liberty on the part 
 of the people. 
 
 The universities reflect this point of view. They 
 find a sanction of state socialism in the history and 
 experience of the country, just as our universities 
 find a sanction of laissez-faire in the teachings of 
 Adam Smith, Ricardo, and the statesmen of Great 
 Britain. Each country has evolved its own political 
 philosophy from its own experience and self-inter- 
 est as understood by the ruling classes. English po- 
 litical economy has never influenced the German 
 mind as it has the French. Adolph Wagner and 
 Gustav Schmoller, both leading professors in the 
 University of Berlin, approve of a wide extension 
 of state activities, and Wagner has carried his ad- 
 vocacy so far as to be classed by many with the 
 political socialists. And public opinion approves 
 of the subordination of the individual to the state 
 and the restriction of the play of self-interest when 
 it becomes harmful to its members. In the mind 
 of the Germans the functions of the state are not 
 susceptible of abstract, a priori deductions. Each 
 
THEORY AND EXTENT OF STATE SOCIALISM 83 
 
 proposal must be decided by the time and the con- 
 ditions. If it seems advisable for the state to own 
 an industry it should proceed to own it; if it is wise 
 to curb any class or interest it should be curbed. 
 Expediency or opportunism is the rule of states- 
 manship, not abstraction as to the philosophic 
 nature of the state. 
 
 This point of view is known as monarchical 
 socialism, state socialism, or the socialism of the 
 chair. And all Germany accepts it as the most 
 natural thing in the world. It is not the opinion 
 of the ruling class alone. It is the opinion of all 
 classes. There is almost no dissent to the assump- 
 tion of state supremacy, of subordination of the 
 individual, of the necessity for personal and class 
 sacrifice to the Fatherland, even when the sacrifice 
 is imposed by a ruling class. The individual exists 
 for the state, not the state for the individual. 
 Modern Germany has the social psychology of the 
 cities of ancient Greece. It is the psychology of the 
 old feudalism adjusted to new conditions. Life 
 has changed, but the habit of mind has remained 
 much as it was in the eighteenth century. 
 
 This paternalism does not necessarily mean less 
 freedom to the individual than that which prevails 
 in America or England. It is rather a different kind 
 of freedom. Political freedom, freedom of speech 
 and the press, and the right of assemblage are not 
 recognized in Germany; they are not protected by 
 
84 SOCIALIZED GERMANY 
 
 the constitution and the laws as an inalienable, 
 natural right. Rather there is endless supervision of 
 the individual. Verboten is the law of the land. 
 The daily life of the German is supervised by count- 
 less officials under the police power of the state; he 
 is subject to regulations without number upon his 
 daily personal acts. The German, however, does 
 not resent this interference. The rules and regula- 
 tions are accepted as the rules of the road. They 
 make it easier for the average man to live; and, 
 aside from the organized political protests against 
 electoral abuses, the privileged suffrage, and the 
 interference with freedom of speech and the press, 
 there is practically no resentment in Germany against 
 the paternalistic inquisition into the personal activi- 
 ties of the people. 
 
 In other respects, however, the German enjoys a 
 freedom far greater than that which prevails in 
 America and England. This freedom is of an eco- 
 nomic sort. Privileged interests are kept under 
 control. There is no favoritism upon the railways 
 or waterways. Terminals and harbors are owned 
 by the cities, and water and rail transportation are 
 accessible to all on equal terms. Through the 
 ownership of industrial sections, cities offer building 
 sites to all on easy and equal terms, so that capital is 
 encouraged to enter any field without fear or favor. 
 Credit is under control; while the state itself through 
 its ownership of mines and natural resources keeps 
 
THEORY AND EXTENT OF STATE SOCIALISM 85 
 
 the raw materials of production open and accessible 
 to all on competitive terms. State socialism in- 
 sures that economic freedom which we in America 
 have sought to secure through the unrestrained play 
 of private initiative. Social legislation directed 
 against the exploitation of the worker and the con- 
 sumer insures freedom in many other ways. It 
 protects the defenseless classes from exploitation 
 and abuse. It safeguards the weak. Universal 
 education offers opportunities to even the poorest 
 to advance whether it be in the service of the state 
 or in the fields of individual effort. Germany pro- 
 tects industrial and social equality, while America 
 protects political and personal equality. Her free- 
 dom is in the economic, ours in the political field. 
 
 We find state socialism carried further in the 
 cities than by the state. And this is where it should 
 be least expected. For the cities are ruled by the 
 business men, who have received but scant courtesy 
 from the landed aristocracy or the ruling classes in 
 the empire. The dominant note in the cities is 
 commerce, trade, industry, as it is with us. Despite 
 this fact and the control which the business men 
 enjoy through the three-class system of voting, there 
 is far less exploitation by privileged interests than 
 in America, far less than in England. The business 
 men assume the burdens of direct taxation with sur- 
 prising willingness. They impose progressive in- 
 come taxes, often rising to 10 or 15 per cent, for all 
 
86 SOCIALIZED GERMANY 
 
 purposes, upon their incomes. They impose taxes 
 on business, land, and the unearned increment of 
 land values. They burden their cities with in- 
 debtedness to make them beautiful and livable and 
 spend generously for education and other purposes. 
 They have municipalized the street railways, gas, 
 electric-light, and other public-service corporations 
 and have entered into municipal land speculation 
 and house-building activities in competition with 
 themselves. Cities own banks. They regulate pro- 
 perty for the good of all and the protection of 
 posterity. They build and plan for the future with 
 a big vision of the city as does no class in any cities 
 in the world. 
 
 This acceptance of control, of regulation, of state 
 socialism is indicative of the point of view of Ger- 
 many. It is not a patriotism for the Kaiser alone. 
 It is a patriotism for the Fatherland. With such a 
 background and with such a conception of the rela- 
 tive importance of public and private rights, it is 
 easy to understand why state and municipal socialism 
 have developed so rapidly in Germany during the 
 last quarter of a century. 
 
 The entrance of the state into industry has been 
 simplified, it is true, by the fact that the ruling class 
 is the landed aristocracy. The great estate owners, 
 or Junkers, did not own the railways or the public- 
 service corporations of the cities. They were not 
 interested in manufacturing or commerce. They 
 
THEORY AND EXTENT OF STATE SOCIALISM 87 
 
 live on their estates and have but little interest in 
 industry. Nor have they married into the com- 
 mercial aristocracy as they have in England, where 
 the landed aristocracy has been merged with the rail- 
 way, financial, and capitalist classes. The Junker 
 has always kept aloof from commerce, for which he 
 has little real respect. As a consequence there was 
 no conflict of interest in the determination of policy. 
 The dominant political class has not been opposed 
 to state socialism, so long as state socialism did not 
 interfere with its own privileges and property. 
 
 Finally, Germany did not emerge into an in- 
 dustrial state until after the Franco-Prussian War. 
 The traditions of feudalism continued long after 
 they had passed away in France, England, and those 
 parts of Europe where the French Revolution exerted 
 an influence. 
 
 With such traditions as these it was perfectly 
 natural for the state to undertake new activities 
 and tighten its control over individuals or corpora- 
 tions whose actions were inimical to the state. If 
 the state could own great estates and manage them 
 at a profit, if it could care for its people in time of 
 distress, why should it not perform other functions, 
 which in modern times lie close to the life and well- 
 being of the state, especially when the things to be 
 owned and the interests to be regulated were the 
 property of a class which was but scantily represented 
 in the councils of the nation. 
 
88 SOCIALIZED GERMANY 
 
 Added to these considerations is the fact that the 
 civil service in Germany is very efficient. It is also 
 permanent. Government service is the goal of all 
 classes. The official service is recruited from the 
 best talent of the nation. Admission to responsible 
 positions in the civil service is only open to those 
 who have pursued collegiate or engineering training 
 followed by the severest kind of examinations. 
 Titles are universal and are scrupulously observed, 
 even if they be of an insignificant sort, while a system 
 of universal pensions gives assurance to government 
 employment that adds much to its attractiveness. 
 There are a hundred trained men seeking admission 
 to every governmental opening. The majority of 
 the candidates have been preparing for the service 
 from the time they departed the secondary schools, 
 and in the majority of instances they have con- 
 sciously directed their education to a particular field 
 of activity. Men are not educated democratically 
 for any career as in America. They do not turn 
 their hand from one occupation or profession to 
 another. Rather they are trained, in a killing com- 
 petition, to the particular employment in which they 
 make a start. Rarely is there an opportunity to 
 turn back once the decision is made. And in the 
 government service the choice is only to go forward 
 or drop in the pace, and in many cases failure means 
 suicide. For suicide is common among the edu- 
 cated proletariat of Germany. With such a civil 
 
THEORY AND EXTENT OF STATE SOCIALISM 89 
 
 service as this, Germany has been equipped to 
 undertake any activity and to carry on any under- 
 taking. 
 
 There is no clearly defined line of demarcation 
 between the industries that should be socialized 
 and those that should not. All forms of transpor- 
 tation are in the hands of the state, including the 
 railways, canals, waterways, docks, harbors, ter- 
 
 PROPERTIES OWNED 
 
 CAPITAL VALUES 
 
 NET PROFITS PROM 
 OPERATION 
 
 Farms 
 
 $198,122,725 
 
 $7,925,309 
 
 Forests 
 
 730,898,200 
 
 29,235,928 
 
 Mines 
 
 128,907,725 
 
 5,116,309 
 
 Railways 
 
 4,706,904,750 
 
 189,916,190 
 
 Telegraphs 
 
 
 
 Telephones . 
 
 694,816,650 
 
 27,792,666 
 
 Express 
 
 
 
 Mails 
 
 
 
 Other works 
 
 435,184,900 
 
 17,407,476 
 
 
 
 
 Total 
 
 $6,894,834,950 
 
 $277,393,878 
 
 
 
 
 minals, telegraphs, telephones, and express business. 
 Coal, iron, and potash mines are operated, while 
 great forests and agricultural lands have been owned 
 by the states and cities from very early times. In- 
 dividual states own porcelain manufactories, banks, 
 lotteries, baths and mineral springs, amber works, 
 and breweries. The state printing works produced 
 a revenue of $800,000 in 1913, while the shares owned 
 in the Imperial Bank yield a substantial sum. 
 Prussia is the largest single mine and mineral owner 
 
90 SOCIALIZED GERMANY 
 
 in the kingdom, and in 1906 operated 36 mines, 12 
 smelting-works, 5 salt-works, 3 stone-quarries, and 
 1 amber works. 
 
 The total capital value of the principal activities 
 owned by the empire and the states is approxi- 
 mately $7,000,000,000, and the net annual profits 
 are nearly $300,000,000, distributed as shown in table 
 on page 89. 1 
 
 The field of socialization is being constantly 
 extended. In 1908 the Prussian Diet appropriated 
 $15,000,000 for the sinking of new coal shafts, while 
 in the building of the Weser Canal from the Rhine 
 to Hanover $5,000,000 was set aside for the purchase 
 of land on both sides of the canal way so that the 
 community could retain the unearned increment 
 from the increase in land values which the building 
 of the waterway created. In addition by the owner- 
 ship of the riparian property the whole development 
 could be so planned as to provide factory sites 
 and distribute industry and population over a large 
 area admirably suited for manufacturing and at the 
 same time so distribute population as to prevent 
 the appearance of bad housing conditions. The 
 government of Saxony has proposed the erection of 
 large cast-steel works for the making of rails and 
 other material needed, by the state-owned railway 
 lines. 
 
 The Post Office Department operates savings 
 
 1 Roberts, Monarchical Socialism in Germany, p. 7. 
 
THEORY AND EXTENT OF STATE SOCIALISM 91 
 
 banks, and millions of persons have checking ac- 
 counts with the post office the same as with a private 
 bank. The German postman takes orders for dry 
 goods, groceries, and other commodities at the door 
 and later delivers them at a nominal charge. The 
 parcel post is universally used for the distribution 
 of products of all kinds. It is a great marketing 
 agency, and through it many hundreds of thousands 
 of people purchase their food supplies directly from 
 the farm. To such an extent has public banking 
 superseded private banking that 92 per cent, of all 
 deposits are in public institutions. Cities also 
 operate pawn-shops as an aid to those in distress 
 and have done so for generations. 
 
 Bavaria has insured her farmers against fire, hail, 
 and the loss of live stock for generations. At the 
 present time about $20,000,000 of property is in- 
 sured by the state against fire, while 142,000 farmers 
 are insured against loss by hailstones to the extent 
 of $57,500,000. Cities also carry on the fire-insur- 
 ance business. Recently the state and local author- 
 ities have begun the development of hydroelectric 
 plants. Some years ago a group of rural districts 
 determined to unite for the purpose of erecting a 
 central power station to serve a district in Cassel. 
 A representative of the government appeared and 
 announced that the state had decided to carry out a 
 similar project; so the local plans had to be dropped. 
 The government project involved the construction 
 
92 SOCIALIZED GERMANY 
 
 of a large overland station to serve the northern 
 part of the Province of Hesse and the southern part 
 of the Province of Hanover, the water-power to be 
 obtained from three sources. The most important 
 electric-power project is that of the Bavarian govern- 
 ment for utilizing the water of the Bavarian high- 
 lands for the supply of electric light and power to all 
 parts of the country. The government does not 
 plan to carry out this scheme itself, but formulated 
 the general features of the proposal and left the exe- 
 cution of the various works to others with the object 
 of securing co-ordinated action and a proper regard 
 for the public interest. Not only is power to be 
 supplied for industrial, agricultural, and domestic 
 purposes, but several lines of state railways are to 
 be electrified as well. 
 
 The number of employees in the imperial and 
 state service is growing every year. In 1908 it was 
 about 3,000,000. There were then 563,684 in the 
 railway service, 309,026 in the posts and telegraphs, 
 390,005 in police and diplomatic, and 125,980 in 
 forestry and game-preserving. 1 
 
 Immense profits are realized from these activities. 
 In 1908 the profits of the empire and of the states 
 composing it amounted to $277,285,095. In 1911 
 the profits amounted to $282,749,224. These earn- 
 ings are used to reduce the burdens of taxation. The 
 combined federated states secure 38 per cent, of their 
 
 1 Berry, Germany of the Germans, p. 47. 
 
THEORY AND EXTENT OF STATE SOCIALISM 93 
 
 total revenues from their enterprises, while, including 
 the imperial government, one-fourth of all the cur- 
 rent needs of the combined governments are derived 
 from business undertakings. Of the larger states, 
 Bavaria secures 39 per cent, of its revenue from in- 
 dustrial undertakings, Wiirtemberg 38.7 per cent., 
 and Prussia 47.56 per cent. 
 
 Herein is one explanation of the relative ease with 
 which Germany supports the colossal expenditures 
 for war and armament as well as the appropriations 
 made in recent years for internal improvements. 
 With from 35 to 50 per cent, of the state revenues 
 obtained from industrial pursuits, the task of the 
 financier is greatly simplified in comparison with 
 that of surrounding countries. When to this is 
 added the ownership of a controlling interest in the 
 Imperial Bank and the actual control of over 90 per 
 cent, of the savings of the people deposited in mu- 
 nicipal banks and the postal system, the credit opera- 
 tions of the empire are still further facilitated. The 
 railways are part of the state, as are the express and 
 telegraph business, while the mines supply fuel at 
 the cost of production. Thus the state is almost 
 self-contained, so far as its more important functions 
 are concerned. It is not improbable that the am- 
 bitious undertakings of recent years would have been 
 impossible but for these contributing factors, which 
 greatly simplify the problem and relieve the financial 
 burden. Germany's military prowess would prob- 
 
94 SOCIALIZED GERMANY 
 
 ably have been out of the question without the aid 
 of these socialistic services, while her industrial and 
 commercial advancement would have been difficult 
 if not impossible of achievement. 
 
CHAPTER VII 
 THE STATE-OWNED RAILWAYS 
 
 No single agency has done more for the develop- 
 ment of Germany than the state-owned railways. 
 They have aided in welding the twenty-six states into 
 a nation and have contributed in countless ways to 
 the upbuilding of domestic industry and foreign 
 commerce. Their strategic value in time of war has 
 been demonstrated in the present European conflict. 
 
 The first German railways were built by private 
 capital under concessions from the individual states, 
 although Prussia had begun to experiment in this 
 field as early as 1850. But private operation was 
 never satisfactory and, following the war with France, 
 Bismarck urged the acquisition of the railways by 
 the empire. At this time the railways of Bavaria, 
 Saxony, Baden, and Wiirtemberg were for the most 
 part owned by these states, and they, jealous of the 
 ascendancy of Prussia and appreciative of the value 
 of their possessions, declined to acquiesce in Bis- 
 marck's proposal. But Bismarck persevered in his 
 policy. He saw in the railways a means for the con- 
 solidation of the nation as well as a military agency 
 
 of great strategic value. In addition, through cen- 
 
 95 
 
96 SOCIALIZED GERMANY 
 
 tralized management, the chaos of state and local 
 rates and charges would be brought to an end. 
 
 The refusal of the states to transfer their systems 
 to the empire led Prussia to develop her own system. 
 Most of the more profitable lines were in private 
 hands, and by reason of the monopoly and large 
 earnings which the companies enjoyed they were 
 disinclined to extend their systems to meet the in- 
 dustrial revival which followed the Franco-Prussian 
 War. This and the obvious profitableness of the 
 railways led to the appointment of a committee by 
 the Prussian parliament to investigate the whole 
 matter, which committee subsequently reported 
 that it was desirable from every point of view that 
 all the railways should be nationalized. 
 
 Parliament took the first steps in this direction in 
 1873, first by the enlargement of the existing state 
 system, and second by the acquisition of the lines 
 of a considerable number of private companies. 
 From this time on nationalization was rapid, the 
 negotiations for the most part being carried on in a 
 friendly spirit, for many of the shareholders were 
 agreeable to the sale. The original concessions to 
 the companies contained reservations under which 
 it was possible for the state to acquire the lines upon 
 a valuation ascertained from a capitalization of the 
 dividends earned during the ten years prior to pur- 
 chase, or in case the roads had not been in operation 
 for so long a period then the dividends earned during 
 
THE STATE-OWNED RAILWAYS 
 
 97 
 
 the preceding three years were taken as a basis of 
 purchase. If no dividends at all had been earned then 
 other evidences were to be used to ascertain the value. 
 
 This would seem to be a generous basis for ac- 
 quisition, but inasmuch as many of the roads were 
 acquired by the state in the early years of their 
 working, and as their rates and charges were subject 
 to regulation, the states, and especially Prussia, 
 were often able to buy advantageously and at a low 
 price. However, in most instances the stockholders 
 were treated fairly, and in many instances preferred 
 to exchange their securities for those of the state. 
 
 Proceedings similar to those of Prussia were taken 
 by other states, until at the present time over 90 per 
 cent, of the railway mileage of Germany is owned by 
 the several states, the remaining 10 per cent, being 
 in private hands. The latter holdings, however, 
 are for the most part confined to unimportant lines 
 and light railways. The growth in mileage of the 
 states in the empire from 1875 to 1910 is as follows: l 
 
 YEARS 
 
 LENGTH OF FULL-GAUGE 
 LINES 
 
 LENGTH OWNED BY 
 STATES 
 
 1875 
 
 17 483 miles 
 
 
 1880 
 
 21,028 " 
 
 13,888 miles 
 
 1890 
 
 26 136 " 
 
 18,738 " 
 
 1900 
 
 31,049 " 
 
 28,570 " 
 
 1910 
 
 36 894 " 
 
 34,596 " 
 
 
 
 
 As to the general efficiency of the German railways 
 there is no dispute. The service is excellent, the 
 
 1 Dawson, Industrial Germany, p. 50. 
 
98 SOCIALIZED GERMANY 
 
 equipment is of a high order, while the comfort and 
 convenience of the public is considered in every 
 possible way. Accidents either to passengers or 
 employees are of infrequent occurrence. Trains 
 arrive punctually, while the stations are spacious 
 and are usually among the most imposing structures 
 in the city. Passenger fares are low and are ad- 
 justed to the purse of all classes, while the profits 
 from operation are so large as materially to reduce 
 the burdens of taxation. 
 
 , The Prussian railways are the best equipped and 
 best managed of any in the empire, if not in Europe. 
 The capital invested has increased from $370,000,000 
 in 1879 to $2,709,150,000 in 1910. A large part of 
 the capital investment has been earned by the rail- 
 ways and devoted to the extension and betterment 
 of the service. The net profits from operation, after 
 deducting interest on the indebtedness and making 
 ample provision for depreciation rose from $10,000,- 
 000 in 1882 to $140,000,000 in 1906. 
 
 When the railways were first acquired the fear 
 was expressed that the government had entered 
 upon a hazardous financial experiment, but W. H. 
 Dawson, a thorough student of modern Germany, 
 says the transaction has proved to be "a brilliant 
 stroke of business if not the most brilliant ever trans- 
 acted by a modern state." 1 Continuing he says: 
 
 " It is in the domain of railway ownership and ad- 
 ministration that the state has achieved its greatest 
 
 1 Dawson, Industrial Germany, p. 55. 
 
THE STATE-OWNED RAILWAYS 99 
 
 success. It has been estimated that since they 
 passed into the national possession the German rail- 
 ways have provided $750,000,000 of revenue. The 
 profits are perhaps swelled by the low wages paid to 
 inferior grades of labor and because there are so many 
 females in the railway service. But the state tries 
 to make up for this by providing houses at low rents, 
 free garden-plots, pensions, bonuses, holidays, etc. 
 It must be admitted, however, that the wage ques- 
 tion is still a sore one and is agitated as much as 
 possible under the strict system prevailing, which 
 allows no strikes in this branch of the state service. 
 There is always a temptation to work the railways 
 for more revenue in these days, but on the whole the 
 governments keep well to the front the interests of 
 traffic and commerce." 1 
 
 The Prussian state railways are the most profitable 
 of any in the empire and earn approximately 8 per 
 cent, on an actual cash investment of $2,700,000,000. 
 The net profits from operation in 1911 amounted to 
 $178,000,000 or more than twice the income from 
 taxes, which was $85,000,000. 2 This sum went into 
 the state treasury and reduced taxation to that 
 extent or was used for other public purposes. 
 
 Summarizing his opinion of the operation of the 
 Prussian state railroads, Mr. Carl Vrooman says: 3 
 
 "Unquestionably the Prussian state railways have 
 made the best showing financially of any government 
 
 1 Dawson, idem. 
 
 2 Roberts, Monarchical Socialism in Germany, p. 4. 
 
 8 Vrooman, American Railway Problems in the Light of European 
 Experience } p. 160. 
 
100 SOCIALIZED GERMANY 
 
 railways in the world, in spite of the fact that the 
 state management has given to the people of Prussia 
 the best and safest transportation service on the 
 continent of Europe and has charged for this service 
 as little if not less than has any continental railway 
 system. At the same time the Prussian state rail- 
 way system during the last quarter of a century has 
 brought into the state treasury every year enormous 
 sums of money as profits. Indeed there is criticism 
 on many sides that the results have been too brilliant; 
 that industry should not be taxed to relieve general 
 taxation. " 
 
 By 1905 the Prussian railways had paid into the 
 treasury, as profits, more than enough to pay off 
 every cent of railway indebtedness, including interest, 
 leaving the great system with all equipment as a net 
 asset in the hands of the state. This, too, was in 
 spite of the fact that many unprofitable extensions 
 have been constructed which private capital prob- 
 ably never would have attempted. 
 
 A paper read by Professor Herman Schumaker, 
 professor of political economy at the University of 
 Bonn, in January, 1912, before the Royal Economic 
 Society, describes the results that followed national 
 operation. 
 
 "The result of all these economies," he says, "is a 
 magnificent one. The aggregate revenue of the 
 Prussian State Railways has risen, during the twenty- 
 five years from 1883-1908, from 536,000,000 marks 
 to 1,910,000,000 marks, or from 34,503 to 52,795 
 marks per kilometre of railway track. Although 
 
THE STATE-OWNED RAJLWA.YS 101 
 
 the expenses both of the staff and of the stock and 
 plant have increased very considerably (the cost 
 per kilometre per axle was 5.43 pfg. in 1895 and 7.4 
 pfg. in 1908), nevertheless the gross working profits 
 have increased from 222,000,000 marks in 1883 to 
 548,000,000 marks in 1908; so far, the maximum 
 obtained was, in 1906, namely 698,000,000 marks. 
 
 "These extraordinary working profits, which in 
 the aggregate amount since the nationalization of 
 the railways to a total of nearly 12,000,000,000 
 marks, have greatly benefited the Prussian State 
 Railways. They enabled them to meet nearly the 
 whole of the cost of construction of existing railways 
 out of current revenue. In fact, one may say that 
 all expenses necessary for the maintenance and 
 preservation of railway property have been met out 
 of current revenue. This continual capitalization 
 of the net profits has rendered unnecessary any 
 writing off to make due provision for the main- 
 tenance of the property. The present aggregate 
 value of the Prussian State Railways not only equals, 
 but exceeds the whole amount of capital taken up 
 on loan by the Prussian State for the purchase and 
 development of the railway system. When, never- 
 theless, a redemption of the loan has taken place, 
 and will be further increased in the future, that is 
 done not for the preservation, but for the augmen- 
 tation of capital. In contrast to the overcapitali- 
 zation of many foreign railways, the object aimed at 
 and achieved has been the undercapitalization of 
 the Prussian State Railways. This is the solid 
 foundation on which the Prussian railway finance 
 is based. 
 
 "But this does not exhaust the financial success 
 of the Prussian State Railways. Although, as has 
 been pointed out, it was by no means the original 
 
102 SOCIALIZED GERMANY 
 
 intention, railways have nevertheless become, under 
 the combined influence of the above-mentioned fac- 
 tors, a considerable source of revenue to the State. 
 A total of nearly 3,000,000,000 marks has been 
 placed at the disposal of the Prussian Government 
 for other State purposes out of the surplus of the 
 railways. It is true that in consequence of the 
 varying conditions of trade the figures are liable 
 to great fluctuations, and therefore involve certain 
 risks to the State, which have not always been met 
 effectively by the Prussian financial administration, 
 but this does not detract from the momentous 
 advantage that, thanks to its railways, the Prussian 
 State was in a position to participate financially at 
 once in the great rise of prosperity in German 
 industrial life. Hence, the fact, that Prussian 
 finance presents, on the whole, such favorable con- 
 ditions, is largely due to the Prussian State Rail- 
 ways." 
 
 The railways of the other states are likewise 
 profitable, although, with the exception of Saxony 
 and Bavaria, these states contain comparatively 
 few cities and relatively little industry. In 1911 
 the Bavarian railroads earned 4.5 per cent, on the 
 outstanding loans; Saxony, 5.4 per cent.; Wurtem- 
 berg, 3.4 per cent.; and Baden, 3.8 per cent. 1 
 
 The proportion of the state income derived (1) 
 from the railroads, (2) from other state-owned prop- 
 erty, and (3) from taxes in the more important 
 states is indicated by the following table : 2 
 
 1 Dawson, Industrial Germany, p. 55. 
 
 2 Statistisches Jahrbuch, 1913, p. 345. 
 
THE STATE-OWNED RAILWAYS 
 
 103 
 
 STATE 
 
 FBOM 
 RAILROADS 
 
 OTHER STATE- 
 OWNED PROP- 
 ERTIES AND 
 OTHER SOURCES 
 OF STATE IN- 
 COME 
 
 TOTAL TAX RE- 
 CEIPTS 
 
 Prussia 
 
 Marks 
 539,954,000 
 
 Marks 
 118,000,000 
 
 Marks 
 495,763,000 
 
 Saxony 
 
 44,608,000 
 
 15,020,000 
 
 90,890,000 
 
 Wiirtemberg . . . 
 Baden 
 
 21,281,000 
 29,869,000 
 
 21,319,000 
 5,479,000 
 
 54,633,000 
 57,009,000 
 
 
 
 
 
 From the above it appears that 57 per cent, of 
 the income of Prussia is derived from productive 
 industries owned by the state, and 46 per cent, from 
 the railways alone. In Saxony, 29 per cent, of the 
 revenue of the state comes from the railways, in 
 Wiirtemberg, 22 per cent., and in Baden, 32 per cent. 
 When it is considered that the income taxes are the 
 largest single source of state and local taxation, 
 it is easy to understand the universal approval of 
 public ownership even in a country as completely 
 governed by the landed and capitalist classes as is 
 Germany. 
 
 But the financial success of the railways, re- 
 markable as it is, is of secondary importance. "I 
 do not regard railways," said Bismarck, "as in the 
 main intent, to be the object of financial competition; 
 according to my view, railways are intended more 
 for the service of traffic than of finance, though it 
 would, of course, be foolish to say that they should 
 not bring financial advantages." 
 
 It is difficult to overstate the extent to which the 
 
104 SOCIALIZED GERMANY 
 
 railways have contributed to the upbuilding of 
 Germany. The casual traveller sees but little of 
 this, the reports only scantily suggest it, and the 
 mere statement that the underlying motive of 
 operation is service, conveys but little idea of the 
 extent to which the industrial and social develop- 
 ment of the country has been promoted through the 
 railways. The very life of the nation is, in fact, 
 woven into the transportation agencies, which are 
 not operated as a separate, detached thing, but are 
 related to every need of the empire and are con- 
 sciously administered to serve its destiny. 
 
 " German railroads," says an English observer, 
 "have largely contributed to the prosperity of Ger- 
 man industry; the British railways have largely con- 
 tributed to the decay of British industries. In 
 Germany trade policy is made by trade; in Great 
 Britain it is made by the railroads, which, without 
 consulting the trade, prescribe its course, stimulating 
 it here and stifling it there." 1 
 
 Such struggles, as almost every American city 
 has experienced in order to secure even tolerable 
 terminal facilities, betterments, or service, are in- 
 conceivable in Germany. In place of hostility and 
 conflict, the state anticipates industrial and mu- 
 nicipal needs. The harbors and water-fronts are 
 operated in closest harmony with the railway ter- 
 minals, which are planned as a co-operating unit in 
 
 1 Eltzbacher, Contemporary Review, February, 1905. 
 
THE STATE-OWNED RAILWAYS 105 
 
 the industrial programme. Great factory areas 
 are laid out with sidings and switches. The ap- 
 proaches to cities are not disfigured with unsightly 
 cuts and surroundings; rather they are sodded and 
 parked and made as unobtrusive as possible. The 
 stations of cities like Frankfort, Cologne, Dresden, 
 and Hamburg, are of splendid architecture, with 
 artistic overhead approaches which disfigure but 
 little the beauty of the city. Frankfort, a town of 
 400,000 people, has a station erected many years ago 
 at a cost of $10,000,000, when Frankfort was a small 
 town. There are no grade crossings. The tracks 
 are raised or depressed as necessity requires. Every- 
 thing is built for permanence and with provision for 
 safety. There are very few accidents. "German 
 railway trains arrive nineteen times out of twenty 
 to the minute because the government punishes 
 severely those responsible for the delay." 1 
 
 New lines are built when needed, even if they are 
 not profitable, for the convenience of the people or 
 the upbuilding of an industry or a territory. Nor 
 do localities or industries interfere unduly with the 
 administration in their efforts to secure favors or 
 special privileges. This is checked by the active 
 participation of representatives of chambers of 
 commerce and agricultural bodies in the actual 
 administration of the system. 
 
 Under private operation the companies showed 
 
 1 J. Ellis Barker, Modern Germany, p. 460. 
 
106 SOCIALIZED GERMANY 
 
 a tendency to give low rates on foreign goods des- 
 tined to inland points because of the competition 
 of the waterways. This policy was reversed by the 
 state, and where discriminations are now made, 
 they are in favor of German rather than foreign 
 shippers. In order to attract trade to German sea- 
 ports, low rates are granted on goods from Hungary 
 or Russia, passing through Germany and destined 
 for England. The nearest and most natural ports 
 for the busy manufacturing districts of Westphalia 
 are those of Rotterdam and Antwerp, and if railway 
 rates were fixed solely by distance, Hamburg and 
 Bremen would find difficulty in competing with the 
 Dutch and Belgian ports, so far as the traffic of 
 Westphalia is concerned. The result would be a 
 loss of business both to the German railways and 
 German ports to the benefit of foreign railways and 
 foreign ports. In order to prevent this the "Prus- 
 sian railways concede exceptionally low rates from 
 various manufacturing centres in Germany, and 
 especially in the Rhine district, for goods conveyed 
 to Hamburg and Bremen." 1 
 
 These examples are indicative of the studied co- 
 operation of the railways with industry. Several 
 years ago, when there was a poor fruit harvest in 
 Holland, German fruit-growers sent large quantities 
 of fruit to Dutch preserve makers, being helped to 
 do so by the exceptionally low rates on the Prussian 
 
 1 Pratt, Railways and Nationalization p. 262. 
 
THE STATE-OWNED RAILWAYS 
 
 107 
 
 railways to the Dutch frontier. The next year 
 fruit was plentiful in Holland, but scarce in Germany, 
 and the Dutch traders expected to profit by the low 
 rates of the year before. Instead, they found the 
 rates raised to a prohibitive point to protect the 
 German traders. 1 During the industrial depression 
 in 1908, the railways lowered freight tariffs 64 per 
 cent, in order to encourage export trade which was 
 suffering with that of other countries. 2 
 
 In the same way export trade is fostered by 
 lower rates on goods destined for abroad than for 
 home consumption. In general, the rate on goods for 
 export is as low proportionately for parcels as it is 
 for carload lots shipped from one part of the coun- 
 try to another. The following table illustrates this 
 difference, with regard to a few representative lines 
 of goods: 3 
 
 
 IN 10-ToN LOTS PER METRIC TON 
 
 EXPORT RATE 
 
 NORMAL RATE 
 
 Cotton goods, Cologne to Ham- 
 burs 
 
 $3.64 
 5.83 
 
 2.53 
 
 $6.38 
 
 9.33 
 
 4.86 
 
 Toys, Nuremberg to Hamburg. . 
 Machinery and machine parts, 
 Cologne to Hamburg . ... 
 
 
 In many cases, special rates are made to encourage 
 a new industry. For instance, a man finds sand 
 which he thinks suitable to the manufacture of glass. 
 
 1 Pratt, supra. 2 British Consular Reports, 1899. 
 
 3 E. Roberts, Scribner's Magazine, February, 1911. 
 
108 SOCIALIZED GERMANY 
 
 He desires to start a manufacturing plant, provided 
 he can secure the necessary combination of chemi- 
 cals, coal, etc. He first places the matter before 
 the local Chamber of Commerce, which in Germany 
 is a semiofficial organization. If the proposal meets 
 with approval, a recommendation is made to the 
 railway authorities for special rates, who make a 
 fresh examination, and if they approve a special rate 
 is granted. In this manner the industry of the 
 Siegerland district is stimulated by a reduction in 
 the rate on ore to the Ruhr and Aix-la-Chapelle 
 districts and in the rates for the conveyance of fuel 
 needed by the Siegerland iron industry. In the 
 same way the disadvantage of the inland position 
 of Lorraine is minimized by special railway rates. 1 
 In fact, 66 per cent, of all the freight carried on 
 the German railways is taken under exceptional 
 rates, designed in almost all cases to meet some in- 
 dustrial need. 2 Mr. Elmer Roberts states: 
 
 "All the devices (rebates, special rates, etc.) so 
 passionately hated here (U. S.) are applied there, 
 but with this difference that while in Ajnerica 
 these devices are suggested, even necessitated by 
 the war of interests or the will of the individual 
 managers, they are applied in Germany according 
 to principles of equity which take into account in- 
 dustry, trade and agriculture as a national whole, 
 granting exceptions, taking one sort of traffic as 
 privileged, another as normal, upon calculations 
 
 1 Dawson, Industrial Germany, p. 58. 
 
 2 Roberts, Monarchical Socialism in Germany, p. 31. 
 
THE STATE-OWNED RAILWAYS 109 
 
 wide enough to include the interests of the whole 
 people. " l 
 
 The Prussian minister of public works stated in 
 the lower house in April, 1912: 
 
 "I intend to be always in the first place a Min- 
 ister of Communications, though, at the same time 
 I must as a minister take account of the financial 
 well-being of the state. Like Bismarck, I regard 
 the railways as primarily a transport institution 
 and not as a milch cow, and I shall never administer 
 my department in a purely fiscal spirit." 2 
 
 Secret discriminations between individuals or 
 corporations seem to be unknown in Germany. 
 Neither is one city developed at the expense of an- 
 other, except in so far as it is to the advantage of the 
 whole community to grant special privileges for the 
 development of trade or commerce. The Prussian 
 Cabinet made the following statement in 1879 upon 
 this subject: 
 
 "The granting of these secret advantages in the 
 most diversified ways to individual shippers, and 
 in particular the so-called rebate system, is the most 
 injurious misuse of powers granted to railroad cor- 
 porations. It renders government control of rates 
 impossible, makes competition between different 
 lines, as well as that of the shippers dependent upon 
 them, dishonorable and unfair, carries corruption 
 among the railroad employees, and leads more and 
 
 1 Roberts, "German Railway Policy," Scribner's Magazine, Feb- 
 ruary, 1911. 
 
 2 Dawson, Industrial Germany, p. 56. 
 
110 SOCIALIZED GERMANY 
 
 more to the subordination of the railroad manage- 
 ment to the special interests of certain powerful 
 cliques. It is the duty of the government to oppose 
 this evil, to uphold the principle of the equal treat- 
 ment of all snippers, and to enforce the legislative 
 regulations on this subject. The importance of this 
 problem is only equalled by the difficulty of its 
 solution." 1 
 
 Many special services are performed to aid 
 shippers. For instance, the railways undertake 
 to be responsible for the delivery of a shipment, so 
 that when the consignor has paid the freight, he 
 need have no more worry about the goods than if 
 he had sent a stamped letter through the mails. 
 The railway also obtains for the shipper a bill of 
 lading when the goods are placed aboard the steamer, 
 on which he may receive his money. 2 
 
 Easily understandable tariff rate-books for com- 
 bined rail and sea routes are prepared by the rail- 
 way authorities. They are so simple that any lay- 
 man can understand them and so complete and 
 accurate that the merchant can tell the exact price 
 of shipment of any kind of goods from his city to any 
 part of the world. 3 
 
 Nor have the financial gains of the state led 
 to indifference to improvements. "Reduction of 
 freights and the growth of profits have not been at 
 
 1 Frank Parsons, The Heart of the Railroad Problem, p. 316. 
 
 2 Roberts, "German Railway Policy," Scribner's Magazine, Feb- 
 ruary, 1911. 
 
 8 Roberts, Monarchical Socialism, p. 26. 
 
THE STATE-OWNED RAILWAYS 111 
 
 the expense of technical improvements. In the 
 matter of size of cars, tunnels, terminal facilities, in- 
 troduction of steel cars, etc., the state railways of 
 Prussia are making greater progress than other rail- 
 ways of Europe. Better equipment and improved 
 terminal arrangements are being introduced side by 
 side with the reduction of rates and increased profits. 
 Where the traffic is dense, special depots for par- 
 ticular freight are provided, instances of which 
 are the cattle depot and fuel depot of Berlin. The 
 block system is almost universal." 1 Despite these 
 services, traders are continually complaining that the 
 government is making too much money out of the 
 railroads instead of forwarding goods faster, provid- 
 ing more trains, etc. 
 
 All railroad employees are in the civil service. 
 There are no political appointments or favoritism. 
 The higher officials are required to have a university 
 or technical school education before they may even 
 take an examination for the service. Engineers 
 must have had a thorough technical education and 
 must have practised their profession for eight or 
 ten years in private employment, before they are 
 qualified to take the second examinations required 
 by the state. 2 
 
 Prussia and some of the other states are preparing 
 plans for the electrification of the railroads. The 
 
 1 Vrooman, American Railway Probkms in the Light of European 
 Experience, p. 122. 
 
 2 Vrooman, supra, p. 273. 
 
112 SOCIALIZED GERMANY 
 
 former state has already electrified a portion of the 
 line from Magdeburg to Halle. Power is produced 
 at a central station erected near the coal-mines, and 
 the government has made a contract for cheap 
 power for thirty years. The improvement has 
 proved so successful that the government is now 
 about to electrify 160 miles of railway in the Silesian 
 hills district. The states of Saxony and Bavaria 
 are likewise planning to electrify some of their lines. 
 The Saxon government has bought coal-mines at a 
 cost of $11,500,000 with the object of having at its 
 command an abundance of cheap fuel. 
 
 The policy of service is followed in passenger as 
 well as freight rates. Low rates are made from the 
 cities to the suburbs. Cheap transportation is also 
 offered on Sundays and holidays in order to carry the 
 people to the country. Excursion trains run third 
 and fourth class coaches which are filled to over- 
 flowing with men, women, and their families bound 
 on a holiday. The railways are used far more 
 generally in Germany than in the United States. 
 People ride more frequently and on the whole more 
 universally, despite the higher standard of life in 
 this country. In 1901 the passenger traffic per 
 kilometre was 413,820 in Germany, as compared 
 with 89,721 in the United States. The average 
 income per mile per person of the railways was 
 $.0103 in the former country and $.0206 in the latter. 
 In other words, the average fare per mile in America 
 
THE STATE-OWNED RAILWAYS 113 
 
 was exactly twice what it was in Germany. The 
 average ton-mile freight rates, however, are nearly 
 reversed, the rate on freight traffic per ton per mile 
 in Germany being $.013 and in the United States 
 $.0076. It is difficult, however, to draw conclusions 
 as to the relative cost to the shipper or the public 
 in the two countries, because so large a part of the 
 railway freight traffic in America is made up of raw 
 materials, like coal, iron ore, lumber and building 
 materials, and foodstuffs, which in Germany are 
 transported by water at a very low rate. A fairer 
 comparison would be by classified articles. 
 
 It is repeatedly urged by American railways 
 that the average freight rate in this country per ton 
 mile is very much lower than in Europe, and that 
 while the earnings of our railways in 1910 averaged 
 $10,769.40 per mile, if the European rate had been 
 charged, they would have been $14,580 per mile. 1 
 And it is constantly asserted that the ton-mile rates 
 in this country are but half what they are in Ger- 
 many. 
 
 Again it is impossible to accept any single factor 
 in making comparisons of transportation costs. There 
 are scores of elements which must be taken into 
 consideration, such as switching and forwarding 
 charges, demurrage, and the like. As against these 
 debatable comparisons is the fact that the total 
 traffic earnings of the American railways in 1911 
 
 1 B. S. Winchell, Atlantic Monthly, December, 1912. 
 
114 SOCIALIZED GERMANY 
 
 (exclusive of passenger traffic) was $2,168,000,000, 
 or $23.35 per capita, or $116.75 per family of five 
 persons. During the same year the total freight 
 earnings of the German railways were $516,303,000, 
 or $8 per capita, or $40 per family of five persons. 
 This is the relative burden of railway freight charges 
 in the two countries. In Germany, freight trans- 
 portation costs each person about one-third as much 
 as it costs the average American, despite the alleged 
 lower ton-mile charges in this country. In addition, 
 it should be borne in mind that the German railways 
 contribute $160,000,000 a year in profits which are 
 used for the relief of taxation, which is included in 
 the traffic burden of the German consumer. As 
 against this, however, there should be deducted the 
 taxes paid by the American railways to the State 
 and National Government which taxes are not paid 
 in Germany. 
 
 This but indicates the difficulty of arriving at any 
 exact basis for the comparison of freight rates in the 
 two countries. There are so many factors involved 
 that are not included in the comparison. It may 
 at least be claimed for the German system that all 
 of the earnings go to the state in some form or other. 
 There are no watered securities, no favored con- 
 tractors, no semicriminal financing, and no attempt 
 to exploit an industry or a community for the benefit 
 of stockholders. 
 
 I have travelled many thousand miles on the 
 
THE STATE-OWNED RAILWAYS 115 
 
 German railways during the past twenty years and 
 never, so far as I can remember, were the trains 
 more than a few minutes late upon arrival or de- 
 parture and I have always been able to secure a 
 seat. The average rate of fare for a second-class 
 ticket, which is a better service than the ordinary 
 coach in America, is 1.8 cents, while the third-class 
 tickets average 1.1 cent a mile. The first-class 
 rate is 2.5 cents a mile. An additional charge is 
 made on express-trains which range from 6 cents 
 to 50 cents, depending on the distance and the class 
 in which the person travels. 
 
 The head of the state railways in Prussia is the 
 minister of public works, a permanent salaried 
 official appointed by the King. The principal 
 supervisory authorities are the Bundesrat, or Im- 
 perial Senate, and the Reicheisenbahn Amt, the 
 members of which are appointed by the Emperor. 
 The latter body exercises general supervision over 
 the entire system and sees that the various regu- 
 lations and enactments are carried out. 
 
 In spite of the fact that the railways are owned 
 by the individual states the administration is under 
 imperial control. There is no conflict between the 
 various states. 
 
 "The Constitution of 1871 provided for uniform 
 operation of the railways as part of a co-ordinated 
 system. That instrument specially reserved to the 
 Empire the right to exercise supervision over all 
 
116 SOCIALIZED GERMANY 
 
 the railways and legislate regarding them in the 
 twofold interest of national defense and general 
 traffic facilities. The Federal Governments are re- 
 quired to administer the railways of the country as 
 a uniform system in the interest of the general con- 
 venience and in furtherance of this idea to con- 
 struct new lines when necessary. Provision is also 
 made for the interchange of through traffic and to 
 this end for the interchange of rolling stock. The 
 central government may construct or authorize the 
 construction of new railways in any federal state, 
 even against its will, and it may even exercise the 
 right of expropriation. 
 
 "Before nationalization there were 600 different 
 sets of rates without counting preferential rates 
 applying to special cases. After long negotiations 
 the several state administrations have agreed upon 
 the rate question, and since 1910 rates for passengers 
 have been uniform and those for goods virtually so. " 1 
 
 In railway matters the Bundesrat, or Senate of 
 the empire, acts under general instructions agreed 
 upon by the federated governments, and the mo- 
 tives of operation agreed upon, are as follows: 
 
 (1) To assist internal industry and agriculture 
 by cheapening the cost of raw materials or equip- 
 ment for production. 
 
 (2) To facilitate export of German products. 
 
 (3) To support the trade of German commercial 
 centres. 
 
 (4) To favor German railways against competing 
 foreign waterways and railways. 2 
 
 1 Dawson, Industrial Germany, p. 46. 
 
 2 E. Roberts, "German Railway Policy," Scribner's Magazine, 
 February, 1911. 
 
THE STATE-OWNED RAILWAYS 117 
 
 General railway conferences are called from time 
 to time by the Bundesrat, in which the various 
 systems have votes according to their respective 
 mileage, there being 1 vote for a railroad of from 31 
 to 93 miles; 2 votes from 93 to 186 miles, etc. A 
 permanent rate commission prepares the business 
 for the conference. There is a subdivision of mem- 
 bership called the traders' committee, consisting of 
 five representatives of agriculture, five of manufac- 
 turing interests, and five of distributing and com- 
 mercial interests. These are elected by the cham- 
 bers of commerce and the boards of agriculture 
 of the country, and these fifteen, together with a 
 member from the Bavarian government, recommend 
 to the permanent commission authoritatively "any 
 adjustment of rates equitably among the zones of 
 traffic into which the empire is apportioned, so that 
 a shipper in one part of the country shall not be at a 
 disadvantage in internal trade through his geographi- 
 cal location." 1 
 
 The central railway office organizes and controls 
 the rolling stock and equipment of the railways and 
 serves as a centre for administration, from which 
 technical improvements are initiated, weighed, and, 
 when approved, are pressed on the railway ad- 
 ministrations of the various states. There is also 
 a series of district advisory councils, or committees, 
 composed of representatives of the great economic 
 interests. For the rest, each state manages its own 
 
 *E. Roberts, Scribner's Magazine, February, 1911. 
 
118 SOCIALIZED GERMANY 
 
 lines and, as far as possible, regulates its policy ac- 
 cording to what it considers the best interests of its 
 own population and territory. 1 
 
 So far as the shipper is concerned, the railways of 
 Germany are all one system. There is no struggle for 
 traffic, no conflict over territory, no dispute with the 
 state. "It is a striking fact," says Dawson, "that 
 at present over 31,000 miles (in 1907) of railways 
 (either railways belonging to the state or private 
 lines managed by the state, though mostly the 
 former), representing over six hundred million pounds 
 of invested capital, are working with perfect smooth- 
 ness and success without the aid of boards of direc- 
 tors, private capitalists, meetings of shareholders, 
 who, as a consequence, are able to employ their 
 activities in other and more advantageous ways." 2 
 
 Even an exhaustive enumeration of the service 
 activities of the German railways gives but a partial 
 idea of the extent to which they contribute to the 
 industrial life of the nation. The railways are an 
 integral part of the empire. This is the most im- 
 portant thing. They function as part of its life 
 just as do the roads and highways, just as does the 
 circulatory system of the human body. In place of 
 a conflict with the nation, the states, and the cities 
 over every possible question, the railways anticipate 
 the needs of the community and provide for them. 
 
 1 Dawson, Industrial Germany, p. 53. 
 
 2 Dawson, Evolution of Modern Germany, p. 208. 
 
THE STATE-OWNED RAILWAYS 119 
 
 Where differences of opinion arise, the adjustment is 
 on the basis of the public interest, the questions 
 involved being discussed from this point of view 
 alone. Instead of a struggle on the part of stock- 
 holders and directors to secure the maximum of 
 profits or dividends, the struggle of the state officials 
 and chambers of commerce is to secure the maxi- 
 mum of service, either in accommodation to the 
 public or in profits to the state. There is thus a 
 unity of purpose, the only debated questions being 
 those of state policy. 
 
 Another advantage arising from state ownership 
 is the divorce of the railways from politics. There 
 are no stockholders, directors, or attorneys in the 
 Reichstag, the legislatures of the states, or the coun- 
 cils of the cities. They make no campaign con- 
 tributions and are not influential with the press. 
 They carry on no publicity bureaus and maintain no 
 expensive lobby. Railway legislation is considered 
 with an eye single to the public service. This is a 
 great gain, possibly the greatest gain of all. That 
 Germany is not inherently free from the activity 
 of private interests in politics is seen from the influ- 
 ence of the agrarian or Junker class in Prussia and 
 the empire. It is seen to a lesser degree in the class 
 legislation of the big taxpayers and house owners 
 of the cities. The general honesty and disinterested- 
 ness of the German official is not alone attributable 
 to the traditions of the country. It is found as well 
 
120 SOCIALIZED GERMANY 
 
 in the fact that much of the privileged wealth which 
 in this country is in private hands is owned in 
 Germany by the state. This of itself has excluded 
 corrupt influences from public life and in so doing 
 has purified the source from which much of the 
 corruption in America has come. 
 
CHAPTER VIII 
 CANALS, WATERWAYS, AND FREE PORTS 
 
 WATERWAY development, as a means of cheapen- 
 ing freights and the development of inland centres, 
 has gone hand in hand with the extension of the 
 railways, and in recent years the waterways have 
 been receiving the greatest attention. This is re- 
 markable in view of the immense profits which the 
 state receives from the operation of the railways, 
 which profits have undoubtedly been materially 
 reduced by water competition. 
 
 The programme of waterway development has 
 been thought out for many years to come and on a 
 most elaborate scale. It includes the linking up of 
 all the great ports of ocean entry with the rivers 
 and inland centres by ship canals and river systems, 
 capable of carrying very heavy traffic. In addition, 
 splendid harbors have been built along the Rhine, 
 and on the North and Baltic Seas, with free ports 
 at Hamburg, Bremen, and Liibeck. A network of 
 canals is to unite the Rhine, the Danube, the Oder, 
 the Weser, and the Meuse of sufficient dimensions 
 to carry large craft. Already the register of canal- 
 boats has been raised from 150 to 600 tons. Trans- 
 portation by canals and rivers is closely integrated 
 
 121 
 
122 SOCIALIZED GERMANY 
 
 with the railways through splendidly equipped ter- 
 minals, which facilitate the easy transshipment 
 of freight from one to the other, while the larger 
 towns on the rivers and ocean harbors have built 
 the most completely equipped docks and warehouses 
 for the development of trade and industry. 1 
 
 Cheap water transportation is another explana- 
 tion of Germany's industrial progress. It has been 
 planned with the same far-seeing intelligence that 
 characterized the railway system, with which it is 
 closely related in its administration. Some idea 
 of the magnitude of the water traffic is evidenced 
 by the fact that while the total goods carried in 1911 
 upon the railways aggregated 408,879,000 tons, the 
 goods upon the waterways totalled 76,632,000 tons, 
 or more than one-sixth of the amount carried by rail. 
 The total navigable waterways in the empire amount 
 to 8,600 miles, one-fourth of which, or 2,200 miles, 
 are in canals or canalized streams. During twenty- 
 five years Prussia alone has spent $250,000,000 on 
 canal undertakings. 
 
 A comprehensive imperial waterway programme 
 was authorized in 1905. It includes two great 
 undertakings: one, the Rhine- Weser project for a 
 canal to connect the former river with the Dortmund- 
 Ems Canal, from the latter to the Weser, the en- 
 largement of other canals, and the canalization of the 
 river Lippe, the estimated cost of which was $62,687,- 
 
 1 See chapter IX. 
 
CANALS, WATERWAYS, AND FREE PORTS 123 
 
 500. The second, the Oder project, includes the 
 building of a ship canal from Berlin to Stettin, at 
 a cost of $10,750,000; improvements in the water- 
 ways from the Oder to the Vistula, at a cost of 
 $5,290,000; connections with Breslau, costing $4,- 
 937,500; and various other plans. The total esti- 
 mated cost of these two undertakings is $83,750,000, 
 which sum, however, will be greatly exceeded. 
 
 When these projects are completed, the Rhine 
 will be connected with the Weser in the east, the 
 Danube in the south, and the Meuse in the west. 
 The rivers Elbe, Oder, and Vistula are already con- 
 nected, and the canal now being built from the Rhine 
 to Hanover will probably be continued to the Elbe. 
 
 Other proposed waterways are a canal from the 
 Neckar to the Danube, to cost $27,500,000, and a 
 64-mile canal from the Danube at Ulm to Lake 
 Constance, to cost $20,000,000. There are great 
 engineering difficulties in these projects, in the first 
 case a difference in level of 900 feet, and in the 
 second 540 feet, but these will be overcome. One 
 of the most colossal undertakings proposed is the 
 opening of the river Rhine to the sea in German 
 territory. The Rhine now enters the North Sea in 
 Holland, and an enormous amount of German 
 traffic is handled at Rotterdam and Amsterdam, 
 which it is desired to divert to German seaports. 
 An influential association has actively promoted 
 this idea. 
 
124 SOCIALIZED GERMANY 
 
 The most notable features in the act of 1905, 
 authorizing the Rhine- Weser and Oder projects, are 
 the wide powers of expropriation of adjoining land 
 reserved to the government and the provision for a 
 state monopoly of the towing service on the Rhine- 
 Weser Canal and its branches. 
 
 In view of the improvements in transit facilities 
 on the main rivers (Rhine, Oder, Weser) and some 
 of their tributaries, the Agrarian party, which has 
 opposed waterway development because of fear of 
 agricultural competition, insisted that dues be paid 
 "on rivers regulated in the interest of navigation." 
 Prussia promised this amendment without consult- 
 ing the other states, although it involved an altera- 
 tion in the constitution, which expressly prohibits 
 dues on the natural waterways of the country. But 
 the constitution was changed and the other states 
 were induced to acquiesce, Bavaria, for example, by 
 the promised canalization of the Main. The plans 
 include a river board for each river, upon which all 
 the principal interests concerned should be repre- 
 sented, and the dues to be charged were to be uni- 
 form on all the rivers. The government claims the 
 purpose of the dues is not to earn surpluses for the 
 state, but to cover actual costs by an "inconsider- 
 able addition to freightage rates." 
 
 In the construction of these great canal projects 
 "rivers are crossed, ascents and descents of hun- 
 dreds of feet are made with facility, and ships lifted 
 
CANALS, WATERWAYS, AND FREE PORTS 125 
 
 and lowered bodily in troughs instead of by the old 
 and slow method of locks." l 
 
 So comprehensive is the waterway development 
 that goods can be sent from the mouth of the Rhine 
 direct into Switzerland and the south of France 
 in one direction, and to Wurtemberg, Bavaria, and 
 Austria in another. Merchandise bought in Ham- 
 burg can be despatched by river and canal every 
 yard of the way from that port to Berlin, or even 
 to Silesia in the extreme south of Prussia. The 
 canals have made Berlin, 400 miles from the sea, 
 a great port, second only to the North Sea ports, and 
 three cities on the Rhine. Before long, Berlin will 
 be in touch with the Rhine in the far west and the 
 Danube in the south. Berlin's in and out traffic in 
 1910 amounted to 5,750,000 tons, to which should 
 be added the traffic of the suburban towns, exceed- 
 ing 3,000,000 tons. Between Berlin and all the im- 
 portant towns accessible by river and canal regular 
 sailings are arranged; e, <?., between Berlin and Ham- 
 burg and Breslau there are several sailings a day 
 including, at least, one express boat. 
 
 The importance of the national waterways is 
 shown in the following table: 
 
 GOODS CARRIED IN 1911 IN TONS 
 
 
 TOTAL 
 
 HOME TRADE 
 
 FOREIGN TRADE 
 
 Waterways 
 Railways 
 
 76,632,000 
 408 879 000 
 
 43,304,000 
 346 420 000 
 
 34,328,000 
 53 870 000 
 
 
 
 
 
 Dawson, Industrial Germany, p. 68. 
 
126 SOCIALIZED GERMANY 
 
 The cost of shipping a ton of corn from Hamburg to 
 Berlin by water is about one-sixth as much as by rail. 
 
 The Berlin-Stettin Canal was opened on June 
 20, 1914, in the presence of the Kaiser. It has 40 
 bridges, one of which carries the canal over the 
 Stettin railway, and 4 locks, rising altogether 120 
 feet, and each lock capable of taking two vessels 
 of 600 tons simultaneously. Later a ship trough 
 hoist will be added if the traffic justifies the expense. 
 This new waterway is planned to raise Stettin to a 
 position on the Baltic comparable to that of the 
 harbors of Hamburg and Bremen on the North Sea. 
 The canal involves an investment of $12,500,000, 
 and it is estimated that 3,000,000 tons of freight 
 per annum will be shipped through it. 
 
 The waterways are used for the handling of heavy 
 bulk freight, such as coal, iron ore, lumber, grain, 
 and the heavier articles of commerce, whose im- 
 mediate delivery is not important. On these com- 
 modities very low rates are charged. And this is 
 one reason why the railway freight rates in Germany 
 are higher than in this country. For the waterways 
 carry one-sixth as much freight as do the railways. 
 Were the heavy bulk freight, which goes by water, 
 subtracted from the freight by rail in America, and 
 a comparison made of similar commodities, it might 
 be found that freight rates by commodities were as 
 low in Germany as they are in America. 
 
 The canals and navigable rivers are operated in 
 
CANALS, WATERWAYS, AND FREE PORTS 127 
 
 connection with the railways, which are further 
 operated in connection with the docks and harbors 
 in which every provision is made for the cheap and 
 easy transshipment of freight from one to the other. 
 There is no conflict between water and rail trans- 
 portation; no conflict between the public and private 
 owners over the possession of the water-front. All 
 of these agencies are operated together as a unit, for 
 the promotion of the domestic and foreign trade of 
 the empire. They are all part of a co-ordinated 
 whole. 
 
 The free ports of Hamburg, Bremen, and Liibeck 
 complete the transportation system of the empire. 
 They have profoundly aided the growth of the 
 merchant marine. They provide cargoes and make 
 these ports great clearing-houses for the trade of the 
 world. The cities of Hamburg, Bremen, and Liibeck 
 are among the oldest of the free cities of Germany. 
 They controlled the Hanseatic League, which in 
 turn controlled the trade of the north for centuries. 
 They carried on wars of offense and defense. They 
 came into the empire as independent states and later 
 secured concessions which enabled them to retain a 
 portion of their ancient trading advantages by grants 
 of authority to maintain free ports within their 
 harbors. 
 
 German statesmen realized that the carrying trade 
 of the world is performed by those countries that 
 have substantially free trade. They recognized 
 
128 SOCIALIZED GERMANY 
 
 that water transportation will go hundreds of miles 
 to escape tariff barriers. The protective tariff killed 
 the Spanish trade; it destroyed the rich and pros- 
 perous cities of the Netherlands. The abolition 
 of the Corn Laws by England opened up the ports 
 of that country when the ports of all the rest of the 
 world were closed, and brought to her cities the 
 carrying trade which had previously been distributed 
 among many nations. And for fifty years England 
 has been mistress of the seas for the very simple 
 reason that ships could come to her ports without 
 the payment of customs taxes; they could discharge 
 their cargoes and find other cargoes awaiting them 
 without delay. There were no obstacles, obstruc- 
 tions, or tariff barriers of any kind to interfere with 
 traffic. It is this that has built up her carrying 
 trade during the last fifty years. Her ports are 
 counters, or market-places, for the making of a 
 million transactions and the distribution of the 
 most diversified products of every clime. And 
 to-day the carrying trade of the world is performed 
 by those countries that have free; trade, or an 
 approximation of free-trade conditions. They are 
 England, the free ports of Germany, and the ocean 
 ports of Belgium, Holland, and Denmark, which are 
 low-tariff countries. The bulk of the carrying trade 
 is done by Great Britain and the German ports. 
 Goods are brought to these ports from America, the 
 Continent of Europe, from Asia, the Indies, Africa, 
 
CANALS, WATERWAYS, AND FREE PORTS 129 
 
 South America, and the islands of the seas, where 
 they are entered for consumption or manufacture, 
 or reassembled for distribution again to the places 
 of ultimate purchase. 
 
 A description of the free port of Hamburg indi- 
 cates the operation of the system. The free port 
 consists of a large number of basins, many of them 
 cut into the land, with quays jutting out into the 
 river. Upon these quays are railroad tracks with 
 cranes for the easy transfer of freight into the near- 
 by sheds. In the larger outside basins are many 
 mooring posts which provide anchorage for vessels 
 transshipping cargoes in the stream. A number of 
 warehouses are operated by the authorities as a 
 part of the port. Goods are stored in the ware- 
 houses for re-export or for ultimate consignment 
 into Germany or other countries of Europe. 
 
 The free port is considered as foreign territory 
 by the Customs Department. It is surrounded by a 
 customs line, guarded by customs officials. The line 
 is designated by high iron palings along the land 
 side; and along the river is a floating palisade 
 guarded at either end by customs officials. At the 
 land and water entrances of the free port are cus- 
 toms booths at which duty is paid on goods when 
 they enter the harbor proper. 
 
 All of the harbor pilots are ex officio customs in- 
 spectors. Under their guidance ships pass to their 
 berths in the free port unmolested by customs 
 
130 SOCIALIZED GERMANY 
 
 officials. There are no declarations of dutiable 
 goods to be made; no customs officials are taken 
 aboard with the delays attendant upon their pres- 
 ence. When a ship is cargoed ready for sea, a cus- 
 toms pilot takes her to the mouth of the river. 
 There is less hindrance to the free movement of the 
 ship within the free port than in the ports of England. 
 
 The free port contains a number of industries 
 incident to the care and feeding of employees, ship- 
 yards for repairs, and other industries relating to 
 the outfitting and provisioning of ships. Big river 
 barges of from 600 to 800 tons capacity move from 
 ship to ship for the transshipment of freight. 
 
 The free port is controlled by public authori- 
 ties, although it is partially privately operated by 
 the warehousing company which has erected ware- 
 houses upon public lands. 
 
 A number of means have been devised to facilitate 
 the care and handling of goods. Goods to be im- 
 ported pay duty on the spot; or the importer may 
 have a running account against a deposit made by 
 him in the form of government bonds. Provision 
 is also made so that goods may be shipped with a 
 customs certificate to the inland consignee, who pays 
 the duty on delivery. Similar procedure is provided 
 for goods forwarded in transit through Germany to 
 other countries. 
 
 By reason of the free port, as well as the industrial 
 development of Germany, Hamburg has become 
 
CANALS, WATERWAYS, AND FREE PORTS 131 
 
 the second seaport in the world. It does more busi- 
 ness than London or Liverpool, and is a close second 
 to New York. The total foreign commerce of the 
 port is just short of $2,000,000,000. It exceeds that 
 of London by $100,000,000 and far exceeds Liverpool 
 in imports. 
 
 Students of Germany are in agreement as to the 
 value of the free port as an agency in the country's 
 development. Mr. Edwin J. Clapp in his treatise 
 on the free port of Hamburg says: 
 
 "The first advantage of the free port is in facili- 
 tating re-exportation; indeed the importance of the 
 re-exportation trade is large and, above all else, led 
 to its creation. In the free port foreign merchants 
 can maintain sample or consignment stocks. Bonded 
 warehouses do not offer the same opportunity for 
 unhindered movement of merchandise within a port. 
 Everything must be done under the control of cus- 
 toms men. In Hamburg there is no need of counting 
 and verifying pieces when a re-exportation is made. 
 A bonded warehouse cannot offer the same facilities 
 for various manipulations necessary to prepare the 
 goods for the consumer, such as cutting wines and 
 mixing coffees. 
 
 " Perhaps, the chief advantage of the free port lies 
 in the facilities it offers for the rapid frictionless dis- 
 charge of ships with dutiable goods, whether des- 
 tined for re-exportation or shipment inland. 
 
 u The free port of Hamburg lets the Hamburg mer- 
 chants store their goods duty free, and offers them 
 complete freedom of manipulation for re-exporting 
 them or for sending them inland, as the market die* 
 tates." 
 
132 SOCIALIZED GERMANY 
 
 The free port is one of many marvellous adjust- 
 ments which Germany has made to overcome natural 
 or artificial limitations on her growth. It is in- 
 dicative of the far-seeing intelligence bestowed upon 
 the laws of trade. Through it many of the ad- 
 vantages of free trade are secured without sacrifice 
 of the protective-tariff policy. By means of it, the 
 merchandise of the whole world can be brought to 
 German ports and there be warehoused for an in- 
 definite period, or it can be reshipped into other 
 bottoms awaiting cargoes to some other port. Or 
 the merchandise can be exhibited in sample for 
 purchase by inland buyers. The free port creates a 
 world terminal, a world market, a world clearing- 
 house, the basis of shipping, of international trade 
 and finance, and a great aid to domestic industry as 
 well. 
 
CHAPTER IX 
 HARBORS AND RIVER SHIPPING 
 
 A THIKD important factor in the elaborate trans- 
 portation system of Germany is the water terminal or 
 harbor, with its docks, warehouses, and means for the 
 transshipment, forwarding, and housing of freight. 
 Adequate terminal facilities are only secondary in 
 importance to the means of transportation. Only 
 recently has this been appreciated in any country. 
 Belgium has built deep waterway canals to her inland 
 cities with splendid dockage and harbor facilities, 
 while Manchester, England, has built a ship canal 
 to the sea with a complete inland harbor, all under 
 public control. Germany has constructed the most 
 remarkable water terminals of any country. Tens, 
 possibly hundreds, of millions of dollars have been 
 spent upon them. They are designed by the best of 
 engineers and are encouraged by the state authorities. 
 The harbor is far more than a deepened waterway 
 with projecting piers for the docking of boats. It is 
 a completely equipped water and rail terminal, with 
 railway connections, sidings, and switches, with 
 great cranes, warehouses of all kinds, and an in- 
 dustrial district close by, suited to the development 
 
 133 
 
134 SOCIALIZED GERMANY 
 
 of industries which require close connections with 
 transportation facilities. Such water terminals are 
 to be found wherever natural advantages or the in- 
 genuity of the engineer could justify the expenditure. 
 The Rhine cities have been largely built up by the 
 wonderful harbors, which are to be found from the 
 boundary of Holland to the headwaters of navigation. 
 From Mannheim, the head of big navigation, 1 down 
 to Emmerich on the Dutch frontier, cities have 
 spent immense sums on the development of their 
 harbors. There is keen rivalry between these cities, 
 each of which tries to attract to itself as much 
 of the Rhine traffic as possible and in addition se- 
 cure its raw materials and breadstuffs cheaply as 
 well as a cheap export route. "Each of the cities 
 wanted to gain for its forwarders the transfer be- 
 tween rail and water for the largest possible terri- 
 
 1 The building of the Baden railway line (1846) from Mannheim 
 to Basle killed at a blow the Rhine shipping above Mannheim. This 
 could the more easily be done because above Mannheim the river 
 is more shallow and dangerous and traffic upon it paid higher rates 
 than below that point. 
 
 The lower Rhine was at first also hard hit by the railroads when 
 these showed themselves capable of carrying "merchandise as well 
 as merchants." Here the traffic revived, however, and has indeed 
 steadily grown, due in large measure to the preponderance of bulk- 
 goods traffic, which was then just beginning to take an important 
 place in German exports and imports. In 1840, for instance, 
 we find cane-sugar and coffee the chief articles going up-stream. 
 In 1907 the chief articles were iron ore (38.3 per cent, of the total) ; 
 English coal (11.4 per cent, of the total); and wheat (10.5 per cent.). 
 The chief articles going down-stream in 1840 were coal, 37 per cent., 
 and oak and pine, 16.3 per cent. In 1907 they were German coal, 
 
 48.8 per cent.; sand, gravel, etc., 15.3 per cent.; manufactured iron, 
 
 10.9 per cent. In the changed traffic only coal has held its place. 
 -Clapp, The Navigable Rhine, p. 34. 
 
HARBORS AND RIVER SHIPPING 135 
 
 tory, to win for its warehouses and silos the widest 
 possible dominion. " l The harbor and harbor facili- 
 ties are not operated as a source of direct profit. 
 Charges are low and usually go toward expenses of 
 upkeep. Dusseldorf has spent 18 million marks on 
 her harbor and operates it at a yearly loss of 
 400,000 marks. "Yet Dusseldorf thrives and is 
 the envy of the older commercial and industrial 
 cities on the Rhine; Dusseldorf is able to look be- 
 yond the immediate receipts of a tax on traffic." 2 
 
 A first-class harbor must have sufficient water 
 area for many boats to load and unload at the same 
 time and move about without disturbing one another. 
 The harbor area is usually provided with many 
 basins separated by tongues of land bearing rail- 
 road tracks, often double, so that cars can be loaded 
 and switched without loss of time. Quay walls are 
 usually built perpendicular, so that boats can come 
 close in within reach of the cranes. 
 
 Close by the harbor, and operated in connection 
 with it, many cities have provided an industrial 
 harbor, Industriehafenj containing sites for industrial 
 concerns. These, too, are owned by the cities, the 
 sites being sold or leased on easy terms. These 
 sites are particularly advantageous for concerns 
 receiving barge loads of raw materials. At first 
 it was the iron industry, then the chemical, that 
 settled in these harbors, both of which were depen- 
 
 1 Clapp, p. 53. 2 Idem, p. 121. 
 
136 SOCIALIZED GERMANY 
 
 dent upon the Rhine traffic. But later the cheap 
 water rates attracted a great variety of industries 
 to these harbors. All sorts of industries are to be 
 found in the Mannheim industrial harbor "from 
 steam flour mills to a mirror factory." The harbor 
 and adjacent industrial district are situated a con- 
 siderable distance from the residence section, which 
 does not suffer in consequence from the smoke of 
 the factory chimneys. 
 
 "The harbor is administered as a unit by the city 
 that built it, not with the purpose of making money 
 or even expenses out of it, but with the purpose of so 
 cheapening transfer between boat and rail that a 
 great hinterland can send and receive goods over 
 the river port. Freight-handling machinery, such 
 as cranes for package freight and cantilever hoists 
 for coal, facilitate and cheapen the transfer of freight. 
 Substantial sheds, warehouses and elevators on the 
 river bank shelter the goods and ship them inland 
 by rail. Railway tracks connect directly with the 
 sheds and warehouses, as with the quay wall along- 
 side which the vessels lie." 1 
 
 The largest harbor on the Rhine is the Duisburg- 
 Ruhrort harbor, which is really a harbor group. The 
 harbor at Ruhrort, which belongs to the state of 
 Prussia, is the most important member of the group. 
 Ruhrort, from its vicinity to the coal-fields, was 
 destined to be a coal harbor, and as soon as railway 
 connections were made to the coal-fields it began 
 
 1 Clapp, p. 120. 
 
HARBORS AND RIVER SHIPPING 137 
 
 to take on importance as a transfer point for coal 
 from railroad to river. It was equipped with coal 
 tips for the rapid loading of coal onto the river boats. 
 These tips can grasp twenty-ton cars and tip them 
 till they empty their contents down a chute and into 
 the waiting barge. At present the harbor possesses 
 eleven of these tips, each capable of loading 2,000 
 tons in ten hours. Improvements in the harbor 
 have been paid for out of harbor dues since 1868, 
 when the Ruhr tolls were abolished. 
 
 The other members of the Duisburg-Ruhrort group 
 are the municipal harbor of Duisburg and the 
 railroad harbors at Hochfeld and Ruhrort, the two 
 latter passing over to the state with the railways 
 when the roads were transferred to state ownership. 
 In 1905, as the result of an agreement between 
 Duisburg and its rival Ruhrort, all the harbors of 
 the group, except Hochfeld, came under the manage- 
 ment of the administration of the Duisburg-Ruhrort 
 harbors. In 1907 the water traffic of this harbor 
 group was 31 million tons, as great as Hamburg's 
 seaward traffic. 
 
 In the harbors of Mannheim and Ludwigshafen, 
 on opposite sides of the river Rhine and at the head- 
 water of big navigation, we have a group similar to 
 that of Duisburg-Ruhrort. The two cities are directly 
 opposite, Mannheim in Baden and Ludwigshafen 
 in the Bavarian Palatinate, on the left bank of the 
 river. This group, which includes also the harbor 
 
138 SOCIALIZED GERMANY 
 
 of Rheinau, on the southern outskirts of Mannheim, 
 has a total area of 500 acres and a river commerce 
 of 10,000,000 tons (1907). The Mannheim harbor 
 was built by the state of Baden (except the industrial 
 harbor belonging to the city) and acts as a feeder 
 for its railways. The state not only charges no dues 
 in its harbor, but charges the lowest freight rates on 
 goods transshipped at Mannheim. Mannheim has 
 gained materially through its harbor. "In the five 
 years 1899-1904, in spite of the bad times, Mannheim 
 had through its industrial harbor increased its taxes 
 by 6 million marks and its laboring population by 
 1,000 persons. " Mannheim has a river traffic about 
 twice the seaward traffic of Bremen. 
 
 Between Duisburg and Mannheim many other 
 cities on the Rhine have built or modernized their 
 harbors. Among them are Crefeld, Miihlheim, 
 Cologne, Dusseldorf, Worms, and above Mannheim, 
 Carlsruhe (which with its shipments of lumber from 
 the Black Forest has become the chief lumber ex- 
 porting city on the Rhine), Frankfort and Offenbach 
 (on the Main), and Strasburg, to mention only the 
 more important. The rivalry between these cities 
 compels them to adopt the latest improvements in 
 harbor equipment. This is why the Rhine harbors 
 are the finest river harbors in the world. 
 
 Most of the goods traffic on the Rhine is up-stream, 
 in the shape of foodstuffs or raw materials for in- 
 dustry. Many of the boats going up-stream loaded 
 
HARBORS AND RIVER SHIPPING 139 
 
 come down empty. This means very low water 
 rates for manufactures that can be exported over 
 this route. The relation of Germany's imports to 
 exports along the Rhine was 1 to 3 in 1840. In 1907 
 the proportion was 2^ to 1. "The r;ver has be- 
 come the route that furnishes a great industrial na- 
 tion cheaply with its raw products and foodstuffs/' 
 says Clapp. 1 Iron ore and grain form two-thirds of 
 the imports up the Rhine. In 1907, 59 per cent, 
 of Germany's imported iron ore came over the Rhine 
 route; 64 per cent, of her imported wheat and spelt, 
 and 45 per cent, of her rye. Only one-fourth of her 
 exported coal, however, went down the Rhine, al- 
 though coal forms one-half of the total goods sent 
 down-stream. 
 
 In 1907 the total traffic on the Rhine amounted to 
 64.5 million tons, of which 41.4 million tons passed 
 through German Rhine harbors. The traffic on the 
 Rhine passing the German border station, Emmerich, 
 increased 400 per cent, from 1885 to 1907. Most 
 of this was moved up-stream (28.9 million tons). 
 Two-thirds of the German Rhine traffic consists of 
 exports and imports from foreign countries, and 
 only one-third is internal traffic. The chief articles 
 sent down-stream are manufactured iron, soda, salt, 
 stone, sand, gravel, and brick. The discrepancy be- 
 tween the amounts of goods imported and exported 
 on the Rhine is not so great, however, when we con- 
 
 1 Clapp, supra, p. 48. 
 
140 SOCIALIZED GERMANY 
 
 sider value rather than tonnage, as the down-stream 
 traffic includes many manufactured articles. 
 
 The floating stock on the Rhine has been con- 
 tinually modernized. Barges now have a capacity 
 of between 1,500 and 3,000 tons and are made of 
 steel. Tugboats can usually pull up-stream a barge 
 train of 6,000 tons. Great navigation companies 
 of long standing and merit operate through lines 
 from upper Rhine ports to the sea harbors, and have 
 agents in important inland cities who collect and 
 distribute freight transshipped between river and 
 rail at Mannheim and other Rhine ports. 1 
 
 The harbor groups of Duisburg-Ruhrort and 
 Mannheim handle between them 75 per cent, of the 
 total traffic of the German Rhine ports, or 'about 
 31.4 million tons out of 41.4 million tons (1907). 
 Duisburg-Ruhrort is the great bulk-goods harbor. 
 Ninety per cent, of its traffic in 1907 consisted of iron 
 ore, grain, and wood arriving; and coal, coke, pig 
 and manufactured iron departing. The remaining 
 10 per cent, of its traffic is made up of sand, ore, 
 cement, stone, and fertilizer. This is the doorway 
 through which the Rhenish- Westphalian industrial 
 district receives its raw materials and the grain for 
 its workers, and through which it ships its products 
 of coal, coke, and iron. The water traffic of Duis- 
 burg-Ruhrort has grown steadily and is now (1907) 
 greater than that of any other German river harbor. 
 
 1 Clapp, supra, p. 121. 
 
HARBORS AND RIVER SHIPPING 141 
 
 Mannheim lies 354 miles up the river from Rotter- 
 dam. It is still the head of navigation for six months 
 of the year. It serves a great territory, its hinter- 
 land extending far east into Baden, Wiirtemberg, 
 Bavaria, western Tyrol, and Switzerland and west 
 to the French border. The reason its influence does 
 not extend farther into France is that the French 
 government lays a special tax on goods received 
 through a foreign harbor. Mannheim supplies these 
 districts with coal, coke, grain, and petroleum. But 
 more particularly, Mannheim is the piece-goods 
 harbor, with a great diversity of traffic. Besides 
 grain and raw materials, it receives valuable articles 
 of consumption, such as coffee, fruit, wine and to- 
 bacco, and machines for factories. The threads of 
 inland communication over the South German rail- 
 ways concentrate in Mannheim, which is the trans- 
 fer point between cheap and expensive means of 
 communication for large parts of South Germany 
 and Switzerland. 
 
 The Mannheim harbor has received state support 
 from the beginning and has been specially fortunate 
 in its co-operation with the railways. Indeed the 
 harbor of Mannheim itself (except the industrial 
 harbor) the oldest and most important of the group 
 of harbors at this point was built by the Baden 
 state railways, which give their lowest rates to 
 goods transshipped at Mannheim. These rates hold 
 good not only for goods immediately sent forward 
 
142 SOCIALIZED GERMANY 
 
 but also for goods stored in the warehouses, silos, 
 and magazines, thus encouraging a large whole- 
 sale trade in the city. In the city itself is an indus- 
 trial harbor, which Mannheim began to build in 
 1897 and completed six years later. It is about 
 1,500 metres long and has a maximum width of 300 
 metres. The sites in this harbor were immediately 
 occupied, a considerable part of the city's chemical 
 factories, as well as metal furniture and instrument 
 factories, are situated upon it. These demand great 
 quantities of coal and iron pyrites. They send a 
 variety of products down-stream, which naturally 
 has an effect in lowering the water rate up-stream. 
 Simultaneously with the building of the "Indus- 
 triehafen" went the laying out of a network of 
 railway connections. More than 50 kilometres 
 of track have been laid in the vicinity of the 
 quays. 1 
 
 Ludwigshafen, opposite Mannheim, was simi- 
 larly built by the railways of the Bavarian Palatinate 
 "to give that city a chance in the great transship- 
 ment traffic at the head of navigation. " But most 
 of its business is carried on by Mannheim people. 
 The harbor at Rheinau, just south of Mannheim, 
 was built by private persons, though its adminis- 
 tration is now in the hands of the Baden rail- 
 ways. 1 
 
 1 Emile Egger, in Revue des Sciences politiques t January- June, 
 1913. 
 
HARBORS AND RIVER SHIPPING 143 
 
 The traffic of this group of harbors has grown at 
 the following rates : 
 
 Mannheim: 1870 41,000 tons 
 
 1893 2,200,000 " 
 
 1901 5,145,000 " 
 
 1909 6,085,000 " 
 
 Rheinau: 1901 562,000 tons 
 
 1903 1,011,000 " 
 
 1909 1,797,000 " 
 
 Ludwigshafen : 1870 135,000 tons 
 
 1909 2,178,000 " 
 
 Care is taken to protect the waterways from un- 
 fair and killing competition, such as was adopted 
 by the railways in this country against the canals. 
 "In Germany private railroads did not long con- 
 tinue to employ the methods we know so well hi 
 their efforts to paralyze the competition of the 
 Rhine: refusal of prorating agreements, refusal of 
 transfer facilities, unfair rates for working with the 
 river as compared with their rates for working 
 against it." 1 The railroads were bought up by 
 the state in the seventies. When the state roads 
 found themselves prospering, and making large sur- 
 pluses, they did not reduce rates all around, but 
 rather turned the surpluses over to the state as 
 revenue, which the state has come to depend on. 
 
 "If reductions of the Prussian rates in general 
 are prevented by financial considerations, reductions 
 in these rates for the sake of exterminating water- 
 
 1 Clapp, supra, p. 119. 
 
144 SOCIALIZED GERMANY 
 
 way competition are still more efficaciously pre- 
 vented. The waterway interests are represented in 
 Parliament as are the exporting interests, dependent 
 on the cheaper waterway transportation. The pub- 
 licity of government rates makes it impossible for 
 the railway officials to exercise any judgment in 
 the matter. Rates tending directly to incapacitate 
 the waterways would be regarded as a measure 
 against the good of the country. The waterways 
 and the harmonious relations which the railways 
 are compelled to have with them are a counter- 
 balance against the generally fiscal policy of the 
 state railways. " l 
 
 It is this co-operation between rail and water that 
 has done so much in encouraging the cities on the 
 Rhine to build water terminals. 
 
 In France, where the railroads are for the most 
 part in private hands, the situation is very different. 
 The waterways are almost completely cut off from 
 the railways; that is, only an insignificant amount 
 of goods is transferred from one to the other. Ri- 
 valry between water and rail way causes this situa- 
 tion, which is unfavorable to industry and com- 
 merce. In England the railway companies bought 
 up the canals long ago and put them out of service. 
 Our own Mississippi, which might have played a 
 part similar to the Rhine's, has been prevented from 
 doing so by the railways, " which have not only dis- 
 criminated against the river in rates, but have re- 
 fused transfer facilities and have often bought up 
 
 1 Ckpp, p. 120. 
 

 HARBORS AND RIVER SHIPPING 145 
 
 the land along the river bank, so that no rival 
 railroad could work with the river. " x 
 
 In 1906 the traffic on the entire Mississippi River 
 system (16,000 miles) was 19.5 million tons, which 
 represents a decrease of 31 per cent, from the traffic 
 in 1889. The traffic on the Rhine passing Emmerich 
 had increased about 400 per cent, during the same 
 period. 2 
 
 1 Clapp, supra, p. 68. * Idem, p. 123. 
 
CHAPTER X 
 MINES, FORESTS, AND AGRICULTURAL LANDS 
 
 ONLY second in importance to the railways and 
 waterways are the many other industries operated 
 by the empire and the individual states. These 
 include coal and iron mines, great landed estates 
 and forest preserves, as well as many purely com- 
 mercial undertakings. The various kingdoms, cities, 
 and communities have owned great landed estates 
 from very early times. Those of the towns and 
 villages are survivals of the communal ownership 
 of land, which was very general in the Middle Ages, 
 while the agricultural estates and forests of the 
 states were the domain lands of individual Kings 
 and princes, who in many instances were the strong- 
 est of the feudal proprietors within their territory. 
 The King was a great estate owner, and differed 
 from the lesser nobility in being the largest pro- 
 prietor in the kingdom. And, fortunately for the 
 nation, these estates were not squandered or given 
 away to favorites as in England; nor were they con- 
 fiscated by revolution and sold, as in France. The 
 agricultural, forestry, and mining possessions of the 
 various states had their origin in these hereditary 
 
 146 
 
MINES, FORESTS, AGRICULTURAL LANDS 147 
 
 possessions, to which the public has wisely retained 
 ownership. 
 
 The following table indicates the extent and value 
 of the mining properties of Prussia alone (1911): l 
 
 SUBSTANCES 
 EXTRACTED 
 
 No. OP 
 MINES 
 
 PRODUCTION 
 TONS 
 
 No. OF 
 
 WORKERS 
 
 VALUE IN 
 MARKS 
 
 Oil 
 
 22 
 
 19,708,974 
 
 88,751 
 
 224,902,290 
 
 Lignite (coal) . . . 
 Iron, lead, zinc, 
 copper, silver. 
 Potash ... . 
 
 5 
 
 5 
 5 
 
 340,260 
 
 119,802 
 
 585,785 
 
 470 
 
 3,304 
 1,772 
 
 1,084,620 
 
 12,017,889 
 7,555,340 
 
 Calcaire 
 
 3 
 
 585,785 
 
 1,124 
 
 2,829,411 
 
 Salines 
 
 5 
 
 122,937 
 
 803 
 
 3,414 264 
 
 Amber 
 
 1 
 
 391 
 
 1,043 
 
 2,137,778 
 
 
 
 
 
 
 
 46 
 
 21,463,934 
 
 97,267 
 
 253,941,592 
 
 At the present time the domain lands of Prussia 
 exceed 1,000,000 acres. Nearly 150,000 acres have 
 been added between 1903 and 1906. The most 
 important holdings are in the eastern provinces, 
 in which the holdings are as follows: Pomerania, 
 161,577 acres; East Prussia, 149,735; Brandenburg, 
 134,950; and West Prussia, 130,185. The other 
 states are also large landowners, Saxony having 
 domain lands of 123,257 acres. Additions are con- 
 stantly being made to these holdings. Land in 
 the neighborhood of towns, which has risen in value, 
 is frequently sold and the profits reinvested in 
 cheaper lands in the country districts, with the 
 result that the state not only extends its domains, 
 
 1 L 3 Exploitation des Mines dans le Royaume de Prime, by O. 
 Henry-Gre'ard, chapter I. 
 
148 SOCIALIZED GERMANY 
 
 but it does so through the increase in land values 
 and at no expense to the treasury. 
 
 The state lands are used as experiment stations, to 
 teach the neighboring farmers the latest ideas in ag- 
 riculture. Where the land is leased, it is usually for 
 an eighteen-year period, and a high standard of cul- 
 tivation is expected of the lessee. The management 
 of the farms by the state is on a strictly business 
 basis. There is no philanthropy in its dealings, 
 the state being not unlike a private landlord in its 
 relation to the tenants. 
 
 Forests have also been owned by the states 
 and cities from early times. About the middle of 
 the eighteenth century a great impetus was given 
 to the acquisition of forests by a fuel scarcity. 
 There was no coal at that time, no oil, and com- 
 paratively little peat, and during a succession of 
 severe winters there was much suffering. As a 
 consequence, many of the state governments formu- 
 lated forest policies, the motives of which were to 
 secure a sustained yield of wood and timber. It 
 was then established as a policy that no more wood 
 should be cut than was produced in a given year. 
 Later, when coal was discovered, the necessity for a 
 fuel policy ceased, but the policy of forest conser- 
 vation had become established and was continued 
 for other reasons. To-day barely one-half of the 
 forests are in private hands; one-third belongs to 
 the individual states, and one-sixth to the locaJ 
 
MINES, FORESTS, AGRICULTURAL LANDS 149 
 
 communities. The forests are managed by state 
 foresters, trained in special schools of forestry. 
 From this source a large revenue is derived for the 
 relief of taxation. 
 
 Professor William Lazenby, a forestry expert, 
 says of the German forests: 
 
 "It is small wonder that the art of forestry has 
 reached a stage of intensive development that no 
 other nation can rival. . . . Through generations of 
 practical tests and experiments, with many failures 
 at first but with a persistency worthy of the cause 
 and characteristic of the race, German sylviculture 
 has attained a high degree of perfection. Probably 
 no state has developed a more intensive forest sys- 
 tem or has done more to place forestry on a sound- 
 financial basis than Saxony. The average rate of 
 revenue from all the state forests of Saxony is 2J^ 
 per cent. They have grown in value for the past 
 100 years at an annual rate of 3 per cent., so that 
 the total income, counting both cash returns and 
 latent revenue is 5J^ per cent." 1 
 
 In a report issued by the United States Depart- 
 ment of Agriculture, it is stated: 
 
 "Forest experts of all nationalities agree that 
 Germany is in an enviable position as regards her 
 lumber supply. No nation in the world makes 
 more thorough utilization of its forest resources. 
 German forestry is remarkable in three ways : it has 
 always led in scientific thoroughness, and now it is 
 working out results with an exactness almost equal 
 to that of the laboratory; it has applied this scien- 
 
 1 Popular Science Monthly, December, 1913. 
 
150 SOCIALIZED GERMANY 
 
 tific knowledge with the greatest technical success; 
 and it has solved the problem of securing, through 
 a long series of years, an increasing forest output 
 and increasing profits at the same tune. Start- 
 ing with forests that were in as bad shape as many 
 of our own cut-over areas, Germany raised the 
 average yield of wood per acre from twenty cubic 
 feet in 1830 to seventy-five cubic feet in 1908. 
 During the same period it trebled the proportion 
 of saw timber secured from the average cut, which 
 means, in other words, that through the practice 
 of forestry the timberlands of Germany are of three 
 times better quality to-day than when no system 
 was used. In a little over half a century it increased 
 the money returns from an average acre of forest 
 sevenfold, and to-day the forests are in better con- 
 dition than ever before." 
 
 The kingdom of Prussia alone realizes over 100,- 
 000,000 marks net a year from her cultivated forests. 
 
 The mines are situated in different parts of the 
 country. Amber comes from the rivers of the 
 Baltic and East Prussia, lead from Silesia, and zinc 
 from the Harz. In addition, quarries, porcelain 
 factories, smelting-works, mills, bathing establish- 
 ments, foundries, and other activities have been de- 
 veloped by the individual governments. 
 
 Under the German law mineral resources are re- 
 galia, as they were in the Roman Empire, it being 
 the prerogative of the state to preserve or exploit 
 the mineral resources in the manner and at a rate 
 best suited to the common welfare. 1 In line with 
 
 1 Doctor Jung-Hermsdorf, Engineering Magazine, March, 1911. 
 
MINES, FORESTS, AGRICULTURAL LANDS 151 
 
 this principle, Prussia enacted a law in 1907 pre- 
 serving to the state the exclusive right of searching 
 and mining coal and salts, while a similar measure 
 extended the power of the state still further and 
 empowered it to take over any discovery of mineral 
 resources on private lands at a fixed valuation. 1 
 
 This policy of state control over mineral lands 
 relates back to early times. For hundreds of years 
 the lords of the manor extracted minerals from their 
 lands. In addition, in Silesia and the Harz, the 
 princes had reserved to themselves all mineral rights 
 upon their property. When they were dispossessed 
 of their holdings, the mines passed to Prussia and 
 were lodged in her public domain, where some of 
 them still remain. The law of 1907 was designed 
 to restore to the state the right to explore for coal, 
 rock salt, potash, magnesium, etc., as a corrective 
 of the power of private monopoly, which was rapidly 
 controlling these fields. Under this law the sole 
 right to open new mines in most parts of the king- 
 dom is reserved to the state, private enterprise in 
 these fields being dependent upon state approval, 
 which is granted under such conditions as the de- 
 partment of mines may impose. 2 
 
 Under these various laws Prussia has become 
 one of the largest coal operators in the kingdom. 
 It now produces 25 per cent, of the Upper Silesian 
 
 1 Roberts, Monarchical Socialism in Germany, p. 5. 
 
 2 Dawson, Evolution of Modern Germany, p. 206. 
 
152 SOCIALIZED GERMANY 
 
 coal output and more than one-half of the output 
 in the Saarbrucken fields. It has, however, no 
 independent ownership in Westphalia, the centre 
 of the coal-mining industry. Several years ago the 
 government came into conflict with the Westphalian 
 syndicate in its desire to have representation in the 
 coal operations of that region. In order to secure 
 this participation, Prussia determined to buy a con- 
 trolling interest in the shares of the Hibernia Coal 
 Company, which mines 7 per cent, of all the coal in 
 the Rhine-Westphalian district. Shares in this 
 company were purchased through the Dresdener 
 Bank, until a majority of the capitalization had 
 been acquired. The announcement of this purchase 
 so angered the owners that they increased the capi- 
 talization and issued new shares to themselves, in 
 order to reacquire a majority of the holdings. The 
 matter was taken into the courts, but ultimately 
 the government yielded in the controversy. 
 
 There is strong sentiment in Prussia for the com- 
 plete nationalization of the coal-mines, which is ad- 
 vocated by many leading economists, like Wagner 
 and Schmoller. As it is, the state produces about 
 20,000,000 tons of coal annually, or about 10 per 
 cent, of the total output, which is, however, almost 
 completely absorbed in the state iron and steel 
 works, by the railroads, the navy, and other public 
 institutions. For these reasons the state has exer- 
 cised but little influence as a competitor in this 
 
MINES, FORESTS, AGRICULTURAL LANDS 153 
 
 field. In the administration of the mines the govern- 
 ment follows regular commercial methods. It charges 
 current prices for its output, the same as the private 
 operators, and, in consequence, exercises but little 
 restraint on the coal monopoly. 
 
 Prussia has been a dominant factor in the pro- 
 duction of potash since 1879, in which year a syn- 
 dicate was organized under the direction of the 
 state and two private concerns. The syndicate 
 later enlarged the field of its operations by the 
 opening of fresh mines. In the management of 
 this syndicate a Prussian official is chairman. 
 
 The agreements as to price control of the potash 
 syndicate expired in June, 1909, and could not be 
 renewed because one of the more powerful members 
 believed that more money could be made by the 
 operation of the private mines to their fullest ca- 
 pacity. When it became evident that a working 
 agreement was impossible, the Prussian Cabinet 
 recommended to the imperial government a measure 
 establishing a complete compulsory syndicate, which 
 was finally adopted. Under this law, which runs 
 for twenty years, each of the 65 mines is allotted a 
 certain percentage of the output, the prices for 
 which are fixed by the Federal Council. Should the 
 wages be reduced by any company, its percentage 
 of output is correspondingly reduced, while detailed 
 regulations protect the workmen in their hours of 
 labor and compensation. The statute is so drawn 
 
154 SOCIALIZED GERMANY 
 
 that mine proprietors, for their own convenience, 
 have been obliged to recreate the syndicate. 1 
 
 The purpose underlying the nationalization of 
 potash is to conserve the resources of the nation. 
 Under the law equal opportunity is accorded all 
 producers, big and small, to operate, a certain quota 
 being assigned to each mine, depending upon its 
 producing capacity. But the government fixes the 
 maximum prices for export. 2 
 
 In the early years of the potash syndicate Prussia 
 was represented by 20 per cent, of the entire pro- 
 duction, but new mines were opened and the inter- 
 ests of the government fell to only 7 per cent. In 
 consequence, the power of the government dimin- 
 ished in the councils of the syndicate, and prices 
 were increased and agriculture suffered. The state 
 then purchased the Hersyna mine at $7,500,000, 
 after which it was able to control 11 per cent, of the 
 output. When an objection was raised in the Diet 
 that the state had paid too high a price, Minister 
 Delbriick stated: 
 
 "The question has been repeatedly asked whether 
 the state could not have attained its ends more eco- 
 nomically by waiting for a more favorable time to 
 purchase. Yes, a business man who wished to make 
 big profits might argue so, but the state is buying 
 for reasons of public welfare and public interest. 
 The object of this purchase is to make it strong 
 
 1 Roberts, Monarchical Socialism, p. 100. 
 
 2 Jung-Hermsdorf, Engineering Magazine, March, 1911. 
 
MINES, FORESTS, AGRICULTURAL LANDS 155 
 
 enough to serve the public interest even without 
 the syndicate, if necessary." 1 
 
 The principles which guided the government in 
 undertaking control of the potash production were 
 as follows : 
 
 (1) The belief that production on a great scale 
 must succeed individual production, just as factory 
 succeeded cottage industry. 
 
 (2) A syndicate, after supplying the internal 
 market is able, with a relatively small additional 
 cost, to turn out a surplus for the foreign market. 
 
 (3) Syndicates have given life to smaller enter- 
 prises that might otherwise have been mercilessly 
 killed by competition. The syndicates systematize 
 production and take in smaller works when they 
 have grown to be worthy of attention. The potash 
 syndicate grew from 4 mines in 1879 to 65 mines in 
 the present statutory syndicate, and more are pro- 
 vided for. 
 
 (4) No strong party seeks to restrain the growth 
 of syndicates. The Socialists are not opposed. On 
 the contrary, they see in it a step toward the reali- 
 zation of the future state. 
 
 In 1904, at a convention in Frankfort, the Socialists 
 made the following declaration upon this question: 
 
 "The working classes have no occasion to disturb 
 the revolutionary process of the syndicate system 
 
 1 Dawson, Evolution of Modern Germany, p. 206. 
 
156 SOCIALIZED GERMANY 
 
 through reactionary legislative attempts, because 
 every progressive step in the centralization of capital 
 whereby the interests of the masses are separated 
 from the interests of property teaches impressively 
 and visibly the irresistible superiority of nationally 
 and internationally organized and centrally directed 
 production over the scattered production of free 
 competition. This development is, therefore, a step 
 toward the realization of socialism." 1 
 
 As a result of its activities the state virtually con- 
 trols the potash industry, although it actually pro- 
 duces but a small part of the output. The prin- 
 ciples set forth by the government in assuming this 
 connection involve, says Roberts: 
 
 "The acceptance by Parliament of the principle 
 that the state has the right of compulsory regula- 
 tion of private production may have a profound 
 effect upon the future in Germany. In the potash 
 production it has enabled the government to exer- 
 cise the vital powers that it would have over prop- 
 erties, were they owned by the government, without 
 buying them. Parliament would almost certainly 
 have refused the 200,000 marks or more which 
 would have been required to buy the mines. The 
 government did not controvert, indeed it accepted 
 the idea that other natural products might also 
 be controlled by statutory syndicates." 2 
 
 It is probable that this compromise course of 
 partnership between the state and private corpora- 
 tions will be extended to other industries, if it works 
 
 1 Roberts, Monarchical Socialism, p. 104. 
 
 2 Idem, p. 100. 
 
MINES, FORESTS, AGRICULTURAL LANDS 157 
 
 as expected in the potash industry. The present 
 policy, however, is toward the encouragement of syn- 
 dicates working under the sanction of the govern- 
 ment rather than of legislative checks upon them, 
 along the lines of anti-trust legislation in America. 
 This procedure is entirely in harmony with the 
 German policy of trusting the government. Doctor 
 Jung-Hermsdorf, writing from the standpoint of a 
 patriotic German, says: 
 
 "The object of the government is to avoid busi- 
 ness fluctuation and depressions as far as possible, 
 because they bear hardest on the poor; to preserve 
 the home market from panics, cutting excessive 
 profits on the one hand and making for continuity 
 of employment on the other. The state can do this 
 only by gaining control over capital for production, 
 the organization of trade and the fixing of prices, 
 in addition to regulating wages and working con- 
 ditions. . . . While the authority of the state is in- 
 variably supreme, its functions are of progressive 
 variety." 1 
 
 This writer, representing probably the point of 
 view of the ruling classes, thinks the government 
 should confine itself to regulating industry through 
 partnership rather than ownership, except in the 
 case of natural monopolies. He says: 
 
 "State partnership and control, besides steadying 
 business, has the further great advantage that it 
 strengthens the confidence of domestic and foreign 
 
 1 Engineering Magazine, March, 1911. 
 
158 SOCIALIZED GERMANY 
 
 investors. . . . But the state will not go into activi- 
 ties of a higher order, where creative ability and 
 elasticity are decisive factors. In these private 
 enterprise can do better." 1 
 
 Germany faces the monopoly problem with more 
 frankness than does America. The Socialists claim 
 that the only solution is through the transfer of 
 large industry to the state itself, and many promi- 
 nent professors r in the university urge this pro- 
 gramme as to the mineral resources of the nation. 
 The government, however, has not fully accepted 
 this view, although it has advanced further than any 
 other nation in this direction. And in this evolu- 
 tion the government has moved from one position 
 to another. At first it was neutral toward large 
 combinations of capital, which have invaded most 
 of the larger industries, such as the iron and steel, 
 coal, glass, chemicals, sugar, spirits, and leather. 
 Now, however, the government is inclined to be 
 friendly to the idea of large industry, but to subject 
 it to inside rather than outside control. Where the 
 state itself owns industries it has itself entered the 
 syndicates, while the state-owned railways give 
 special rates to them, as a still further encourage- 
 ment. 
 
 Despite this fact, Germany recognizes the dangers 
 of monopoly. The secretary of state for the interior 
 said in the Reichstag, May 4, 1912: 
 
 l ldem. 
 
MINES, FORESTS, AGRICULTURAL LANDS 159 
 
 "In the syndicates are growing up organizations 
 which are assuming the character of private monop- 
 olies, which may become a good deal more dangerous 
 than state monopolies. I consider it not improbable 
 that we may have to gradually transform private 
 monopolies into state monopolies. On the other 
 hand, we are not yet ripe for such a measure." 1 
 
 Professor Sehmoller, one of the leading professors 
 of political economy, urges that the state should 
 have representation on the boards of directors of 
 the syndicates. He says: "In any event, it is neces- 
 sary that the state should acquire an influence on 
 the syndicates. It is desirable that there should 
 be an agreement between buyers and sellers, per- 
 haps negotiated by an imperial board. ... In a 
 country in which private railways have passed into 
 the state's hands and in which fiscal mining has 
 been begun on a large scale there is certainly nothing 
 extraordinary in setting limits to the formation of 
 trusts. " 
 
 Public ownership is being urged by some as a 
 means for relieving the financial needs of the empire. 
 New sources of revenue are being constantly sought 
 for military and social purposes. The agrarian classes 
 are opposed to any extension of the land taxes or 
 those which fall upon incomes and inheritances, 
 while the indirect taxes are already very high. Fiscal 
 necessities may lead to further incursions into the 
 field of industry, and such incursions will be received 
 
 1 Dawson, Industrial Germany, p. 143. 
 
160 SOCIALIZED GERMANY 
 
 with but relatively little protest. In any proposals 
 for the nationalization of industry, the government 
 can always count on the support of the Socialists 
 and generally of the agrarians, who fear increased 
 tax burdens and who have but little financial interest 
 in the great industrial undertakings. 
 
 The future attitude of the government as regards 
 regulation and control is indicated in a recent an- 
 nouncement that the government intended to es- 
 tablish a monopoly in petroleum, to break the mo- 
 nopoly of the Standard Oil Company. Under this 
 proposal the government did not itself plan to enter 
 the business, but rather to create a legal monopoly 
 in a private company, the capital of which is to be 
 supplied partly by banks already interested in the 
 petroleum industry and partly by public subscrip- 
 tion. After the company is formed it is to take 
 over all of the existing wholesale businesses, with 
 their warehouses and plants, and in case of inability 
 to reach satisfactory terms, the state will lend its 
 powers of expropriation for the purpose. In the dis- 
 tribution of the profits of the new company four- 
 fifths are to go to the state and one-fifth to the 
 shareholders. 
 
CHAPTER XI 
 
 THE ATTITUDE OF GERMANY TOWARD THE 
 SOCIAL PROBLEM 
 
 GERMANY hates waste in any form. She has 
 taught the world the value of the " by-product." 
 This is one of her contributions to industry. Other 
 countries have adopted her methods of industrial 
 salvage, but none of them, with the possible excep- 
 tion of Denmark and Switzerland, has followed her 
 example in the working out of a programme for 
 saving the waste of human lives which the mill and 
 the factory produce. 
 
 Some years ago the imperial minister of the in- 
 terior stated in the Reichstag: "If Germany has 
 experienced a vast industrial expansion equalled by 
 no other country in the world during the same time 
 it is chiefly due to the efficiency of its workers, but 
 this efficiency must have suffered had we not se- 
 cured to our working classes by the social legislation 
 of recent years a tolerable standard of life, and had 
 we not as far as possible guaranteed their physical 
 health." 
 
 Germany, it is claimed by her statesmen, has 
 secured industrial efficiency by the action of the 
 state. The aid of the government has been ex- 
 
 161 
 
162 SOCIALIZED GERMANY 
 
 tended to the worker just as it has been extended to 
 the landowner, who is protected from the compe- 
 tition of American wheat by the high tariff; to the 
 manufacturer, who is secured from competition in 
 like manner; and to the ship owner, who is subsi- 
 dized from the nation's treasury. 
 
 The state has its finger on the pulse of the worker 
 from the cradle to the grave. His education, his 
 health, and his working efficiency are matters of 
 constant concern. He is carefully protected from 
 accident by laws and regulations governing fac- 
 tories. He is trained in his hand and in his brain 
 to be a good workman and is insured against acci- 
 dent, sickness, and old age. When idle through no 
 fault of his own, work is frequently found for him. 
 When homeless, a lodging is offered so that he will 
 not easily pass to the vagrant class. When sick, 
 he is cared for in wonderful convalescent homes, 
 tuberculosis hospitals, and farm colonies. When 
 old age removes him from the mill or the factory, a 
 pension awaits him, a slight mark of appreciation 
 from society, which has taken in labor all that his 
 life had to give and left him nothing more than a 
 bare subsistence wage. 
 
 Despite his hatred of democracy, Bismarck saw 
 the benefit of such a programme. It was he who 
 promoted the insurance laws against accident, in- 
 validity, sickness, and old age. These measures 
 were inspired partly by the history and traditions of 
 
GERMANY AND THE SOCIAL PROBLEM 163 
 
 Prussia, partly by the desire to undermine the rapidly 
 growing Socialist party, partly by an appreciation 
 of the value of such legislation to the state. State 
 concern for the dependent classes has been the tra- 
 ditional policy of Prussia for centuries, and Bis- 
 marck found a sanction for his proposals in the 
 precedents of the Prussian Kings as well as in the 
 common law and the mandates of Christianity, to 
 which he always appealed. In support of his mea- 
 sures he referred back to similar measures of the 
 Great Elector, Frederick William I, and Frederick 
 the Great as well as to the liberalizing legislation 
 of Stein and Hardenberg in the early years of 
 the nineteenth century. The Hohenzollern mon- 
 archs had never been out of sympathy with the 
 common people as were the Hapsburg and Bourbon 
 dynasties. And much of their popularity is traceable 
 to this fact. And Prussia has always avowed that 
 the welfare of the state was identified with the wel- 
 fare of the common people. Frederick the Great 
 carried through many projects of state socialism 
 for the upbuilding of Prussia. He brought artisans 
 from other countries to build up new industries, 
 he built canals and harbors, and carried through 
 many other undertakings. The Prussian common 
 law contained many provisions for the protection of 
 the poorer classes; it was part of the obligation of 
 the crown to support those who could not support 
 themselves, to provide employment, to prevent 
 
164 SOCIALIZED GERMANY 
 
 destitution, and to check idleness. This is the legal 
 sanction of state and municipal aid to the dependent 
 poor, which is exclusively a public rather than a 
 private function in Germany. And Bismarck relied 
 on these traditions of the common law as well as 
 the paternalistic measures of previous times in the 
 defense of his policies. He even found legal support 
 for the "right to work" in the ancient law of the 
 land. As early as 1878 he stated: "I will further 
 every endeavor which positively aims at improving 
 the condition of working classes." In this the Em- 
 peror joined. In opening the Reichstag in 1879 the 
 Emperor announced: "A remedy cannot alone be 
 sought in the repression of Socialist agitation. There 
 must be simultaneously the positive advancement 
 of the welfare of the working classes. And here 
 the case of those work-people who are incapable 
 of earning their own livelihood is of the greatest 
 importance." In 1881 the Emperor said again: 
 "That the state should interest itself to a greater 
 degree than hitherto in those of its members who 
 need assistance, is not only a duty of humanity and 
 Christianity by which state institutions should 
 be permeated but a duty of state-preserving policy 
 whose aim should be to cultivate the conception 
 and that too among the non-propertied classes, 
 which form at once the most numerous and the least 
 instructed part of the population that the state 
 is not merely a necessary but a benevolent institution. 
 
GERMANY AND THE SOCIAL PROBLEM 165 
 
 These classes must, by the evident and direct ad- 
 vantages which are secured to them by legislative 
 measures, be led to regard the state, not as an in- 
 stitution contrived for the protection of the better 
 classes of society, but as one serving their own needs 
 and interests." 
 
 Bismarck protested constantly against the laissez- 
 faire individualistic indifference of the state to the 
 weaker members of society. In a speech in the 
 Reichstag he said: 
 
 "Herr Richter has called attention to the respon- 
 sibility of the State for what it does. But it is my 
 opinion that the State can also be responsible for 
 what it does not do. I do not think that doc- 
 trines like those of ' Laissez-faire, laissez-aller/ 'Pure 
 Manchesterdom in politics/ 'Jeder sehe, wie er's 
 treibe, Jeder sehe, wo er bleibe/ 'He who is not 
 strong enough to stand must be knocked down and 
 trodden to the ground/ 'To him that hath shall 
 be given, and from him that hath not shall be taken 
 away even that which he hath/ that doctrines 
 like these should be applied in the State, and es- 
 pecially in a monarchically, paternally governed 
 State. On the other hand, I believe that those who 
 profess horror at the intervention of the State for 
 the protection of the weak lay themselves open 
 to the suspicion that they are desirous of using their 
 strength be it that of capital, that of rhetoric, or 
 whatever it be for the benefit of a section, for the 
 oppression of the rest, for the introduction of party 
 domination, and that they will be chagrined as soon 
 as this design is disturbed by any action of the 
 Government." 
 
166 SOCIALIZED GERMANY 
 
 In 1884 he even proclaimed the doctrine that a 
 man has a "right to work." "Give the working 
 man the right to work as long as he is healthy, " he 
 said, "assure him care when he is sick; assure him 
 maintenance when he is old. If you do that, and 
 do not fear the sacrifice, or cry out at state social- 
 ism directly the words "provision for old age" are 
 uttered, if the state would show a little more 
 Christian solicitude for the working man, then I 
 believe that the gentlemen of the Wyden (Social 
 Democratic) programme will sound their bird call in 
 vain, and that the thronging to them will cease as 
 soon as working men see that the government and 
 legislative bodies are earnestly concerned for their 
 welfare. " 
 
 And he further said: 
 
 "Yes, I acknowledge unconditionally the right 
 to work, and I will stand up for it as long as I am 
 in this place." 
 
 Then, continuing in the same strain, he said about 
 the man who would work but could not work: 
 
 "I am healthy, I desire to work, but can find no 
 work." 
 
 Such a man, he said, is entitled to say, "Give me 
 work," and that the state is bound to give him work. 
 In the discussion in the Reichstag over his social 
 measures, Bismarck said in 1882: 
 
GERMANY AND THE SOCIAL PROBLEM 167 
 
 "It is the tradition of the dynasty which I serve 
 that it takes the part of the weaker ones in the 
 economic struggles, " 
 
 and, in defense of his proposal for a system of uni- 
 form sickness insurance, he said: 
 
 "Experience has abundantly shown that the uni- 
 versal adoption of sickness insurance, which must 
 be characterized as one of the most important 
 measures for the improvement of the condition of 
 the working classes, cannot be effected along the 
 lines of free [voluntary] legislation." 
 
 In discussing the various measures which he had 
 in mind for the protection of the working classes 
 Bismarck said : 
 
 "The end I have in view is the establishment of 
 an institution having State support, and extending 
 to the whole Empire, for the maintenance of old 
 and infirm persons." 
 
 In these proposals Bismarck had the support of 
 Emperor William I. In 1881 the speech from the 
 throne in support of further legislation stated: 
 
 "The care of those work-people who are incapable 
 of earning their livelihood is of the first importance. 
 In their interest the Emperor has caused a bill for 
 the insurance of work-people against the conse- 
 quences of accident to be sent to the Federal Coun- 
 cil a bill which it is hoped will meet a need felt 
 both by work-people and employers. His Majesty 
 hopes that the measure will in principle receive the 
 assent of the Federal Governments, and that it will 
 
168 SOCIALIZED GERMANY 
 
 be welcomed by the Reichstag as a complement of 
 the legislation affording protection against Social- 
 Democratic movements." 
 
 Along the same lines the speech from the throne 
 continued : 
 
 "These classes must be led by the evident and 
 direct advantages which are secured to them by 
 legislative measures to regard the State not as an 
 institution contrived for the better classes of society, 
 but as one serving their own needs and interests. 
 The apprehension that the Socialistic element might 
 be introduced into legislation if this end were fol- 
 lowed should not deter us. So far as that may be the 
 case it would not be an innovation, but a further 
 development of the modern idea of the State, the 
 result of Christian ethics, according to which the 
 State should discharge, besides the defensive duty of 
 protecting existing rights, the positive duty of pro- 
 moting the welfare of all its members, especially 
 those who are weaker and in need of help, by means 
 of judicious institutions and the employment of those 
 resources of the community which are at its dis- 
 posal." 
 
 The same spirit now animates the business and 
 commercial classes of Germany, even though they 
 protested against the original proposals of Bismarck 
 and the many other measures of social reform which 
 have been adopted in recent years. As indicative of 
 the general attitude of the employing classes, the 
 following is quoted from a publication issued by the 
 Frankfort Chamber of Commerce, which says: 
 
GERMANY AND THE SOCIAL PROBLEM 169 
 
 "The 'Manchester School' has had its day and 
 since it had full sway a great change has come over 
 the civilized nations, marked by an increased in- 
 fluence of the governments at the expense of in- 
 dividualism. 
 
 "Slowly at first, but then in ever increasing mea- 
 sure mankind realized that the doctrine of 'Laisser 
 f aire, laisser passer ' was a vicious one and that the 
 Darwinian tenet of the survival of the fittest should 
 not apply to human beings. True enough this 
 knowledge did not emerge from purely altruistic 
 motives, but was a result of the conviction that 
 the road with the fingerpost-inscriptions, ' Elbow 
 room for everybody' and 'Everybody for himself 
 and the devil take the hindmost/ was a short one, 
 leading to nowhere. 
 
 "It had become obvious to leaders of men, like 
 Bismarck and Gladstone, that the new methods 
 of modern machinery and large capital had created 
 forms of employment unknown before, that huge 
 urban agglomerations had been called into existence 
 and that the national agriculture of old-world coun- 
 tries like France, England and Germany were being 
 exposed to a great strain by the competition of the 
 virgin soils of new lands. 
 
 "Furthermore the new conditions in industry, 
 commerce and agriculture had brought about a 
 change in the personal relations between employer 
 and employed; these formerly patriarchal relations 
 became impersonal in proportion as the numbers 
 of workmen and other employees increased. Great 
 portions of the populations saw themselves help- 
 less and shelterless in case of death, disaster, and 
 disease. Germany was the first state to recognize 
 the threatening danger and, in order to minimize it, 
 adopted the system of compulsory insurance. Prince 
 
170 SOCIALIZED GERMANY 
 
 Bismarck and his imperial master William I. were 
 the prime movers in this great legislative work, but 
 we think it is only just to mention it, that certain ele- 
 mentary forms of taking care of those in distress 
 existed before and not only in Germany. In this 
 country the relief organizations of the guild corpora- 
 tions provided in case of death and sickness, in 
 England the ' Friendly Societies' did this sort of 
 work, and other countries have similar institutions, 
 but Germany was the first country where the govern- 
 ment stepped into the place of private enterprise." 
 
 The insurance laws have been in force for thirty 
 years and to-day Germany is a unit in approval of 
 the legislation which has been enacted. There is 
 no protest from manufacturers or employers. Every 
 one seems to realize the value of these measures in 
 the increased efficiency of the work-people, whose 
 health and well-being is greatly improved by virtue 
 of the protection afforded them. There is no attempt 
 to cripple the laws by hostile amendments or to evade 
 their obvious intent. The employers co-operate in 
 the administration of the insurance laws, in the local 
 employment agencies, and in the co-operative build- 
 ing associations, which, with the aid of public funds, 
 have erected working men's dwellings in nearly 
 every large city in the empire. And a generation's 
 experience has amply justified the wisdom of Bis- 
 marck's programme. It has in a measure softened 
 the relation of employer and employee, although it 
 did not check the growth of the Social Democratic 
 
GERMANY AND THE SOCIAL PROBLEM 171 
 
 party or weaken its requests for further concessions 
 to its political and social demands. But it has con- 
 tributed greatly to the efficiency and well-being of 
 the working classes. It has relieved them of the 
 haunting fear of sickness, old age, and destitution. 
 It has completely checked the tendency to emigrate 
 and has identified the working classes with the state. 
 It is not improbable that the devotion and patriotism 
 of the German people in the present struggle is 
 largely traceable to the solicitous care which the 
 state manifests for her citizens, a solicitude which 
 has been the traditional policy of Prussia for cen- 
 turies. 
 
CHAPTER XII 
 CARING FOR THE UNEMPLOYED 
 
 GEEMANY does not officially recognize the declara- 
 tion of Bismarck that a man has a right to work. 
 But the state does many things to insure the oppor- 
 tunity to work just the same. It seems as though 
 the nation said: "It costs $2,000 to raise a boy to 
 manhood. That much is taken from the wealth 
 of the community. It is wasteful to expend this 
 sum for a man's upbringing and then permit him to 
 be idle, to become a tramp, to be maimed or killed 
 in the factory, or to be disabled through sickness." 
 So the state makes provision for the protection of its 
 human assets. Not that the motive is as sordid as 
 this, although industrial and military efficiency is 
 always in the mind of the Kaiser and his ministers. 
 
 How is this achieved? In a great variety of ways. 
 A comprehensive programme of human salvage has 
 been worked out. In the first place, there are the 
 \l labor exchanges, which are models of administrative 
 efficiency. There are nearly three hundred of them 
 in the empire which report regularly to the imperial 
 statistical office in Berlin. They exist in every 
 community and fill over 1,000,000 positions every 
 year. They are maintained partly by the cities, 
 
 172 
 
CARING FOR THE UNEMPLOYED 173 
 
 partly by private agencies. They are great clearing- 
 houses for skilled and unskilled labor of both sexes. 
 They have the hearty support of employers and 
 generally of the employees. Few of them charge 
 any fee. The exchange in Berlin, the largest and 
 best in the empire, secures over 100,000 positions 
 annually. It was established in 1888, and is main- 
 tained at a cost of $25,000 a year. It occupies a 
 splendid four-story building, probably a hundred 
 feet front on Gormanstrasse. In the centre of 
 the building is a great open hall capable of seating 
 1,400 persons. There were probably 600 men wait- 
 ing for work when I was there. Here the men sit, 
 grouped in sections, distributed according to their 
 employment. When a call is received by mail or 
 over the telephone, the men in the employment 
 desired are called to the desk. The wages and con- 
 ditions are explained, and if satisfactory the men 
 are given a card to the employer. 
 
 Priority is given to the married men as well as to 
 those first registered. On one side of the hall is a 
 buffet, where beer, cigars, and food are sold at a 
 trifling sum. There are cobblers and tailors who 
 do jobs of mending. A shower-bath can be obtained 
 in the basement for a cent. There is a smaller 
 room and canteen for the skilled workers, and 
 another for women workers in another portion of 
 the building. Connected with the registry is a free 
 dispensary and medical-inspection bureau. By these 
 
174 SOCIALIZED GERMANY 
 
 simple precautions the men are kept strong and 
 presentable. They do not suggest the vagrant, and 
 when they go to the employer they are not down 
 and out in appearance as are the men who roam the 
 streets and live as best they may in private lodging- 
 houses or saloons in America while looking for em- 
 ployment. The exchange preserves the self-respect 
 of the worker. There is no suggestion of charity 
 about it and the general appearance of the men in- 
 dicates that they are for the most part free from 
 the. haunting fear of poverty so characteristic of 
 the unemployed in this country. 
 
 Many of the exchanges make special provision for 
 apprentices. Boys and girls about to leave the ele- 
 mentary schools are brought to the exchange before 
 they leave and are given an opportunity to regis- 
 ter. As a result, many of them have completed all 
 arrangements for work before they leave school. 
 
 Different policies are adopted by agencies in case 
 of strike or labor dispute. These policies are: 
 
 (1) To ignore such disputes altogether and to 
 send men as if there were no controversy. 
 
 (2) To record vacancies caused by a strike, and 
 to advise the men of such opportunity, but to also 
 advise them of the disputes. 
 
 (3) To suspend operations within the range of the 
 dispute during its continuance. 
 
 (4) To act in each case upon the decision of the 
 local industrial court. 
 
CARING FOR THE UNEMPLOYED 175 
 
 In most registries the policy adopted is to advise 
 applicants for work of existing wage controversies. 
 
 These agencies command the confidence and sup- 
 port of both employers and employees. They are 
 rapidly driving the private employment agencies 
 out of business. The number of places filled by the 
 public exchanges reporting from 1909 to 1911 were 
 as follows: 
 
 YEARS 
 
 POSITIONS FILLED 
 
 BUREAUS REPORTING 
 
 1909 
 
 731,848 
 
 230 
 
 1910 
 
 877,042 
 
 250 
 
 1911 
 
 1,055,784 
 
 267 
 
 The municipal agencies act in concert by reports 
 sent to a central agency in the capital of each of 
 the states so that the surplus labor in one market 
 can be sent to another. In addition connections are 
 maintained with the country districts so that agri- 
 cultural labor can be supplied during the harvest 
 season. 
 
 This is the first step in the problem of unemploy- 
 ment. It is a recognition of the social nature of the 
 problem of the inability of the worker to control 
 his work, to own his tools, or to find the place for 
 which he is most fitted without terrible waste of 
 time and energy. The labor exchange is not un- 
 like the clearing-house system of the banks or the 
 credit agencies of modern business. 
 
 Provision is also made in an adequate way for the 
 
176 SOCIALIZED GERMANY 
 
 wandering worker, the honest artisan seeking a job. 
 Germany does not assume that a man out of em- 
 ployment "with no visible means of support" is a 
 semicriminal. The courts do not place him under 
 arrest as a suspicious person, as do many of our 
 cities. Thousands of men in America are unjustly 
 branded by the ignorant policy which we pursue. 
 They are started on the road to trampdom, va- 
 grancy, and crime by the disgrace which we place 
 upon them. Germany recognizes that hard times, 
 a strike, or a lockout, the introduction of a new ma- 
 chine, are all conditions which the workman can- 
 not control. It accepts the wandering worker as a 
 part of the fluidity of modern industry and provides 
 for him in a variety of ways. 
 
 Lodging-houses or working men's hotels are to 
 be found in almost every community. By means of 
 them the worker can travel from place to place, 
 even though he is without money or immediate 
 employment. These lodging-houses are called Her- 
 bergen. Some of them are conducted by the cities, 
 others by private philanthropy. In 1904 there were 
 462 of these Herbergen in Germany, containing 
 20,000 beds. They lodge over 2,000,000 persons 
 annually of whom a large number are paying 
 guests. 
 
 In order to secure admission, the worker must be 
 able to produce a passport showing that he has 
 recently been at work. He can pay for his lodging 
 
CARING FOR THE UNEMPLOYED 177 
 
 and breakfast (about twelve cents) or he can work 
 for four hours for them. The rule is " morning work, 
 afternoon walk." The work is usually of a simple 
 kind, such as chopping wood. Over half of the 
 Herbergen have savings-banks in connection with 
 them, deposits being made by the purchase of 
 stamps. The Herbergen are usually in close con- 
 nection with the labor registries, and many of them 
 make provision for permanent pay boarders. They 
 are really cheap working men's hotels. To such an 
 extent have these institutions developed in the 
 industrial regions of South Germany, that vagrancy 
 has practically disappeared, as has that class of 
 crimes usually committed by the vagrant class. 
 
 The labor colony is another institution for the 
 worker. It is open to those who have lost their grip 
 through drink or are unable to find work through 
 the labor exchange. The labor colony reaches a 
 much lower class than the labor registry. There 
 are upward of forty of them in the empire. They, 
 too, are partly private, partly public. They are not 
 penal colonies to which men are sent, but are purely 
 voluntary. Men enter and leave when they will. 
 Upward of 10,000 persons made use of these col- 
 onies in 1908. They are exclusively agricultural, 
 and attract mostly the unskilled worker. They are 
 located on cheap land, which is brought under cul- 
 tivation by the labor of the men, who produce 
 potatoes, vegetables, and similar products for their 
 
178 SOCIALIZED GERMANY 
 
 own consumption. Probably 75 per cent, of the 
 men who come to the colonies have been in jail. 
 Yet, strangely enough, there is practically no in- 
 subordination and no difficulty in preserving dis- 
 cipline. 
 
 None of these agencies create work where no 
 work exists. Neither the labor registry nor the 
 Herbergen open the door of the factory or meet the 
 emergency of industrial depression. They do not 
 create opportunity where none exists; they merely 
 attempt to unite the workless job with the jobless 
 man. They prevent men from losing their grip 
 during a period of waiting. Nor do they provide for 
 the mechanic with a family who is face to face with 
 starvation by reason of the closing of the factory. 
 
 During the industrial depression of 1914-15 in 
 America, unemployed men petitioned the councils of 
 many cities to provide temporary relief work. They 
 did not want charity; they wanted work. But the 
 cities were powerless to relieve the situation or had 
 no inclination to do so. State laws bind the localities 
 in such an inflexible manner that they cannot act 
 on an emergency when it arises. They can only 
 cope with such problems as the distant legislature, 
 with little knowledge of city needs, makes provision 
 for. Here again Germany is far in advance of other 
 countries. She recognizes that the worker has a 
 right to be protected from starvation and to expect 
 something more than a visit from the charity organi- 
 

 CARING FOR THE UNEMPLOYED 179 
 
 zation society. "Distress work" is often provided 
 to meet emergencies. It is usually limited to the 
 winter months. Cities disclaim any legal or moral 
 responsibility in the matter; they do not recognize 
 "the right to work," but they provide work in con- 
 siderable measure, nevertheless. They distribute 
 public contracts so as to give the maximum of 
 relief and require contractors to employ only local 
 men. Extraordinary conditions are met to some 
 extent by development work, such as excavations, 
 street paving, sewer construction, forestry, wood- 
 chopping, and the like. Applicants for distress work 
 must be residents of the city and must be heads 
 of families. It is true the work performed is not 
 of the best, and it is more costly than that done 
 through regular channels, but it saves the self-re- 
 spect of the worker and to some extent recognizes 
 his right to work. In a larger sense, it saves the 
 community from the vagabonds, tramps, and semi- 
 criminals, who are the inevitable wastage of every 
 period of hard times. 
 
 Many other services are performed by the cities. 
 Warfare is waged against infant mortality and pro- 
 vision is made for the inspection of school children. 
 States and cities co-operate in the holding of con- 
 gresses and exhibitions for the instruction of the 
 people along hygienic lines. Leaflets are distrib- 
 uted for the purpose of training mothers in the 
 feeding and care of infants. Infant dispensaries 
 
180 SOCIALIZED GERMANY 
 
 and clinics are operated, as are model kitchens and 
 milk stations. In Berlin there are many dispen- 
 saries for the instruction of mothers in infant-feeding. 
 These dispensaries are in charge of experts, assisted 
 by doctors and nurses. They are used mostly by 
 the working-class families, who receive free aid if 
 they are unable to pay for it. Milk for children 
 is distributed at a low price and the mother is in- 
 structed in many ways in the rearing of her child. 
 
 Recreation is also a public function. Cities pro- 
 vide many agencies for the leisure life of the people. 
 The people are not left to the self-interest of com- 
 merce in their leisure hours, and the opportunities of 
 the working class for recreation are more generous 
 than those of the average well-to-do citizen in 
 America. Every city of any size has from one to 
 three fine military bands, which give performances 
 afternoons and evenings in the parks and zoological 
 gardens. They play the best of music. The larger 
 cities maintain splendid symphony orchestras or 
 choral societies. Municipal restaurants are main- 
 tained where wines, beer, and refreshments are sold 
 at moderate prices. The cities and the states also 
 maintain opera-houses and theatres where the best 
 of classical and modern productions are offered at 
 a low price. Subsidies are granted or the opera- 
 houses are let to managers at a very low rental. By 
 these means the drama and the opera are encouraged; 
 they are a part of the life of all classes. Through 
 
CARING FOR THE UNEMPLOYED 181 
 
 them a knowledge of the best of German literature, 
 drama, and music is inculcated. In Germany the 
 leisure life of the people is a matter of public con- 
 cern. It is one of the overlooked agencies in the 
 explanation of German culture. 
 
CHAPTER XIII 
 LABOR AND INDUSTRIAL COURTS 
 
 SPECIAL courts are also provided to relieve the 
 worker from the delays and costs of litigation which 
 the regular court procedure involves. They are 
 administered jointly by employers and working men 
 through representatives selected by them who act 
 as arbitrators rather than as legal judges. Free 
 legal aid is also furnished by many cities to those in 
 distress, the bureaus being conducted on the same 
 basis as the free medical dispensary. They are 
 usually to be found in connection with the labor 
 exchanges or the herbergen and are widely used by 
 the working classes. 
 
 The labor courts originated in France, where the 
 first industrial court, conseil de prud'hommeSj was 
 established in 1806. The courts spread through 
 France, later into Belgium, Switzerland, and Italy, 
 and then into Germany. It was not until 1890 that 
 Germany enacted a general law for the establish- 
 ment of industrial courts. 
 
 The German industrial court consists of a presi- 
 dent, who is neither a worker nor an employer, and 
 an equal number of worker and employer members, 
 called assessors. The courts are usually divided 
 
 182 
 
LABOR AND INDUSTRIAL COURTS 183 
 
 into sections, each of which has jurisdiction over dis- 
 putes in certain trades or groups of trades. Members 
 are elected from the workmen body and the em- 
 ployer body in each of these groups. The Berlin 
 court, consisting of 420 members, has eight sections. 
 Qualifications for membership in the courts are: 
 The candidate must be at least thirty years of age, 
 a citizen in good standing, and must actually be 
 employed in the trade over which the court has 
 jurisdiction. Members are elected for not more 
 than six years, and must live in the district of the 
 court at the time of his election. The employer 
 body elects the employer assessors and the workmen 
 body the workmen assessors. Elections may take 
 place at intervals of from one to six years, but no 
 term of office can be longer than six years. The 
 local regulations of the Berlin court provide that 
 assessors shall serve for a term of six years, but that 
 every two years a third of each category shall be 
 replaced. Trade-union officials who devote their 
 entire time to the union are excluded from member- 
 ship in the courts, as they are not considered to 
 be actually at work in the trades they represent. 
 Nevertheless, many trade-union officials are members 
 of industrial courts and practically all the workmen 
 assessors belong to labor organizations. Assessors 
 are considered as holding honorary offices and are 
 compensated only for actual loss of time, workmen 
 and employer members receiving exactly the same 
 
184 SOCIALIZED GERMANY 
 
 compensation. The president, of course, is a salaried 
 official and is a lawyer. 
 
 The jurisdiction of the industrial courts extends 
 not only to disputes between workers and employers, 
 but also to disputes between different workmen 
 hired by the same employer. They have jurisdic- 
 tion over all industrial employments. In addition 
 to the ordinary industrial courts there are special 
 courts for single occupations, such as mining. The 
 industrial courts do not touch the commercial field 
 at all. For employees in this field there are the 
 Kaufmannsgerichte or mercantile courts, loosely con- 
 nected with the industrial courts (Gewerbegerichte). 
 Side by side with the system of industrial courts, 
 and limiting their jurisdiction, is a system of guild 
 courts for the settlement of disputes between the 
 members of guilds and their working people. Em- 
 ployees of the naval and military departments are 
 also excluded. 
 
 The jurisdiction of the industrial court is not 
 limited by the amount at issue, as it is in France, 
 where the councils of prud'hommes may decide cases 
 only where the value involved is less than 1,000 
 francs. Moreover, the jurisdiction of other courts 
 is excluded by the industrial courts, where these 
 exist. Disputes over wage contracts, payments, and 
 sometimes discharge without notice are the most 
 usual class of cases which come before these courts. 
 
 The procedure in the industrial courts is very 
 
LABOR AND INDUSTRIAL COURTS 185 
 
 different from that of the ordinary courts. The aim 
 is conciliation, and as a matter of fact more than 
 half the cases that come up are settled in this way at 
 preliminary hearings. In such cases the functions 
 of the board of conciliation are practically performed 
 by the president alone, although he may ask the 
 assistance of assessors at such preliminary hearings. 
 If both parties unite in asking it, the president may 
 at the close of such a hearing render a valid decision, 
 even without assessors. Should attempts at con- 
 ciliation fail in the preliminary hearing, they may be 
 renewed at any stage of the proceedings. 
 
 The part taken by lawyers in the ordinary courts is 
 entirely suppressed in the German industrial courts. 
 Attorneys are not permitted to appear either as 
 representatives or as assistants. The parties must 
 appear personally, or if this is impossible they may 
 be represented by persons who are themselves sub- 
 ject to the jurisdiction of the court employers or 
 workers in some industry in the district. Proceed- 
 ings are much less formal than in other courts, and 
 the president takes a more active part in them. De- 
 cisions are based upon law and the customs of the 
 trade as interpreted by the members of the court. 
 Of the cases which are not conciliated many are 
 withdrawn without being contested or are settled 
 by judgments by default. In 1908 less than 17 per 
 cent, of all cases coming before the industrial courts 
 were settled by formal judgment after a hearing of 
 
186 SOCIALIZED GERMANY 
 
 the parties. In Berlin the proportion was even less 
 9 per cent. over 90 per cent, being adjusted with- 
 out trial. 
 
 Every effort is made to settle cases quickly. In 
 1908 less than 1.5 per cent., even of those cases which 
 were brought to judgment, lasted over three months. 
 Fees are reduced to a minimum and cover only the 
 actual cost of hearing the case, securing witnesses, 
 etc. These are two of the main advantages of the 
 industrial courts. Those expenses of the courts 
 which are not met by fees are met by the munic- 
 ipality or municipalities over which the court has 
 jurisdiction, or, as in the case of the German min- 
 ing courts, by the state. Sessions of the court are 
 held in the late afternoon or evening, especially in 
 smaller places, so as to interfere as little as possible 
 with the working hours of employers and workmen. 
 
 Appeals may be taken from the decisions of the 
 industrial courts to the regular courts, but only when 
 the amount involved is more than 100 marks. The 
 amounts usually involved in cases before the in- 
 dustrial courts are smaller than this. In 1908 not 
 more than 7 per cent, of the appealable cases were 
 taken to a higher court. 
 
 Besides their purely judicial functions, the indus- 
 trial courts have certain administrative functions. 
 Opinions upon industrial questions may be de- 
 manded of the courts by government officials. 
 Moreover, the courts may present proposals to leg- 
 
LABOR AND INDUSTRIAL COURTS 187 
 
 islative bodies, and they sometimes conduct legal- 
 information bureaus. 
 
 Collective disputes and strikes also come before 
 the industrial courts. This is one of their most 
 important functions. When the court sits as a 
 board of arbitration, its powers and composition are 
 quite different from what they are in personal dis- 
 putes. It is one of the duties of the president of 
 the court to keep in touch with trade unions and 
 employers' associations, to secure early information 
 of threatened strikes and lockouts and try to per- 
 suade the warring parties to call upon the industrial 
 court to act as a board of arbitration. This can 
 only be done, however, when both parties agree to it. 
 The court, acting as a board of arbitration, is com- 
 posed of the president and of arbitrators selected 
 in equal numbers by each side. These arbitrators 
 may or may not be assessors, but they must not be 
 concerned in the dispute. Where no agreement is 
 reached, the decisions of the court are not binding 
 upon the parties, but these decisions are made pub- 
 lic, and public opinion is relied upon to secure sub- 
 mission to the award. Collective disputes are being 
 brought to these courts for settlement as the sys- 
 tem gains public confidence. In three-quarters 
 of the cases agreements are reached, and in most 
 of the others the awards of the court are accepted 
 by both parties. In many cases, however, it has 
 been found impossible to effect a settlement. 
 
188 SOCIALIZED GERMANY 
 
 "The most important service of the industrial 
 courts in collective disputes, however, is perhaps 
 the assistance which it has rendered in the forma- 
 tion of wage contracts and trade agreements. In a 
 large number of cases which do not appear in the 
 statistics of the work of the board of arbitration, 
 the presidents of industrial courts have presided 
 over meetings of representatives of the two sides 
 at which such agreements have been formulated." 1 
 
 The industrial courts have a voluntary central 
 union, which maintains archives in which are to be 
 found the reports, decisions, and trade agreements 
 effected by the courts. The central union also pub- 
 lishes an official organ: Gewerbe und Kaufmanns- 
 gerichte. 
 
 Every city of over 20,000 population must have an 
 industrial court, and smaller municipalities may have 
 them if the local authorities desire or if the workers 
 and employers concerned take the initiative. In 
 1908 there were in Germany 469 industrial courts, 
 which handled 112,281 cases. It should be added 
 in explanation of the large number of industrial 
 courts in Germany that more than one court may be 
 established in a district. That is, if in a district a 
 court exists which is restricted to certain industries, 
 another may be formed to deal with disputes in 
 other occupations. The courts are state courts. 
 
 Most of the cases brought before the courts are 
 
 1 " Industrial Courts in France, Germany, and Switzerland, " by 
 Helen L. Sumner, Ph.D., in Bulktin of the Bureau of Labor, No. 98, 
 January, 1912. 
 

 LABOR AND INDUSTRIAL COURTS 189 
 
 complaints by workers against employers. Of the 
 14,522 cases handled in 1908 in the Berlin court, 
 702 were brought by employers and 13,820 by 
 workers. These courts are much more popular 
 with the workers than with employers, because it is 
 the workers who fear they will not get justice in the 
 ordinary courts, and also because of the dispro- 
 portionately large expenses attached to a suit where 
 only a small amount is at issue. In districts where 
 no industrial courts exist the number of complaints 
 brought by employers is much larger. 
 
 On the whole, the courts meet with general ap- 
 proval, only minor points calling forth criticism. 
 For instance, the provision of the law which assigns 
 foremen and managers to the class of workers or to 
 that of employers, according to whether they receive 
 less or more than 2,000 marks salary, is considered 
 unfair. 
 
 The theory underlying these industrial courts is 
 that the labor contract is a peculiar kind of contract 
 which requires special rules, and that the relations 
 arising from it tend to become more and more com- 
 plicated, thus necessitating special machinery for 
 their regulation. The court is really an adaptation 
 of the jury system, the difference being that the 
 jurors are more closely in touch with the problems 
 brought before them, the customs of the trade and 
 industrial conditions, than an ordinary jury would 
 be. Moreover, these courts receive hundreds of 
 
190 SOCIALIZED GERMANY 
 
 cases that would slip through the coarser mesh of 
 the ordinary court, owing partly to the expense and 
 long delays of the latter, which are particularly 
 discouraging to the workers. Cases involving as 
 small an amount as 5 cents have been brought 
 before the industrial court. It is encouraging to the 
 poor man to feel that he can get justice, however 
 petty the stake may seem to the wealthier man. 
 Speaking of these courts a German writer says: 
 
 "By its friends, indeed, the industrial court law is 
 considered as the Magna Charta of the German 
 workman. In this court, the labor world of Ger- 
 many has for the first time found an effective in- 
 strument for the prevention of wage reductions and 
 other violations of the labor contract. There is no 
 state institution, he adds, to which workmen cling 
 with more love or with warmer admiration." 1 
 
 In districts where there is small-scale production 
 the number of cases brought before the courts is 
 apt to be larger than where large-scale production 
 is the rule. This is due to the fact that conditions 
 of labor are so well standardized in big factories, that 
 workers are afraid of being blacklisted, etc., and 
 so are willing to endure small losses. In small 
 shops, however, and in such industries as building, 
 the manufacture of clothing, and the preparation of 
 food and drink, more disputes are likely to arise. 
 
 1 Jastrow, " Sozialpolitik u. Verwaltungswissenschaft," vol. I, p. 
 405, in Bulletin of Bureau of Labor, No. 98, January, 1912. 
 
LABOR AND INDUSTRIAL COURTS 191 
 
 In so far as the functions of the courts as arbitra- 
 tion boards are concerned, it is felt that their work, 
 while valuable so far as it goes, can be of no use 
 when a strike spreads over many cities, as did a 
 recent ship-builders' strike in various ports, or when 
 it becomes national in scope. A bill was therefore 
 brought before the Reichstag (1911 or 1912), which 
 provides for the establishment of an arbitration 
 board for the entire German Empire, to deal with 
 collective disputes extending over more than one 
 city, the industrial courts, however, to retain their 
 functions in the settlement of local disputes. 
 
 These are the more important agencies provided 
 for the care and protection of the worker in his em- 
 ployment. They indicate the attempt of the state 
 to keep in touch with the changing nature of in- 
 dustry and to legislate accordingly. Public opinion 
 and legislation do not lag many years behind the 
 problem, as they do in this country. Thought keeps 
 abreast of industrial conditions as they present 
 themselves. 
 
CHAPTER XIV * 
 SOCIAL INSURANCE AND SOCIAL DEMOCRACY 
 
 THESE are some of the means employed to pre- 
 vent waste, to keep the producing power of the 
 nation at a maximum, to protect the worker and 
 save him and his family and the community from 
 the demoralizing effects of hard times and irregular 
 employment. The programme stops far short of 
 a solution of the industrial problem, and the Social- 
 ists have but little sympathy with these palliatives 
 as in any sense remedial. But from the point of 
 view of the individual and society it is far in advance 
 of anything yet developed in America, although as a 
 social programme it fails in that it does nothing to 
 create more jobs or bring about a juster distribution 
 of wealth. Neither the labor exchanges or the lodg- 
 ing-houses or the relief agencies increase money 
 wages or the general standard of living. 
 
 One can speak with more enthusiasm of the pro- 
 tection assured the worker from accident, sickness, 
 and old age through, the insurance funds. Even 
 the Socialist admits that these are steps in the right 
 direction and have materially improved the condi- 
 tion of the working classes. 
 
 192 
 
SOCIAL INSURANCE AND DEMOCRACY 193 
 
 The insurance laws date back to the early eighties, 
 a generation ago, when Bismarck was engaged in 
 his struggle with the rapidly growing movement 
 for social democracy. He hoped through remedial 
 social legislation to undermine the following of the 
 party. But Bismarck was more than a political 
 opportunist when he said in 1882: "It is the tradi- 
 tion of the dynasty which I serve that it takes the 
 part of the weaker ones in the economic struggle." 
 
 And in discussing the various measures which he 
 had in mind for this purpose, Bismarck said in the 
 course of a debate: "The end I have in view is the 
 establishment of an institution having state support 
 and extending to the whole empire, for the main- 
 tenance of old and infirm persons," and in another 
 speech on the same general subject he said: 
 
 r 'The domain of legislation which we enter with 
 this law . . . deals with a question which will not 
 soon disappear from the order of the day. For 
 fifty years we have been speaking of the social ques- 
 tion. Since the passage of the Socialist Law I have 
 continually been reminded that a promise was then 
 given that something positive should also be done 
 to remove the legitimate causes of Socialism. I 
 have had the reminder in mind tola die up to this 
 very moment, and I do not believe that either our 
 sons or grandsons will quite dispose of the social 
 question which has been hovering before us for 
 fifty years. No political question can be brought 
 to a perfect mathematical conclusion, so that book 
 balances can be drawn up; these questions rise up, 
 
 
194 SOCIALIZED GERMANY 
 
 have their day, and then disappear among other 
 questions of history; that is the way of organic de- 
 velopment." 
 
 This was the appeal of Bismarck in support of his 
 proposal for a comprehensive series of laws for com- 
 pulsory insurance against accident, sickness, and old 
 age, spectres which pursue the average working man 
 from youth till old age. 
 
 The insurance laws for sickness were enacted in 
 1883, for accidents in 1884, and for old age and in- 
 validity in 1889. All this legislation was codified 
 and amended by the law of 1911, which embodies the 
 experience of previous administration. 
 
 Insurance against sickness is provided for those 
 employed in factories, mines, workshops, quarries, 
 transportation, and other industries. Employees 
 of public enterprises are also covered, as are agri- 
 cultural laborers, household servants, teachers, and 
 practically all wage-earners receiving less than 2,000 
 marks a year. The sickness-insurance funds are 
 of various kinds. There are local funds provided 
 by the parishes for all of the trades within their 
 limits; while many of the large industries have 
 funds of their own, as do the miners and the build- 
 ing trades. 
 
 All of the funds provide for free medical and sur- 
 gical attendance, hospital treatment and supplies, 
 as well as sick pay from the third day of sickness. 
 The benefits amount to from one-half to three- 
 
SOCIAL INSURANCE AND DEMOCRACY 195 
 
 fourths of the daily wages received by the bene- 
 ficiary or the income upon which his assessment is 
 based. The pay is continued for not more than 
 twenty-six weeks, after which time, if the illness 
 still continues, the burden is transferred to the acci- 
 dent-insurance fund. 
 
 The sickness-insurance fund is maintained by con- 
 tribution from the working men, the employers, 
 and to some extent from the community. Generally 
 the employee pays two-thirds of the premium and 
 the employer one-third, the liability of both being 
 ascertained by periodic reports from the employer 
 as to the number of employees liable to insurance. 
 The premiums are collected by stoppage, the em- 
 ployer deducting the assessments of the employees 
 when wages are paid, which, along with his own 
 share, are then transmitted to the fund. The ex- 
 pense to the worker is from 1^ to 4 per cent, of his 
 wages. 
 
 The administration of the funds is largely in the 
 hands of boards chosen by the employers and the 
 employees. General meetings are held, to which 
 all persons who contribute to the fund may come, 
 at which meetings the delegates who have charge 
 of the insurance are elected. 
 
 A second insurance fund is provided against 
 accident. The provisions of this law cover sub- 
 stantially the same classes as those covered by sick- 
 ness insurance, and the method of administration 
 
196 SOCIALIZED GERMANY 
 
 is substantially the same. Every employer is bound 
 to provide insurance against accident. Upon open- 
 ing a factory he automatically becomes a member 
 of the trade association covering his business, and is 
 bound to contribute to the insurance fund. This 
 fund is managed by the executive board of the trades, 
 which has power to classify trades and fix the danger 
 schedule. But better than this, the board has power 
 to enforce rules and appliances for the prevention of 
 accidents. If a member refuses to abide by the 
 ruling of the board, he may be fined for his neglect or 
 his danger rating increased. 
 
 By this means the employers are stimulated to 
 introduce safety devices, while the special knowledge 
 on the part of the individual trade association leads 
 to a better administration of the rules than would be 
 possible on the part of the state. In all of these 
 matters the employees are consulted. They are 
 also allowed representation on the executive board. 
 
 Benefits under the accident-insurance law are not 
 left to judicial inquiry. The employee is not put to 
 the expense and delay of a long litigation. Even 
 though the employee is negligent, he is entitled to 
 compensation, unless there should be evidence that 
 he intentionally brought the accident upon himself. 
 Here, as in sickness, the cost of human losses in in- 
 dustry is shifted in part onto the cost of production. 
 It is passed on to the community where it belongs. 
 It is treated as an inevitable incident to industrial 
 
SOCIAL INSURANCE AND DEMOCRACY 197 
 
 conditions. Germany does not compel the worker 
 to make a vicarious sacrifice for the community. 
 
 The amount of the compensation paid depends 
 upon the wages of the employee and the extent of 
 the injury. If he is wholly incapacitated by the 
 accident, he receives a full pension, which amounts to 
 two-thirds of his yearly wage. If he is still able to 
 work, the pension is adjusted to his earning ability. 
 In case of accident which results in death, an imme- 
 diate payment of about one-sixth of the yearly wage 
 is paid. In addition to this the widow and depen- 
 dent children are pensioned, the widow until her 
 death or remarriage and the dependent children up 
 to their fifteenth year. In this event the annual 
 pension does not exceed 60 per cent, of the annual 
 wage. 
 
 Not only is the German workman insured against 
 sickness, which marks the beginning of much of the 
 poverty of our cities, as well as against the accidents 
 of industrial establishments, but since 1891 prac- 
 tically all German working men and working women 
 over sixteen years of age are insured against old age. 
 Those whose earnings exceed $500 are not covered by 
 old-age insurance nor are the higher class of em- 
 ployees and servants. The administration of this 
 branch is carried on by insurance societies, which 
 cover certain sections, or by the state at large. All 
 of them are under the supervision of the state and are 
 controlled by the employers and the employees. The 
 
198 SOCIALIZED GERMANY 
 
 old-age funds are supplied by the employers and the 
 employees, who contribute in equal shares to the fund. 
 To this the empire adds $12.50 toward every pen- 
 sioner. The cost to the worker is about the same 
 as the sickness insurance. In order to enjoy old- 
 age insurance persons must have made their pre- 
 scribed contributions to the fund; they must have 
 been members for a certain length of time and have 
 either become disabled or reached their seventieth 
 year. The premiums of the employees are deducted 
 by the employer weekly and are attached to cards 
 by means of stamps at the time of the payment of 
 the wages. 
 
 The amount of the old-age benefit received, it is 
 true, is not very large. It is not sufficient in itself 
 to support the recipient. It amounts to from $27.50 
 to $60 a year, according to the wages enjoyed or the 
 premiums paid by the beneficiary. 
 
 An overwhelming majority of the population are 
 covered by one or all of these insurance funds. The 
 population of Germany is 67,000,000, or approxi- 
 mately 13,000,000 families. In 1908 there were 
 13,189,509 persons of all classes insured against 
 sickness. The contributions amounted to $91,491,- 
 000, and the insurance paid out in benefits of all 
 kinds was $82,762,000. The number insured against 
 accident in the same year was 23,674,000, the amount 
 collected was $51,887,000, and the compensation 
 and benefits paid to the insured and their dependents 
 
SOCIAL INSURANCE AND DEMOCRACY 199 
 
 was $39,471,000. The number insured against old 
 age and invalidity was 15,554,000; the contributions 
 by the employers and the employees amounted to 
 $71,470,500, and the sums paid in pensions and 
 other benefits, $45,369,000. The average amount 
 of old-age pensions paid in 1905 was about $40. 
 During the twenty years from 1885 to 1905 the sick 
 benefits paid to working people amounted to $687,- 
 820,000, the accident benefits to $229,475,000, and 
 the old-age and invalidity since 1891 to $290,540,000. 
 All told there has been paid the colossal sum of $1,- 
 276,835,000 by these three insurance funds. Of this 
 total the working classes paid less than one-half, 
 the employers a somewhat larger share, while the 
 empire contributed $96,700,000. 
 
 Speaking of the insurance funds and their bene- 
 fits, Professor W. J. Ashley, of England, says: 
 
 " (1) Two-thirds of all the wage-earning work- 
 people in Germany are insured against sickness, and 
 can confidently look forward to receiving, in case of 
 need, both medical assistance and pecuniary relief; 
 i. e., there is a much narrower fringe of people totally 
 unprovided for. (2) A considerable part (one-third) 
 of the cost is compulsorily borne by the employers. 
 (3) Thirteen out of sixteen wage-earning work- 
 people have a right to a small pension in case of 
 permanent incapacity, or on reaching the age of 
 seventy a far larger number than the few who in 
 England benefit by friendly society pensions. . . . 
 The pension is small, varying from about two shil- 
 lings to five shillings a week. But, added to other 
 
200 SOCIALIZED GERMANY j 
 
 means of livelihood, it will often make all the differ- 
 ence between a pinched but possible existence and 
 absolute starvation; and it is to be remembered 
 that it can be claimed as a right and not as a charity. 
 (4) Almost two-fifths of the cost of this is also 
 compulsorily borne by the employers." 1 
 
 The cost of these insurance schemes is a substan- 
 tial burden to the employing classes. Yet, in spite 
 of the increased ^cost which it entails, German in- 
 dustry has not suffered in competition with the 
 world. The system is empire-wide, and the contri- 
 butions assessed against the employer are passed 
 on to the cost of production like any other charges. 
 It is also probably true that the efficiency and well- 
 being of the working classes has been so greatly 
 improved that the employers themselves have gained 
 by reason of the insurance. 
 
 One cannot exaggerate the effect of the insurance 
 legislation on the mind of the worker. The fear, 
 uncertainty, and even terror which are ever present in 
 his mind are relieved. The contributions, it is true, 
 are not very generous; the worker is compelled to 
 make contributions to the funds, and the administra- 
 tion of the law has some defects. But even the So- 
 cialists are inclined to admit the advantage of these 
 laws. Edmund Fischer said of them in 1905: 
 
 "Let the Industrial Insurance legislation be de- 
 preciated as it may, it must nevertheless be con- 
 
 1 The Progress of the German Working Classes in the Last Quarter 
 of a Century, p. 18. 
 
SOCIAL INSURANCE AND DEMOCRACY 201 
 
 f essed that the old-age and invalidity pensioners take 
 quite another social position to that of the incapaci- 
 tated grandfather of twenty-five years ago, who was 
 a load upon his children or was exposed to the 
 scandal of being maintained by the parish. Every 
 increase of the pensions is thus a piece of civilizing 
 work. The social laws are, it is true, only founda- 
 tion walls, but they are these at least, and for that 
 reason they are the beginning of a great fabric of 
 human solidarity." 
 
 Taking a more practical view of the question, 
 Herr Paul Kampfmeyer, the Socialist writer, said 
 recently in the Sozialistische Monatshefte : "The 
 German industrial insurance legislation has had 
 almost the same effect for labor as protective leg- 
 islation. It means an actual economic gain of a 
 milliard and a half of marks" ($375,000,000). 
 
 Aside from the positive accomplishments of the 
 state in these lines of social reform, one is impressed 
 with the seriousness with which the cities as well 
 as the nation are considering the whole question 
 of protection and care of the people. There are 
 numerous conferences, attended by representatives 
 from the empire and the various states, from the 
 cities, the universities, and the philanthropic socie- 
 ties. The best thought of the nation is given to 
 the study of ways and means for the solution of the 
 many problems which arise in connection with un- 
 employment, with the hazards of industry, with the 
 poor and the destitute members of the community. 
 
202 SOCIALIZED GERMANY 
 
 Poverty has not been abolished in Germany. 
 Industrial depression takes its tribute there just 
 as it does with us. But the impressive thing about 
 it all is that the nation views these questions with 
 something of the same seriousness that it does the 
 building of dreadnaughts, railways, or canals, the 
 adjustment of taxes, and the building of cities. It 
 calls to its aid the state and the municipality for the 
 training of the body and the mind as well as for the 
 keeping of the worker in as high a state of efficiency 
 as possible. 
 
 It is, of course, difficult to measure the effect of 
 this legislation or to make accurate comparisons of 
 labor conditions in different countries. There are 
 so many elements involved. And it is hard to por- 
 tray the exact conditions of the working classes. 
 The German artisan works long hours at exhausting 
 labor; his wages are low in comparison with those 
 which prevail in America; housing conditions are 
 very bad, not only in the city but in the country, 
 and the worker is far from enjoying the freedom of 
 action or the hopeful outlook of this country. Pov- 
 erty of the most distressing kind still prevails, the 
 life of the people is in many ways poor and sordid, 
 the unrest of the workers and their political demands 
 are all justified by conditions. It would be false to 
 suggest that Germany had made any revolutionary 
 changes in these matters or aimed at a programme 
 of industrial justice or political equality. But some 
 
SOCIAL INSURANCE AND DEMOCRACY 203 
 
 things can be accepted. In the first place emigra- 
 tion has almost ceased from the German cities. The 
 worker is better satisfied with what he gets at home 
 than by the promise of greater rewards in the new 
 countries. He has the assurance of protection 
 against the worst misfortunes that can befall him ; 
 and if he does not amass wealth he at least knows 
 that sickness, accident, and old age have lost some 
 of their terrors. The legislation of Germany has 
 been directed against the misery and waste of the 
 worker rather than against his low wages or his in- 
 dustrial and political status. These are gains which 
 he has to make for himself. And the worker recog- 
 nizes that fact. It is for these that he organizes 
 into the trade-union, it is this that lures him to the 
 Socialist party, it is this that lies back of the cease- 
 less propaganda that is carried on. 
 
 And it should be noted that this paternalistic 
 legislation has not had the effect which Bismarck 
 anticipated. It has not reduced the Socialist vote, 
 which has grown from year to year with almost un- 
 checked rapidity. In 1871 the party elected 2 
 members to the Reichstag, in 1875 9, in 1877 
 12. In 1871 the total vote was 124,655, in 1875 
 it rose to 351,952, and in 1877 to 493,288. Despite 
 the repressive laws adopted after the attempt on 
 the life of the Emperor and the enactment of the 
 insurance laws which were expected to satisfy the 
 worker, the growth in the Socialist vote continued, 
 
204 
 
 SOCIALIZED GERMANY 
 
 although the vote in 1881 fell to 312,000. In 1884 
 it rose to 539,000, in 1887 to 763,000, in 1890 to 
 1,427,000. Since then the vote as well as the rep- 
 resentation in the Reichstag has continued to in- 
 crease with each election. The vote and the rep- 
 resentation in subsequent years are as follows: 
 
 YEABS 
 
 TOTAL VOTE 
 
 REPRESENTATIVES 
 ELECTED TO 
 REICHSTAG 
 
 1893 
 
 1,787,000 
 
 44 
 
 1898 
 
 2,107,000 
 
 56 
 
 1903. . . 
 
 3,011,000 
 
 81 
 
 1907 
 
 3,259,000 
 
 43 
 
 1912 
 
 4,250,000 
 
 110 
 
 
 
 
 Political agitation and compulsory education 
 have created a hunger in the mind of the German 
 workman for further enlightenment. More than any 
 worker in the world, he seems to realize the value 
 of knowledge and its aid to him in the bettering of 
 his condition and the enrichment of his life. And 
 the German worker has evolved many agencies of 
 his own for satisfying this new desire. 
 
 One of the Socialist deputies in the Reichstag 
 recently said: "You do not know the workman's 
 pride. We support ourselves by the work of our 
 hands, and on labor work ourselves upward. We 
 have painfully educated ourselves in the evening and 
 night hours, while to you education came without 
 effort, yet I would not exchange intellectual power 
 with you." 
 
SOCIAL INSURANCE AND DEMOCRACY 205 
 
 Many opportunities for culture have been created 
 by the workmen themselves. Educational associa- 
 tions are to be found in the towns, many of which 
 have existed for years. More recently they have 
 become training-schools for socialism. Special edu- 
 cational committees are formed in connection with 
 the local trades council, or trade-union, which pro- 
 vide intellectual and recreative opportunities for 
 members of the Social Democratic party. Lectures 
 are given on socialism, science, history, ethics, and 
 natural science. The stereopticon is widely used. 
 Musical, literary, and dramatic performances are 
 also held, as well as exhibitions for the dissemination 
 of general knowledge. The Socialists have a school 
 in Berlin where classes are held throughout the 
 winter months, in which such subjects as political 
 economy, sociology, jurisprudence, history, rhetoric, 
 and other subjects are studied. The classes do not 
 begin until nine o'clock and last for an hour and a 
 half. Similar institutions have been arranged in 
 other cities, there being no charge or an insignificant 
 one for attendance. The only condition is that the 
 member shall belong to the Socialist party. In 
 Munich the Working Men's Educational Associa- 
 tion offers twenty courses of lectures, varying from 
 two to twelve in number, and the subjects studied, 
 among others, are the following: "Introduction to 
 political economy," "agrarian reform and policy/' 
 "political and culture history of the nineteenth 
 
206 SOCIALIZED GERMANY 
 
 century," "evolutionary periods in Bavarian his- 
 tory," "history of political parties in Germany," 
 "industrial insurance," "international law," "the 
 development of co-operation in Germany," "modern 
 poets and thinkers," "Albrecht Diirer," "the 
 German language," and "theories of criminal 
 psychology." 
 
 The lecturers are for the most part political and 
 party leaders, members of 'parliament, trade-union 
 leaders, editors, and social authors. The economic 
 subjects are most popular. They are listened to by 
 crowded audiences of working men and women who 
 attend them after a long day's work. 
 
 The working men, as in Belgium and Denmark, 
 are also developing an artistic and dramatic life of 
 their own. In Berlin there is a " free people's stage/' 
 where dramatic performances of a high order are 
 given at a small cost. The cheap and tawdry finds 
 no place in these performances, the dramas being 
 mostly of a political and social order. Such names 
 as Schiller, Ibsen, Hauptmann, and Sudermann 
 are the most popular. There are tragedies of 
 Shakespeare and Goethe as well as good modern 
 comedies. The same organization provides sports 
 and recreation on Sunday in the suburbs, the chil- 
 dren being led to then- playgrounds by bands and 
 members of the working men's party. 
 
 In recent years the temperance movement has 
 taken hold of the German working man. Germany 
 
SOCIAL INSURANCE AND DEMOCRACY 207 
 
 is the last country in the world where prohibition 
 would seem a hopeful propaganda, yet during recent 
 years the agitation for temperance has made great 
 headway. Drunkenness has never been a German 
 vice, even though the Germans and especially the 
 Bavarians are great beer-drinking people. But the 
 idea has gained ground that the use of alcohol is 
 detrimental to the individual worker as well as the 
 working-class movement. And socialism has pro- 
 moted the policy of abstention. The movement is 
 not a moral one. Nor is it stimulated by such or- 
 ganizations as exist in America and England. It is 
 purely utilitarian and is inspired by a growing ap- 
 preciation of the evils which result from the use of 
 alcoholic beverages. This is not the only influence 
 leading to temperance in Germany. Yet it is prob- 
 ably the most influential one. The extent to which 
 this movement has reached the working classes is 
 seen in the fact that during twenty years the con- 
 sumption of beer has fallen in Munich from 
 to 64J4 gallons per head. 
 
CHAPTER XV 
 
 HIGHER EDUCATION-PROVIDING THE 
 EXPERT 
 
 ONE need not be an expert to appreciate the 
 extent to which German science contributes to in- 
 dustry, trade, and the arts of war. And one need 
 not be an educator to see in the schools of the 
 country one of the great, possibly the greatest of 
 all, influences in her almost single-handed power. 
 Germany is the land of the schoolmaster. The edu- 
 cators and the war minister are the guiding spirits 
 in her life. Beginning at the top, there are 21 uni- 
 versities with an enrolment of 66,000 students. 
 These are not colleges in the American sense of the 
 term, preparing students for a Bachelor of Arts 
 degree; they are advanced institutions, conferring 
 the degrees of Doctor of Philosophy, of Law, Medi- 
 cine, and Science. The gymnasium corresponds 
 roughly with our colleges; the university with the 
 postgraduate departments of Harvard, Columbia, 
 Johns Hopkins, Chicago, and a half dozen great State 
 universities, which enroll in these advanced courses 
 not to exceed a few thousand men. Germany could 
 be put inside the confines of Texas and still leave 
 room for Switzerland. Yet this relatively small na- 
 
 208 
 
HIGHER EDUCATION 209 
 
 tion geographically has a great army of men pre- 
 paring for the severest kind of competition in the 
 business, professional, and scientific walks of life. 
 
 Higher education had its beginning in the awaken- 
 ing of Germany following the Napoleonic oppression. 
 The University of Berlin was founded in 1810. It 
 was followed by Breslau, 1811; Bonn, 1818; and Mu- 
 nich, 1826. There had been universities before of 
 the mediaeval type, but these new state foundations 
 were part of a consciously directed movement, to 
 recreate Germany, like the political and industrial 
 reforms of Stein and Hardenberg. 
 
 Friedrich Paulsen says of the founding of the 
 University of Berlin: 
 
 "It had been intended, from the first, to become a 
 centre of German science and learning an im- 
 perishable monument of the strength and self-sacri- 
 fice which enabled the prostrate state to rise again 
 and at the same time of the spirit in which this ele- 
 vation was effected. The king himself at one time 
 defined that spirit by saying that the Prussian state 
 would have to make up for its loss in physical by 
 intellectual forces. The new idea that came in with 
 the University of Berlin was that the university 
 should be above all the workshop of free scientific 
 research. From the very beginning the first quali- 
 fication for membership on the teaching staff was 
 skill in scientific research rather than teaching ability. 
 University work was divested of everything that 
 smacked of the school or secondary school." 1 
 
 1 German Education Past and Present, book 4, chapter II. 
 
210 SOCIALIZED GERMANY 
 
 The same spirit animates the universities to-day. 
 The German student enters the university after he 
 has completed his leaving examination from the 
 Gymnasium. He enters it as men in America enter 
 the professional school, with a definite faculty and 
 a definite goal before him. He has generally chosen 
 his profession; he is preparing for life, and the uni- 
 versity is definitely adjusted to his choice. There 
 are faculties of the greatest variety of subjects, 
 many of them definitely designed for the civil service, 
 whether it be law, state administration, the adminis- 
 tration of cities, education, or science. And back of 
 the efficiency of Germany in all her governmental 
 activities is the training provided in the universities 
 and technical schools, which is a prerequisite in most 
 instances to examination for the state service. 
 
 Following 1870 a new development took place in 
 higher education. It involved an emphasis upon 
 natural sciences, above all on chemistry, with tech- 
 nological practice, through which " science has liter- 
 ally been turned into a gold-mine." New fields of 
 research and new chairs are continually being added, 
 while new types of universities are being opened like 
 those of Frankfort and Diisseldorf . 
 
 Growing out of the emphasis upon exact science, 
 eleven technical universities (technische Hochschu- 
 leri) have been established. They have the same 
 standing as the regular universities and require an 
 equally exacting training, though with less Latin 
 
HIGHER EDUCATION 211 
 
 and Greek. These schools train for the higher 
 technical professions, such as architecture, engineer- 
 ing, chemistry, mechanical engineering, naval en- 
 gineering, and are one of the contributing factors to 
 the scientific achievements and the highly trained 
 civil service of the state. These universities are 
 generally located in the large cities. They enjoy an 
 extraordinary prosperity and attract students from 
 all countries. 
 
 Speaking of the technical colleges, Professor 
 Cooley says: 
 
 "No other institutions seem to have been more 
 important in promoting the great industries of Ger- 
 many. They illustrate Germany's patient toil and 
 tenacity in seeking success in the industrial world by 
 rational means and scientific methods. They are 
 institutions devoted to the adaptation of science and 
 education to the necessities of economic life. " 1 
 
 These technical universities enroll 17,000 students, 
 which, added to the attendance at the universities, 
 brings the total enrolment of the higher research in- 
 stitutions up to 83,000. 
 
 But the opportunities for advanced education do 
 not end with the universities and technical schools. 
 There are 3 schools of mines, 8 agricultural colleges 
 attached to the universities, 5 veterinary colleges, 
 and commercial colleges of advanced rank at Leipsic, 
 Cologne, Frankfort, Aix-la-Chapelle, and Hanover. 
 
 1 Vocational Education in Europe, p. 173. 
 
212 SOCIALIZED GERMANY 
 
 Prussia has an agricultural college in Berlin with de- 
 partments for the sugar industry and the manufac- 
 ture of yeast and starch. There are forestry schools 
 for those preparing to enter the government for- 
 estry service. Berlin has a school of town-planning, 
 Diisseldorf has recently opened a college of municipal 
 administration, and Frankfort has just dedicated a 
 municipal university, similar in rank to the older 
 foundations of the empire. 
 
 In addition to the above there are 424 commercial 
 and industrial schools of lower rank, which prepare 
 men for business and industrial pursuits, whose 
 courses include modern languages, international law. 
 and business efficiency. 
 
 Other special schools are provided by the cities, 
 planned for particular purposes or for boys and girls 
 of talent. There are textile schools in those parts 
 of Germany where the textile industry prevails. 
 Essen has schools devoted to training in the iron 
 and steel industry, while similar schools exist for the 
 building trades, for machine trades, and for other 
 industrial ends. Altogether there are 200 such 
 special high schools, in addition to the technical 
 and commercial universities. 
 
 The training received in these schools explains the 
 wonderful skill of the German workman; the facility, 
 ingenuity, and diversity of German industry. Of 
 special influence in this field are the higher schools 
 for industrial art, which cultivate the faculty of 
 
HIGHER EDUCATION 213 
 
 imagination and invention rather than mere tech- 
 nical skill. Some of these schools are general, some 
 are special. But in each case they endeavor to 
 adapt their courses of study to local industrial con- 
 ditions. This is particularly true of the industrial 
 art schools, like those of Munich, Frankfort, and 
 Dlisseldorf. In these schools we find courses for 
 decorators, furniture designers, scupltors, modellers, 
 and jewellers, while many of the schools have other 
 courses for engravers, etchers, enamellers, litho- 
 graphers, book designers, and landscape-gardeners. 
 There are courses in women's artistic handicrafts. 
 All of these schools have workshops to protect the 
 pupils from becoming mere draftsmen. 1 Evening 
 and Sunday courses are provided for workmen who 
 cannot afford to attend the schools during their 
 working hours. 
 
 When we consider the universities, technical 
 schools, commercial colleges, and special schools of 
 various kinds, enrolling several hundred thousand 
 students, specializing to the last degree along every 
 line of thought, science, and industry, and compare 
 this provision for the training of a nation with the 
 educational equipment of England, France, or even 
 the United States, we find an explanation, for the 
 most part an overlooked explanation, of the founda- 
 tions of modern Germany; of the industrial discover- 
 ies, the contributions of science to industry, the 
 
 1 Cooley, Vocational Education in Europe. 
 
214 SOCIALIZED GERMANY 
 
 development of the by-product, of intensive mining 
 and agriculture, and the expansion of the state from 
 an agricultural country of a generation ago into the 
 most dominating industrial nation of modern Europe. 
 
 There are faults in the system. There is a terrible 
 pressure of highly educated men struggling for every 
 opening. There is complaint of overwork, of de- 
 fective eyes and even of defective physique as a 
 result of overtraining and too great pressure. There 
 is undoubtedly individual waste and countless disap- 
 pointed ambitions. All these are vicarious costs 
 which the expansion of higher education involves in a 
 country of relatively limited opportunities. But 
 education itself has created opportunities. It has 
 created new industries. The wonder is not that the 
 overcrowding is so great, but that it is relatively so 
 little, in view of all the conditions. 
 
 Undoubtedly Germany is the most highly educated 
 nation in the world. She took the lead in the move- 
 ment for the universalization of higher education. 
 Her universities and technical schools attract men 
 and women from all over the world. They have pro- 
 foundly influenced higher education in the United 
 States. They gave us the postgraduate course, the 
 seminar, and the idea of research. Our higher 
 universities were modelled upon those of Germany, 
 just as our colleges were modelled upon those of 
 Great Britain. 
 
 But education in Germany is not top-heavy by 
 
HIGHER EDUCATION 215 
 
 any means. It is built from the bottom up, with 
 compulsory education for all classes from six to 
 fourteen years of age. There is no illiteracy in 
 Germany, or practically none. It amounted to .03 
 per cent, in 1905. In France illiteracy is 14 per cent., 
 in Great Britain 13.52 per cent., in Italy 30.6 per 
 cent., in Austria 26 per cent., in Hungary 40.9 per 
 cent., in Russia 61.7 per cent., while in the United 
 States it is 7.7 per cent. 
 
 Education is prized by all classes. It is looked 
 upon as the one avenue of advancement. It is 
 almost exclusively public and is generously sup- 
 ported by taxation. Individual cities have de- 
 veloped educational programmes of their own to 
 meet local conditions, to encourage industry, to at- 
 tract residents. Above the minimum standard pre- 
 sented by the state they have added new schools and 
 colleges designed to promote their local needs. The 
 schools are for the most part big and spacious. They 
 contain the most modern equipment, and the ele- 
 mentary schools are surrounded by playgrounds. 
 Next to the army and the navy, education receives 
 the most solicitous thought of the state. It is recog- 
 nized by Kaiser, minister, local authorities, and the 
 people as the open road to national greatness and 
 power. 
 
 Below the universities are the secondary schools, 
 the gymnasia. These correspond roughly with our 
 colleges and high schools in the age of the pupils, 
 
216 SOCIALIZED GERMANY 
 
 but not in the methods employed. The gymnasia 
 lead directly to the university, the average length 
 of preparation before the pupil is ready for college 
 being twelve or thirteen years, about the same as it is 
 in this country. But the work in the gymnasia, so 
 far as study goes, is much harder than it is in this 
 country and the student is much more thoroughly 
 trained than he is with us. 
 
 After a careful study of America, Doctor Georg 
 Kerschensteiner, director of the Munich schools and 
 the leading exponent of continuation along vocational 
 lines, makes this comparison with the German and 
 American type of secondary education: 1 
 
 "It is undeniable, that the average intellectual 
 maturity of the German pupil at entrance to the 
 university is considerably higher than the average 
 intellectual maturity of the student entering the 
 American college. In my opinion this is due to 
 several causes. In the first place it is due to the 
 fact that the stricter scientific method that charac- 
 terizes the work of the secondary school as compared 
 with that of the elementary school, begins too late, 
 if it is postponed until the fourteenth year, as in the 
 United States. The habit of strict logical thinking 
 cannot be inculcated early enough. But the un- 
 sifted scholastic material of the common school 
 does not permit the same intellectual demands upon 
 it as the selected material of the secondary school. 
 Thus the secondary schools of the United States 
 
 1 "A Comparison of Public Education in Germany and the United 
 States," Doctor Georg Kerschensteiner, United States Bureau of Edu- 
 cation Bulletin, 1913, No. 24. 
 
HIGHER EDUCATION 217 
 
 not only start their work too late, but they have to 
 eliminate immediately in their students various 
 habits of purely empirical thinking, a condition with 
 which the German secondary school does not have 
 to contend. Admittedly the secondary school in 
 Germany begins too early when it starts at nine 
 years of age, but just as surely does the American 
 secondary school begin too late." 
 
 The gymnasium teacher is thoroughly prepared. 
 He must spend at least four years at the university. 
 This is followed by a searching state examination 
 and a year of pedagogical training. And the teach- 
 ing is excellent. The secondary schools have highly 
 equipped teachers, in so far as preparation and ex- 
 aminations can insure them. 
 
 The discipline in the German gymnasia is very 
 different from that of the student in the American 
 high school or college. "The American high school 
 student, " says President Pritchell in the Fifth Report 
 of the Carnegie Foundation, "acquires a superficial 
 knowledge of many subjects and learns none with 
 thoroughness. He lacks the hard fibre in intellec- 
 tual discipline. " 1 The reverse is true in the German 
 gymnasia. There are no electives. The pupil must 
 take the course as laid out by the state or leave school. 
 And he is trained to painstaking intellectual effort. 
 He acquires patience, persistence, endurance, and 
 thoroughness, which are the virtues promoted by 
 
 1 United States Bureau of Education Bulletin, 1913, No. 24. " Com- 
 parison of Public Education in Germany and the United States." 
 
218 SOCIALIZED GERMANY 
 
 German education. On the other hand, the German 
 gymnasia fail to foster many of the qualities of the 
 American high schools or colleges. They do little 
 to promote initiative, good-fellowship, and cheer- 
 fulness. There are none of the many out-of -school 
 activities which are characteristic of secondary and 
 college education in America. 
 
 The high schools, or gymnasia, are divided into 
 three groups, each leading to a definite goal. Up to 
 very recently the classical gymnasium was the pre- 
 vailing type. It trained for the university, with the 
 emphasis placed upon Greek and Latin. By changes 
 inaugurated in 1901 the monopoly of the classics was 
 overthrown and provision was made for new types 
 of preparatory schools leading to the technical high 
 schools and the special universities. The Realgym- 
 nasium teaches Latin but no Greek; it favors the 
 modern spirit and emphasizes modern languages 
 and science. The Oberrealschule, however, teaches 
 neither Latin nor Greek, but restricts its teaching in 
 the main to subjects of practical importance along 
 scientific and mechanical lines. All three types have 
 common instruction in German, history, and religion. 
 It is only through the classical gymnasium that one 
 may enter the faculties of theology and philosophy 
 in the higher universities. 
 
 A great advantage of the long gymnasium course 
 of nine years is that it permits a mastery of a limited 
 number of subjects rather than a diversified smatter- 
 
HIGHER EDUCATION 219 
 
 ing of many. In the Oberrealschule in Charlotten- 
 burg, for instance, six years are devoted to the 
 natural sciences. Similar periods are devoted to 
 physics, chemistry, and mathematics, while from six 
 to nine years are given to English, history, French, 
 German, and geography. This is the foundation 
 upon which the student enters the university and 
 the technical school. The work has been confining, 
 examinations are difficult, and the student has ac- 
 quired the ability to concentrate, to master a given 
 subject. He knows how to work. 
 
 When the boy enters the university a reaction 
 comes. During the first semesters many of the 
 students loaf; they enter the student corps; they 
 invite their souls to the many things denied them 
 during their gymnasium course. This is the play- 
 time of the German student, and he takes advantage 
 of the opportunity. He registers at the university 
 and is free to attend classes or not, as he sees fit. 
 The only necessity is to meet the final searching 
 examinations, which are oral as well as written, pre- 
 liminary to his Doctor degree. He usually goes 
 from one university to the other, in order that he 
 may study under the recognized leaders in his par- 
 ticular branch. And then during the last eighteen 
 months or two years of his course he reads widely 
 and prepares for his examinations, usually with an 
 eye upon one of the professions or the state or munic- 
 ipal service. 
 
CHAPTER XVI 
 ELEMENTARY EDUCATION 
 
 PRIMARY education is compulsory for eight years, 
 and for ten months in the year, all over Germany. 
 The compulsory age is generally from six to fourteen. 
 The length of the school year varies from forty to 
 forty-two weeks, all vacations together amounting 
 to about nine weeks in the cities and eight weeks in 
 the country districts. In the United States the 
 length of the school year is often as low as eight 
 months and sometimes as low as five or six months. 
 The average number of school days in the year 
 1900-01 for the United States was 144.2. It ranged 
 from 76.1 in North Carolina to 191 in Rhode Island. 
 It is true that North Carolina, which had not even 
 a compulsory education law (1912) is the least ad- 
 vanced State in this respect, but there are twenty- 
 seven States in which the average attendance was 
 less than one hundred days, or between three and 
 four months. The average child in Germany spends 
 more weeks in school and more hours each day in 
 study than does the child in the more advanced 
 cities in this country. 
 
 The German Volksschule (people's school) and 
 
 220 
 
ELEMENTARY EDUCATION 221 
 
 Burgerschule (citizens' school), with their eight- 
 year courses of study, correspond with our own ele- 
 mentary schools. They do not prepare pupils for 
 high-school work, for those who plan to continue 
 their education into the gymnasium, or secondary 
 school, transfer to the latter after the third or fourth 
 year of the elementary course. As a consequence 
 the pupils in the elementary schools are more homo- 
 geneous; here they receive their whole formal school 
 education, from which they go out into the world 
 of trade, business, or farming, as their necessities 
 require. 
 
 The great majority of the pupils attend these pub- 
 lic schools, which are supported by public funds, and 
 tuition is usually though not always free. In Saxony 
 a small fee of about $1.25 or $1.50 a year is required 
 of the parents, unless they are unable to pay. 
 
 The purpose of these schools is eminently prac- 
 tical. They train the children in religion, good con- 
 duct, and especially patriotism, which is empha- 
 sized in a great variety of ways. In addition, they 
 receive general instruction in civic and political life. 
 Morality is taught through religion, children of 
 each creed being taught separately. Behavior is 
 taught; etiquette is made a special point. The chil- 
 dren learn how to address older persons, how to 
 enter and leave a room. They acquire the ability 
 to express themselves clearly and succinctly; how to 
 observe and classify their observations. 
 
222 
 
 SOCIALIZED GERMANY 
 
 Thoroughness (grundlichkeit) is the prevailing note 
 in the elementary schools. Much harder work is 
 demanded of the pupils than of our own. Not only 
 is the school year considerably longer than in the 
 United States, but the programme for the last three 
 or four years of work calls for thirty-two hours each 
 week, as compared with twenty-five, the usual 
 number in this country. 1 
 
 Considerably more morning work is done than in 
 our own schools but less in the afternoon. School 
 begins at eight and meets every week-day, including 
 Saturday. The work is usually over at one or two 
 o'clock, and the school day is broken up by frequent 
 recesses. In addition, children go to bed early and 
 rise early. In many cities they may not frequent 
 
 1 The range of studies in the elementary schools (Biirgerschulen*) of 
 Berlin is as follows: 
 
 SUBJECT 
 
 6TH YEAR 
 
 ?TH YEAR 
 
 STH YEAR 
 
 Religion 
 
 Hours 
 per Week 
 4 
 
 Hours 
 per Week 
 4 
 
 Hours 
 per Week 
 4 
 
 Reading, language, spelling 
 
 6 
 
 6 
 
 6 
 
 Geography 
 
 2 
 
 2 
 
 2 
 
 History . .... ... 
 
 2 
 
 2 
 
 3 
 
 Arithmetic 
 
 4 
 
 4 
 
 4 
 
 Geometry 
 
 3 
 
 3 
 
 3 
 
 Nature study, including physiology, 
 elementary physics, and chemistry 
 Drawing 
 
 4 
 2 
 
 4 
 2 
 
 3 
 2 
 
 Singing 
 
 2 
 
 2 
 
 2 
 
 Gymnastics 
 
 2 
 
 2 
 
 2 
 
 Writing 
 
 1 
 
 1 
 
 1 
 
 
 
 
 
 
 32 
 
 32 
 
 32 
 
 *The Biirgerschulen are of a slightly higher grade than the Volksschulen, 
 which are the predominant type in the country districts. 
 
 George Koeppel, Elementary School Teacher, December, 1912. 
 
ELEMENTARY EDUCATION 223 
 
 places of public amusement after 8 P. M. The con- 
 trol of the school authorities in these matters is 
 similar to that of the police. 
 
 Subsidiary schools of different types are provided 
 by many cities to make the ordinary schools more 
 efficient. Some cities have established help schools 
 (Hilfsschuleri) , for slow-minded children. These 
 schools have shops for modelling, pasteboard and 
 wood work, as well as exhibition rooms for the pupils' 
 work. The classes are small. These are not schools 
 for the feeble-minded. The feeble-minded are taken 
 care of in special institutions, usually in the country. 
 They correspond rather with our ungraded classes. 
 The Hilfsschule, however, is much more thoroughly 
 organized and successful in meeting the problem 
 of the backward child. 1 Mannheim has a system 
 of forderklassen, also located in separate buildings. 
 These are designed for children who, through lazi- 
 ness, lack of ability, etc., have failed of promotion. 
 Mannheim has another series of classes for those of 
 special ability, who are given special opportunities 
 for study and advancement. 
 
 In Munich, where vocational training has been so 
 wonderfully developed, the last year of the elemen- 
 tary course is designed to steer the boy toward a def- 
 inite calling and out of the blind-alley occupations. 
 He spends five hours a week for five months in the 
 year in the metal-working shop of the school and the 
 
 1 Koeppel, Elementary School Teacher, December, 1912. 
 
224 SOCIALIZED GERMANY 
 
 same amount of time for the remaining five months 
 in the wood- working shop. Girls in nearly all the 
 classes keep their own kitchen-gardens. Similar 
 special schools are found in other cities. 
 
 Education in Germany is highly centralized. 
 Many experts feel that it is too much so. The edu- 
 cational programme emanates from the government 
 rather than from the local authorities, and the people 
 are accustomed to accept it without protest. De- 
 spite this fact education commands more considera- 
 tion and thought on the part of state and municipal 
 authorities than it does in England or America. 
 Doctor Georg Kerschensteiner admits that the Ger- 
 man system makes it difficult for local authori- 
 ties to try experiments and that where too great 
 paternalism prevails old methods are likely to be- 
 come sanctified by tradition. 1 Yet Kerschensteiner 
 and his wonderful day continuation schools of Munich 
 are in themselves a refutation of this comment, as 
 are the achievements of such cities as Frankfort, 
 Cologne, and Dlisseldorf . 
 
 Education is under the control of the individual 
 states, as it is in the United States, and within the 
 state the system is much more uniform than it is 
 with us. At the head of it all is a state department, 
 usually the Department of Education. Sometimes 
 there are two executive heads, one for general and 
 one for industrial education. The universities are 
 
 1 United States Bureau of Education Bulktin, 1913, No. 24. 
 
ELEMENTARY EDUCATION 225 
 
 immediately under the minister, whose jurisdiction 
 over the schools is exercised through local depart- 
 ments, which represent the government, but differ 
 for different types of schools. Below the minister 
 and the state department are district inspectors, 
 in some respects like our own superintendents, but 
 with this important difference that they are officers 
 of the state. The inspector's authority is much more 
 than supervisory, for he has wide powers over the 
 internal management of the schools. He controls 
 teaching, discipline, and other matters. Under him 
 are inspectors for each community, who serve as 
 chairmen of the local committees. In towns this 
 committee represents the municipal authority. The 
 cost of the local school system is paid chiefly out of 
 local taxes, with subsidies from the state. 1 
 
 State control over the schools is also maintained 
 through the regulations governing the training and 
 examination of teachers, who are licensed to teach 
 only after they have passed a state examination. 
 Then they become part of the state civil service. 
 The government determines the courses in the semi- 
 naries for the training of teachers and the amount 
 and quality of work to be done by students preparing 
 to teach in the secondary schools. Thus the second- 
 ary schools are sure of having highly trained teachers, 
 whether it be in the largest city or in the smallest 
 village. This uniformity of standards, while it de- 
 
 1 Shadwell, Industrial Efficiency, vol. II, p. 401. 
 
226 SOCIALIZED GERMANY 
 
 presses individual initiative and experiment, has the 
 advantage of uniform excellence in preparation. 
 
 State regulations similar to the above exist with 
 regard to the university and technical schools, in 
 which we do not find that variation in standard 
 which prevails in this country. 
 
 In addition to the standardization of education 
 within the state there is substantial uniformity be- 
 tween the systems of the several states. A state may 
 excel in one branch of education, as does Bavaria in 
 vocational education, but the differences are not 
 fundamental. 
 
 The teachers are highly trained. In Prussia there 
 are 129 seminaries for teachers, all but 9 of them 
 for men. The training lasts for six years, although 
 in Prussia only three are spent in the seminary and 
 three in special institutions preparatory to it, main- 
 tained by the state or the municipality. After hav- 
 ing been admitted to the service, teachers are pro- 
 moted by competitive examinations or by reason of 
 their recognized achievements. They have the 
 privileges of civil servants, enjoy partial freedom 
 from military service and exemption from municipal 
 taxes, are paid a relatively high salary and have the 
 assurance of a pension on retirement. Thus the 
 position of the teacher is assured so long as he is 
 guilty of no infraction of the laws. As a result of 
 these conditions and the pressure for admission to 
 the state service three-fourths of the teachers in 
 Prussia are male. The majority of the teachers in 
 
ELEMENTARY EDUCATION 227 
 
 this country are female, the distribution in 1901 
 being 306,063 female and 123,941 male. And the 
 preponderance of the woman teacher is increasing. 
 One of the consequences of this is a great wastage 
 of teachers. Many women marry and drop the pro- 
 fession, while many men enter it as a stepping-stone 
 to something else. The same is true in England. 
 In neither country is teaching a standard profession 
 as it is in Germany, while in neither country is so 
 much attention given to the training and preparation 
 of the teaching staff. 
 
 The physical health and well-being of school 
 children is cared for with the same thoroughness 
 that characterizes education. Medical inspection 
 is general. All of the large cities and most of the 
 small towns have school physicians who examine the 
 child on entering school, who call in the parents and 
 advise them of any special dietary or other needs. 
 Accurate records are kept, especially those of back- 
 ward children. There is an annual congress of the 
 Association for School Hygiene which is attended by 
 school physicians from all over the country and is 
 designed to unify the system of medical inspection. 
 
 Strasburg has maintained a municipal dental 
 clinic for school children since 1902, which example 
 has since been followed by Darmstadt, Essen, and 
 other cities. In 1906 Berlin organized a Central 
 Committee for the Dental Care of School Children, 
 which was liberally subsidized by the Prussian 
 government. 
 
228 SOCIALIZED GERMANY 
 
 Some cities have established open-air schools in the 
 woods, Waldschulen, for sickly and anaemic children. 
 To these schools children are sent if they cannot be 
 properly cared for at home and brought up to nor- 
 mal condition. Instruction in these woods schools 
 is given in the forenoon and each period of recitation 
 is followed by a period of active exercise. The num- 
 ber of Waldschulen is increased year by year, as are 
 the walderholungsstdtten, or recreation resorts in the 
 woods, where there is no regular instruction, and the 
 aim is merely improvement in the health of the 
 children. Parents who are able to pay for their 
 children's treatment in these places are expected 
 to do so. 
 
 The feeding of needy school children has also made 
 rapid progress. Experiments were made along this 
 line as long as forty years ago. By 1896 the number 
 of cities which had made provision for feeding school 
 children had increased to 79, some of which gave 
 breakfast, some luncheon, and a few both. In 1908 
 the number had risen to 124 cities of over 20,000 
 population and to 70 with populations of from 10,- 
 000 to 20,000. l 
 
 Physical culture and gymnastics have been de- 
 veloped with great thoroughness during the last two 
 decades. In most schools three hours per week are 
 devoted to physical training, while in Prussia all 
 schools have daily calisthenics which, wherever pos- 
 
 1 Doctor Hinze, Soziale Kultur und Volkswirtschaft, p. 302. 
 
ELEMENTARY EDUCATION 229 
 
 sible, are provided out-of-doors. Gymnasium courses 
 for boys provide drills which will later be of use to 
 them when they serve with the colors, such as rapid 
 falling down, rising, etc. The regular physical 
 training is supplemented by long walks in the coun- 
 try, with practice in distant vision, in calculating 
 distances, and the development of the sense of direc- 
 tion, etc. During the spring and summer frequent 
 outings are taken to the woods and places of his- 
 toric interest. One sees groups of school children 
 daily walking through the country, at the zoological 
 gardens, in the parks, art galleries, and museums. 
 Schulerwanderungen is another form of recreation, 
 in which groups of twenty or more boys or girls from 
 the upper grades spend from five to six days on long 
 walking tours with a sympathetic teacher. 
 
 The government has done much to encourage lo- 
 cal societies for physical culture. These societies ar- 
 range for trips to the country, which are encouraged 
 by cheap railway fares and arrangements for sleeping 
 in the barracks and other public institutions. Cities 
 and rural communities provide exercise halls and 
 funds for these societies. Prussia appropriated two 
 and one-half million marks in 1913 to assist in 
 the development of the recreative activities of the 
 schools. Schools are also generously equipped for 
 physical culture. Many of them contain gymnasi- 
 ums, while 72 cities have 500 elementary schools 
 with bathing facilities. 
 
230 SOCIALIZED GERMANY 
 
 It is difficult to overstate the influence of education 
 upon the life of Germany. And it is almost wholly 
 the product of the last generation. Education is 
 woven into the fibre of the empire. It is not a de- 
 tached thing, separate and apart. It is an agency 
 for meeting every possible want and anticipating 
 every need. It not only prepares the boy and girl 
 to live, it prepares them to work, and to work in the 
 most efficient way possible. And along with the most 
 minute specialization there is a background of cul- 
 ture and familiarity with cultural things that ena- 
 bles even the poor to enjoy literature, art, and music 
 as well as the beauties of nature. The deadening 
 influence of modern industry with its automatic 
 processes has the counteracting influence of general 
 and special education, so that the variety of training 
 which modern industry has destroyed is supplied 
 through the school and the opportunities for life 
 which the school opens up. Education is also closely 
 integrated with industry through the college, special 
 schools, and vocational training, while a love for the 
 Fatherland, a veneration for the Hohenzollerns, a be- 
 lief in the destiny of the empire, and a willingness 
 to sacrifice everything for the state are some of the 
 by-products of an educational system which, if not a 
 model that can be copied by other countries, is at 
 least a suggestion of the commanding position which 
 education will probably enjoy in the civilization of 
 the future. 
 
CHAPTER XVII 
 
 VOCATIONAL EDUCATION PREPARING THE 
 CHILD FOR LIFE 
 
 COMPREHENSIVE as are the provisions for ele- 
 mentary, secondary, special, technical, and university 
 training, they by no means complete the catalogue 
 of the educational agencies of Germany. It was real- 
 ized by educators that elementary education did not 
 prepare the boy and the girl for the particular work 
 which they desired to follow; it provided no knowl- 
 edge of industry, trade, or even the domestic sciences. 
 The continuation school was designed to meet this 
 need. It is another of Germany's contributions to 
 modern education. It is designed for those whose 
 education stops with the elementary school and who 
 are beginning to earn their living, and is based upon 
 the fact that only 8 per cent, of the boys continued 
 their education beyond the lower grades. The con- 
 tinuation schools are designed to reach the other 92 
 per cent, of the student body. 
 
 The continuation school had its origin in a small 
 way in Rhineland and Westphalia. Attendance was 
 at first voluntary. But the schools did not draw 
 many pupils from the trades. Employers and em- 
 
 231 
 
232 SOCIALIZED GERMANY 
 
 ployees considered it a waste, and the experiment 
 seemed destined to failure. The same thing was 
 true in other towns, even in Munich, where the con- 
 tinuation school had reached its widest and best 
 development. Voluntary continuation schools with 
 Sunday and evening classes were not a success un- 
 til Doctor Kerschensteiner converted the schools of 
 Munich into a compulsory system obligatory upon 
 all who had left the elementary schools. 
 
 The Munich idea is now coming to prevail all over 
 the empire, and compulsory continuation education 
 is accepted by the people as a necessary adjunct to 
 the elementary school. As long ago as 1891 an 
 imperial law opened the way for its extension. This 
 has been followed by subsequent decrees, by which 
 certain local authorities were empowered to estab- 
 lish compulsory schools. Under the existing regu- 
 lations employers are required to give their em- 
 ployees under eighteen years of age leave of absence 
 from work so that they may attend these schools 
 during the hours prescribed by the authorities. At 
 the present time all of the large towns of Prussia 
 have availed themselves of these powers and have 
 inaugurated continuation schools. Almost all the 
 other states of the empire have followed Prussia's 
 example. And the compulsory feature is enforced. 
 In Hamburg, for instance, employers hiring helpers 
 of from fourteen to seventeen years of age must 
 supply the authorities with their names, and they 
 
VOCATIONAL EDUCATION 233 
 
 as well as the parents and guardians are under 
 obligation to see that the young people attend these 
 schools. 
 
 Thus far the compulsory principle has been en- 
 forced for the most part in the larger cities. Within 
 the last few years legislation has been enacted ex- 
 tending permissive powers to smaller towns and 
 country districts. Substantial subsidies are granted 
 by the state for the building of these schools. Within 
 a few years' time compulsory continuation educa- 
 tion will be universal throughout the empire. 
 
 The normal length of attendance required in these 
 schools is six to eight hours per week for three years, 
 the school year being forty weeks long. In Berlin 
 and in many other cities girls must now attend as 
 well as boys. Thirty thousand boys attended com- 
 pulsory continuation schools in Berlin in 1912 in 
 over 1,000 classes, which included all trades, and 
 149 classes in commercial branches with 4,416 
 pupils. 1 
 
 The system has grown with great rapidity. A 
 report of the United States Bureau of Education 
 states that 
 
 "In 1910 Prussia had 1,818 industrial continua- 
 tion schools (gewerbliche fortbildungsschuleri) with 
 321,226 students; 59 association schools with 5,831 
 students; and 285 guild schools, with 11,592 students. 
 Of the industrial continuation schools 1,749 had 
 
 1 Koeppel, Elementary School Teacher, February, 1913. 
 
234 SOCIALIZED GERMANY 
 
 compulsory attendance and 69 had optional at- 
 tendance. In former years there were many more 
 optional schools, as compared with the proportion 
 to-day, and this proportion is growing. . . . Pre- 
 viously the municipalities received no support from 
 the Prussian state for these continuation schools. 
 Now, however, the state is subsidizing them and 
 conditioning this help upon compulsory attendance, 
 and most of the communities have adopted it. ... 
 Compulsory attendance stops with the 18th year. 
 . . . Attendance at a recognized guild school re- 
 lieves the boy from attendance at the public indus- 
 trial continuation school." 1 
 
 The instruction in these schools, both in the trade 
 subjects and other subjects, is made to fit the needs 
 of the pupil as nearly as possible. In the arithmetic 
 course checks, drafts, and bills of exchange are 
 studied. The bookkeeping instruction is adapted 
 to the trade in which it will be used. In the classes 
 for factory workers only such instruction is given 
 as is considered of value to the permanently depen- 
 dent worker. There is instruction in industrial regu- 
 lations relating to apprentices and journeymen (the 
 apprentice system is still holding its own in Germany 
 alongside of the factory system), order and discipline 
 in industrial operations, the hygienic requirements 
 of the workshop, the co-operation and division of 
 labor. Then there is the training for good citizen- 
 
 1 U. S. Bureau of Education Bulletin, 1913, No. 9. See also J. 
 Saxon Mills, in Fortnightly Review, vol. 101, January- June, 1914 ? 
 and Geo. Koeppel, in Elementary School Teacher, February, 1913. 
 
VOCATIONAL EDUCATION 235 
 
 ship. The boy is shown the connection of the indi- 
 vidual calling with the common life of the family, the 
 workshop, community, state, and empire; and he is 
 taught the genesis and system of important public 
 institutions, reverence for the laws, loyalty to the 
 home and Fatherland, and interest in the affairs of 
 the town and the nation. The pupils learn about the 
 workings of the local municipality and its depart- 
 ments, public hygiene and sanitation, protection and 
 insurance of workers, industrial and district courts, 
 etc., and the most important facts about the con- 
 stitution, administration of the state, army and 
 navy, and colonies. In the field of physical educa- 
 tion there is compulsory study of personal hygiene 
 and elementary physiology and optional athletic 
 training, which is fostered in every possible way 
 by contests, walking tours, etc. The schools also 
 frequently provide for optional attendance at con- 
 certs, lectures, and other forms of educational 
 activities. 1 
 
 The needs of the trade and the wishes of employers 
 are considered to the fullest possible extent. If an 
 employer has several apprentices they may be sent 
 to the school on different days in the week, so that 
 he will never be left short-handed. In the seasonal 
 trades, such as those of the carpenters and painters, 
 the work in the school may be diminished in the busy 
 season and correspondingly increased in the off sea- 
 
 1 U. S. Bureau of Education Bulletin, 1913, No. 9. 
 
236 SOCIALIZED GERMANY 
 
 son. These schools can, of course, carry speciali- 
 zation further in the large cities, but even in the 
 smaller towns many varieties of trades are provided 
 for, though allied trades are often united. Thus all 
 the workers in the metal or wood working trade may 
 be united in one class. The Munich system, which 
 is the most highly developed of all, provides classes 
 and equipment for not less than fifty-six trades, and 
 the system is still growing. 1 
 
 The United States consul at Magdeburg says of 
 the continuation school : 
 
 "One of the aims of the industrial school is to give 
 the youth such instruction in language, government, 
 civic affairs, industrial laws, business customs, trade 
 practices, hygiene, sanitation, etc., as to fit him to be 
 an efficient employer or self-dependent workman, 
 an intelligent citizen, and a capable member of soci- 
 ety." 2 
 
 Moreover, there is nowadays a growing importance 
 attached to journeymen's and masters' certificates, 
 and the continuation school is doing its part in pre- 
 paring its pupils in these lines. 
 
 One important object of the continuation school 
 is to counteract the tendency of modern shops to 
 limit the work of the boy to a few manipulations in 
 a small field of the trade in which he is working, 
 
 1 U. S. Bureau of Education Bulletin, 1913, No. 9. 
 
 2 Ralph C. Benson, U. S. consul in Magdeburg, in U. S. Bureau of 
 Education Bulletin, 1913, No. 9. 
 
VOCATIONAL EDUCATION 237 
 
 leaving him helpless and ignorant in regard to all 
 the rest. 1 
 
 Magdeburg, with a population of 287,000, is typi- 
 cal of the more progressive of the German cities in 
 the matter of education for commercial and indus- 
 trial pursuits. After completing the compulsory eight 
 years' schooling, the boy of fourteen who is not 
 going to take up professional studies must choose a 
 trade. The school authorities help him find a suit- 
 able apprenticeship. He must go to the continua- 
 tion school a certain number of hours a week during 
 his apprenticeship, and thus the authorities keep 
 control over his education till the seventeenth 
 year. 
 
 The continuation schools are divided into two 
 groups the trade and the commercial schools, the 
 former giving instruction adapted to the particular 
 trade the pupil is interested in. In 1913 there were 
 classes for bakers, butchers, barbers, waiters, paint- 
 ers, decorators, tailors, blacksmiths, cabinetmakers, 
 and various other trades. Even if the boy does not 
 wish to become a skilled workman and has no ambi- 
 tion beyond being a messenger, street-cleaner, or 
 house servant, the city insists that he shall spend 
 three years at the continuation school. The same 
 regulations hold in Erfurt. 
 
 For boys who have been placed in the commercial 
 establishments of Magdeburg there is a requirement 
 
 1 Geo. Koeppel, in Elementary School Teacher, March, 1913. 
 
238 SOCIALIZED GERMANY 
 
 that they shall spend six hours a week for three years 
 in the continuation schools, where their practical 
 education is supplemented by theoretical training. 
 The subjects taught are accounting and bookkeep- 
 ing, business correspondence, commerical geography, 
 business law, and civil government. Should the 
 boy wish to study still further, he may enter a 
 Handels-hochschule for higher education in commer- 
 cial subjects. 
 
 The main continuation school in Barmen, with an 
 attendance of 3,751 pupils in 1913, had 131 classes, 
 divided up as follows: 
 
 34 classes for textile trades. 
 5 classes for lace-making trades. 
 
 16 classes for machine-tool making. 
 3 classes for art forging. 
 
 3 classes for plumbing, electric installation, etc. 
 
 4 classes for furniture and weaving-loom mak- 
 
 ing. 
 
 2 classes for house carpentry. 
 
 3 classes for house painting and decorating. 
 
 2 classes for shoemaking, saddlery, upholstery, 
 tailoring. 
 
 1 class for gardening. 
 
 2 classes for typesetting and book printing. 
 
 3 classes for bookbinding and box making. 
 2 classes for lithography and engraving. 
 
 4 classes for baking and candy making. 
 1 class for butchers. 
 

 VOCATIONAL EDUCATION 239 
 
 1 class for barbers and wigmakers. 
 39 classes for messengers and helpers. 
 
 2 primary classes. 
 
 4 classes for weak-minded. 1 
 
 The teachers have been specially prepared for 
 teaching their particular branches, and in addition 
 to their daily instruction they give occasional lec- 
 tures on different subjects. No classes are held 
 after 8 P. M. or on Sundays. All pupils receive four 
 hours instruction each week in trade and civic rela- 
 tions, composition, arithmetic, and bookkeeping. 
 Besides these, pupils in various trades requiring skill 
 in drawing receive additional hours of instruction 
 in this subject. Carpenters, engravers, gardeners, 
 and other trades receive two hours of practical 
 drafting; electricians and machinists, two hours of 
 drafting and one of physics; builders, lithographers, 
 engravers on wood, metal, and stone, four hours of 
 practical drawing; tailors, four hours of drawing, 
 with practical cutting and fitting. For the prac- 
 tical work in the various trades each teacher, who 
 is himself a master, has a complete collection of the 
 materials used, the necessary tools and machines 
 and models of work in his trade. 
 
 The cost of tuition is ten marks per year, to be 
 paid by the pupil's employer, and he must also allow 
 
 1 "Reports on Continuation Schools in Prussia," U. S. Bureau of 
 Education Bulletin, 1913, No. 9. 
 
240 SOCIALIZED GERMANY 
 
 the apprentice to attend the school at the proper 
 time. 
 
 The American consul at Barmen reports: 
 
 "The results are excellent, it is said, and the manu- 
 facturers and masters have learned that the instruc- 
 tion well repays the small sacrifice of time and 
 money. " 1 
 
 Frankfort-on-the-Main is divided into three dis- 
 tricts for purposes of continuation education, and 
 each district has provision for both commercial and 
 industrial education. Courses are free and com- 
 pulsory for all boys and girls between the ages of 
 fourteen and seventeen who have left school to earn 
 their own living. 
 
 The commercial course covers general commercial 
 knowledge (handelskunde) , commerical arithmetic, 
 bookkeeping, economic geography, citizenship (bur- 
 gerkunde), commercial correspondence and hand- 
 writing for all who show need of such training. Two 
 hundred and forty hours of instruction per year are 
 required. 
 
 The industrial division provides technical and 
 economic instruction of a practical but not experi- 
 mental character in every conceivable handicraft. 
 Classes are conducted by practical experts. Be- 
 sides the regular trades, such as baking, tailoring, 
 
 1 George Eager, U. S. consul at Barmen, in "Reports on Continu- 
 ation Schools in Prussia," in U. S. Bureau of Education Bulletin, 
 1913, No. 9. 
 
VOCATIONAL EDUCATION 241 
 
 etc., there is instruction for day-laborers and even 
 for deaf-and-dumb scholars. 
 
 An English observer commenting on the continu- 
 ation school says: 
 
 "The classes unquestionably fulfil the magnani- 
 mous purpose expressed in the opening sentence of 
 the annual report 'The object of the compulsory 
 continuation schools is to develop and perfect the 
 vocational equipment of the scholars and to help 
 to build them up into valiant men and citizens. ' " l 
 
 Many students of the obligatory age do not attend 
 these schools but go to schools like the splendid 
 Industrial Art School (Gewerbeschule) , where a small 
 fee is charged and the curriculum is more extended. 
 In the Frankfort obligatory schools alone in 1913 
 there were 6,901 pupils and 250 classes. 
 
 In Munich the continuation-school system reached 
 its earliest and one of its best developments. In that 
 city every boy between the ages of fourteen and 
 eighteen (or seventeen, if his apprenticeship is only 
 for three years) must attend in the daytime some 
 school belonging to the continuation-school system. 
 There are seven of these schools distributed about 
 the city, each housed in a large, well-equipped 
 building. Each has a higher division for journey- 
 men, foremen, and master workmen. Three more 
 such buildings are in course of construction (1914), 
 at a cost of $500,000. Fifty-six trades have classes 
 
 1 Saxon Mills, in Fortnightly Review, January- June, 1914. 
 
242 
 
 SOCIALIZED GERMANY 
 
 in these schools. The following course for brass 
 workers is typical of the Munich schools : 1 
 
 
 B 
 
 LOURS PJ 
 
 SB WEE 
 
 t 
 
 Age 
 
 14-15 
 
 15-16 
 
 16-17 
 
 17-18 
 
 Trade arithmetic, bookkeeping 
 
 1 
 
 1 
 
 1 
 
 1 
 
 Business composition, essays, and 
 
 
 
 
 
 reading 
 
 1 
 
 1 
 
 1 
 
 
 Citizenship, sensible living, and 
 
 
 
 
 
 hygiene 
 
 1 
 
 1 
 
 1 
 
 1 
 
 Information about trades, goods, 
 
 
 
 
 
 and tools 
 
 1 
 
 1 
 
 
 
 Drawing 
 
 3 
 
 3 
 
 2 
 
 3 
 
 Practical work 
 
 
 
 2 
 
 3 
 
 
 
 
 
 
 
 7 
 
 7 
 
 7 
 
 8 
 
 The first three subjects are invariably taught in 
 all trades, though the actual treatment is adapted 
 to each particular trade. The practical work of the 
 last two years for the brass workers is of a higher 
 grade than the boys are likely to get at their occu- 
 pation. One must actually see the photographs of 
 the school workshops even for the chimney-sweeps 
 to realize how seriously the training is carried out. 
 
 The upper division of the Munich industrial con- 
 tinuation schools, which is only obligatory on jour- 
 neymen and masters, has the following subjects in- 
 cluded in its course of study : 
 
 Technical Part. Free-hand and mechanical draw- 
 
 1 R. H. Best, The Problem of the Continuation School and Its Suc- 
 cessful Solution in Germany. 
 
VOCATIONAL EDUCATION 243 
 
 ing, trade drawing, chemistry, physics, geometry, 
 workshop and laboratory practice, knowledge of 
 goods. 
 
 Commercial Economic Courses. Arithmetic in 
 general, bookkeeping, exchange and commercial 
 law, computation, and business organization. 
 
 General Courses. History of the trade, commercial 
 geography, hygiene, lectures on industry in general, 
 insurance laws, etc. 
 
 The most serious complaint heard against the 
 schools is that they tend to make the pupil dis- 
 satisfied with the conditions which he finds in the 
 shop in regard to sanitation, etc. Sometimes, too, 
 the school has equipment which the employer lacks. 1 
 
 Special advanced divisions of the trade-schools 
 have been developed in many cities. They are 
 either in the same building as the continuation 
 school or are carried on as special schools. They are 
 well equipped with workshops and lecture-rooms, 
 and the classes are taught by teachers who are ex- 
 perts in their trades. Such schools are to be found 
 in Frankfort, Dresden, Leipsic, and many other 
 cities, but it is in Munich that they are most highly 
 developed. The teachers are required by the munic- 
 ipalities to keep up with the latest developments 
 in their occupations, exhibitions, etc., and must 
 know thoroughly the commercial requirements of 
 
 1 Bruno Rauecker, in Muenchener Volkswirtschaftliche Studien, 
 1911, p. 119. 
 
244 SOCIALIZED GERMANY 
 
 the trade, so that they can teach their subject in a 
 "commercial" way, as opposed to the "school- 
 master" fashion. A fee is required of the students, 
 which in Munich is about $5 a year. l 
 
 Till recently girls were required to attend only 
 three hours a week in the continuation schools in 
 Munich. Domestic science was the chief subject 
 taught, although the girls were permitted to attend 
 the boys' trade classes, which few of them did. In 
 the fall of 1914, however, continuation schooling 
 became compulsory for girls for the same length of 
 tune as for boys. Their schools are divided into 
 three parts: (a) domestic economy; (6) commercial 
 section; (c) technical section. The domestic-econ- 
 omy instruction has just been made compulsory for 
 all servant-girls and untrained workers in facto- 
 ries and girls who stay at home to help in the house- 
 hold after their elementary schooling. Commercial 
 courses are obligatory for all girls in business or 
 shops, and technical courses for those in industries 
 and trades, so far as they are trained workers. The 
 table on page 245 shows the course laid out for the 
 domestic-economy section in the Munich schools. 2 
 
 Needlework is optional because the girls have 
 learned all there is to know about plain sewing in the 
 elementary schools and the course in needlework in 
 the continuation schools is of a more advanced kind. 
 
 i n. H. Best, The Problem of the Continuation School and Its 
 Successful Solution in Germany, p. 40. 
 
 2 Kerschensteiner, The Schools and the Nation. 
 
VOCATIONAL EDUCATION 
 
 245 
 
 
 HOUBS PEB WEEK 
 
 Class 1 
 
 Class 2 
 
 Class 3 
 
 Compulsory subjects: 
 Religion 
 
 1 
 2 
 2 
 
 1 
 
 1 
 2 
 2 
 
 1 
 
 1 
 2 
 2 
 
 1 
 1 
 
 Housekeeping and hygiene 
 
 German 
 
 Accounts and domestic (later busi- 
 ness) bookkeeping 
 
 The training of children 
 
 Voluntary subjects: 
 Needlework . . 
 
 
 6 
 
 2 
 3 
 3 
 6 
 
 6 
 
 3 
 2 
 2 
 6 
 
 7 
 
 4 
 2 
 
 2 
 6 
 
 French 
 
 English 
 
 Technical drawing 
 
 
 14 
 
 13 
 
 14 
 
 Educational experts are a unit in their approval 
 of these schools as a preparation for trade and in- 
 dustry. A report of the United States Bureau of 
 Labor says: 
 
 "To sum up: 'The German industrial schools are 
 achieving in large measure the purpose for which 
 they were established industrial efficiency. They 
 are not yet fully developed, nor are their types finally 
 fixed. They constitute a living, growing movement, 
 which gives every promise of increasingly fruitful 
 results on industry and on the comfort and culture 
 of the German people.' " * 
 
 As to the influence of the German educational 
 
 1 Holmes Beckwith, "German Industrial Education and its Lessons 
 for the United States, " in U. S. Bureau of Education Bulletin, 1913, 
 No. 19. 
 
246 SOCIALIZED GERMANY 
 
 system on industry the British consul-general for 
 the district of Diisseldorf says : 
 
 "German success in commerce and industries is 
 generally admitted to be due to the German govern- 
 ment's exemplary and exceptionally excellent educa- 
 tional system. For the last thirty years the schools 
 and colleges have been turning out young men pro- 
 vided with a better education than can be obtained 
 in the majority of other European countries. Of late 
 years in particular, continuation schools have proved 
 a most valuable asset of the nation. ... It stands 
 to reason that a nation's population which has had 
 the benefit of five years' extra schooling over its 
 neighbor is bound in the long run to forge its way 
 ahead of its neighbor, even if originally both nations 
 were on an equality, mentally and physically. (This 
 writer includes in the five years' schooling the two 
 years spent in the army 'that true university of 
 manners and manhood. ') The continuation schools 
 have proved the value of the knowledge they impart 
 to their boys and girls, making them fitter and more 
 able to succeed in the struggle for existence. ... It 
 is not a question of attending a few evening classes, 
 when the boys are tired out by their hard day's 
 work; by law the employer is forced to give every 
 boy and girl enough free time during the day to 
 attend eight and sometimes ten hours a week at the 
 school during the working hours. . . . Going as they 
 do from the elementary schools to the continuation 
 schools, and from these into the army, the boys are 
 continuously under some supervision and training, 
 which is so necessary at that age. They are taught, 
 besides their trade, cleanliness, self-respect, disci- 
 pline, the art of taking care of their health all of 
 
VOCATIONAL EDUCATION 247 
 
 which is of the utmost value during the whole of their 
 life." l 
 
 Continuing, the writer says: 
 
 " It may in the long run not avail us to maintain a 
 two-ship power against Germany if we allow Ger- 
 many to maintain a two-school power against us. 
 The more perfect social organization of the German 
 people, their stronger national consciousness, and, 
 above all, their fuller equipment in school and col- 
 lege for the practical duties of life and citizenship 
 these are more formidable advantages in the secular 
 struggle for survival and supremacy than the mere 
 piling up of mechanical armaments. " 2 
 
 1 British Diplomatic and Consular Reports, 1913. Cd. 7048, pp. 
 72-73, quoted by A. Saxon Mills in Fortnightly Review, January- 
 June, 1914. 
 
 2 A. Saxon Mills in Fortnightly Review, January- June, 1914. The 
 author had been describing the chaotic condition of continuation 
 education in England, where not more than 13 per cent, of the 
 children who left school at the minimum age continued their edu- 
 cation in night school, and of this 13 per cent, only a small fraction 
 attended any length of time. It was a case of tired teachers trying 
 to teach tired pupils. 
 
CHAPTER XVIII 
 SANITATION AND HEALTH 
 
 IN another chapter we have seen that Germany 
 has a high birth-rate and a higher percentage of 
 births over deaths than any other country except 
 Russia. Reference has also been made to the elab- 
 orate provisions for the health of children, for their 
 inspection by school physicians, for out-of-door 
 schools and recreation, for the supervision of fac- 
 tories and the introduction of sanitary and hygienic 
 appliances. Public hygiene is a highly perfected 
 profession in Germany. Each city has experts on 
 the subject who enforce stringent sanitary rules, 
 while frequent conferences are held, attended by 
 state and municipal officials. Like education, health 
 is the subject of the most serious official concern. 
 The object aimed at is not only the prevention of 
 disease but the maintenance of the highest possible 
 working efficiency of the individual. Sanitation and 
 preventive medicine in all its branches is another 
 form of the German war on human waste. 
 
 A great stimulus was given to the whole subject 
 of public health by the social insurance laws for 
 protection against accident, sickness, invalidity, and 
 old age. If the worker could be kept in health the 
 
 248 
 
SANITATION AND HEALTH 249 
 
 demands on the funds would be reduced to that 
 extent. Added to the solicitude for the soldier and 
 the worker was the economic concern of the state 
 and of industry to keep mortality and invalidity as 
 low as possible. And the immense insurance funds 
 accumulated in the hands of the state provided a 
 reservoir for elaborate expenditures for better houses, 
 for the building of sanitariums, hospitals, convales- 
 cent homes, tuberculosis farms for the care and recu- 
 peration of those weakened by disease. Just as the 
 municipal savings-banks offered resources at a low 
 rate of interest, for the building or purchase of pub- 
 lic-service activities, so the moneys gathered to- 
 gether from all over the empire in small contributions 
 from millions of workers made it possible to carry 
 forward an elaborate programme of preventive 
 medicine. 
 
 While public health in America is regulated almost 
 exclusively by the local authorities, which make such 
 regulations as they choose, in Germany the empire, 
 the states, and the municipalities all exercise wide 
 supervision of the subject. In addition to the vari- 
 ous authorities charged with administrative respon- 
 sibility an Imperial Board of Health, formed in 1876, 
 serves as a bureau of research and advice for the 
 empire as a whole. The board carries on investi- 
 gations and places its researches at the disposal of 
 state and local authorities. Such problems as water- 
 supply, disinfection, and the disposal of sewage are 
 
250 SOCIALIZED GERMANY 
 
 the kind of subjects with which it is primarily con- 
 cerned. 
 
 Health administration, like education, is a matter 
 of state rather than local concern. It falls within 
 the jurisdiction of the Interior Department as in 
 Prussia, or the kulturministerium. In this field 
 the state authorities have large powers which they 
 exercise in co-operation with the local authorities. 
 
 In Prussia, for instance, the state health depart- 
 ment has charge of all measures for the fighting of 
 infectious and certain other diseases. It examines 
 plans for water-supply and sewerage, supervises 
 hospitals of all kinds, and, in general, advises local 
 authorities in matters of sanitation and public 
 health. It also exercises further control over local 
 authorities through the district medical officers, who 
 may vote on local health committees, and even 
 convene them. In Baden, the state authority is 
 responsible for the execution of the sanitary laws, 
 as a police authority. It "administers the state 
 laws and local by-laws and regulations relating to 
 the sale of milk, the inspection and sale of meat, the 
 trade in poisons, the manufacture of mineral waters, 
 the use of beer stills, the businesses of barbers, 
 masseurs, quack doctors, and uncertificated den- 
 tists. 1 This wide extension of the police functions 
 in the domain of health administration is typical 
 of other states as well. 
 
 l Dawson, Municipal Life and Government in Germany, p. 193. 
 
SANITATION AND HEALTH 251 
 
 The local health administration is organized as 
 follows : 
 
 In the larger states municipal authorities are re- 
 quired by law to form local committees to co-operate 
 with the state in the administration of the laws. In 
 Prussia such committees must be formed in all 
 communes with more than 5,000 population and 
 may be formed in smaller places. The town council 
 determines the size of the committee. A medical 
 practitioner and building expert are usually among 
 the members. Membership on these committees 
 is honorary and may not ordinarily be declined. 
 The term of office is at least six years. In large 
 towns subcommittees are often formed. The local 
 health committees are required to familiarize them- 
 selves with the general sanitary conditions in their 
 districts, particularly in such matters as housing 
 conditions, cleanliness of streets, water-supply, 
 public abattoirs, trade in foodstuffs, conditions of 
 schools, effect of industries of the neighborhood on 
 public health, the condition of the poor and sick 
 and institutions for their care, public baths, ceme- 
 teries, etc. It is their duty to support all sanitary 
 measures taken by the police authority, acting in 
 accord with the " circle " medical officer. They must 
 instruct the people upon questions of public health, 
 investigate evils that may cause the spread of disease, 
 and initiate proposals for the improvement of sani- 
 tary conditions. Committees are expected to meet 
 
252 SOCIALIZED GERMANY 
 
 at least four times a year and to make periodic 
 visits of inspection and special visits at times of 
 floods, epidemics, etc. Each city has also its own 
 municipal medical officers. Sometimes the chief 
 of these officers is given a place in the executive, as 
 is the case in Berlin and Charlottenburg. Some- 
 times his rank is simply that of head of a depart- 
 ment dependent upon that body. 1 
 
 In the matter of hospitals, cities are required by 
 law to provide only for the care of infectious diseases, 
 and indirectly for the care of the sick poor. Up to 
 twenty-five years ago the hospitals were used only 
 by the indigent sick. Since the passing of the social 
 insurance laws, a great extension of hospital service 
 has taken place. All the larger towns, indeed, go far 
 beyond the legal requirements in the extent and 
 quality of their hospital service. The total number 
 of public hospitals in Germany in 1885 was 1,706; 
 in 1907 it was 2,222, an increase of 30 per cent. 
 Still more significant is the increase in the number 
 of beds, which rose from 75,000 to 138,000 within 
 that period, an increase of 83 per cent., compared 
 with a rise of 42 per cent, in the population. Most 
 of the money paid by the sickness-insurance societies 
 for the treatment of insured persons ($15,000,000 in 
 1911) is paid to the public hospitals, which charge 
 the societies less than cost, or a sum varying from 50 
 cents to 80 cents a day. Wonderful hospitals have 
 
 1 Dawson, supra, p. 192. 
 
SANITATION AND HEALTH 253 
 
 been erected in recent years. They are equipped 
 with all scientific requirements. The Virchow hos- 
 pital in Berlin cost $3,125 per bed for erection 
 and equipment, but most of the others cost con- 
 siderably less than that. Infectious diseases are 
 usually treated in connection with the general hos- 
 pitals, but to meet the exigencies of epidemics most 
 of the larger towns have buildings in reserve which 
 can easily be turned into isolation hospitals. 
 
 Cemeteries in the big cities are laid out like parks 
 and gardens. They are as free as possible of de- 
 pressing influences. Charges for grave sites and 
 other services are regulated by law. In Prussia 
 they are limited to actual cost. Many towns, in- 
 cluding Diisseldorf, Stuttgart, Frankfort-on-the- 
 Main, and Mannheim, carry on the business of 
 undertaking, and here, too, the charges are low. 
 
 The cremation movement is making rapid prog- 
 ress, although it has hitherto met much ecclesiasti- 
 cal opposition. There are (1913) 29 crematories in 
 operation in Prussia and 11 in the other states, 
 nearly all owned by the communes. 
 
 Stringent measures for the inspection of food and 
 drink have been adopted by all the states, and in- 
 spection is becoming increasingly thorough. The 
 laws are enforced by the sanitary police, with the 
 co-operation of the local authorities. The govern- 
 ment of Wiirtemberg is making special efforts to in- 
 sure the purity of the milk-supply, and has placed 
 
254 SOCIALIZED GERMANY 
 
 direct responsibility on the communes supplying 
 the milk. The city of Munich has four groups of 
 food inspectors: (1) market inspectors for all food 
 which comes into the municipal markets; (2) inspec- 
 tors for all the milk entering the city; (3) 21 district 
 inspectors and assistants for the inspection of the 
 city's food-supply in general, and (4) inspectors for 
 all meat coming from outside the town, who examine 
 at the railway station. 
 
 Analytical laboratories for the examination of 
 food have been established in many cities. Berlin 
 has a particularly well-equipped one, which serves 
 for the analysis of industrial material as well as the 
 food-supply, and for chemical and bacteriological 
 investigations in general. 
 
 Berlin is also in possession of a splendid system 
 of treating sewage. The city has an irrigation farm 
 of 44,000 acres, planned by the late Rudolf Virchow. 
 About 400,000 cubic yards of sewage from the city 
 and environs is treated daily. Nearly one-half the 
 total area of the sewage farms is devoted to irriga- 
 tion purposes and 11,600 acres of the remainder 
 consists of corn land, small holdings, and laborers' 
 gardens, dykes, railways, etc. Breslau, Magdeburg, 
 and other cities have similar farms, but of smaller 
 extent. The marked decrease in the mortality from 
 typhoid is largely due to the connection of houses 
 with the sewage system. In 1870 when there were 
 15,000 properties unconnected with the system in 
 
SANITATION AND HEALTH 255 
 
 Berlin, the death-rate from typhoid was 7.7 per 
 10,000 of the population. By 1900, when all prop- 
 erties in the city were connected with the system, 
 the rate had fallen to 1 in 25,000 and is now even 
 lower. 1 
 
 Charges for street scavenging and the removal of 
 house refuse are usually assessed against owners of 
 property and are only rarely met from general 
 revenue. In some towns the local authority provides 
 the necessary vessels and supplies empty, disinfected 
 receptacles for those removed. 
 
 Public baths are an institution in nearly all the 
 larger towns, especially those towns situated on 
 rivers like the Rhine and Elbe. " In 1910 there were 
 335 separate bathing establishments in public hands 
 in 51 towns with a population exceeding 50,000," 
 beside the still greater number of privately owned 
 establishments. Nearly all these towns owned 
 several swimming-baths. In 1913, 72 towns had 
 among them equipped 500 school buildings with 
 baths. The municipal bathing establishments of 
 Munich are among the finest in the empire, although 
 many other cities have establishments on almost 
 as magnificent a scale. The charge at the largest 
 and most sumptuous of the baths in Munich, which 
 was a gift to the city, and is managed by the munic- 
 ipality, is from 3 to 6 cents for the working classes, 
 yet in spite of this low charge it pays its way. Over 
 
 1 Dawson, supra, p. 199. 
 
256 SOCIALIZED GERMANY 
 
 600,000 persons a year use the various baths in 
 Munich. In addition to the ordinary baths some 
 towns have medicinal baths for the benefit of in- 
 sured persons. On the whole the public baths are a 
 source of loss to the towns, but this fact is not con- 
 sidered by the local authorities because of the more 
 important demands of public health. 
 
 Practically all German cities are well provided 
 with parks and open spaces within their adminis- 
 trative area. Barmen, with 12.5 per cent, of its to- 
 tal area in green open spaces, has 20 square yards 
 of green for each inhabitant; Duisburg has 22 square 
 yards and Diisseldorf 24. These are all factory 
 towns. In planning new areas the rule is to reserve 
 a certain proportion of the land for recreative pur- 
 poses. Besides, there is the forest and woodland be- 
 longing to the cities, which is often converted into 
 natural parks. 
 
 Up to quite recently, German cities paid little 
 attention to provisions for playgrounds. The am- 
 ple park space was beautifully kept and carefully 
 guarded from the inroads of youngsters, and this is 
 still the rule in most parks. In recent years, how- 
 ever, parks of a new and more truly recreative type 
 have been provided by many of the larger cities. 
 The Treptow Park in Berlin is an example of this 
 kind. Here adults as well as children may indulge 
 in all sorts of exercise, even bathing and swimming. 
 Gravelled play spaces have been laid out in some 
 
SANITATION AND HEALTH 257 
 
 of the older parks and in most of the small neighbor- 
 hood parks. Cities, once convinced of the necessity 
 for play spaces, have energetically provided them. 
 Recent statistics show that Breslau has 84 public 
 playgrounds for children; Cologne 54; Hamburg 46; 
 Erfurt 39. Berlin has 310 acres of playground 
 space, some of it being levelled ground, some of it 
 grass, besides a number of large playgrounds in the 
 outlying districts to which children are taken on 
 holidays. These resorts were used by over a quarter 
 of a million children in the summer holidays of 1913, 
 nearly half of the children being transported there 
 free. Philanthropic organizations co-operate with 
 the school authorities in equipping these playgrounds 
 with apparatus and with tents for rainy weather and 
 in organizing games. 
 
CHAPTER XIX 
 THE WAR UPON DISEASE 
 
 THE most important advances in health protection 
 have followed the social insurance laws. Statistics 
 showed that 15 per cent, of the claims for disability 
 pensions of males are due to tuberculosis and 9.5 
 per cent, of those of females. This fact and the 
 powers granted the invalidity-insurance institutions 
 to place invalided workers in a hospital led these 
 institutions to undertake a wide-spread campaign 
 against disease, through the erection and operation 
 of sanatoria, the promotion of better housing proj- 
 ects, and financial assistance to the anti-tuberculosis 
 movement in general. Imperial, state, and munic- 
 ipal authorities co-operated in this campaign. 
 
 The most wonderful series of tuberculosis sana- 
 toria have been erected by the insurance institutions, 
 beginning with 1 in 1896, and increasing to 37 in 
 1909, which provided treatment for 22,734 patients, 
 male and female, during the latter year. A number 
 of other sanatoria have been erected by communal 
 and provincial authorities, largely with funds loaned 
 at low rates of interest by the insurance institutions. 
 The aggregate amount loaned for this purpose up to 
 December, 1909, was 13,062,625 marks, of which 
 
 258 
 
THE WAR UPON DISEASE 259 
 
 1,252,607 had been repaid. By 1911 there were 99 
 public tuberculosis sanatoria of both kinds, besides 
 a large number of private sanatoria, some of which 
 provided for wage-earners at reduced rates. 
 
 The economic results of institutional treatment 
 in the tuberculosis sanatoria, which averages about 
 75 days in length, are carefully checked up for a 
 period of five years in the case of each patient dis- 
 charged with special reference to "restored earning 
 capacity, " which in the sense of the invalidity-in- 
 surance institutions means that the discharged per- 
 son is able to earn at least one-third of his wage- 
 earning capacity previous to the disease. In the 
 case of patients discharged in 1905 with their earning 
 capacity restored within the meaning of the insurance 
 laws, 76 per cent, retained their earning capacity 
 till the end of 1905; 63 per cent, to the end of 1906; 
 54 per cent, to the end of 1907; 48 per cent, to the 
 end of 1908; 44 per cent, to the end of 1909. The 
 proportions for women were somewhat better, being 
 78 per cent, for the first year and 52 per cent, for 
 the last. The proportion of patients discharged 
 with earning capacity restored grows larger every 
 year. In 1909 it was 83 per cent, for males and 
 females; and 86 per cent., if the cases in which treat- 
 ment lasted only 14 days or less are omitted from 
 the calculation. Success of the treatment depends 
 largely, of course, upon the stage of the disease when 
 the patient goes to the sanatorium. In 1909, 92 
 
260 
 
 SOCIALIZED GERMANY 
 
 per cent, of those admitted in the first stage of the 
 disease were discharged with earning capacity re- 
 stored. About 5 out of every 1,000 patients dis- 
 charged require readmission during the year of dis- 
 charge, 59 after one year ; 68 after two years, 45 
 after three years, and 33 after four years. 1 
 
 The anti-tuberculosis campaign has made great 
 headway in Germany during* the last few years. In 
 1910 the sum of 480,964 marks was expended for aid 
 and support of the general movement, of which al- 
 most 300,000 marks was in the form of subventions 
 to tuberculosis dispensaries and information bureaus. 
 There are also sanatoria for tuberculous children 
 (22 in operation in 1911) and 86 preventoriums for 
 those likely to become tuberculous, which give treat- 
 ment free or at very reasonable rates. In addition 
 there are over 100 forest day and night camps and 
 open-air schools. For far advanced cases, 96 homes 
 
 x The economic results of institutional treatment in the case of 
 employees of the Prussian-Hessian railway system by years, 1904- 
 10 were: 
 
 YEARS 
 
 No. OF 
 
 PATIENTS 
 UNDER 
 FULL 
 TREATMENT 
 
 PATIENTS FULLY ABLE TO WORK AFTER 
 
 1 
 
 YEAR 
 
 2 
 
 YEARS 
 
 3 
 
 YEARS 
 
 4 
 YEARS 
 
 5 
 
 YEARS 
 
 6 
 
 YEARS 
 
 1904.. 
 1905.. 
 1906.. 
 1907.. 
 1908. . 
 1909.. 
 1910.. 
 
 716 
 810 
 1,180 
 955 
 1,152 
 1,268 
 1,422 
 
 Per 
 Cent. 
 81.7 
 85.3 
 85.8 
 81.0 
 82.6 
 86.4 
 85.9 
 
 Per 
 Cent. 
 74.6 
 76.7 
 78.1 
 73.0 
 75.4 
 72.3 
 
 Per 
 Cent. 
 66.6 
 71.9 
 73.0 
 68.9 
 75.2 
 
 Per 
 Cent. 
 63.0 
 68.2 
 69.8 
 65.6 
 
 Per 
 Cent. 
 59.6 
 65.2 
 69.0 
 
 Per 
 
 Cent. 
 
 64.0 
 
 
 
 
 
 
 
 
 
 
THE WAR UPON DISEASE 261 
 
 for incurables were in operation in 1911; also 17 
 convalescing homes for patients discharged from 
 sanatoria and 33 observation stations, chiefly in 
 connection with sanatoria or general hospitals, for 
 the study of incipient cases. Systematic warfare 
 against the disease is waged by a large number of 
 tuberculosis associations throughout the German 
 Empire, the work being directed and, if necessary, 
 financially helped by the German Central Committee, 
 which is under the protection of the German Em- 
 press, and whose honorary presiding officer is the 
 imperial chancellor. This committee receives a 
 small imperial subsidy of about $14,000 annually. 
 During the year 1910, the committee expended 
 177,300 marks in the form of financial aid in the es- 
 tablishment of sanatoria, 33,316 marks for tuber- 
 culosis museums, besides the money spent for prop- 
 aganda, etc. 
 
 Largely as a result of the campaign against tuber- 
 culosis the death-rate from the disease has progres- 
 sively declined. For the empire as a whole it dropped 
 from 23.08 per 10,000 during 1895-9 to 18.45 dur- 
 ing the period 1905-9. In cities the rate fell from 
 27.4 during the period 1890-4 to 17.9 in the period 
 1905-9. The rate in Berlin fell from 34.7 per 10,000 
 in 1880 to 17.9 in 1909; in Bremen, from 39.7 to 
 15.1; in Cologne, from 41.4 to 15.6; in Dresden, 
 from 36.9* to 17.7; in Essen, from 40.9 to 10. 
 
 The total amount expended for treatment and 
 
262 SOCIALIZED GERMANY 
 
 care of tuberculous wage-earners in the empire in 
 
 1910 in special sanatoria erected for the purpose was 
 about 17,500,000 marks, this being in addition to 
 the sum spent in methods of prevention and the 
 national campaign against tuberculosis, in which in- 
 surance institutions have co-operated together with 
 the government authorities of the empire, the states, 
 and municipalities. Only a limited number of those 
 suffering from the disease can be accommodated 
 and given full treatment in the sanatoria, one out of 
 every 13 or 14 at most. 
 
 The tuberculosis dispensary has also had a re- 
 markable development in recent years. In 1908 
 there were only 175 of these institutions, but by 
 
 1911 the number had increased to 528. The number 
 of forest day and night camps increased from 82 in 
 1908 to 98 in 1911. There were in that year 15 
 forest schools for tuberculous children and 2 agri- 
 cultural colonies for tuberculous wage-earners. The 
 work of the dispensary is to examine for symptoms 
 of the disease, after which it aims particularly at 
 improving the hygienic conditions of the patient's 
 home. During the four years ending October 1, 
 1908, the Berlin information bureaus and tuber- 
 culosis dispensaries medically examined 82,006 
 persons for symptoms of the disease. They also 
 examined, reported upon, and put in a more or less 
 sanitary condition the homes of 45,583 tuberculous 
 wage-earners. 
 
THE WAR UPON DISEASE 263 
 
 A more far-reaching effort is being made to combat 
 tuberculosis by improving housing conditions of the 
 wage-earners a movement which is being vigor- 
 ously pushed and liberally supported by the insurance 
 institutions as well as through provincial and com- 
 munal authorities. Up to December 31, 1910, 320,- 
 000,000 marks had been furnished by the invalidity- 
 insurance institutions in the form of loans for building 
 purposes. The government keeps strict watch over 
 the plans of housing projects, in order that specula- 
 tion may be eliminated and the public good pro- 
 tected. 
 
 The invalidity-insurance institutions, comprehend- 
 ing in their membership practically the entire wage- 
 earning population, seek to keep the morbidity-rate, 
 as distinguished from the death-rate, as low as 
 possible. It is these institutions and not the life- 
 insurance companies that have been active in the 
 anti-tuberculosis campaign. 
 
 A report of the United States Bureau of Labor 
 comments on the war on tuberculosis as follows: 
 
 "The marvellous results achieved in the German 
 Empire through the intelligent co-ordination of pub- 
 lic and private agencies enlisted in the effort to re- 
 duce the mortality from tuberculosis to a minimum 
 entitles the German experiment, as the first and most 
 successful of its kind, to the admiration of the entire 
 civilized world. Whether what has been done has 
 paid for itself in a strict financial sense is wholly 
 secondary to the social results which have been 
 
264 SOCIALIZED GERMANY 
 
 achieved, and which have unquestionably conferred 
 an infinite amount of good upon the German people 
 engaged in German industry in successful compe- 
 tition with the economically more advantageously 
 situated wage-earners of many other lands/' 1 
 
 J "Care of Tuberculous Wage Earners in Germany," Bulletin of 
 the United States Bureau of Labor, No. 101. 
 
CHAPTER XX 
 GOVERNING CITIES BY EXPERTS 
 
 THE German city is a cross-section of the nation. 
 It is Germany at her best. Here, as in the army, 
 the navy, and the civil service, one finds the most 
 highly organized efficiency and honesty. Corrup- 
 tion is almost unknown. There is no such thing as 
 the spoils system or favoritism. The higher munic- 
 ipal offices are filled with men prepared for the 
 profession of administration by education, long ex- 
 perience, and achievement. The council, too, com- 
 mands the services of the business and professional 
 classes, who serve without pay and give of their time 
 in an unstinted way to the community. 
 
 The city is also a cross-section of the state in its 
 sovereignty. It has large powers and great freedom 
 of action. It controls private property just as it 
 controls persons. It owns many things and operates 
 them in the public interest. There is a solicitous 
 concern for the health, well-being, and happiness of 
 the people, and an intelligent understanding and 
 approval of municipal socialism by all classes that 
 is not to be found any place else in Europe. 
 
 Rule by an economic class prevails in the city as 
 
 265 
 
266 SOCIALIZED GERMANY 
 
 it does in the state. Just as Prussia is governed 
 by the great estate owners, so the city is governed 
 by the large taxpayers, by the business and com- 
 mercial classes, who, under the three-class system of 
 voting, have a preponderating power at the polls. 
 They elect the members of the city council, who, in 
 turn, select the burgomaster and members of the 
 magistrat. In Prussia the working classes have but 
 few representatives in the council and could not 
 under any circumstances control the administration. 
 
 Forty-five years ago there were but few large cities 
 in Germany, and they were capitals of the two score 
 kingdoms, principalities, and free cities. During 
 the intervening years urban population has grown 
 rapidly, possibly more rapidly than in America. 
 This is particularly true in Prussia and along the 
 lower Rhine, where industry has developed with 
 such astounding rapidity. 
 
 Diisseldorf had but 70,000 people in 1871. In 
 1910 it had 356,000. Frankfort-on-the-Main grew 
 from 80,000 to 401,000 during the same period. 
 Berlin was a capital city of but 800,000 in 1870. To- 
 day it contains 2,064,153 people. There are thirty- 
 three cities in Germany whose combined population 
 is over 12,000,000 people. This is 18 per cent, of the 
 whole, while the total urban population equals 49 
 per cent, of the total. Since 1880 the urban growth 
 has been particularly rapid. Breslau increased in 
 population by 86.9 per cent, in thirty years from 1880 
 
GOVERNING CITIES BY EXPERTS 267 
 
 to 1910, Cologne by 253 per cent., Dresden by 248 
 per cent., Hanover by 146 per cent., Nuremberg by 
 234.1 per cent., and Chemnitz by 188.1 per cent. 
 During the same period Cincinnati increased in popu- 
 lation by 42.8 per cent., Buffalo by 173.4 per cent., 
 New Orleans by 56.9 per cent., Providence by 113.9 
 per cent., and Rochester by 144.1 per cent. Taking 
 the empire as a whole, urban population increased 
 from about 30 per cent, in 1870 to 49 per cent, in 
 1910. There are now 47 cities of over 100,000 popu- 
 lation, while the total urban population amounts to 
 over 30,000,000. 
 
 Fortunately the machinery of administration was 
 admirably suited to meet the problems created by 
 this rapid urban growth. The municipal code has 
 remained but little changed since the reforms of 
 Baron von Stein in 1808. The cities have great 
 freedom of action in matters of local concern. They 
 are almost sovereign in their control over purely 
 domestic matters. Doctor Albert Shaw says: 
 
 "There is in the German conception of city 
 government no limit whatever to the municipal 
 functions. It is the business of the municipality 
 to promote in every feasible way its own welfare 
 and the welfare of its citizens." 1 
 
 This idea of municipal autonomy runs back to 
 early times. During the later Middle Ages the towns 
 obtained grants of freedom from the overlords by 
 
 1 Municipal Government in Continental Europe, p. 323. 
 
268 SOCIALIZED GERMANY 
 
 conquest or purchase. Many of the towns in fact 
 were free from all obligations except those to the 
 empire, and some of these free cities like Frankfort, 
 Hamburg, Bremen, and Liibeck retained their free- 
 dom down to very recent times. Even to-day Ham- 
 burg, Bremen, and Liibeck are free and independent 
 states within the empire. 
 
 Freedom is one explanation of the achievements 
 of the German city. It also explains the attitude 
 of officials and citizens. The people have a love and 
 regard for their cities; they desire to serve on the 
 council or voluntary committees. They also bear 
 taxes with unusual willingness and submit to con- 
 trol of the community for the common interest. 
 Back of all other explanations of the German city 
 is its sovereignty, its autonomy, its freedom. It is 
 free to make experiments, which, when successful, are 
 adopted by other communities. 
 
 In addition, the administrative machinery is very 
 simple. The municipal code provides for a large 
 council elected by districts, and an administrative 
 group or magistrat presided over by the burgo- 
 master or mayor. In addition to its ordinary activ- 
 ities the city performs many services for the state, 
 such as the control of the church, the supervision of 
 education, the insurance funds, and many other 
 services which in this country and in England are 
 carried on by the state or left in the hands of pri- 
 vate individuals. 
 
GOVERNING CITIES BY EXPERTS 269 
 
 The town council is a large body; much larger than 
 in the United States. The council of Berlin consists 
 of 144 members, of Charlottenburg 72, of Breslau 
 102, of Diisseldorf 36, and of Bonn 39. The mem- 
 bers are elected from wards for a term of six years. 
 The majority of the members of the council must be 
 house owners. 
 
 There are 92 house owners out of 144 members of 
 the council in Berlin, 37 out of 72 in Charlotten- 
 burg, and 53 out of 102 in Konigsberg. This tends 
 to make the council conservative. In addition the 
 method of election precludes any popular control of 
 the city, just as the constitution of Prussia and the 
 empire preclude any popular control of the state 
 and the nation. This is especially true in Prussia, 
 where the " three-class" system of voting prevails. 
 This excludes the working class from any real par- 
 ticipation in the government and, as it works out in 
 practice, lodges the control in from 5 to 10 per cent, 
 of the voters. 
 
 In ascertaining the power of the electors, tax- 
 payers are listed according to the amount of income 
 taxes paid by them just as they are for state elec- 
 tions to parliament. The taxpayers are then di- 
 vided into three classes, each one of which elects one- 
 third of the town council. The classification is made 
 as follows: beginning with the highest single tax- 
 payer, as many are checked off as are necessary to 
 make up one-third of the receipts from the income 
 
270 SOCIALIZED GERMANY 
 
 tax. This group elects one-third of the council. 
 The process is continued to make up the second class, 
 which elects another third of the council, while the 
 third list, which contains the great majority of the 
 electors, elects the remaining third. For instance, 
 in Berlin, in 1912, out of 386,736 qualified electors, 
 91.5 per cent, or 353,704 were in the third class, and 
 were permitted to elect but one-third of the council, 
 while 936 were in the first class, and 32,096 in the 
 second class. Between 8 and 9 per cent, of all the 
 electors elected two-thirds of the members of the 
 town council. In the city of Essen, at one time, 
 four individuals made up the first class of voters. 
 The qualifications for the suffrage differ in the dif- 
 ferent states. In Bavaria a system of proportional 
 representation prevails, while the other southern 
 states have modified their system to some extent 
 in the direction of democracy. 
 
 This three-class system of elections is another in- 
 dication of the caste-like organization of Germany, 
 for just as the empire is governed by the landed aris- 
 tocracy of Prussia through the constitution of 1871 
 and the unfair distribution of seats, so the cities are 
 ruled by the big taxpayers, the bankers, landowners, 
 and business men. Neither in the cities nor in the 
 states is there any belief in democracy or any pro- 
 vision for the expression of the popular will. 
 
 The town councillor is the only official elected by 
 the people. The mayor or burgomaster is chosen 
 
GOVERNING CITIES BY EXPERTS 271 
 
 by the council, as are his assistants who form the 
 magistrat. Together they form the administrative 
 branch of government, and are the centre of the 
 municipal system. 
 
 The burgomaster is a distinguished official, the 
 most distinguished in the city. The position is one 
 of great dignity, and is the final goal toward which 
 subordinate officials aspire. Generous salaries are 
 paid, while on the expiration of his term of office the 
 burgomaster receives a substantial pension for the 
 remaining years of his life. In addition he has large 
 powers, and in many cities is a member of the Prus- 
 sian House of Lords. Berlin and some of the larger 
 cities have an ober-burgomaster and another burgo- 
 master, while Munich has an ober-burgomaster and 
 three other mayors. Most towns, however, have 
 only a single chief executive. 
 
 Unlike America and England, the mayors are 
 chosen for long periods, usually for twelve years. 
 On the expiration of their first term they may be re- 
 elected for similar terms, or appointed for life. In 
 Wurtemberg, the mayor is chosen by the citizens 
 directly, but in all the other states he is chosen by 
 the town council. The selection of the mayor as 
 well as the members of the magistrat must be con- 
 firmed by the government in Prussia and Bavaria, 
 although this provision is not found in the other 
 states. In some cities the mayor is nominated di- 
 rectly by the King. Usually the royal assent is 
 
272 SOCIALIZED GERMANY 
 
 given as a matter of course, but in some instances 
 the crown has rejected the choice of the council, 
 and in Berlin where such rejection occurred, the city 
 was without a burgomaster for some years. If the 
 selection fails to secure the royal sanction the coun- 
 cil makes another choice, and if this is not ap- 
 proved the appointment is made by a district presi- 
 dent until an acceptable selection is made. 
 
 Here, again, is an example of Prussian statecraft, 
 of centralized control combined with local freedom. 
 Under this system the cities must always conform 
 to the will of the King of Prussia. There is no 
 chance for the development of democratic or revo- 
 lutionary ideas, for the burgomaster and members 
 of the magistrat are the controlling officials of the 
 city. They make the policies of the municipality 
 and carry them into execution. And they are always 
 responsible to the King, who not only approves of 
 their selection, but through this approval controls 
 their advancement as well. In addition the In- 
 terior Department supervises the activities of the 
 city. It exercises a centralized veto upon its under- 
 takings. It directs education, controls the police, 
 and is itself responsible for the administration of the 
 property of the church, the insurance funds, and 
 many other activities which are delegated to the 
 city for performance. So long as all goes well there 
 is little interference, for the central authorities are 
 sympathetic to the idea of municipal freedom. And 
 
GOVERNING CITIES BY EXPERTS 273 
 
 so long as the executive officials conform to the will 
 of the higher officials there is complete co-operation 
 and encouragement. But should the city select an 
 official who is persona non grata to the King, should 
 too radical ideas be fostered, or too new and too ad- 
 vanced socialistic proposals be undertaken, the 
 central authorities would interfere and the city 
 would ultimately be compelled to bow to the royal 
 will. 
 
 The powers of the German burgomaster are some- 
 what similar to those enjoyed by mayors in this 
 country. He presides over the magistrat and directs 
 its proceedings. He also subdivides the work 
 among his associates. He can even intervene when 
 the town council suggests some act outside of its 
 power or in derogation of his position. His power 
 of removal is limited, however, to the right of sus- 
 pension. 
 
 While there are no special qualifications for the 
 office of burgomaster, men are usually selected who 
 have had long training and experience. Usually 
 they have taken a university or technical course 
 with the civil service in view and subsequently 
 have served in a subordinate municipal position 
 from which they have risen to the post of burgo- 
 master in a small town. When a vacancy offers in 
 some other city a number of candidates present 
 themselves. Often men enter municipal service 
 through the town council or the state civil service. 
 
274 SOCIALIZED GERMANY 
 
 In the larger cities men are selected because of dis- 
 tinguished achievements elsewhere. For instance, 
 Doctor Martin Kirschner was first a judge, later he 
 was elected to the post of town councillor in Bres- 
 lau. From this he was appointed the city's legal 
 adviser, and in 1893 he was called to become one 
 of the burgomasters of Berlin. Subsequently he 
 was elected chief burgomaster, which position he 
 held until shortly before his death. Doctor George 
 I. Bender, the chief burgomaster of Breslau, also 
 entered the municipal service through the law. He 
 became a magistrat in the city of Thon, and in 1888 
 was elected burgomaster of that city. In 1891 he 
 was chosen to chief burgomaster of Breslau. Prob- 
 ably the most distinguished municipal official in 
 Germany was Doctor Adickes, of Frankfort-on-the- 
 Main, who entered municipal service as burgo- 
 master of Dortmund at the end of the Franco- 
 Prussian War. Here he served for four years. In 
 1877 he was chosen burgomaster of Altona, and in 
 1883 became its chief burgomaster. In 1891 the 
 city of Frankfort-on-the-Main called him to that 
 city as burgomaster, which office he held up to 1913. 
 During this time he raised the administration of 
 that city to a high order of excellence. Under his 
 administration Frankfort became a laboratory of 
 experiments in taxation, in town-planning, in in- 
 dustrial, housing, and harbor developments. When 
 he became burgomaster in 1891 the population of the 
 
GOVERNING CITIES BY EXPERTS 275 
 
 city was but 180,000; to-day it is 414,000. Frank- 
 fort suggests a city of 1, 000, 000 people instead of 
 less than half that number. 
 
 Diisseldorf is another example of the same kind 
 of marvellous municipal building under the inspira- 
 tion of a competent official. In 1898 Doctor Wil- 
 helm Marx, a business man, was called to be its 
 burgomaster. He surrounded himself with other 
 trained men and proceeded to build a city in the 
 centre of the lower Rhine region which would at- 
 tract business and professional classes from the 
 surrounding territory. Around about Diisseldorf 
 were Cologne, Essen, Barmen, Elberfeld, Duisburg, 
 and many other towns striving for population and 
 commerce. But Diisseldorf became in many ways 
 the experiment station of Germany. With the aid 
 of experts it was planned in a big, comprehensive 
 way to provide for years of growth. All of the public- 
 service corporations were taken over and operated 
 by the city. Docks and harbors were built, the 
 Rhine river front was reclaimed, house and land 
 policies were promoted, and at the end of his term 
 of twelve years the indebtedness of Diisseldorf had 
 been increased to $100 per capita, although 85 per 
 cent, of this indebtedness was for activities which 
 involved no burden to the taxpayers. 
 
 Diisseldorf is known as the Garden City of Ger- 
 many. It has attracted numerous manufacturers, 
 has lured to itself thousands of retired business and 
 
276 SOCIALIZED GERMANY 
 
 professional men, and is a great art centre as well 
 as a place of resort for foreign tourists. 
 
 This is but typical of the careers of many mayors 
 who have contributed so much to the wonderful 
 cities that have sprung up all over Germany during 
 the last twenty-five years. They have the support 
 of equally competent officials and of the community. 
 Cities compete with one another in various lines of 
 municipal activities, and in this competition the 
 mayor is the directing genius. In miniature his 
 position is not unlike that of a constitutional mon- 
 arch or the president of a great corporation. 
 
 Burgomasters receive high salaries. Berlin pays 
 the chief mayor $10,000 a year. Frankfort pays 
 $9,000, Dusseldorf $8,350, Charlottenburg $7,600, 
 Breslau and Cologne $7,500. Other towns of from 
 100,000 to 300,000 inhabitants pay in the neigh- 
 borhood of $5,000 a year. In addition, substantial 
 perquisites attach to the office. In some towns a 
 residence is added. Upon the expiration of the 
 term of office liberal pensions are granted. This is 
 an obligation even where the mayor has proven 
 unsatisfactory, and is not re-elected. The pension 
 usually amounts to from one-quarter to one-half of 
 the salary received. 
 
 Associated with the mayor is an administrative 
 staff or magistrat, the members of which are also 
 elected by the council. They enjoy powers analogous 
 to those enjoyed by the directors of the various 
 
GOVERNING CITIES BY EXPERTS 277 
 
 departments under the federal or commission form 
 of government in America. Members of the magis- 
 trat are selected by the town council, frequently 
 after competition, to which men from all over Ger- 
 many present themselves. The size of the magis- 
 trat is determined by the council and the number of 
 activities in which the city is engaged. Berlin has 
 34 members, Breslau 29, Charlottenburg 25, Dantzig 
 25, Diisseldorf 12, and Frankfort 24. These cities 
 are all in Prussia. Dresden has 39 members in the 
 magistrat, Leipsic 37, Mannheim 31, and Munich 37. 
 
 Approximately one-half of the members of the 
 magistrat are salaried, the other half serve as 
 honorary advisers. In the smaller towns and in the 
 states outside of Prussia the unsalaried members 
 exceed the salaried ones. 
 
 The salaried members are selected with special 
 reference to their fitness for a particular depart- 
 ment. One is assigned to be director of law, another 
 of schools, another of finance, another of public 
 works, another of poor relief. Each is trained by 
 education and experience for the place to which he 
 is called. Like the burgomasters, they have gen- 
 erally risen from post to post, and are frequently 
 called from one city to another. The salaries paid 
 are liberal, while an assured position and a pension 
 on retirement add to the attractiveness of the ser- 
 vice. The unsalaried members are usually men of 
 distinction and comparative leisure. 
 
278 SOCIALIZED GERMANY 
 
 A much larger number of administrative chiefs 
 is provided for than in the United States. The 
 salaried directors alone in the average German city 
 are twice as numerous as in the average American 
 city, and including the unsalaried members they 
 are from four to six times as numerous. 
 
 Special provision is made for courses in adminis- 
 tration in all the universities, while within the last 
 few years a number of colleges have been opened 
 for the special training of officials. Diisseldorf 
 opened a school of administration a few years ago 
 which covers the whole field of municipal activity. 
 Cologne has a similar college, while Berlin has a 
 college of town-planning. The course of instruc- 
 tion includes finance, taxation, police, health, and 
 social activities in general. In some towns training 
 is required as a prerequisite of admission to the 
 municipal service. 
 
 This is the administrative machinery of the Ger- 
 man city. It is admirably suited to the complex 
 problems of municipal housekeeping. It is designed 
 to secure permanence and efficiency. And the city 
 is viewed not as a political but as a social agency. 
 The former is but incidental. The main purpose is 
 to promote the common welfare in every possible 
 way. And in the carrying out of the idea the state 
 is an aid rather than a hindrance. It encourages 
 new undertakings and suggests projects like hous- 
 ing, land purchase, banking, the building of docks 
 
GOVERNING CITIES BY EXPERTS 279 
 
 and harbors, and the promotion of education. 
 Statistics are gathered and successful experiments 
 of one town are made known to another. Con- 
 ferences are frequently held for the promotion of 
 housing, health, education, and town-planning, 
 attended by experts from all over the empire. 
 Municipal administration in Germany is not the 
 plaything of politics it is the most serious problem 
 of statecraft, and it commands the best thought of 
 the empire. 
 
CHAPTER XXI 
 MUNICIPAL SOCIALISM 
 
 THE German cities have carried socialization 
 further than have the individual states. They own 
 the greatest variety of undertakings and are con- 
 stantly extending the boundaries of municipal ad- 
 ministration. There is no theoretical distinction 
 between the so-called natural monopolies and com- 
 petitive industries, although quite obvious principles 
 of action underlie the policies adopted. The public- 
 service utilities, such as street railways, gas, elec- 
 tric light, and water companies which occupy the 
 streets and require special permits or franchises, 
 are generally publicly owned. Harbors and docks 
 are operated as integral parts of the transportation 
 system and as an aid to industry and commerce. 
 Housing is treated as a quasi-public utility, while 
 land ownership and land speculation are engaged in 
 partly for fiscal, partly for social, reasons. Other 
 considerations support public banking, markets, 
 abattoirs, bathing establishments, and restaurants. 
 These are part of a social programme and are sanc- 
 tioned by the traditions of the country as well as by 
 the long-established policy of protecting the com- 
 
 280 
 
MUNICIPAL SOCIALISM 281 
 
 munity from extortion, monopoly, and the dangers 
 which the modern industrial city involves. 
 
 The policy of municipal socialism is encouraged 
 by the state, and the laws are adjusted to the easy 
 acquisition and financing of municipal projects. 
 At the same time the high character of men in the 
 councils and the magistracy insure efficiency and 
 honesty of administration. The average German 
 city has at its command more diversified talent 
 and a more highly trained administrative staff, and 
 it carries on its enterprises with greater economy 
 and efficiency than most private corporations. 
 
 As stated elsewhere, municipal socialism is en- 
 couraged by the great freedom of action which the 
 city enjoys. It can experiment as it wills. There 
 is no inelastic enumeration of powers in the munic- 
 ipal code. Generally speaking, the city can do 
 anything an individual or corporation may do. It 
 is a free and independent entity in the industrial 
 field and enjoys much of the sovereignty of the 
 nation. There are no minute and exasperating con- 
 stitutional or legal limitations upon its powers, no 
 paralyzing restrictions imposed from above. The 
 city is free to live its own life in its own way, and 
 to promote the well-being of its people as the town 
 council may decide. 
 
 Nor are there any constitutional or legal debt 
 limits upon the cities. The city is as free to issue 
 loans as a private corporation. It can borrow to 
 
282 SOCIALIZED GERMANY 
 
 any extent that it wills and for any purpose, subject 
 only to the approval of the central administrative 
 authorities, which must be satisfied that the under- 
 taking proposed is a reasonably proper one for the 
 city to carry on. 
 
 Here again we see the wisdom of German state- 
 craft, a wisdom that is unexpected. For Germany 
 is so autocratic, so fearful of democracy, that we 
 would expect a highly centralized control of the 
 city and a jealous supervision of its life, such as is 
 to be found in France, Great Britain, and America, 
 where a far greater degree of political liberty pre- 
 vails but where local government is subject to the 
 closest and most exacting control by legislative 
 authorities. But Germany has reversed this policy 
 and has given the cities autonomous powers not only 
 over people but over property. It is because of 
 this fact that German cities have developed as 
 have no cities in the world. They have been free to 
 experiment as they willed or their local necessities 
 suggested. 
 
 Cities, too, have long been familiar with the idea 
 of owning things. Villages and towns have pos- 
 sessed common lands from very early times, which 
 are cultivated by the community or leased to 
 its members. Markets were general in mediaeval 
 times, as were slaughter-houses, savings-banks, and 
 bakeries. During the early part of the nineteenth 
 century many towns provided themselves with 
 
MUNICIPAL SOCIALISM 283 
 
 water and gas, which were supplied not so much for 
 profit as for protection and service. 
 
 A revival of communal trading followed the 
 Franco-Prussian War. It was encouraged by the 
 Socialists, but was largely brought about by the 
 business classes. In addition, with the birth of 
 town-planning, it was generally realized that many 
 activities must be owned by the city in order that 
 town widening and improvement projects could be 
 carried through in an orderly way. This was par- 
 ticularly true of transportation, for the old towns 
 were very crowded. Population was congested 
 within the protecting fortifications and when these 
 were removed it was necessary to plan not only 
 the surrounding territory, but to distribute popu- 
 lation as widely as possible for the purpose of pre- 
 venting the recurrence of bad housing conditions. 
 These, too, were years of rapid industrial develop- 
 ment, which led cities to build docks and harbors 
 for the encouragement of trade and commerce. 
 These causes, along with the expectation of sub- 
 stantial profits which would relieve taxation, com- 
 bined to promote industrial undertakings, until 
 to-day the German city has carried municipal 
 socialism further than have any other cities in the 
 world. 
 
 Municipal ownership in this country and in Eng- 
 land has been limited to the so-called public-service 
 corporations, on the assumption that these indus- 
 
284 SOCIALIZED GERMANY 
 
 tries differ so radically from competitive pursuits 
 that they alone are a proper subject for municipal 
 activity. There is no such clean-cut distinction in 
 Germany. Each proposal is judged on its merits, 
 on the need and relative advantages of private or 
 public operation. Moreover, when it is decided 
 to take over an existing property that is the end of 
 it. There is no protracted warfare, no exhausting 
 delays, no prolonged litigation. The terms of pur- 
 chase and of transfer are arranged with the sim- 
 plicity and decisiveness of an ordinance providing 
 for the condemnation of any other property. 
 
 As an indication of the extent to which municipal 
 socialism has been carried, it appears that of 1,279 
 Prussian towns of all sizes reporting in 1906, 561 
 owned their water-works, 440 the gas-works, 201 the 
 electric-works, 54 the tramways, 426 the abattoirs 
 and stock-yards, 730 bathing establishments, 38 
 markets, 19 docks, 42 stone and lime quarries, 17 
 breweries, 104 inns and restaurants, 45 brick-works, 
 and 23 mills. In addition, individual cities own 
 wine cellars, refrigerating-works, bakeries, dairies, 
 ferries, and other activities. 1 A number of South 
 German cities carry on wine handling, while others 
 have printing-works. Nuremberg owns an orchard 
 and stone -quarries. Almost all cities operate sav- 
 ings-banks and pawn-shops, and many of them 
 either own or co-operate in the building of work- 
 
 1 Dawson, Municipal Life and Government in Germany, p. 214.' 
 
MUNICIPAL SOCIALISM 285 
 
 men's homes. Cities engage in land speculation, 
 while almost all the larger cities own their own 
 theatres, opera-houses, and some of the more pro- 
 gressive ones carry the principle still further and 
 unite their funds with those of private enterprises 
 from which they expect to make a substantial profit. 
 The city of Diisseldorf owns more than half of the 
 stock of an interurban railway which connects a 
 number of smaller towns with Diisseldorf. The 
 company also operates in land speculation. 
 
 An even larger proportion of the larger cities own 
 the public-service enterprises. A report made in 
 1908 of 85 cities of over 50,000 inhabitants shows 
 that 79 own their water-works, 65 their gas-works, 
 63 the electricity supply, 35 the tramways, and 82 
 the abattoirs or slaughter-houses, while a large per- 
 centage of the cities between 5,000 and 20,000 and 
 between 20,000 and 50,000 own these same activities. 1 
 
 In the majority of instances the tramways and 
 gas-works were originally operated by private cor- 
 porations under grants from the cities. Substantial 
 revenues were and are received for these conces- 
 sions. In 1910 Berlin received $1,570,000 in royal- 
 ties from the private electrical-works. In the same 
 year Konigsberg received $150,000 and Strasburg 
 $95,000. The privately owned tramways in 28 
 of the larger cities paid over $2,000,000 in royalties 
 in 1910. In that year Berlin derived a revenue of 
 
 1 Dawson, supra, p. 216. 
 
286 SOCIALIZED GERMANY 
 
 $2,500,000 from concessions of all kinds. But 
 private ownership has generally proved to be un- 
 satisfactory and the tendency of municipalities is 
 to acquire possession as rapidly as possible. The 
 tramway undertakings of such cities as Diisseldorf, 
 Frankfort, and Cologne are among the best equipped 
 of any in the world. The construction work is per- 
 manent and durable. The rails are flush with the 
 pavement and the cars are nearly noiseless. The 
 cars, too, are clean and freshly painted. Inside one 
 finds maps of routes, while along the streets are 
 attractive waiting-rooms for the protection of pas- 
 sengers in inclement weather. The rate of fare in 
 most cities is 2> cents, sometimes with an ad- 
 ditional charge for a transfer. In some cities the 
 zone system is followed with a minimum charge of 
 2J^ cents for about 2J^ miles, with an additional 
 charge of 1 cent for the maximum ride, even when 
 the line extends out into the country. Cheap season 
 tickets are frequently sold to workmen and school 
 children. In some cities working men's tickets are 
 sold for 12 cents a week for two journeys daily, 
 available during the early morning and in the eve- 
 ning. 
 
 Public ownership of the electricity supply is very 
 common. As in England, the municipalities had 
 generally granted concessions to private companies 
 for the gas supply, but when electricity became a 
 commercial product municipal authorities generally 
 
MUNICIPAL SOCIALISM 287 
 
 undertook the building and operation of the plants. 
 Within recent years a movement has developed for 
 the erection of large central generating stations 
 owned and operated by a number of local commu- 
 nities, or by communities working with private en- 
 terprises. These central plants distribute power and 
 light over a large area. One of the largest of these 
 stations is at Essen, which supplies more than fifty 
 communities and covers an area of 2,300 square miles 
 in its service. The city of Munich owns 51 per cent, 
 of capital in the company organized to obtain electric 
 power from a stream in the Alps, while the balance 
 of the capital is subscribed by individuals. 
 
 Nearly all of the cities own their own slaughter- 
 houses. In fact this is an activity carried on by 
 public agencies in almost every country of the world, 
 with the exception of England and America. Con- 
 nected with the abattoirs are stock-yards to which 
 the farmers bring their cattle for slaughter. Usually 
 all of the meat sold in the city is required to be 
 prepared in the public slaughter-houses, private 
 abattoirs being prohibited. The most elaborate sys- 
 tem of inspection is provided, the inspectors being 
 public officials who have taken a special training as 
 veterinary surgeons. The fees for slaughtering are 
 fixed on a basis sufficient to meet the operating costs 
 and interest charges as well as the ultimate repay- 
 ment of the cost of the structures by means of a 
 sinking fund. 
 
288 SOCIALIZED GERMANY 
 
 Mpst of the large towns also own their markets. 
 In the larger cities a series of markets are operated 
 in connection with the central one, to which vege- 
 tables and farm products are brought to be dis- 
 posed of by auction to dealers. In addition there 
 are many open morning markets in the streets 
 which are subsequently cleared for traffic. Market 
 dealers are subject to supervision to see that the 
 food offered is clean and wholesome, and that the 
 charges are reasonable. Regulations are also en- 
 acted to control prices for the purpose of preventing 
 monopoly or extortion. 
 
 Many towns supply milk as a means of reduc- 
 ing infant mortality. In Berlin the milk provided 
 by the nine children's dispensaries is produced on 
 municipal farms. Dortmund has a municipal 
 dairy, while other towns have co-operative organi- 
 zations for the supply of pure milk under public 
 regulation. 
 
 During the shortage of meat in 1911 and 1912 
 many cities took steps to reduce the cost of meat 
 and fish. Over two hundred towns entered into con- 
 tracts for the purchase of foreign meat, which was 
 either sold by the municipality directly or through 
 butchers at stipulated prices. By this means the 
 cost of meat was reduced from 20 to 30 per cent. 
 Similar measures were taken for the purchase and 
 sale of fish and vegetables. 1 By these and other 
 
 1 Dawson, supra, p. 246. 
 
MUNICIPAL SOCIALISM 289 
 
 means the German city controls the cost of living 
 and insures the quality offered for sale. Waste is 
 reduced to a minimum, as is the chance of monopoly 
 and extortion. In addition the parcel post is widely 
 used by housewives who give standing orders to 
 farmers, who mail meat, poultry, vegetables, and 
 flowers daily from their farms many miles away. 
 This is characteristic of the thoroughness and watch- 
 fulness of German municipal life. 
 
 Savings-banks have been operated by German 
 cities for centuries. They encourage thrift and sup- 
 ply a financial reservoir for the carrying on of public 
 activities. The savings-banks do a checking busi- 
 ness, as do the postal-banks. Over 90 per cent, of 
 the savings in Germany are in public institutions 
 of one kind or another. The banks are managed 
 by an official of the city at practically no cost to 
 the depositors who receive back the full earnings 
 on their money which is invested in public securities, 
 or a limited number of public-utility enterprises of 
 a social character. 
 
 Insurance is also provided. Sometimes it is 
 offered by the state, as in Bavaria, but more fre- 
 quently it is carried on by the city. Berlin, Ham- 
 burg, and other towns have fire-insurance societies, 
 while in the country districts groups of commu- 
 nities have organized for mutual insurance against 
 accident liability. Frankfort has insured itself 
 against accidents since 1888, and it is estimated 
 
290 SOCIALIZED GERMANY 
 
 that from $45,000 to $50,000 has been saved during 
 twenty years as a result of this action. 
 
 Describing the municipal insurance companies, 
 Mr. W. H. Dawson says: 
 
 "The usual method of operations (in municipal 
 fire insurance societies) is for the town to form a com- 
 pany for the purpose, providing all the necessary 
 capital, carrying on the business as an ordinary 
 public enterprise, taking all risks, and receiving all 
 profits. In 1910 the total value of property insured 
 in public insurance enterprises was $18,905,000,000, 
 of which $16,785,000,000 represented immovable 
 property. The year's net profits were $3,350,000 
 and the accumulated funds stood at $63,320,000." 1 
 
 Most towns maintain pawn-shops for the relief 
 of the poor in times of distress. These banks charge 
 from 1 to 3 per cent, a month, depending upon the 
 size of the loan and the security offered. They are 
 also used by small tradesmen to carry over unsea- 
 sonable goods or to otherwise aid them in the trans- 
 action of their business. 
 
 The municipal savings-banks are of great aid to 
 the cities in carrying out the undertakings in which 
 they are engaged. They finance the housing and 
 land speculation projects, the purchase of public- 
 service corporations, and the like. The total de- 
 posits in municipal savings institutions in 55 large 
 towns in 1910 amounted to $850,000,000. Mort- 
 
 1 Dawson, supra, p. 252. 
 
MUNICIPAL SOCIALISM 291 
 
 gage banks to aid persons of small means in the pur- 
 chase of land or the erection of homes are also main- 
 tained. Large sums have been set aside for this 
 purpose in recent years. Dresden has made an ap- 
 propriation of $2 1, 500,000 for this purpose, Diissel- 
 dorf of $10,000,000, and Aix-la-Chapelle of $5 ; - 
 000,000. 
 
 These mortgage banks make loans on first mort- 
 gages up to from 60 per cent, to 75 per cent, of the 
 value of the property at rates of interest ranging 
 from 3J^ per cent, to 4J^ per cent. Second-mort- 
 gage loans are also made, but at a higher rate of 
 interest. In order to take advantage of municipal 
 loans house owners must first join the association 
 and make a deposit of $125. After a year they are 
 entitled to secure a loan. Investigations made in 
 1913 by the city of Munich showed that 223 munic- 
 ipal savings-banks had loaned money to the amount 
 of $775,000,000 on first mortgages at a rate of from 
 4J^ per cent, to 4% per cent. 1 
 
 An estimate was made by the Imperial Ministry 
 of Finance in 1908 of all towns and rural communities 
 with more than 10,000 inhabitants and it was found 
 that the total receipts from undertakings of all 
 kinds those carried on without special regard for 
 profit as well as those conducted upon strictly com- 
 mercial principles amounted in the aggregate to 
 $126,750,000, or 26 per cent, of all communal re- 
 
 1 Dawson, supra, p. 251. 
 
292 SOCIALIZED GERMANY 
 
 ceipts. Industrial services are generally operated 
 at a profit, sometimes a very substantial profit, 
 although this is not the main motive of operation. 
 The largest contributions to the city treasury came 
 from the gas, electric works, and tramways. 
 
 Substantial relief to the taxpayers is one of the 
 gains from these activities. 
 
 "The aggregate profits on gas works available in 
 1910-1911 for the reduction of taxation in seventy- 
 two German towns with 50,000 inhabitants or more, 
 were $13,018,500. . . . Again net profits available 
 for the reduction of taxes were made on electricity 
 works in 1910-1911 by seventy-two German towns 
 with 50,000 inhabitants or more, having a combined 
 population of 14,116,000 to the amount of $9,089,- 
 500. . . . Taking finally the profits from the tram- 
 ways available for the relief of local burdens, the 
 amount yielded in 1910 in seventy-four German 
 towns with 50,000 inhabitants or over was $3,- 
 590,000." * 
 
 The total amounts received as profits to be used 
 for the relief of taxation in a number of the larger 
 cities in 1910 were as follows: Berlin, population 
 2,071,800, gas-works $1,939,900, water-works $705,- 
 100, and tramways $42,750; Breslau, population 
 512,100, gas-works $659,050, electric-works $310,500, 
 water-works $263,200; Cologne, population 516,500, 
 gas-works $328,650, electric-works $274,950, water- 
 works $283,850, and tramways $292,400, or a total 
 
 1 Dawson, supra, p. 217. 
 
MUNICIPAL SOCIALISM 293 
 
 of $1, 179,850. Dresden, population 548,300, makes 
 an even better showing. It also owns all of its public- 
 service utilities. The gas-works earned $782,000, 
 electric-works $400,250, water-works $45,650, and 
 tramways $271,800, or a total of $1,499,700. Frank- 
 fort-on-the-Main does not own its gas service, but 
 the electric-works yielded $725,400, the water-works 
 $170,900, and the tramways $368,550. Including 
 the royalties from the gas-works, the net receipts 
 from the public-service corporations were $1,426,- 
 300 for the year. Nuremberg, population 333,200, 
 owns all the public utilities, and received (1910) a 
 total contribution for the relief of taxation of $61,700, 
 while Munich, population 596,500, which also owns 
 all its public utilities, enjoyed a total income from 
 these sources of $1,110,100. Taking twelve of the 
 larger cities, with a combined population of 7,464,- 
 300, it appears that the net profits amounted to $17,- 
 107,300, or an equivalent of $2.30 per capita. 1 
 
 The profits referred to are the net earnings after 
 all payments have been made for interest, deprecia- 
 tion, redemption of capital, and additions to re- 
 newals and reserve funds. The profits are also in- 
 dependent of any payments on account of paving 
 and street cleaning and local taxes. 
 
 As a consequence of the policy of municipal 
 socialism the indebtedness of the average German 
 city is very high, but as an offset a large part of the 
 
 1 Dawson, supra, p. 223. 
 
294 
 
 SOCIALIZED GERMANY 
 
 indebtedness is for undertakings which are self-sup- 
 porting and involve no burden to taxpayers, whereas 
 the indebtedness of the average American city is 
 for the most part for streets, sewers, parks, schools, 
 playgrounds, and fire and police equipment, which 
 are non-revenue producing. The indebtedness of 
 the German cities is very largely of a profit-making 
 sort. 
 
 The following figures of seven Prussian cities for 
 the year 1908 are indicative of the extent to which 
 their indebtedness is for productive undertakings. 
 The " productive undertakings" enumerated include 
 street railway, gas, electric light, water, harbors, 
 baths, etc. The "other purposes" are schools, 
 streets, sewers, and all non-productive undertakings. 
 
 TOWN 
 
 POPULA- 
 TION 
 
 TOTAL 
 
 DEBT 
 
 FOR PRODUC- 
 TIVE UNDER- 
 TAKINGS 
 
 OTHER 
 
 PURPOSES 
 
 Berlin 
 
 2,001,032 
 
 $99,254,000 
 
 $64,767,000 
 
 $34,512,000 
 
 Elberfeld.... 
 Halle 
 Solingen 
 Magdeburg. . 
 Remscheid. . . 
 Diisseldorf . . . 
 
 168,000 
 176,798 
 50,961 
 247,358 
 69,700 
 284,439 
 
 13,595,000 
 9,500,000 
 3,285,000 
 15,005,000 
 3,930,000 
 28,585,000 
 
 7,252,000 
 2,877,000 
 2,257,000 
 7,775,000 
 2,790,000 
 22,260,000 
 
 6,392,600 
 4,612,000 
 1,029,000 
 7,503,900 
 1,147,000 
 6,327,000 
 
 A similar table of the indebtedness of seven Amer- 
 ican cities shows the amount as well as the distri- 
 bution of indebtedness between productive and un- 
 productive agencies. 1 
 
 1 Financial Statistics of Cities, 1909. Bureau of the Census. 
 
MUNICIPAL SOCIALISM 
 
 295 
 
 TOWN 
 
 POPULA- 
 TION 1910 
 
 INDEBTED- 
 NESS 1909 
 
 FOR PRO- 
 DUCTIVE 
 PURPOSES 
 
 FOR OTHER 
 PURPOSES 
 
 Philadelphia- 
 Cleveland 
 Minneapolis.. 
 Indianapolis. . 
 Denver 
 Omaha 
 
 1,526,383 
 538,374 
 294,330 
 228,690 
 207,112 
 122,187 
 
 $99,355,026 
 37,304,908 
 14,927,202 
 4,790,401 
 5,814,419 
 8,598,997 
 
 $30,776,642 
 5,613,684 
 1,933,424 
 22,000 
 329,200 
 
 $68,578,384 
 31,691,224 
 12,993,778 
 4,768,401 
 5,485,219 
 
 Grand Rapids 
 
 110,060 
 
 3,184,612 
 
 1,137,500 
 
 2,047,112 
 
 Herein is one explanation of the protest against 
 municipal indebtedness in this country. Our in- 
 debtedness is "dead" indebtedness. It yields no 
 return. It is a burden to the taxpayers. And it is 
 growing rapidly. The German city, on the other 
 hand, has no fear of indebtedness, for it is usually 
 represented by profit-making properties. It is 
 recognized as good business for the city to go into 
 debt, especially where a financial return may reason- 
 ably be expected from the investment, either im- 
 mediatedly or in the future. 
 
 Nowhere is Germany seen to such good advantage 
 as in the city. All classes have a pride in its life, 
 activities, and achievements; they contribute will- 
 ingly in taxes for efficient administration and seem 
 to appraise the returns received in education, com- 
 fort, and happiness, and to be content with the in- 
 vestment. Business men on the council give un- 
 reservedly of their time and treat the trust reposed 
 in them as a high honor worthy of the best service 
 they can render. And for the most part their 
 
296 SOCIALIZED GERMANY 
 
 actions are disinterested. They have no prejudice 
 against any kind of undertaking if it will improve 
 the city or make it more attractive to business, 
 residents, or tourists. Nor do they hesitate to incur 
 heavy indebtedness for activities which will yield 
 returns either for the relief of taxation or the better- 
 ment of the community. The average per-capita 
 indebtedness of cities of over 200,000 people is $85, 
 a sum far in excess of that of America. Many 
 cities have a much higher debt. Frankfort carries a 
 municipal indebtedness of $140 per capita, Munich 
 $125, Diisseldorf $130, and Charlottenburg $130. 
 In comparison the per-capita debt of Chicago is 
 but $43.90, of Cleveland $69.29, of Detroit $30.31, 
 of Washington $44.84, of Milwaukee $32.47, of 
 Philadelphia $65.09. In this alone we see one ex- 
 planation of the difference between the German 
 city and our own. The German city spends gener- 
 ously. Officials treat the city as a business man does 
 his business, and they spend accordingly. 
 
 And back of this financial and social policy is a 
 different conception of the city from that which 
 prevails in other countries, and especially that which 
 prevails in America. Our conception of the city 
 is that it is a police agency. It is this and little 
 more. Expenditures and activities are directed to 
 the protection of business and the safeguarding 
 of the individual. We spend generously for our 
 police and fire departments, for streets and sewers, 
 
MUNICIPAL SOCIALISM 297 
 
 for schools, and to an increasing extent for parks, 
 playgrounds, and health. But the idea of service 
 is as yet rudimentary. We have consciously re- 
 frained from entering the field of profit-making ser- 
 vice (except in the case of the water and electricity 
 supply) on the theory that this was not a proper 
 sphere of public activity. 
 
 Germany has a far wider vision of the city. The 
 welfare of the community, of all the people, of all 
 business rather than a few businesses, is the standard 
 by which a proposal is measured. 
 
CHAPTER XXII 
 THE BUILDING OF CITIES 
 
 TOWN-PLANNING is another achievement born of 
 the expert and of state socialism. It is a recognition 
 of the permanency of the city, as well as its impor- 
 tance. Town-planning is a recent art. It is scarcely 
 a quarter of a century old. And during these years 
 Germany has produced the most wonderful cities 
 of modern times. This is the more remarkable 
 because these were years of rapid industrial devel- 
 opment in which we would have expected business 
 interests to have insisted upon the utmost freedom 
 of action and the necessity for non-interference on 
 the part of the community. Apparently, however, 
 it was a recognition of the dangers incident to un- 
 controlled development that led to the control of 
 property and its conscious direction by the city 
 authorities in order that the health and well-being 
 of the people should be protected. Here again the 
 German city reflects the far-sighted statesmanship 
 that characterizes the empire; a statesmanship that 
 is responsible for the social legislation, education, 
 and state socialism which are so closely related to 
 the development of the state. 
 
 Even the casual traveller remarks on the differ- 
 
 298 
 
THE BUILDING OF CITIES 299 
 
 ence in city conditions as he enters Germany from 
 Holland, Belgium, France, or Austria. Whether 
 he enters at Cologne, Frankfort, or Munich, or comes 
 by sea to Hamburg or Bremen a new type of city 
 greets the eye. As he leaves the railway station, 
 which is usually one of the most commanding 
 structures in the city, he finds everything clean and 
 well ordered; the streets are paved with the best 
 of material and are kept in splendid repair. There 
 are no disfiguring telegraph wires overhead and 
 few obtrusive signs or bill-boards to offend the eye. 
 There is no smoke or dirt, while a uniform building 
 line indicates the existence of municipal by-laws 
 for the control of buildings. The streets are fre- 
 quently parked before the houses, which are often 
 ornamented with window-boxes, while at intervals 
 small parks or open spaces are found, beautified with 
 flowers and statuary. Monumental public build- 
 ings adorn the city, usually grouped in an intelli- 
 gent orderly way, while round about the city are 
 great gardens, parks, or woods in which on Sundays 
 or holidays a large percentage of the people may 
 be seen at play. Even the tenements, which are 
 the almost universal form of dwelling, do not sug- 
 gest the ugly squalor of the English or American 
 town, in spite of the fact that nearly 80 per cent, 
 of the urban population lives amid surroundings 
 that are far from conducive to the health and well- 
 being of the people. 
 
300 SOCIALIZED GERMANY 
 
 Apparently nothing is left to chance. Everything 
 is under control. The city suggests a conscious 
 directing intelligence that looks out from the Rath- 
 haus as a group of architects might plan a world's 
 fair; as engineers might design a war-ship; as an in- 
 dividual erects a great office-building. Everything 
 suggests intelligence, oversight, and the application 
 of art and science to the city's building. 
 
 The German city is planned with all these ends 
 in view. Whereas other countries have left the 
 growth of the city to the unregulated action of in- 
 dividual initiative, Germany has recognized that 
 the civilization of to-day is a city civilization and 
 that the city should be built as a permanent thing. 
 Officials realize that the license of land specula- 
 tors, builders, and factory owners not only impairs 
 the beauty of the city, but interferes with the com- 
 fort and convenience of others as well. 
 
 Town-planning had its beginning with the city- 
 widening projects made necessary by the rapid 
 urban growth of a quarter of a century ago, when 
 population broke over the lines of fortifications 
 which surrounded the old towns and began to 
 spread out into the surrounding country. In South 
 Germany and especially along the Rhine, the cities 
 were surrounded with walls and fortifications which 
 congested population within very narrow quarters. 
 In addition many towns like Cologne, Frankfort, 
 Nuremberg, Bremen, and Hamburg had been capital 
 

 THE BUILDING OF CITIES 301 
 
 cities, or rich trading centres with long traditions 
 of municipal pride born of previous independence 
 or notable acheveiments. The streets were narrow 
 and crooked. They were not suited to modern traffic 
 or the building of street-railway lines. Streets had 
 to be widened, beautiful old buildings were in dan- 
 ger of impairment, fine vistas might be destroyed. 
 About this time, too, sanitary precautions began to 
 be taken to protect the health of the community, 
 while the evils of bad housing began to appear. To 
 meet the needs of a rapidly growing population 
 builders began the erection of tenements differing 
 but little from the overcrowded lodgings of earlier 
 times. Land speculators laid out their property so 
 as to secure the maximum return from its sale with 
 no concern for the comfort, convenience, or well- 
 being of the community. These were the conditions 
 which confronted municipal authorities in the early 
 eighties. Out of these necessities the art of town- 
 planning had its birth. 
 
 Town-planning, or Stddtebau, has now become a 
 recognized art. A number of universities offer 
 courses of study on the subject which attract stu- 
 dents preparing for a municipal career. Special 
 courses have been offered in Berlin since 1907. In 
 Saxony a similar department has existed since 1910. 
 In 1912 a college of administration was opened in 
 Diisseldorf with courses on the subject. In 1910 
 an elaborate town-planning exposition was held in 
 
302 SOCIALIZED GERMANY 
 
 Berlin, and two years later a similar exposition was 
 held in Dlisseldorf . A large literature has appeared 
 upon the subject, while a periodical, Der Stddtebau, is 
 published. 
 
 The attitude of the average town is indicated by 
 the planning announcement of the city of Mann- 
 heim, which states that "every town in course of 
 development needs to its extension outward a 
 uniform and comprehensive building plan. If this 
 plan is to offer a foundation for the art of town 
 building it must be drawn up on large lines, must 
 anticipate the needs of a distant future, and pay 
 due regard to the requirements of traffic, hygiene, 
 and taste. The fulfilment of this task constitutes 
 a very important part of all social reform in our 
 towns. " 1 
 
 This is indicative of the outlook of all city offi- 
 cials and statesmen. Cities like Berlin, Diisseldorf, 
 Strasburg, and Munich have held competitions in 
 which town-planning experts from all over the em- 
 pire competed. Specifications were first laid down 
 by the authorities which anticipated the future 
 growth of the city for years to come. The specifi- 
 cations were limited to the development of specified 
 territory to be developed, or provided for a plan for 
 the entire city and surrounding territory. Com- 
 petitors were asked to design the traffic streets, 
 boulevards, parks, and open spaces, so that they 
 
 1 Dawson, supra, p. 142. 
 
THE BUILDING OF CITIES 303 
 
 would fit into the existing city plan. Provision was 
 to be made for steam railways, harbors, and indus- 
 trial districts, for the location and character of public 
 buildings and schools, as well as hospitals, cemeteries, 
 and other public needs. With these specifications 
 before them, plans were prepared by competitors 
 upon which an award was subsequently made. 
 
 In other instances cities employ experts who pre- 
 pare the city-widening projects in advance of build- 
 ing. When received, the plans are exhibited for pub- 
 lic inspection and criticism and when finally approved 
 they become binding not only upon the community 
 but upon private builders and landowners as well. 
 
 Underlying all city plans is the proper arrange- 
 ment of streets. This is the foundation of the city. 
 It is elementary to any city plan. Streets are recog- 
 nized as being the circulatory system of the city, 
 too important to be left to the narrow commercial 
 interests of private landowners or speculators. And 
 the modern streets in the German city, are de- 
 signed with the greatest care. They are adjusted 
 to the uses to which they are to be put. They are 
 not all alike, each 40 or 60 feet wide and arranged 
 according to the rectangular plan so common in 
 America. An effort is made to design streets for 
 particular needs and uses. Certain streets should 
 be wide, spacious, and park-like. These are the 
 main arteries of traffic. Such streets are frequently 
 from 150 to 200 feet wide. In the centre is a parked 
 
304 SOCIALIZED GERMANY 
 
 space with gardens to be used for pedestrians. On 
 either side are the street-car tracks, sodded so as 
 to keep down the dirt and the noise. Outside are 
 the traffic thoroughfares. These are the main ar- 
 teries of circulation. They usually run out from 
 the centre of the city like the spokes of a wheel or 
 form the boulevard system about the circumference 
 of the city. On such streets builders are required to 
 set their houses back a uniform distance from the 
 pavement. Here only detached houses can be built, 
 which must be a certain distance apart and must 
 not exceed a certain height. Less prominent streets 
 are narrower, more cosey and picturesque in their 
 planning. They are intended for residential pur- 
 poses. Frequently they are crooked; they come to 
 a dead end as in mediaeval towns. This is done to 
 discourage traffic. It also lends quiet and charm. 
 
 Other districts are dedicated to industrial uses. 
 These sections are not arbitrarily chosen, they are 
 located near the railways, waterways, or harbors. 
 Where possible they are selected with due regard 
 to the prevailing winds on the lee side of the town 
 so that the smoke will be driven from the city rather 
 than across it. These industrial districts are also 
 planned with respect to the uses to which they are 
 put. 
 
 Similar ordinances are enacted to control builders 
 with the aim of securing architectural harmony, the 
 proper kind and location of houses, the prevention 
 
THE BUILDING OF CITIES 305 
 
 of bad housing conditions, and the protection of 
 the whole community from disfigurement. These, 
 with the planning of the streets and the restriction 
 of areas to specified uses, are known as the " zoning 
 system." The city is divided into districts accord- 
 ing to its proper use. In each zone there are different 
 limitations as to the amount of land that may be 
 built upon, the amount of open space required, the 
 height of buildings and the distance they must be 
 set back from the street. The building plans also 
 indicate the kind of houses that may be erected, 
 whether villas or apartments. The individual land- 
 owner would not think of laying out his property for 
 sale without first consulting the city plans. 
 
 The widening plans of the suburban area of the 
 city of Ulm provide that 17 per cent, of the land 
 should first be taken for streets, that 13 per cent, 
 of the lot area should be reserved for back gardens, 
 and 50 per cent, for front gardens. Only 20 per cent, 
 of the lot area may be covered by buildings. The 
 city of Mannheim is divided into three building 
 zones. In the business district 60 per cent, of the 
 land may be covered by structures which must not 
 exceed three stories in height. In the next outer 
 zone 50 per cent, of the lot area may be built upon, 
 while the structures may not exceed four stories in 
 height. In the outlying sections three stories is the 
 limit, while a similar percentage of the land may be 
 built upon. 
 
306 SOCIALIZED GERMANY 
 
 Cologne provides that only 75 per cent, of the 
 land may be built upon in the business section, 65 
 per cent, in the next two outer zones, while in the 
 suburban residence district only 50 per cent, may be 
 covered. In the business district of Frankfort 75 
 per cent, of the land may be covered by buildings 
 which may not exceed five stories or more than 65 
 feet in height. In the second outer zone buildings 
 may be four stories high, but never higher than the 
 width of the street. For the third surburban zone 
 two stories is the limit. 
 
 As a result of these restrictions architectural har- 
 mony is insured. There are no sky-scrapers or apart- 
 ment-houses close beside the detached dwelling. 
 Nor is one owner permitted to build close to the 
 street-line, while his neighbor, more thoughtful of 
 the community, places his house back from the 
 street. All houses are located the same distance 
 from the curb-line, while the sky-line is uniform and 
 rarely exceeds the width of the street. As a conse- 
 quence the newer sections of the German city pre- 
 sent a park-like appearance; they have something 
 of the beauty of the garden cities of England. All 
 of this is sanctioned as a means of protecting prop- 
 erty. It insures to the home builder that for years 
 to come his property will be protected from the in- 
 trusion of business, tenements, or other objection- 
 able structures. 
 
 In planning new territory provision is made for 
 
THE BUILDING OF CITIES 307 
 
 the needs of the city as a whole. At frequent 
 intervals there are little gardens or play places 
 which are designed in an artistic way. Some of the 
 gardens are sunken, others are just off the street- 
 line so as not to interfere with through traffic. 
 Sites are also reserved for future public buildings, 
 for schools, hospitals, and churches. For these pur- 
 poses cities acquire land in advance of their needs 
 at very little cost and with adequate provision for 
 the future. 
 
 The community is also protected by ordinance 
 from signs and other street disfigurements. Most of 
 the public announcements are placed on kiosks 
 located in prominent places which are either operated 
 by the city or leased out to private individuals. 
 Stations and tram-cars are frequently free from ad- 
 vertisements. The power to legislate against such 
 disfigurement rests in an old law of Prussia which 
 provides that buildings which disfigure the appear- 
 ance of the city may be prohibited under the police 
 powers of the city. A law enacted in 1907 carried 
 this principle still further and authorized the city 
 to refuse its permission to the erection of any build- 
 ings that would unnecessarily disfigure streets and 
 public places, and local authorities are authorized 
 to adopt by-laws for the protection of the archi- 
 tectural appearance of leading streets or ancient 
 historical places. Under these by-laws the erection 
 of bill-boards and signs depends upon police per- 
 
308 SOCIALIZED GERMANY 
 
 mission, but before permission is granted the opinion 
 of experts or the municipal authorities must be 
 taken. 1 
 Commenting on these regulations, Mr. Dawson 
 
 says: 
 
 "Many Prussian towns have gone further and 
 have established special municipal offices for advice 
 to builders and architects upon matters of style 
 and taste. No charge is made and there is theoret- 
 ically no obligation to follow the advice given unless 
 the builder's plans infringe upon the local regulations, 
 yet the good offices of the municipality are both 
 freely used and highly valued. The municipality of 
 Baden-Baden adds rewards to advice, for it gives 
 premiums every year to architects and builders 
 whose erections are adjudged to comply most nearly 
 with certain prescribed conditions as to artistic 
 design and quality of materials, and best harmonize 
 with the general architectural scheme of the town. 
 By the adoption of these and similar common-sense 
 methods, and by insisting that the building, like 
 the planning of the town, should be considered as a 
 whole, it is hoped to prevent the architectural 
 anarchy which has often reigned in the past, and 
 even to rectify many mistakes which have been in- 
 herited from times when the building speculator 
 was left to his own devices. The amenity of civic 
 life in Germany is further protected by a law, ap- 
 plying to the whole country, providing that before 
 industrial or trading undertakings which would 
 cause injury or even inconvenience to the neighbor- 
 ing residents can be established, the consent of the 
 higher state authorities must be obtained. 7 ' 2 
 
 1 Dawson, supra, p. 154. 2 Dawson, supra, p. 155. 
 
THE BUILDING OF CITIES 309 
 
 The same intelligent provision is made for indus- 
 try and commerce that is made for the residence 
 districts. German cities vie with one another, 
 much as do the cities of America. They compete 
 for factories, for residences, for people. And as an 
 aid in this competition cities make provision for 
 factory sites and transportation. The cities of 
 Mannheim, Bremen, Emden, Frankfort-on-the- 
 Main, and many other towns have purchased large 
 tracts of land to be resold to industries on easy 
 terms. These factory areas are usually selected 
 close by the railways and waterways, and are ac- 
 quired at farm prices. Thereafter streets are laid 
 out, transportation connections are made, and the 
 property is placed upon the market. 
 
 This is part of the comprehensive industrial policy 
 of Germany, a policy that is very common. 
 
 "The inquiry made by the Central Office of the 
 Municipal Congress showed that nearly half of 
 the 113 municipal authorities questioned had ac- 
 quired land for industrial purposes and had sys- 
 tematically offered it to capitalists on advantageous 
 conditions, and that in many cases their land was 
 in communication with the municipal docks. It 
 appeared that in one case the town sold land at half 
 the cost price solely with a view to attracting new 
 industries, while in others mortgages on the land 
 sold were accepted at a low rate of interest. "* 
 
 One of the most elaborate undertakings of this 
 kind is that of Frankfort-on-the-Main, a city of 414,- 
 
 1 Dawson, supra, p. 241. 
 
310 SOCIALIZED GERMANY 
 
 000 people. Some years ago 1,180 acres of land on 
 the river Main was purchased at agricultural 
 prices, which has subsequently been developed into 
 a great industrial and factory centre. In con- 
 nection with the project a great harbor was laid 
 out, the river was deepened, and connections were 
 made with the state-owned railways. The total 
 cost of the undertaking is estimated at $18,000,- 
 000, but the land is now being sold and leased to 
 builders at figures which are expected not only to 
 entirely reimburse the city for the cost of the land, 
 but for the cost of the improvements as well. 
 
 New factories are not permitted to go where they 
 will. They are required by law to locate in these 
 new industrial sections. Such orders are not made 
 arbitrarily, however, nor is any injustice done to 
 landowners. Factory sections are chosen by reason 
 of natural advantages; they are close by the rail- 
 ways and waterways, and are supplied with switches, 
 spurs, and sidings which reduce the cost of trans- 
 portation to a minimum. This is one of the ways by 
 which Germany encourages industry. It stimulates 
 competition, it offers a free play to enterprise by 
 preventing private control of the means of trans- 
 portation on the one hand and by offering the best 
 of sites at very low cost on the other. 
 
 In proximity to the factory districts land is laid 
 out for working men's homes, and here the streets 
 are planned with this object in view. Parks, play- 
 
THE BUILDING OF CITIES 311 
 
 grounds, and public baths are usually provided in 
 the neighborhood, while the means of transporta- 
 tion are frequently adjusted to the cheap and easy 
 distribution of population. 
 
 It is because of such well-ordered plans that the 
 German city is what it is. Individualism and license 
 are controlled in the public interest, while private 
 property is subordinated to the public weal. Pres- 
 ent speculative profits are of secondary importance 
 to permanent values. Municipal officials build cities 
 as the naval council erects dreadnaughts, as the 
 minister of war plans his campaigns. 
 
 To the convenience of industry and the comfort 
 of the home owner and the tenant is added the 
 pride of the city, a pride expressed in commanding 
 public structures, in imposing water-fronts, beauti- 
 ful parks and boulevards, and places of recreation. 
 Diisseldorf, a city of 350,000 people, is known as the 
 "Garden City of Germany." It has spent millions 
 on the reclamation of its Rhine water-fronts, in the 
 erection of a great exposition hall in which indus- 
 trial, art, and municipal exhibits are held, in the 
 acquisition of land and the laying out of public 
 places. Nearly every Rhine city has developed its 
 water-front not only as a means for water and freight 
 traffic but for recreation as well. The embank- 
 ments upon the river frontage are terraced. At 
 the bottom are landing stages for water craft; on the 
 next level are the railway tracks, while above is a 
 
312 SOCIALIZED GERMANY 
 
 broad promenade way or park which is used by the 
 whole population. Berlin has parked its canals, 
 which carry the most diversified commerce and has 
 lined them with shade-trees. Dresden stands far 
 above the river Elbe, upon the summits of whose 
 banks great public buildings have been erected. 
 
 Munich, Leipsic, Frankfort, and Dresden have 
 expended immense sums in the erection of beauti- 
 ful town halls, the older ones suggesting the archi- 
 tecture of the Middle Ages and those more recently 
 constructed the modern architecture of Germany. 
 Cities own splendid opera-houses and theatres; 
 many have zoological and palm gardens, while within 
 the last few years cities have erected festival halls 
 which are the favorite places of resort during the 
 summer months. 
 
 The exhibition halls and park of Munich cost 
 $4,250,000, and those of Frankfort $1,500,000. 
 They are used for industrial expositions, for the 
 display of local art, as well as for music, theatrical 
 performances, and other purposes. The German 
 cities spend generously for beauty and for recreation, 
 more generously than any cities in the world. All 
 this is an expression not only of the affection of the 
 people for their city, but of their patriotism and 
 love of the Fatherland as well. 
 
CHAPTER XXIII 
 
 MUNICIPAL LAND OWNERSHIP AND HOUSING 
 PROJECTS 
 
 CLOSELY related to town-planning are the land 
 and housing policies adopted by the cities with the 
 sanction of the state governments. During the 
 Middle Ages towns and villages owned consider- 
 able tracts of common land. Some of this was 
 within the city limits; much of it was in agricul- 
 tural and forest land, which was used for the gather- 
 ing of fuel, grazing, and agricultural purposes. 
 Common ownership of land by public authorities is 
 almost universal in South Germany, some of the 
 towns owning so much land that they are free from 
 local taxes. 
 
 In recent years cities have enlarged their landed 
 possessions. They have been instructed to do so 
 by the state authorities and directed to refuse to 
 sell their holdings. The importance of land to 
 planning and housing projects has been fully recog- 
 nized, as has the possibility of using landed posses- 
 sions for fiscal purposes. 
 
 Orders or decrees have been issued by the cen- 
 tral authorities of Prussia and Saxony pointing out 
 
 313 
 
314 SOCIALIZED GERMANY 
 
 the far-reaching importance of an adequate land 
 policy in the solution of the housing problem, as 
 well as in the control of land speculation, which is 
 recognized as one of the most serious evils in modern 
 city conditions. And as a means of checking specu- 
 lation and the promotion of adequate housing facil- 
 ities towns are urged to anticipate their growth and 
 acquire surrounding agricultural land in advance 
 of the city's development. The minister of the 
 interior of Saxony has advised the towns "to in- 
 crease their estates betimes to the extent of their 
 power, yet to retain all land in their possession, and 
 only to sell where there is a guarantee that no specu- 
 lation will take place." When sold, public land is 
 usually subject to limitations upon the buyer, who 
 is prevented from speculating on his purchase or 
 transferring the property so acquired to others. 
 In some instances the town reserves the right to 
 buy back the land, while in others the land is merely 
 leased to the occupier. 
 
 Many cities have engaged in large land schemes. 
 Among them are Mannheim, Leipsic, Charlotten- 
 burg, Breslau, Halle, Frankfort-on-the-Main, Aix- 
 la-Chapelle, Diisseldorf, Duisburg, Essen, Elber- 
 feld, Ulm, and Strasburg. The city of Diisseldorf 
 set aside a fund of $5,750,000 with which to buy 
 and sell real estate, just as does a private operator. 
 The city frankly stated that one of the purposes of 
 this policy was "to restrain the unnatural augmen- 
 
MUNICIPAL LAND OWNERSHIP 315 
 
 tation of the price of land." In addition the city 
 owns a majority of the stock in a suburban street 
 railway which is also a large operator in land specu- 
 lation. By this means it keeps down the price of 
 land for building purposes and at the same time 
 shares in the unearned increment of land values due 
 to the city's growth. 
 
 It is quite customary for cities to buy agricul- 
 tural land for industrial or housing purposes in 
 anticipation of the laying out of streets or trans- 
 portation lines. When the development has been 
 determined upon the land is systematically planned, 
 the streets are laid out, reservations are made for 
 parks, playgrounds, and sites for public buildings, 
 and the balance of the land is either sold or leased 
 as the policy of the city dictates. Special induce- 
 ments are made to working men, the land being 
 sold at a low price and on long terms, the money 
 for the building being also loaned either directly 
 from municipal savings-banks or through co-opera- 
 tive societies organized to promote the building of 
 working men's houses. From 75 to 90 per cent, of 
 the cost of the land and buildings is so advanced 
 by the municipality at a rate of interest of from 
 2J/ to 4 per cent., which includes the amortization 
 charges. 
 
 Some towns claim that they have completely elim- 
 inated land speculation. The ober-burgomaster of 
 Ulm announced at a meeting that that city now 
 
316 SOCIALIZED GERMANY 
 
 owns four-fifths of the entire municipal area, and 
 that in consequence there is no land speculation. 
 The mayor of Saarbriicken says that in consequence 
 of the land policy of that city the community itself 
 has become a large land speculator. 
 
 From reports made in 1910 it appears that cities 
 own from 20 to 80 per cent, of their entire ad- 
 ministrative areas, not including roads, streets, and 
 railways. Among these cities Freiburg, in Baden, 
 owns 77.7 per cent, of its area; Stettin 62.5 per cent.; 
 Heidelberg 61.1 per cent.; Coblenz 69.5 per cent.; 
 Augsburg 49 per cent. ; Mannheim 48.6 per cent. ; and 
 Frankfort-on-the-Main 47.7 per cent. 
 
 Berlin owns 5,450 acres within its limits, and 46,- 
 899 acres outside of its limits. Frankfort-on-the- 
 Main owns a total of 15,522 acres; Breslau 16,795 
 acres; Munich 12,792 acres; Strasburg 11,464 acres; 
 and Stettin 15,972 acres. A number of cities own 
 estates several times greater than their adminis- 
 trative areas. 1 
 
 During the twenty years from 1890 to 1909 the 
 town of Konigsberg increased its estates by 3,000 
 acres. From 1891 to 1908 Munich added 13,771 
 acres. In the former city about one-half of the land 
 so acquired was within the municipal boundaries and 
 the other half outside, while in Munich something 
 over one-third of the land acquired was within the 
 city, while two-thirds were outside of it. 
 
 1 Dawson, supra, p. 125. 
 
MUNICIPAL LAND OWNERSHIP 317 
 
 There seems to be no limit to the ambitions of 
 the towns in this direction. Kiel now owns a large 
 part of the land surrounding the city which is let 
 out in small holdings for market gardening, with 
 the result that the town has between 4,000 and 
 5,000 tenants from whom it receives a substantial 
 income each year. Berlin has been increasing its 
 municipal estates with even greater rapidity and 
 recently purchased a single estate of 15,000 acres 
 at a cost of about $5,000,000. Part of this land 
 is to be sold or leased for the building of small 
 homes, but the greater part will be used as a public 
 park. The towns of Konigsberg and Ulm have 
 recently acquired the fortifications surrounding the 
 city and laid them off as parks or for building pur- 
 poses. 
 
 Much of the land so acquired by the cities is 
 kept as forest land. Of the total of 35,000,000 
 acres of forests in 1900 the various states owned 
 over 11,000,000 acres, while the towns and communes 
 owned 5,645,000 acres more. One town, Frank- 
 fort-on-the-Oder, owns 15,570 acres of forest land; 
 Brandenburg owns 11,220 acres; Stettin 10,570 
 acres; Frankfort-on-the-Main 8,590 acres; and Wies- 
 baden 4,750 acres; while many small towns own 
 estates running into the thousands of acres. Most 
 of these forests are operated for profit on scientific 
 principles. They are a direct source of revenue. 
 In other instances the land is divided up for culti- 
 
318 SOCIALIZED GERMANY 
 
 vation, and in small villages is apportioned among 
 the citizens. 
 
 Substantial revenues are realized by the cities 
 from their land holdings. In 1912 Dlisseldorf made a 
 profit in excess of $100,000 from the turnover of its 
 municipal land fund. Magdeburg bought land for 
 $1,500,000 and sold two-thirds of it for $6,500,000. 
 The land department of Cologne has made a profit 
 of over $3,000,000 in thirty years' time from its 
 land transactions. The city of Ulm recently bought 
 1,280 acres for $1,500,000, and subsequently sold one- 
 half of it for $2,000,000, showing a cash profit of 
 $500,000, and an addition of 860 acres to the landed 
 possessions of the town. 1 
 
 The ownership of so large an area of land, fre- 
 quently equal to one-half of the total area of the 
 city, makes it possible for the community to carry 
 out its building and planning projects in a far-seeing 
 and at the same time economical way. It can 
 direct population in certain directions; streets can 
 be planned in a generous way. Spacious sites can 
 be provided for public buildings, while adequate 
 provision can be made for parks and open spaces. 
 Through the ownership of advantageously located 
 land the city can offer cheap and advantageous sites 
 to factories, planned in such a way as to give the 
 best of railroad and transportation facilities. In 
 addition the ambitious housing plans which the 
 
 1 Dawson, supra, pp. 129-134. 
 
MUNICIPAL LAND OWNERSHIP 319 
 
 German cities have undertaken can be carried out 
 with such restrictions as the city itself sees fit to 
 impose. Moreover, as time goes on the land ac- 
 quired becomes an asset of very great value to the 
 community. It is claimed that the sewage farms 
 acquired by the city of Berlin have increased so 
 rapidly in value that their sale would enable the 
 city to completely liquidate its total city debt. Un- 
 doubtedly the same is true of many other cities. 
 Through sales and leases substantial revenues are 
 derived, which are used to keep down the burden of 
 taxation, while the increasing revenues from forests 
 and agricultural lands are a source of substantial 
 profit. Emphasis is placed by all public author- 
 ities upon the necessity of keeping down the exor- 
 bitant prices of land speculators, which lead to bad 
 housing, high rents, and overcrowding. The city 
 becomes an active competitor against private land- 
 owners and house builders, and in this way serves 
 as a check upon private individuals whose specu- 
 lative schemes form an obstacle to the development 
 of the towns. 
 
 Closely related to the land policies are the am- 
 bitious housing projects which have been entered 
 on by most of the larger German cities. No coun- 
 try in the world has approached the housing prob- 
 lem as earnestly and scientifically as has Germany. 
 Officials recognize that private capital has proven 
 inadequate to meet the needs of a rapidly increas- 
 
320 SOCIALIZED GERMANY 
 
 ing industrial population, and that only through 
 the action of the state itself will proper and ade- 
 quate housing facilities be afforded. Several official 
 policies have been adopted for the solution of the 
 problem. In the first place all new territory opened 
 up for building is planned by the city far in advance 
 of operations. The streets are designed for the spe- 
 cific uses to which the new territory is to be put, 
 while regulations determine the amount of land that 
 can be covered by buildings, the distance they must 
 be located back from the street, as well as their 
 height above the ground. These regulations apply 
 to private as well as public buildings. Cities have 
 also co-operated in the erection of model dwellings, 
 either by building houses upon municipal land or 
 by the sale of land to building societies formed for 
 this purpose. When land is sold directly to working 
 men easy terms are provided, by which the land is 
 paid for in annual installments, which include not 
 only the interest charges but enough to pay for the 
 whole cost of the house and lot in a certain specified 
 time. 1 
 
 1 For a further survey of the housing projects of German cities, see 
 Municipal Life and Government in Germany by W. H. Dawson, chapter 
 VII, and European Cities at Work by the author, chapter IX. 
 
CHAPTER XXIV 
 THE GERMAN CONCEPTION OF THE STATE 
 
 GERMANY presents a new conception of the state. 
 It has no counterpart in ancient or modern times. 
 No other people think in the same terms, no other 
 country has a similar psychology, no other nation 
 has so completely subordinated the individual. The 
 Roman Empire in the height of its power is the only 
 state with which Germany can be compared. 
 
 " Fatherland" signifies many things to the Ger- 
 man; it has many other meanings than patriotic 
 attachment. And all of the activities described in 
 the previous chapters form part of German Kultur 
 as the Germans use the term. Kultur is not lim- 
 ited to educational and aesthetic things. Kultur in- 
 cludes history and traditions, politics, statecraft, and 
 administration; it includes state socialism, social 
 legislation, the conservation of human life, and the 
 promotion of the well-being of the people. All of 
 the individual and collective contributions which 
 Germany has made to the world form part of Kultur 
 as the German understands the word. These con- 
 tributions are colossal. And they are largely social. 
 This emphasis on human welfare is one of the re- 
 markable things about the German idea of the state. 
 
 321 
 
322 SOCIALIZED GERMANY 
 
 Almost all of the achievements enumerated have 
 been brought about in the short space of a genera- 
 tion. The greatest advance is coincident with the 
 reign of William II. Bismarck laid the foundations 
 of the structure, but his work was horizoned by the 
 conditions of his generation and the unification of 
 the empire. It remained for William II to give unity 
 to the work by harmonizing the landed aristocracy 
 and the commercial classes with humanism in legis- 
 lation, and by calling to his aid the scientific thought 
 of the nation and identifying with the state the con- 
 tributions of the universities and technical schools, 
 the scientists and artists, the educators and the 
 business men. 
 
 Unity is the predominant note in Germany. The 
 nation thinks and acts as a great human mechanism, 
 adjusted in all of its parts to efficiency and the ad- 
 vancement of the Fatherland. An ambition for im- 
 perial power seems to be the conscious motive of the 
 people. No group has been permitted to sacrifice 
 the state in its exclusive control. Each class has 
 accepted sacrifices and limitations on its privileges 
 when the national welfare was at stake. 
 
 Legislation has been balanced. Rights have car- 
 ried corresponding duties, and privileges a corre- 
 sponding burden. To the old patriotism of war 
 has been added a new patriotism of peace, which 
 has created a public sentiment ready to assume 
 burdens and sacrifices for the common weal. While 
 
GERMAN CONCEPTION OF THE STATE 323 
 
 legislating for production Germany has legislated for 
 distribution as well. While promoting industry she 
 has promoted the well-being of the people. While 
 training her men to arms she has trained them as 
 artisans, and while granting privileges to the em- 
 ploying class she has required them to share in the 
 burdens of the state, to relinquish profitable fields 
 of investment, and to consider the welfare of the 
 working class. 
 
 State socialism in Germany is of two kinds: first, 
 productive socialism, and second, distributive social- 
 ism. One means an increase in the amount of wealth 
 produced and the other its juster distribution. Of 
 the two the latter is more important. If we increase 
 the amount of wealth produced, there is more to go 
 around, but this does not necessarily improve the 
 well-being of those who produce, and as a matter of 
 fact, while the general standard of living in most 
 industrial countries has undoubtedly advanced dur- 
 ing the past generation, the gain to the great major- 
 ity of the people is far behind the advance that has 
 been made in production and accumulation. And 
 up to the present time the efforts of lawmakers has 
 been almost exclusively devoted to the promotion of 
 production, to the stimulation of invention, to the 
 encouragement of industry and commerce. The 
 departments of the government, the appropriations 
 made, the kinds of activities carried on have behind 
 them the desire to promote the well-being of the 
 
324 SOCIALIZED GERMANY 
 
 capitalist and privileged class. Outside of Germany, 
 Denmark, and Switzerland, there has been but little 
 legislation or little official thought to the more 
 generous distribution of the gains of civilization. 
 
 In America and England social legislation that 
 looks to fundamental reform is not a matter of pri- 
 mary concern to statesmen. It is but little studied 
 in the universities. It has awakened no philan- 
 thropies or endowments for research. There is but 
 little legislation that has for its object economic 
 justice or even fundamental change. We have given 
 protection to domestic industry from foreign com- 
 petition, we have subsidized the railroads by land 
 grants, we have encouraged agriculture, but in so far 
 as social legislation is concerned our official mind is 
 still in the individualistic stage. Legislation for the 
 promotion of production has proceeded apace, while 
 legislation for the individual man, for the worker, 
 and the great mass of the people has remained in the 
 Adam Smith, Ricardian age. Only within the last 
 few years has there been any sign of change. 
 
 Germany differs from other leading countries in 
 the thought that has been given to the distribution 
 as well as the production of wealth. And no other 
 country has so greatly improved the well-being of so 
 large a portion of the people. This is the real ex- 
 planation of her power; this lies back of her military 
 achievements; this explains her advance in trade, 
 the growth in her overseas commerce, and the rise 
 
GERMAN CONCEPTION OF THE STATE 325 
 
 of her merchant marine from that of a negligible 
 position to that of the second maritime power of the 
 world. 
 
 It is almost impossible to enumerate, much less to 
 translate into our laissez-faire consciousness, all of 
 the laws and administrative decrees that have been 
 enacted by the empire, states, and cities during the 
 past generation. Only the main measures stand out 
 in relief. But at every turn in conversation with 
 business men and workers some new measure is dis- 
 covered that is part of the structure that has made 
 Germany what she is. 
 
 Let us first consider the agencies of productive 
 socialism, which are designed primarily for increasing 
 the wealth of the empire. Transportation, which is 
 the circulatory system of the nation, is organized with 
 the most painstaking thought to realize the maxi- 
 mum of service at a low cost. Seaport and river 
 harbors, navigable rivers, streams, and canals have 
 been linked up with the railways and city terminals 
 so as to reduce waste to the minimum. Transporta- 
 tion is an agency of industry and commerce. Profit 
 is only incidental. It has been made easy for men 
 to enter business. Competition has been freed from 
 as many risks as possible. The capitalist is offered 
 good building sites by the cities, closely connected 
 with the means of transportation, and on easy terms. 
 While syndicates have come into existence and are 
 encouraged by the state, they are not permitted to 
 
326 SOCIALIZED GERMANY 
 
 strangle competition; and new capital is assured an 
 opportunity and is encouraged to enter any field. 
 
 Germany has recognized that the division of la- 
 bor is no longer confined within a single industry. 
 Transportation between the different sections of the 
 empire is almost as important as transportation 
 within the individual establishment. And Germany 
 has adjusted her transportation system, her mer- 
 chant marine, and her credit agencies as though the 
 state and the outside world were a single industrial 
 organism. 
 
 Rapidly increasing population has to be kept at 
 work. Little outlet was offered by the colonies, 
 which have not been a success. And domestic con- 
 sumption has not kept pace with the growth of the 
 output. A foreign market had to be found. This 
 has been achieved by a systematic study of foreign 
 desires and prejudices, by the adjustment of wares to 
 foreign wishes, by the careful training of clerks and 
 business agents, as well as by the building of steam- 
 ship lines which run to every available market. The 
 merchant marine as well as the foreign commerce of 
 the country has grown rapidly. 
 
 Industrial and commercial processes are a scien- 
 tific study. Education has been adjusted to changing 
 needs. There are technical universities and techni- 
 cal high schools. In every large city are institutions 
 devoted to training workers in industry, applied art, 
 and manual dexterity. Business is a profession for 
 
GERMAN CONCEPTION OF THE STATE 327 
 
 which men are specially trained in commercial col- 
 leges of high rank. Men not only familiarize them- 
 selves with foreign languages; they spend a number 
 of years of early life in England, America, and in 
 colonies, acquainting themselves with manufactur- 
 ing details and the wants of the most distant 
 markets. 
 
 The European war has promoted the process of 
 socialization far beyond what it was a year ago. 
 When the war is over there will undoubtedly be a 
 great increase in state activity; a wide expansion of 
 the services rendered and an accelerated movement 
 toward the socialized state under undemocratic 
 forms. There will be an expansion of public credit 
 at low rates of interest for the rebuilding of the in- 
 dustry and trade of the nation. New industries will 
 be taken over as a means of lightening the burdens 
 of taxation. There will be new partnerships be- 
 tween the state and the syndicates, so arranged as to 
 secure the co-operation of private initiative and at 
 the same time realize a share of syndicate profits. 
 Germany will undoubtedly emerge from the wreck- 
 age of the war with greater rapidity than the other 
 nations of Europe by reason of her ownership of so 
 many agencies that lie at the life of the nation and 
 particularly by virtue of her long training in co- 
 operative socialized effort. 
 
 Distributive socialism is closely related to pro- 
 ductive socialism. By distributive socialism I mean 
 
328 SOCIALIZED GERMANY 
 
 services performed by the state at low cost or no 
 direct cost at all. In other countries many of these 
 services are either not performed at all or are left 
 to commerce to be exploited. These include the 
 many non-profitable undertakings of the states and 
 cities, the provision for education and health, and 
 the many social services which are supported by 
 taxation. First in the list of such activities are the 
 social insurance schemes which distribute to the com- 
 munity the burdens of sickness, old age, accident, 
 and invalidity. These in themselves have freed 
 millions of men and women from fear of the future, 
 from loss of self-respect, and have kept them as pro- 
 ducing members of the community. 
 
 Distributive socialism has provided labor ex- 
 changes which eliminate much of the waste of unem- 
 ployment. It has erected working men's hotels or 
 Herbergen in every community, to which the wan- 
 dering artisan can go. Distress or emergency work 
 provided by the cities relieves the worker during 
 periods of industrial disturbance, just as does the pro- 
 tection of the health of the community by sanitation, 
 by the community doctor, the nurse, the pure-milk 
 stations, and the convalescent homes. Distributive 
 socialism receives the savings of the poor in the 
 municipal savings-bank, and loans the deposits back 
 again at a low rate of interest for the building of 
 working men's homes, the purchase of land, and the 
 maintenance of pawn-shops for the needy. It pro- 
 
GERMAN CONCEPTION OF THE STATE 329 
 
 vides municipal houses or apartments, or develops 
 garden suburbs. 
 
 But distributive socialism does not end with the 
 physical well-being of the working classes, it makes 
 provision for the leisure life of the people as well. 
 Cities maintain opera-houses and theatres in which 
 the best of productions can be heard at a low cost. 
 Through these the cultural standard of the people 
 is elevated. There are municipal art galleries and 
 museums. Cities maintain colleges and academies, 
 they provide lectures and entertainments. Every 
 city of any size has its orchestra or military band 
 which give excellent concerts in the parks and town 
 halls. The leisure life of Germany is under state 
 control just as is education. This is an important 
 function of distributive socialism. 
 
 It is by these means that the standard of living of 
 all classes has been improved. Wages have risen, it 
 is true, but the war on poverty, on distress and dis- 
 ease has been waged by the generous use of taxation 
 and the distribution to the poor of a multitude of 
 services which in many other countries are the ex- 
 clusive enjoyment of the few. 
 
 And the cost of these services, which in most coun- 
 tries is shifted onto the poor through indirect cus- 
 toms and excise taxes, is largely borne by those best 
 able to bear it. Taxes bear not only on property 
 but on incomes as well. The rates are progressive, 
 so that the rich and well-to-do pay more than their 
 
330 SOCIALIZED GERMANY 
 
 proportional share. In some cities the income tax 
 on the very rich for state and municipal purposes 
 rises as high as 10 or 15 per cent. Cities impose 
 an unearned increment tax on the rising value of 
 land, and frankly insist that land values are social 
 in character, and are the result not of the industry of 
 the owner, but of the growth of population and 
 industry. In addition, a large part of the revenues 
 of the empire, the individual states, and cities comes 
 from the many productive undertakings owned by 
 them. Not only have the propertied classes been 
 dispossessed of the most profitable monopolistic 
 undertakings, but tax burdens have been imposed 
 that in America would be considered the most un- 
 just of class legislation. 
 
 Property, business, and industry are regulated 
 in the public interest. Factories are required to 
 build where the community decrees. The individual 
 may not lay out his land as suits his fancy or his 
 profit, he must lay it out and sell it for such purposes 
 as the city decides for him. When he erects his 
 home he must abide by the ordinances of the city 
 as to the kind of house he will build, the amount of 
 land it will cover, as well as the height and character 
 of the building. This is but part of the comprehen- 
 sive system of town-planning that views the city as 
 a unit rather than an accidental group of individual 
 properties. Even banking and credit are largely in 
 public hands. Over 90 per cent, of the individual 
 
GERMAN CONCEPTION OF THE STATE 331 
 
 deposits are in public institutions while the govern- 
 ment owns a controlling interest in the Imperial 
 Bank, and through its ownership supervises and 
 directs the credit transactions of the country. 
 
 All this is only a skeleton of the industrial, com- 
 mercial, and protective agencies that constitute pro- 
 ductive and distributive socialism. It does not in- 
 clude the markets and slaughter-houses, the parcel 
 post, the mines and estates, the forests, and the 
 multitude of activities that are owned by the cities. 
 But it suggests the German idea of the state, an 
 idea willingly accepted by all classes. This is state 
 socialism, approved by statesmen, business men, the 
 university, and public opinion generally. It explains 
 the efficiency of the country, not only in peace but in 
 war as well. It also explains the psychology of Ger- 
 many, and especially of Prussia, where state regi- 
 mentation has been carried to its greatest develop- 
 ment. And within these social regulations a nation 
 of 67,000,000 people moves with a remarkable degree 
 of individual freedom. Instead of stagnation there 
 are initiation and aggression, not only in industry and 
 commerce but in social intercourse as well. For the 
 state draws to its service the most competent men of 
 the country. There is a desire for service, for un- 
 remunerated work in the city council, on commit- 
 tees, in connection with chambers of commerce, and 
 semipublic bodies, that affects all classes. And by 
 means of a civil service that weeds out all but the fit. 
 
332 SOCIALIZED GERMANY 
 
 the most capable men of the universities and of the 
 professions make their way into the service and give 
 their best to the state. 
 
 It should not be inferred that there are no faults 
 in the system described. Paternalism and autoc- 
 racy involve costs of a most serious character. 
 They are political, social, and personal. They are 
 costs to the individual. And as, according to our 
 conception of society, the state exists for the indi- 
 vidual rather than the individual for the state, they 
 are costs to the state as well. And the most serious 
 price which the Germans pay for an autocratic state 
 is caste, a caste that runs through the very fibre of 
 the state. Caste is found everywhere. And it is 
 not challenged by the majority of the people. It is 
 assumed that the individual is born to his place in 
 society and that only in exceptional cases may he 
 hope to rise from it. That is, of course, most true 
 of politics which is in the hands of the old privileged 
 classes who consider that they have an almost divine 
 right to rule. It extends even to the cities, where 
 some concessions have been made to representative 
 institutions. 
 
 Caste prevails in all social intercourse. Official 
 rank carries an authority and distinction not to be 
 found in any other civilized country. This, too, is 
 part of the bureaucratic idea of the state. It 
 strengthens the ruling caste to identify with itself a 
 large number of people. 
 
 Caste rules in education. This is possibly the 
 
GERMAN CONCEPTION OF THE STATE 333 
 
 most serious criticism that can be made against the 
 educational system of Germany. It affects the uni- 
 versities in which conformity is the open door to 
 advancement. This destroys criticism, it censors 
 the intellectuals, it identifies the entire scientific 
 world with the state, and the state as interpreted by 
 the ruling caste. This is a fault, unhappily, of higher 
 educational institutions in other countries, but no- 
 where is the intellectual and scientific world so 
 frankly and officially identified with the state as in 
 Germany. The same is true of the church which is 
 a state institution. 
 
 Elementary, secondary, and technical education 
 partakes of the same caste system, the same state 
 control. The individual child is educated for the 
 station in life to which he is born. Schools are classi- 
 fied accordingly. The choice once made is in the 
 majority of instances irrevocable. Moreover, all 
 education, elementary, secondary, and higher, is 
 pyramided to a central control. There is state and 
 for the most part imperial uniformity. Localities 
 are not permitted to experiment as they do in 
 America; the local school board is not autonomous 
 as it is with us. The child is moulded by the state, 
 to the state's idea of what is best for the state, and 
 only incidentally what is best for the child. There 
 is uniformity rather than variety, and in consequence 
 that initiative so characteristic of America is almost 
 wholly lacking in the average child. 
 
 Prussia has ironed out personal individuality by 
 
334 SOCIALIZED GERMANY 
 
 the educational system described. She has also 
 ironed out much of the individuality of the states, 
 an individuality that made the Germany of fifty 
 years ago what she was to the world. And this is a 
 terrible loss, as is any system that fails to awaken 
 and keep alive the spontaneity and resourcefulness 
 of the people. 
 
 But these sacrifices are not a necessary part of 
 state socialism. The institutions which Germany 
 has developed, and the efficiency that has been 
 achieved are in no way inconsistent with democracy. 
 They are rather the consciously desired ends of the 
 ruling class, which seeks submission rather than pro- 
 test, and subordination to the state rather than ser- 
 vice of the state to the people. 
 
 There is nothing democratic in the German idea 
 of the state. The measures enumerated have not 
 been carried through by the Social Democratic party, 
 although it has undoubtedly been indirectly responsi- 
 ble for much of the public opinion that sanctioned 
 them. There was nothing like a referendum to as- 
 certain public opinion. Nowhere in German state- 
 craft is there any belief in democracy or representa- 
 tive institutions or in manhood suffrage. Even in 
 the more Democratic states of the south the suf- 
 frage is limited by property qualifications. 
 
 State socialism is a natural outgrowth of feudalism. 
 It has its roots far back in German traditions and 
 the experiences of the people. It is the eighteenth- 
 
GERMAN CONCEPTION OF THE STATE 335 
 
 century state adjusted to twentieth-century condi- 
 tions. And it has largely made Germany what she 
 is, a menace and a model, a problem to statesmen 
 of other countries, and a pathfinder in social reform. 
 
INDEX 
 
 Accident insurance, benefits, 195, 
 196 
 
 Administration, German cities, 
 267 
 
 Administrative agencies, Ger- 
 man cities, 269 
 
 Administrative control, German 
 cities, 272 
 
 Agriculture, 57; scientific meth- 
 ods in, 58 
 
 Architectural restrictions, 306 
 
 Artisans', German, hours of 
 work, 202 
 
 Ashley, W. J., 199 
 
 B 
 
 Ballot, open, 41 
 
 Barmen, vocational education 
 in, 238 
 
 Baths, public, 255 
 
 Beet-sugar industry, 60 
 
 Benefits, accident insurance, 196 
 
 Berlin, water traffic of, 125; 
 Stettin Canal, 126; system of 
 street sewerage, 254 
 
 Birth-rate, Germany, 55 
 
 Bismarck, 15; constructive legis- 
 lation, 54; socialized legisla- 
 tion, 162; old-age pensions, 
 166; attitude toward social 
 insurance, 193 
 
 Bremen, free port of, 127 
 
 Burgomasters, position of, 271; 
 qualifications of, 273; salaries 
 of, 276 
 
 Business classes in Germany, at- 
 titude toward state socialism, 
 168 
 
 By-products developed by Ger- 
 many, 63 
 
 Canals, 123-125 
 
 Caste, 44, 332 
 
 Cemeteries, 253 
 
 Chancellor, 29; powers of, 30 
 
 Cities, electoral system in, 47; 
 population in, 52, 56, 266; 
 socialism in, 85; regulation by 
 state, 86; administration of, 
 267; administrative agencies, 
 269; administrative control of, 
 272; power of king over, 272; 
 sale of food by, 288; indebted- 
 ness of German and American, 
 293, 295 
 
 Civil service, 21, 88; employees 
 in, 92 
 
 Class rule in Germany, 37 
 
 Coal and coke, 68 
 
 Coal mines, nationalization of, 
 152 
 
 Colonial expansion, 72 
 
 Commerce, German, overseas, 
 69; influence of education on, 
 246 
 
 Compensation insurance, 197 
 
 Conception of state, German, 82, 
 296, 321 
 
 Constitution, Germany, 13, 26 
 
 Consumption, standard articles, 
 74 
 
 337 
 
338 
 
 INDEX 
 
 Continuation schools, 231. See 
 
 also Vocational education 
 Cremation, employment of, 253 
 
 D 
 
 Death-rate, tuberculosis, 261 
 
 Democracy, fear of, in Germany, 
 282; little of, in Germany, 334 
 
 Dental clinics, school-children, 
 227 
 
 Discipline, German education, 
 217 
 
 Distress work, 179 
 
 Distribution of wealth, German 
 thought on, 324 
 
 Distributive socialism, 324 
 
 District or zone system, 304 
 
 Division of labor, 326 
 
 Duality, German, 12 
 
 Dusseldorf, 135, 275, 311; har- 
 bor administration of, 136; 
 industrial section, 135 
 
 E 
 
 East Prussia, 38 
 
 Education, Germany, 17; higher, 
 18, 208-210; among workers, 
 205; influence of, on German 
 industry, 212; prized by all 
 classes, 213; faults of, 213; 
 elementary, 220; compared 
 with United States, 220; prac- 
 tical nature of elementary, 
 221; administration of, 224; 
 state control of, 225; influence 
 of German, 230; vocational, 
 223, 231-240; influence of, on 
 German commerce, 246. See 
 also Special schools, Technical 
 schools, Universities 
 
 Electoral system, 30, 40, 42; 
 Prussian, 41; in cities, 47; 
 three-class system, 47, 269 
 
 Emergency work, 179 
 
 Employees, civil services, 92 
 
 Employment, attitude toward, 
 172; exchanges, 172 
 
 England, laissez-faire in, 80; 
 wealth in, 53 
 
 European war, effect on social- 
 ism, 327 
 
 Expansion, colonial, 72 
 
 Experiment stations, farms, 148 
 
 Explanation of Germany, 9 
 
 Exports, Germany, 65; machin- 
 ery, 68 
 
 Factories, control of, 310 
 
 Farms, experiment stations, 148 
 
 Feeding school-children, 228 
 
 Feudal state, 31 
 
 Feudal system, 146 
 
 Feudalism in Germany, 10 
 
 Food, inspection of, 253; sale of, 
 by cities, 288 
 
 Foreign trade, 68 
 
 Forests, German, 149, 317; own- 
 ership of, 148; earnings of, 150 
 
 France, war with, 25 
 
 Frankfort-on-Main, 310 
 
 Free ports, 127; Bremen, Ham- 
 burg, Liibeck, 127 
 
 French Revolution, 12 
 
 German conception of state, 321 
 German constitution, 13, 26 
 Germany, explanation of, 9; con- 
 solidation of, 24 
 Grammar, working-men's, 206 
 
 H 
 
 Hamburg, free port of, 127; vo- 
 cational education in, 232 
 
 Harbors, 134-136; Dusseldorf, 
 136; Mannheim, 141 
 
 Health, of school-children, 227; 
 in Prussia, 250 
 
 Help schools, 223 
 
INDEX 
 
 339 
 
 Herbergen, 177 
 
 High schools, 218 
 
 Higher education, German, 18, 
 
 208-210 
 Home rule, 267 
 Hospitals, Germany, 252 
 Hours of work, German artisans', 
 
 202 
 House owners, influence of, hi 
 
 town council, 269 
 
 Illiteracy, Germany, 215 
 
 Income taxes, increasing wealth 
 of people, 75 
 
 Indebtedness, German cities, 
 293; American cities, 295 
 
 Industrial courts, 188 
 
 Industrial progress, Germany, 66 
 
 Industrial revolution, Germany, 
 14 
 
 Industrial schools, 212 
 
 Industrial sections, 50, 135, 309 
 
 Industry, science in, 64; influ- 
 ence of education on, in Ger- 
 many, 212 
 
 Infant mortality, warfare on, 179 
 
 Inspection of food, 253 
 
 Insurance, state, 91; social, 
 192-200; compensation, 197; 
 amount of payments, 199; 
 invalid, 262 
 
 Insurance funds, administration 
 of, 195 
 
 Insurance laws, social, 170 
 
 Invalid insurance, relation to 
 tuberculosis, 262 
 
 Junker, 33, 44; power of, 32, 36 
 Junkerism, 39 
 
 K 
 
 Kaiser Wilhelm II, 15; personal- 
 ity of, 22; ascendancy of, 28 
 
 Kerschensteiner, Doctor Georg, 
 
 216 
 King, powers of, 26; power of, 
 
 over cities, 272 
 Krupp works, 66 
 Kultur, Germany, 321; German 
 
 idea of, 4 
 
 Labor courts, 182 
 Laissez-faire, hi England, hi 
 
 America, 80; German attitude 
 
 toward, 165 
 Land monopoly, 37 
 Landownership, 313; effect of, 
 
 43 
 
 Land speculation, 314 
 Lawyers, discouraged in labor 
 
 courts, 185 
 Legislation for working classes, 
 
 164 
 
 Live-stock industry, 61 
 Lodging-houses, municipal, 176 
 Liibeck, 127 
 
 M 
 
 Machinery, exports, 68 
 
 Magdeburg, vocational educa- 
 tion in, 238 
 
 Magistrat, 276 
 
 Mannheim, 137; harbor of, 141 
 
 Manufactures, 33 
 
 Markets, 288 
 
 Merchant marine, 70 
 
 Milk supply, 288 
 
 Mineral resources, 61 ; state con- 
 trol of, 151 
 
 Mining properties, Prussia, 147 
 
 Mississippi River, 144 
 
 Monarchical socialism, theory 
 of, 83 
 
 Monopoly, German attitude to- 
 ward, 158 
 
 Munich, vocational schools in, 
 223, 232, 240 
 
340 
 
 INDEX 
 
 Municipal ownership, Germany, 
 extent of, 283; profits of, 292 
 Municipal socialism, 280 
 Music, in public recreation, 180 
 
 N 
 
 Nationalization, sentiment for, 
 152 
 
 Obedience, 19 
 Oil monopoly, 160 
 Old-age insurance, 197, 198; Bis- 
 marck's attitude toward, 166 
 Overseas commerce, 69 
 
 Partnership,, state and private 
 industry, 156 
 
 Payments, amount of insurance, 
 199 
 
 Physical culture, 228 
 
 Pig-iron production, 62 
 
 Playgrounds, 256 
 
 Political activities, socialized, 
 204 
 
 Political parties, 33; in Reich- 
 stag, 33 
 
 Population, urban, 52, 56, 266; 
 increase of, 54 
 
 Ports, free, 127 
 
 Post-office department, 90 
 
 Potash industry, 153 
 
 Potash syndicate, 153 
 
 Profits of state socialism, 92 
 
 Prohibition, movement for, 
 among workers, 207 
 
 Property, control of, 330 
 
 Protective tariff, 60 
 
 Prussia, health in, 250 
 
 Psychology, German, 20; influ- 
 ence of state socialism on, 21 
 
 Public ownership, 146; effect of, 
 on people, 22 
 
 Public recreation, 180 
 
 Public-service corporations, own- 
 ership of, 284; profits, 284 
 
 R 
 
 Railways, state-owned, 95; early 
 experience with, 95; privately 
 operated, 96; purchase of, by 
 state, 97; present mileage, 97; 
 efficiency of, 97; Prussian, 98; 
 financial success of, 98; serv- 
 ice, 103; industrial, 104; Eng- 
 lish opinions of, 104; stations, 
 Germany, 105; rebates, 106, 
 108; discriminations, 106; ex- 
 port trade fostered, 107; spe- 
 cial services, 110; improve- 
 ments, 110; civil service in, 
 111; electrification of, 112; 
 passenger fares, 112; freight 
 rates, 113; burden, 113; ad- 
 ministration, 115; politics di- 
 vorced from, 119 
 
 Recreation, public, 180; subsi- 
 dies for, 180 
 
 Reichstag, 28; membership, par- 
 ties in, 33, 35; power of mem- 
 bers, 36 
 
 Rhine, harbors of, 134; traffic 
 on, 139 
 
 Ruling classes, 11 
 
 S 
 
 Sanatoria, tuberculosis, 259 
 Sanitation, 248; control of, 249 
 Savings-bank deposits, 74 
 Schmoller, Provisor, 159 
 Schools. See Education 
 Science, in industry, 64; in agri- 
 culture, 58 
 Scientific methods, agriculture, 
 
 58 
 
 Sickness insurance, 194 
 Slaughter-houses, Germany, 287 
 Social insurance, 192 ; Bismarck's 
 attitude toward, 193; sickness 
 
INDEX 
 
 341 
 
 insurance, 194; administra- 
 tion of funds, 195; accident 
 insurance, 195; attitude of 
 employers, 196; benefits, 198; 
 compensation paid, 197; old- 
 age insurance, 197; number of 
 persons insured, 198; pay- 
 ments, amount of, 199; effect 
 of insurance on worker, 200 
 
 Social legislation, 85; Bismarck 
 and, 162; in America, 324 
 
 Socialism, monarchical, theory 
 of, 83; in cities, 85; distribu- 
 tive, 324; effect of European 
 war on, 327 
 
 Socialist party, vote of, 203 
 
 Soil, Germany, 59 
 
 South Germany, 48 
 
 Special schools, 210 
 
 Standard of living, 76 
 
 State, German conception of, 82, 
 164, 296, 321; partnership 
 with private industry, 156; at- 
 titude toward working classes, 
 201 
 
 State control, mineral resources, 
 151; over cities, 86; in educa- 
 tion, 225 
 
 State insurance, 91 
 
 State socialism, influence of, on 
 psychology, 21; extent of, 89; 
 Prussian tradition of, 163; at- 
 titude of business classes to- 
 ward, 168, 323 
 
 Steam-power in Prussia, 63 
 
 Stein and Hardenberg, 38 
 
 Stettin Canal, 126 
 
 Street scavenging, 255 
 
 Streets, arrangement of, 303. 
 See Town planning 
 
 Subsidies, recreation, 180 
 
 System of treating sewerage, 
 Berlin, 254 
 
 Tariff, 60 
 Taxation, 75, 329 
 
 Teachers, preparation of, 217; 
 training of, 226 
 
 Technical high schools, 210 
 
 Three-class electoral system, 47, 
 269 
 
 Town council, 269; influence of 
 house owners in, 269 
 
 Town planning, 298; beginning 
 of, 300; streets, arrangement 
 of, 303; districts, or zone 
 system, 304; widening, city 
 planned for, 305; architec- 
 tural restrictions, 306; street 
 disfigurements, 307; indus- 
 trial districts, 309 
 
 Trade, foreign, 68 
 
 Tradition, German, 87; of state 
 socialism in Prussia, 163 
 
 Treaties, 73 
 
 Tuberculosis, war upon, 285 ; san- 
 atoria, 259; death-rate, 261; 
 relation of invalidity insurance 
 to, 262 
 
 U 
 
 Urban population, 52, 56, 266 
 United States of America, ele- 
 mentary education in, 220 
 Universities, German, 18, 208; 
 attendance at, 208; effect on 
 students, 219 
 
 Vocational education, 231; hi 
 Munich, 223, 232, 240; Ham- 
 burg, 232; Magdeburg, 238; 
 Barmen, 238; Frankfort-on- 
 Main, 240 
 
 Voting, three-class system, 47 
 
 W 
 
 Wages, increase of, 77 
 Waste, German attitude toward, 
 161 
 
342 
 
 INDEX 
 
 Water-power, Germany, 64 
 Waterways, development of, 121; 
 tonnage of, 122; waterway 
 programme, Germany, 122; 
 canals, 123; construction of, 
 124; traffic on, 125; free ports, 
 127 
 
 Wealth, Germany, 53; of Eng- 
 land, 53; increase of, in Ger- 
 many, 73 
 
 Wilhelm II, 15; personality of, 
 22; ascendancy of, 28 
 
 Workers, attitude of . state to- 
 ward, 162; effect of insurance 
 laws on, 200 
 
 Working classes, legislation for, 
 164; attitude of state toward, 
 201; education among, 205; 
 grammar, 206; movement for 
 prohibition among, 207 
 
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