What then was wrong with Hubble's 1936 analysis of the count data in Fig. 1 that led him to his remarkable conclusion of no expansion?
There were five problems. (1) Incorrect K term values as a function of redshift because galaxy spectra have a much cooler color temperature than 6000°. (2) The apparent magnitude scale used by Hubble via the Selected Area magnitudes, even as partially corrected by Baade in the late 1930s, was wrong. (3) Hubble's assumption that "distance" is given by cz/H for large redshifts is not correct, but known only after the Mattig revolution (section 4). (4) The assumption that uniform spatial distribution requires log N(m) to increase as ~ 0.6 m for large redshifts is also wrong according to the theory of Friedmann spaces, again shown by the new Mattig equations. (5) The assumption of constant luminosity and/or density evolution at high redshifts is evidently wrong as shown by the large excess in the counts (a fact that would have been discovered by Hubble from his counts if he had kept the true expansion assumption) shown not only by the modern N(m) counts, but also by the strange galaxy morphology at the faintest HST levels (section 7).
These points are reviewed in order.
3.1. Enter Greenstein
The 1936 analysis by Hubble had already begun to unravel by a
devastating paper by
Greenstein (1938),
in which he showed that the color temperature of
M31
was only
4200° K rather than 6000°. Shifting a black body spectrum
through the mpg pass bands
gave selective K corrections plus either one or two factors of 2.5 log
(1 + z) that were
no where near the B = 2.94 determined from the "departure" observations
by Hubble.
Hence, nothing worked in any interpretation of
Hubble's 1936b
counts. Greenstein's
conclusion was: "From 
6500 to
3900 Å, [the spectrum of M31]
closely resembles that of
a black body of temperature 4200°. - The effect of such low
temperatures on the present
interpretation of counts of extragalactic nebulae is serious. It seems
improbable that the
effect of the redshift on the apparent magnitudes of nebulae, found by
Hubble, can be interpreted either as a velocity or as a nonvelocity shift."