(1) is correct, but you often hear (2). If you change the order, it becomes more obvious: It showed that the number of baggers is insufficient. The subject of the "that" clause in this case is "number," but that's not what you mean.
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AvangiCould you weigh in on Victo's question about the "true subject" of this sentence?I don't have a fix on the definition of "true subject", but within the that-clause there are three candidates for the role of clausal subject: there, number, and baggers.