MEMO FOR RECORD : (SCAPIN - 1696)
19 May 1947
1. CLO Memorandum No. 5447 (LO 1794/1059), 15 October 1946, forwards application of Kanegafuchi Cotton Spinning Company, Ltd. which was added on 8 June 1946 to the Schedule of Restricted Concerns established by SCAP Memorandum AG 004 (8 Dec 45) ESS/AC, (SCAPIN-403), subject: "Establishment of a Schedule of Restricted Concerns," for removal of eighteen (18) companies from the Schedule of Restricted Concerns.
2. a. The Asahi Hemp Manufacturing Company, Ltd, was dissolved prior to having been put on the Schedule of Restricted Concerns. Final dissolution was registered in accordance with Japanese Law on 6 May 1946.
b. The Awaji Industrial Company, Ltd, is capitalized at \2,000,000 and manufactures industrial machines. The applicant held sixty (60) percent of the shares of this company, but transferred all of its shares to eight (8) individuals, none of whom are in any way connected with the applicant, on 20 April 1946.
c. Gamo-gun Rope Manufacturing Company, Ltd, has a paid up capital of \54,000 and manufactures hemp products. On 17 May 1946, all of the stock in this company held by Kanegafuchi Cotton Spinning Company, Ltd, was transferred to S. Kuroki in accordance with prior agreement. S. Kuroki is not connected with the applicant.
d. Gunsui Electrical Industry, Ltd, capitalized at \180, 000, is engaged in the production of steel. The applicant transferred ail of its holdings in this company to six (6) persons on 20 April 1946. None of the transferees are connected with the applicant.
e. Ishihara Wire Manufacturing Company, Ltd, previously was removed from the Schedule of Restricted Concerns.
f. Japan Quartz Industry, Ltd, capitalized at \1,000,000, is engaged in mining and selling quartz and silex. All of the shares held by the applicant were transferred to seven (7) persons not connected with Kanegafuchi Cotton Spinning Company, Ltd, on 13 May 1946.
g. Johmo Twisting Thread Company, Ltd, is capitalized at \1,000,000 and manufactures thread. Kanegafuchi Cotton Spinning Company, Ltd, held 13, 650 shares which were sold to eight (8) persons, none of whom are connected with the applicant, on 3 April 1946.
h. Kanegafuchi Knitting Company, Ltd, capitalized at \198,000, manufactures and sells knitted clothing. The applicant owned 1,520 shares which it transferred to Kunisuke Akashi and Kojiro Osawa on 25 May 1946. Neither of the transferees has connection with the applicant.
i. Saitama Woolen Material Company, Ltd, is capitalized at \250,000, and is engaged in dyeing wool. Kanegafuchi Cotton Spinning Company, Ltd, held 3,180 shares which were sold on 15 April 1946 to three (3) individuals and an association of the employees of the company. None of the transferees has connection with the applicant.
j. Sankyo Commercial Company, Ltd, is capitalized at \190,000 and manufactures and sells sewing machine needles. The 3,800 shares of this company held by Kanegafuchi Cotton Spinning Company, Ltd, were transferred to eight (8) persons, none of whom is connected with the applicant, on 20 May 1946.
k. Sanwa Silk Weaving Company, Ltd, was capitalized at \300,000 and engaged in weaving silk. This Company was dissolved on 20 April 1946.
l. Seiko Lumber Company, Ltd, is capitalized at \268,000 and engaged in the lumber business. On 13 May 1945 all of the shares held by Kanegafuchi Cotton Spinning Company, Ltd, were sold to B. Katayama at \50 per share. At that time all directors having any connection with Kanegafuchi Cotton Spinning Company, Ltd, resigned. At present there is no connection between the two (2) companies or its stockholders.
m. Showa Steel Manufacturing Company, Ltd, was capitalized at \172,500 and manufactured and sold interphones, cardexes and other office equipment. Air raid damage to the office building and factory of the company made it impossible to continue in business and on 15 April 1946, all of the stock held by Kanegafuchi Cotton Spinning Company, Ltd, was transferred to B. Watanabe to liquidate the company. It now has no connection with the applicant.
n. Toyo Hemp Rope Company, Ltd, is capitalized at \195,000 and manufactures hemp rope. Prior to becoming a Restricted Concern, Kanegafuchi Cotton Spinning Company sold all of its stock in this company to Kasiu Gohei. The officials of this company who had connection with the applicant were dismissed.
o. Toyo Woolen Material Company, Ltd, is capitalized at \400,000 and engages in refining wool. On 21 May 1946 the 1,000 shares held by Kanegafuchi Cotton Spinning Company, Ltd, were sold to Kiroku Noguchi and Usaburo Sato and the representative of Kanegafuchi Cotton Spinning Company, Ltd, Seizo Motski, was retired as managing director. No interest remains with Kanegafuchi Cotton Spinning Company, Ltd.
p. Toyo Textile Finishing Company, Ltd, is capitalized at \190,000 and engages in finishing textiles. All of the shares owned by the applicant were, in February 1946, transferred to the Naupo Shokusan Company, Ltd. This company now has no connection with Kanegafuchi Cotton Company, Ltd.
q. Uji Works, Ltd, was capitalized at \195,000 and engaged in the processing and repair of metals. After the war ended the business of this company ceased. It commenced liquidation on 9 June 1946 and all of its assets were transferred to N. Furukawa as liquidator.
r. Shinko Machine Company, Ltd, was capitalized at \150,000 and engaged in the manufacture and sale of cash registeres, typewriters and other office equipment. Air raids caused almost complete destruction of the office and factory, consequently all shares held by Kanegafuchi Cotton Spinning Company, Ltd, were transferred to A. Watanabe as liquidator. Kanegafuchi Cotton Spinning Company, Ltd now has no interest in this company.
3. The error in listing the foregoing companies as subsidiaries of Kanegafuchi Cotton Spinning Company, Ltd, arose from the fact that holdings were taken from a September 1945 list, whereas, in fact, the above companies were not subsidiaries of Kanegafuchi as of 15 June 1946, the date that the above companies were added to the Schedule of Restricted Concerns.
4. Since none of the above companies were in fact subsidiaries of Kanegafuchi Spinning Company, Ltd, on 15 June 1946, no objection is offered to the above application.
5. This is an administrative matter and no surveillance by the Eighth Army is required.
6. The interests of USAFIK are not concerned.
7. Concurrences: ESS/LE (Mr. E. J. Carrington).
E. C. W. - 26-6561