SCAPIN-1743: ADDITION OF UBE INDUSTRIAL COMPANY, LTD. (UBE KOSAN K.K.). TO THE SCHEDULE OF RESTRICTED CONCERNS
GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
8 July 1947
AG 095
(8 Jul 47)
ESS/AC
(SCAPIN-1743)
| MEMORANDUM FOR | IMPERIAL JAPANESE GOVERNMENT. |
|---|---|
| THROUGH | Central Liaison Office, Tokyo. |
| Subject | Addition of Ube Industrial Company, Ltd (Ube Kosan K. K.), to the Schedule of Restricted Concerns. |
1. Reference is made to the following memoranda for the Japanese Government from General Headquarters, Supreme Commander for the Allied Powers:
a. AG 004 (10 Jul 46) ESS/AC (SCAPIN 1058), dated 10 July 1946, subject: Limitation of Activities and Requiring of Reports from the Ube Industrial Company, Ltd (Ube Kosan K. K.), and Iwaki Cement Company (Iwaki Semento K. K.).
b. AG 319.1 (22 Oct 45) ESS/IE (SCAPIN 177), dated 25 October 1945, subject: Reports to be Made by Certain Business Firms.
c. AG 004 (31 Oct 46) ESS/AC (SCAPIN 215), dated 31 October 1945, subject: Sale or Transfer of securities of Certain Business Firms.
d. AG 004 (8 Dec 45) ESS/AC (SCAPIN 403), dated 8 December 1945, subject: Establishment of a Schedule of Restricted Concerns.
e. AG 300.8 (8 Dec 45) ESS/AC (SCAPIN 408), dated 8 December 1945, subject: Regulations Affecting Restricted Concerns, as amended.
f. AG 123 (15 Jan 46) ESS/FI (SCAPIN 599), dated 15 January 1946, subject: Restriction on Divided Payments.
g. AG 319.1 (19 Jan 46) ESS/AC (SCAPIN 625), dated 19 January 1946, subject: Reports to be Made by Certain Business Firms.
h. AG 004 (4 Jul 46) ESS/AC (SCAPIN 1053), dated 4 July 1946, subject: Changes in Names of Restricted Concerns.
i. AG 004 (28 Sep 46) ESS/AC (SCAPIN 1238), dated 28 September 1946, subject: Supplimentary Regulations Affecting Restricted Concerns.
j. AG 150 (23 Feb 46) ESS/AC (SCAPIN 767), dated 23 February 1946, subject: War Damage and Government Indemnity Claims of Companies on the Schedule of Resticted Concerns.
2. The Ube Industrial Company Ltd, is hereby added to the Schedule of Restricted Concerns referred to in paragraph 1d, above, and is removed from the Schedule of Concerns the activities of which are limited.
FOR THE SUPREME COMMANDER:
R. M. LEVY,
Colonel, AGD,
Adjutant General.
MEMO FOR RECORD: (SCAPIN - 1743)
WFM/ECW/FCH/gg
2 July 1947
1. Pursuant to a Memorandum from General Headquarters, Supreme Commander for the Allied Powers, file AG 004 (10 Jul 46) ESS/AC (SCAPIN 1058), subject: "Limitation of Activities and Requiring of Reports from Ube Industrial Company, Ltd (Ube Kosan K. K.), and Iwaki Cement Company, Ltd (Iwaki Semento K. K.), " the Ube Industrial Company, Ltd. is required to make certain reports and to submit applications to SCAP for permission to do acts outside the normal course of business. However, this company was never added to the Schedule of Restricted Concerns. The reason for the above memorandum was a forced sale in which the Ube Industrial Company, Ltd. was involved, but the transaction involved in the force sale has now been rectified.
2. The Ube Industrial Company, Ltd. produces cement, coal, fertilizer and iron. It has a capital of ¥81, 600, 500 and assets in excess of ¥250,000,000.
3. A reorganization plan for this company has been informally agreed upon by which the company would divide into four (4) parts, separating the various unrelated activities. The company is now preparing to submit such plan through formal application to the Japanese Government. However, before the reorganization can be completed, the companies in which Ube Industrial Company has a stock interest should be removed from the control of Ube Industrial Company, Ltd. The Ube Industrial Company, Ltd. has interests exceeding 10 percent in the total capital of the following companies:
Company % Control
Chosen Cement Company 44. 5
Isa Railway Company 19. 1
Hagimori Coal Mining Company 60. 2
Daito Steamship Company 56. 4
Bocho Trading Company 100
Teikoku Fuel Company 15.2
Ube Port Terminal Service Company 19. 2
Nawata Gumi Company 10
Ube Dock Company 93. 7
Thus the head office of this company has controlling interest in several companies whose activities are unrelated and should be divorced from the Ube interests as part of the reorganization of the company. It is desirable that the Holding Company Liquidation Commission be given voting rights by proxy for the shares now held by Ube Industrial Company, Ltd. The HCLC would have such rights if this company were a Restricted Concern. "Imperial Ordinance concerning the Restriction of Securities Holdings, etc, by Companies," provides that companies on the Schedule of Restricted Concerns must submit proxies for their shares to the HCLC. Since the Ube Industrial Company, Ltd. is not now such a Restricted Concern, it does not come under the above provision and is able to vote and control its share interests. The Ube Industrial Company, Ltd. is therefore added to the Schedule of Restricted Concerns and is no longer on the list of concerns whose activities are limited.
4. This is an administrative matter and no surveillance by the Eight Army is required.
5. The interests of USAFIK are not concerned.
6. Concurrences: ESS/LE - Mr. E. J. Carrungton; ESS/IN - Mr. G. T. Walker
E. C. W. -27-6561
