MEMO FOR RECORD: (SCAPIN - 813)
WFM/JMcIH/ITB/las
5 March 1946
1. In carrying out the policy set forth in Radio Directive to the Supreme Commander, dated 25 September 1945, investigations are being made of concerns which are not on the "Schedule of Restricted Concerns," inclosure to Memorandum of this Headquarters for the Imperial Japanese Government, AG 004 (8 Dec 45) ESS/AC, dated 8 December 1945, subject: "Establishment of Schedule of Restricted Concerns."
2. With respect to the subject concerns, these investigations have disclosed:
a. Investigation of Tokyo-Shibaura Electric Company has disclosed the following:
(1) Description and History of Company
(a) This Company with total assets of approximately two and one-half billion yen (¥2,478,511,000) is the largest company of all the communications equipment manufacturers in Japan. Although it is closely approached in size by Hitachi, Ltd., Tokyo-Shibaura has about three (3) times the total assets of the Mitsubishi Electric Company which is third in size.
(b) Tokyo-Shibaura was established as the Tanaka Works in 1875, manufacturing mainly telegraphic instruments. In 1893 the name was changed to the Shibaura Engineering Works, when the plant was acquired by the Mitsui Bank, and the new concern manufactured general machinery and electrical instruments. In 1904 the name of the Company was changed to the present title. In 1941, through amalgamation with the Toho Kohyo, its sphere of business was extended to the iron and steel industry. The company continued to grow through amalgamation during the war years, and absorbed the Shibaura-Mazda Electric Company, the Nippon Iron Electric Company, and several other smaller concerns.
(c) The largest single stockholder in Tokyo-Shibaura is the Nippon Electric Light Company which holds about 19% of its stock. However, Nippon Electric Light Company is in turn owned 30% and controlled as a subsidiary of Tokyo-Shibaura. The next largest stockholder is the Mitsui Head Office which owns 15% of the stock. Other Mitsui interests bring the total Mitsui holdings up to 18.4%. Furthermore, Tokyo-Shibaura, is financed largely through the Teikoku Bank which held this Company's notes amounting to over ¥800 million.
(2) Investments
(a) Following is a list of companies in which Tokyo-Shibaura Company owns shares, and percentages of control as of 30 September 1945:
Percent Control
Showa Electric Wire and Cable Co., Ltd. 45.0
Nippon Talking Machine Co., Ltd. 68.0
Nitchiku Industry Co., Ltd. (Nitchiku Kogyo K. K.) 70.0
Shibaura Machine Mfg. Co., Ltd. 100.0
Nippon Electric Industry Co., Ltd. (Nippon Denko Co., Ltd.) 30.0
Shibaura Engineering Co., Ltd. 100.0
Shibaura United Engineering Co., Ltd. 100.0
Ishikawajima Shibaura Turbine Co., Ltd. 51.0
Toshiba Car Co., Ltd. 100.0
Tohoku Electric (Business) Co., Ltd. (Tohoku Denki (Jitsugyo) K.K.) 100.0
Sanriku Vacuum Tube Mfg. Co., Ltd. 50.0
Tokyo Vacuum Tube Mfg. Co., Ltd. 60.0
Toshiba Steel Tube Co., Ltd. 100.0
Tokyo Nakajima Electric Co., Ltd. 66.0
Sugibayashi Graphite Manganese Co., Ltd. 59.3
Yokohama Meter Co., Ltd. 100.0
Koa (Optical) Industry Co., Ltd. (Koa (Kogaku) Kogyo K. K.) 71.1
Special Alloy MFG. Co., Ltd. 66.0
Kyosan Works 87.0
Nippon Railroad Automobile Co., Ltd. (Nippon Tetsudo Jidosha Kogyo K.K.) 51.0
Shinko Electric Power Industry (Shinko Denryoku Kogyo K.K.) 100.0
Sosaku Electric Co., Ltd. (Sosaku Denki K. K.) 50.5
Nippon (Statistical Instruments) Co., Ltd. (Nippon (Tokeiki) K. K.) 55.0
Hasegawa Works, Ltd. 100.0
Isoda Metal Works, Ltd. 60.0
Nippon Special Graphite Co., Ltd. (Nippon Tokushu Kokuen K. K.) 50.1
Nippon (Sound Electric) Co., Ltd. (Nippon (Onkyo Denki) K. K.) 50.3
Shuho Co., Ltd. 100.0
Showa Vacuum Co., Ltd. (Showa Shinku K.K.) 31.6
(3) Profit
(a) For the period from I May 1944 to 31 March 1945, the company had a net profit of ¥144,584,000.
(4) Interlocking Directorates
(a) In many cases the officers of the Company are officers of the companies it controls through its investments.
b. An investigation of Japan Radio Company has disclosed the following:
(1) Description and History of Company
(a) Japan Radio Company, with total assets of approximately ¥400 million ranks seventh on the list of communications equipment manufacturing companies with regard to size. However, because of its position as a manufacturer of radio tubes and parts, it is considered by the Industrial Division of Civil Communications Section as the second most important company manufacturing communications equipment in Japan.
(b) Japan Radio Company was founded in 1920 with a capital of ¥1,000,000, and started to manufacture radio receivers, radio parts, accessories and vacuum tubes. In 1937 it added the manufacture of electrical measuring instruments and therapeutic apparatus, and in 1942 it started to manufacture radio locators and detectors for the Army and Navy. At present the Company operates six (6) plants in Japan proper.
(c) Japan Radio Company is over 50% owned by the Okura Produce Company, a subsidiary of the Okura Mining Company, Ltd., both of which are listed on the Schedule of Restricted Concerns referred to in paragraph 1, above. Other stockholders of note are the Nippon Electric Light Company, a subsidiary of Tokyo-Shibaura, and Telefunken of Germany.
(2) Investments
(a) Following is the list of companies in which Japan Radio Company owns shares, together with its percentage of control as of 30 September 1945:
Percent Control
Shusho Printing Co., Ltd. (Shusho Insatsu K.K.) 79.1
Chuo Die Cast Industry Co., Ltd. (Chuo Diakasuto Kogyo K.K.) 33.3
Toshin Electric Works, Ltd. (Toshin Denki Seisakujo) 42.2
Tsujimoto Works, Ltd. (Tsujimoto Seisakujo) 41.0
Nippon Wireless Industry Co., Ltd. (Nippon Musen Kogyo) 50.0
Fuji Electric Industrial Works (Fuji Denki Kogyojo) 55.5
Nippon Suien Industry Co., Ltd. (Nippon Suien Kogyo) 61.1
Tokyo Machine Industry Co., Ltd. (Tokyo Kikai Kogyo) 100.0
Dengensha Telegraph & Telephone Co., Ltd. (Dengensha Denshin Denwa K. K.) 64.0
Hokuriku Wireless Industry Co. , Ltd. (Hokuriku Musen Kogyo) 50.0
Nippon Wireless (Parts) Mfg. Co., Ltd. (Nippon Musen (Buhin) Seisaku) 100.0
Dengen Industry Co., Ltd. (Dengen Kogyo) 20. 5
Toa Metallurgy Co., Ltd. (Toa-yakin K. K.) 90.0
Toa (Arms) Co., Ltd. (Tokyo (Heiki) K.K.) 25.5
Yashiro Wireless Co., Ltd. (Yashiro Musen K.K.) 56.6
Nippon Wireless (Heavy Industry) Co., Ltd. (Nippon Musen (Juko) K.K.) 60.0
Nippon Hakuyo Wireless Co., Ltd. (Nippon Hakuyo Musen K. K.) 91.8
Chikuma Wireless Co., Ltd. (Chikuma Musen K. K.) 100.0
Tonegawa (Precision Instrument) Co., Ltd. (Tonegawa (Seiki) K.K.) 12.5
Shitsuki Electric Industry Co., Ltd. (Shitsuki Denki Kogyo) 18.4
Japan Metallurgy Co., Ltd. (Nippon Yakin) 15.9
Teikoku Communications Industry Co., Ltd. (Teikoku Tsushin Kogyo) 15.0
(3) Profits
(a) For the period from 1 April 1944 to 31 March 1945, the Company had a net profit of ¥8,329,000.
(4) Interlocking Directorates
(a) Officers of the Company are in many cases officers of the companies controlled by it through its investments,
c. Investigation of the Oki Electric Company has disclosed the following:
(1) Description and History of the Company
(a) Oki Electric Company with total assets of ¥328 million, is eighth on the list of communications equipment manufacturing concerns with regard to size. However, it is second only to Nippon Electric Company in the manufacture of telephone equipment, and is considered by the Industrial Section of Civil Communications as the fourth most important company manufacturing communications equipment.
(b) Oki Electric Company was founded in 1912, with a paid-up capital of ¥50,000, to manufacture electric communications equipment. The company made all types of telephone equipment, including automatic switchboards, until the outbreak of the war with China, after which time its main efforts were turned to the manufacture of munitions. At present, it is converting its production back to peacetime products. Its paid-up capital is now ¥45 million, and it has ten (10) factories in Japan, one in Dairen and one in Korea.
(c) Oki Electric Company is controlled by the Yasuda Hozensha which is listed in the Schedule of Restricted Concerns, referred to in paragraph 1, above.
(2) Investments
(a) Following is a list of companies in which Oki Electric Company owns shares, and percentages of control as of 30 September 1945:
Percent Control
Oki Securities Co., Ltd. 100.0
Subsidiaries of Oki Securities Co., Ltd.
The Oki Telegraphic Wire Co., Ltd. 91.0
Nishikawa Copper Sheet Co., Ltd. 100.0
Teikoku Sewing Machine Co., Ltd. over 50.0
Shimzaka Copper Sheet Co., Ltd. 100.0
Nikumi Industrial Co., Ltd. 100.0
Tokyo Instrument Industrial Co., Ltd. 100.0
Tokai Dry Battery Mfg. Co., Ltd. 55.3
Tokyo Ota Electric Machinery Co., Ltd. 100.0
Hayashi Communications Inst. Ind. Co., Ltd. 60.0
Seshita Electric Machinery Co., Ltd. 50.0
Sanyo Communications Industrial Co., Ltd. 53.0
Nihon Electric Industrial Co., Ltd. 42.8
Hanatsuka Electric Industrial Co., Ltd. 50.0
Ishike Steel Plate Co., Ltd. 100.0
Shimura Research for Light Metals 100.0
Kanagawa Communications Inst. Ind. Co., Ltd. Not available
Kahatan Industrial Co., Ltd. 100.0
Oki Communications Instrument Co., Ltd. 100.0
Subsidiaries of Oki Communications Ins. Co., Ltd.
Iwasaki Telegraphic Wire Co., Ltd. Not available
Nippon Telephone Equipment Co., Ltd. 12.0
Kanto Precision Machine Co., Ltd. 30.0
(3) Profits
(a) For the period from May 1944 to April 1945 the Company had a net profit of ¥14,973,000.
(4) Interlocking Directorates
(a) In some cases officers of the company are officers of companies which it controls,
d. Investigation of Matsushita Electric Industry Company has disclosed the following:
(1) Description and History of the Company
(a) This Company, with total assets of approximately ¥245 million, ranks ninth on the list of communications equipment manufacturers in Japan with regard to size. Matsushita Electric Industry Company is the only company at the top nine (9) which is not linked in some way with the Zaibatsu. This is strictly a one man concern, as 44.5% of the stock is held by Konosuke Matsushita, and the balance is held by 1,242 stockholders, no one of which owns as much as 5% of the stock outstanding. About 800 of the stockholders are employees. This Company was not on the strategic bombing survey list and has been comparatively little damaged by bombing, as evidenced by the fact that no bomb damage claim amount is set up on their balance sheet.
(b) Matsushita Electric Works, the predecessor in this Company, was organized in 1918 by Mr. K. Matsushita, who managed it for seventeen (17) years as his private concern. In 1935, the electric works was dissolved and in its place, nine (9) independent companies, each manufacturing different types of electrical goods,' were formed. At the same time, the present company was organized to control and manage the 1944 the companies, the production of electrical machines and appliances was gradually taken over from the affiliated companies, and in November the Matsushita Radio, Dry Battery, Motor and Storage Battery Companies were amalgamated, and added to the parent company.
(c) Before the termination of hostilities, Matsushita controlled a radio manufacturing company and an importing and wholesale office in Manchukuo, as well as a dry battery manufacturing company in Shanghai.
(2) Investments
(a) Following is a list of companies in which Matsushita Electric Industry Company owns shares and percentages of control as of 30 September 1945:
Percent Control
Matsushita Metal Co., Ltd. 39.1
Matsushita Metal Co., Ltd. 19.2
Matsushita Shipbuilding Co., Ltd. 41.8
Matsushita Airplane Co., Ltd. 52.6
Matsushita Lumber Co., Ltd. 36.5
Matsushita Mining Co., Ltd. 50.0
Matsushita Electric Trading Co., Ltd. 35.7
Nippon Electric Globe Mfg. Co., Ltd. 96.6
Kitakata Mfg. Co., Ltd. 34.3
Minouraju Machine Tool Co., Ltd. 32.4
Matsushita Electric Company of Korea, Ltd. 72.6
Kyoto Electric Porcelain Ware Co., Ltd. 38.4
Nishimura Casting Co., Ltd. 30.2
Northwestern Matsushita Machine Mfg. Co., Ltd. 30.0
Matsushita Products Distributing Co., Ltd. 45.0
Yoshisaka Forging Co., Ltd. 32.8
National Welding Co., Ltd. 39.5
Hokuriku Ceramics Co., Ltd. 82.5
Hokusen Electric Apparatus Co-op. Sales Co., Ltd. 10.0
Seisen Electric Apparatus Co-op. Sales Co., Ltd. 10.0
Nansen Electric Apparatus Co-op. Sales Co., Ltd. 10.0
Chosen Electric Apparatus Co-op. Sales Co., Ltd. 10.0
Shoun Metal Industries Co., Ltd. 32.0
Matsushita Electric Co., Ltd. of Manchukuo 78.5
Tokyo Matsushita Electric Co., Ltd. 100.0
Wireless Industries Co., Ltd. of Manchukuo 45.7
Matsushita Electrical Industry Co., Ltd. 11.8
Nagoya Matsushita Electric Co., Ltd. 100.0
Kyushu Matsushita Electric Co., Ltd. 100.0
Matsushita Employees' Welfare Association 76.0
Matsushita Firm, Ltd. 70.0
Fuso Electric Lamp Co., Ltd. 97.8
Taiwan Matsushita Wireless Co., Ltd. 65.0
(3) Profits
(a) For the period from 1 December 1944 to 31 October 1945 the Company had a net profit of ¥16,504,000.
(4) Interlocking Directors
(a) In many cases officers of the company are officers of companies controlled by it.
e. Investigation of the Japan Iron and Steel Company disclosed the following:
(1) Description and History of the Company
(a) The Japan Iron and Steel Company is the largest iron and steel manufacturing company in Japan with total assets of ¥3,250,000,000. The company was founded in February 1934 by a merger of the main iron and steel producers for the purpose of rationalizing the steel industry. It has a total paid up capital of ¥800,000,000. It manufactures pig iron, steel ingot, steel castings, steel rolled products, B. F. cement, slag brick, slag ballast, slag wool, sulphate of ammonia, benzol, creosote, coal tar and pitch.
(b) In the beginning the company was an amalgamation of the Yawata Steel Works, Wanishi Steel Company, Kamaishi Steel Company, Fuji Steel Company, Mitsubishi Steel Company and Kyushu Steel Company. In May 1934 it took over the Toyo Steel Company. In May 1937 it took over the Osaka Steel Company, and in October 1945 it took over the Nittetsu Kozai (Furnace Brick) Manufacturing Company. Its plants located in Japan are the Yawata, Kamaishi, Wanishi, Hirohata and Fuji. It also had the Kenjiho and Seishin plants in Korea, the Taiya plant in Central China, the Baanzan plant in the suburbs of Nanking, a plant in Malay, and a plant in Borneo. It had branch offices in Shanghai, Hongkong, Peiping, Tsingtao, Keijo (Korea), and Singapore. The main business of these branches was to manage the plants abroad, to handle communications between the head office and branches and to supply raw materials for the several works at home. The Company had nine affiliated companies located outside of Japan in China, Korea and Manchuria. Its shareholders as of September 1945 number 18,198, the six largest being the Finance Minister, 56%; National Life Insurance Reserve, 2.38%; Kamaishi Metal Mine Company, 1.87% National Annuity Insurance Reserve, 1.64%; Teikoku Life Insurance Company, 1.59%; and the Mutual Relief Association of Yawata Works, 1.23%. In 1943 the company produced a total of 3, 533,772 tons of pig iron out of a total for the industry of 3,994,000 tons and 2,582,919 tons of steel out of a total for the industry of 4,101,000 tons. It has 24 blast furnaces having a capacity per year of 4,515,000 tons, 1,455 coke ovens, 64 open hearth furnaces, 13 electric furnaces, and 62 rolling mills. Some of these were damaged by bombings. These damages were particularly heavy at the Yawata, Kamaishi and Wanishi Works.
(c) Following are a list of affiliated and subsidiary companies in Japan with percentages of control:
Percent Control
Subsidiaries and Affiliates in Japan:
Nittetsu Industry Co., Ltd. (Nittetsu Kogyo K. K.) 100.0
Nittetsu Wanishi (Harbor Transportation) Co., Ltd. (Nittetsu Wanishi (Koun) K.K.) 100.0
Kashiwamura Iron Co., Ltd. 100,0
Nittetsu Chuo Machinery Co., Ltd. (Nittetsu Chuokikai K.K.) 100.0
Inoue Iron Co., Ltd. 100.0
Nippon (Electrical Machinery Mfg.) Co., Ltd. (Nihon (Denki Seizo) K. K.) 66.6
Nihon Pitch Coke Co., Ltd. 65.15
Iwaki Shipbuilding Co., Ltd. (Iwaki Zosen K.K.) 32.5
Hirohata (Harbor Transportation) Co., Ltd. (Hirohata (Koun) K.K.) 53.8
Nittetsu Yawata (Harbor Transportation) Co., Ltd. (Nittetsu Yawata (Koun) K.K.) 51.0
Kairan Coal Sales Co., Ltd. (Kairantan Hambai K.K.) 50.0
Kyohan Printing Co., Ltd. 50.0
Tar Products Control Co., Ltd. (Tar Seihin Tosei K.K.) 44.5
Kukinoumi Shipbuilding Co., Ltd. (Kukinoumi Zosen K. K.) 40.0
Toho Yusoki Co., Ltd. 30.0
Nihon Special Steel Tube Co., Ltd. 26.2
Mozan Iron Ore Development Co., Ltd. (Mozan Tekkokaihatsu K. K.) 25.0
Naikai Shipbuilding Co., Ltd. (Naikai Zosen K. K.) 25.0
Kaho Mining Co., Ltd. 25.0
Nihon Gohansen Co., Ltd. 20.0
Nagasaki Mining Co., Ltd. 12.5
Donan Bus Co., Ltd. 10.0
Iwate Kaihatsu R. R. Co., Ltd. 10.0
Rozai (Furnace Material Control) Co., Ltd. (Rozai Tosei K.K.) 5.8
Subsidiaries and Affiliates Outside of Japan:
North China Iron Co., Ltd. (Kitashina Seitetsu K. K.) 50.0
Korea Tools Mfg. Co., Ltd. (Chosen Jyukikogyo K. K.) 50.0
Nittetsu Seishin Transportation Co., Ltd. (Nittetsu Seishin Unyu K.K.) 79.3
Nittetsu Kenjiho Transportation Co., Ltd. (Nittetsu Kenjiho Unyu K.K.) 78.7
Marufuku Industrial Co., Ltd. (Marufuku Kogyo K.K.) 33.0
Mitsuzan Coal Mining Co., Ltd. (Mitsuzan Tanko K.K.) 25.0
Central China Mining Co., Ltd. (Katiu Kogyo K.K.) 16.2
South Manchuria Mining Co., Ltd. (Nanman Kogyo K. K.) 10.0
Korea Magnesite Mining Co., Ltd. (Chosen Magnesite K.K.) 6.6
(2) Profits
(a) For the period from 1 October 1944 to 31 March 1945 the company had a net profit of ¥49,526,416.21.
3. In compliance with Radio Directive to the Supreme Commander dated 25 September 1945, Tokyo Shibaura Electric Company, Ltd.; Japan Radio Company, Ltd.; Oki Electric Company, Ltd.; Oki Securities Company, Ltd.; Oki Communications Instrument Company, Ltd.; Matsushita Electric Industries Company, Ltd.; Japan Iron and Steel Company, Ltd., and the subsidiaries and affiliates of each listed above, should be added to the Schedule of Restricted Concerns, referred to in paragraph 1, above.
4. This is considered an administrative matter.
5. Concurrences: Civil Communications Section, Industrial Division with regard to Companies in the Communications Industry (Lt. Baylies).
J. McI. H.