MEMO FOR RECORD: (SCAPIN - 972)
17 May 1946
1. Pursuant to the policy set forth in JCS Post Surrender Directive to SCAP (JCS 1380/15, dated 3 November 1945), investigations are being made of concerns which are not on the Schedule of Restricted Concerns, established by SCAP Memorandum for the Imperial Japanese Government, AG 004 (8 Dec 45) ESS/AC (SCAPIN-403), subject: "Establishment of a Schedule of Restricted Concerns."
2. Nissan Chemical Industrial Company, Ltd., and subsidiaries listed below are placed on the Schedule of Restricted Concerns as a result of an investigation disclosing the following information:
a. Description and History of Company.
(1) This company was organized under the name of Standard Oil and Fat Company, Ltd., in 1921 with an authorized capital of \1,500,000. In 1931 it changed its name to Godo Oil and Fat Company, Ltd., then having an authorized capital of ¥5,000,000. By 1937 it had increased its capital to ¥17,500,000 and had amalgamated Nippon Oil and Fat Company, Ltd. Capital was progressively increased, concurrent with amalgamations, to a point where, in 1945, the capital had reached ¥67,250,000, of which ¥52,600,000 was fully paid.
(2) Nippon Chemical Industrial Company, Ltd., with total assets of ¥375,000,000 (unpaid capital of ¥14,650,000 excluded) is a prominent manufacturer of oils, marine products, explosives, paints, agricultural products, staple fibre, lubricating oil, fertilizer, industrial chemicals, and chemical machinery. Information is not available on production to show its relative position within the industry; however, it is authoritatively reported that it manufactures 33% of the calcium superphosphate, and, through a subsidiary, Nissan Norin, 35% of the match production.
(3) The largest single stockholder is Open Sea Fishing Control Association, owning 13% of the shares, with Japan Mining Company next, owning 11%.
(4) Long term debt and bills payable amount to ¥230,000,000, which represents 61.3% of net assets. Of this amount ¥109,000,000 has been granted by Yasuda Bank, with Japan Industrial Bank granting ¥72,000, 000.
b. Investments.
(1) As of 30 November 1945 Nissan Chemical Industrial Company, Ltd., had investments in subsidiary companies totaling nearly ¥21,000,000. This latter amount does not include long term investments mounting to ¥55,000,000, which are bonds, notes, and long term accounts from various subsidiary and nonrelated companies. Most prominent of these are securities valued at ¥35,000,000, of Manchurian Investment Securities Company, and ¥3,150,000 of Nissan Timber and Woodwork Company.
(2) Following is a list of companies in which Nissan Chemical Industrial Company, Ltd., owned shares, and percentages of control as of 30 November 1945.
Company Percentage of Control by Nissan Chemical Industrial Company, Ltd.
In Japan
Hirato Marine Products Co., Ltd. 37.5
Hokkai Edible Oil Co., Ltd. 50.
Hokkaido Marine Products Chemical Co., Ltd. 11.8
Hoyo Marine Products Co., Ltd. 100.
Kansai Sulphuric Acid Industrial Co., Ltd. 29.
Kokaseki Industrial Co., Ltd. 12.85
Nippon Acid-clay Manufacturing Co., Ltd. 18.75
Nippon Fertilizer Co., Ltd. 17.6
Nippon Oil & Paint Co., Ltd. 85.71
Nippon Soap Co., Ltd. 30.78
Nippon Y. S. Soap Co., Ltd. 31.9
Nissan Chemical Machine Co., Ltd 50.
Nissan Medical Co., Ltd. 99.23
Nissei Industrial Co., Ltd. 100.
Nittoryuso Fertilizer Co., Ltd. 50.
Oji Chemical Machinery Co., Ltd. 100.
Onoda-harbor Transportation Co., Ltd. 23.15
Patent Cleaner Co., Ltd. 16.66
Taisho Transportation Co., Ltd. 100.
Tottori Industrial Real-estate Co., Ltd. ** 20.
Outside Japan
Chosen Barium Industrial Co., Ltd. 48.
Chosen-Nissan Chemical Co., Ltd. 80.
Chugoku-Kensu Edible Oil Co., Ltd. 50.
Hokushi Explosives Co., Ltd. 80.
Honto Fish-meal Co., Ltd. 100.
Karafuto-Kaiyo Marine Co., Ltd. 12.94
Koshu Stock-farming Co., Ltd. 13.39
Manchu Paint Manufacturing Co., Ltd. 20.
Marine-chemical Industrial Co., Ltd. 48.81
Shanghai Fat & Oil Industrial Co., Ltd. 60.
Tairen Agricultural-medical Co., Ltd. 100.
Taiwan Chemical Industrial Co., Ltd. 100.
Taiwan Fat & Oil Industrial Co., Ltd. 49.42
Taiwan Fertilizer Co., Ltd. 55.
* Sale of all shares owned completed on February 1946.
** Sale of all shares owned completed on 22 April 1946
c. Profits.
(1) Profits increased from ¥1,009,000 in 1935 to ¥9,385,000 in 1944.
d. Interlocking Directorates.
(1) In numerous cases the officers of the Nissan Chemical Industrial Company, Ltd., are officers of the companies it controls through its investments.
e. Zaibatsu Affiliation.
(1) This company is typically a member of the Zaibatsu, in that it is indebted to Yasuda Bank to the extent of ¥109,000,000; further, because of its extensive security holdings of nearly ¥21,000,000, plus its long term investment in various companies amounting to ¥55,000,000, it falls into the Zaibatsu category.
3. The interests of USAFIK have been considered. This action does not affect the Korean area.
4. This is considered an administrative matter.
5. Concurrences: Industrial Division, ESS (Mr. G. T. Walker); Legal Division, ESS (Lt. Col. E. R. Minnich).
/s/t/ J. McI. H.