MEMO FOR RECORD: (SCAPIN - 982)
6 May 1946
1. Pursuant to the policy set forth in Joint Chiefs of Staff Directive 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/AG, (SCAPIN-403), subject: "Establishment of a Schedule of Restricted Concerns."
2. Investigation of the Imperial Development company, Ltd., and subsidiaries; four (4) subsidiaries of Okura Mining Company, Ltd., and six (6) subsidiaries of Mitsubishi Honsha disclosed the following:
a. History and description of the Imperial Mining Development Company, Ltd.:
(1) In accordance with the previous Japanese Government policy for the rationalization of industry, the Imperial Mining Development Company, Ltd., was established in April, 1939. Two (2) years later this Company merged with the Japan Mineral Development Company and became the fourth largest company in the mining industry, with assets totaling over a billion yen. This concern is engaged in operating gold, silver, copper, zinc, and lead mines, and during the war made loans to other mining companies. Since its organization in 1939, the Company acquired various subsidiaries and often received Government subsidies for their operation. Included in the acquisition were companies engaged in ore mining, shipping, machine manufacturing, importing of ores, lumber distribution and cable construction.
(2) Zaibatsu control: Zaibatsu control is operative in this Company; twenty-seven (27) percent of the capital stock is owned by companies already on the Schedule of Restricted Concerns referred to in paragraph 1, above Mitsui, Mitsubishi, Sumitomo and Yasuda being the largest stockholders.
(3) Subsidiaries: The following affiliates of the Imperial Mining Development Company, Ltd., are considered subsidiaries, as defined by SCAP Memorandum AG 319.1 (22 Oct 45) ESS/IE (SCAPIN-177), subject: "Reports to be Made by Certain Business Firms".
Subsidiaries Percentage of Control by Imperial Mining
Development Company, Ltd.
Anagawa Mining Company, Ltd. (Anagawa Kozan, K.K.) 70
Dowa Mining Company, Ltd. (Dowa Kogyo, K.K.) 86
Crushing Iron and Steel Ball Control Company, Ltd.
(Funsai Tekkyu Tosei, K.K.) 50
Fuso, Asbestos Company, Ltd. (Fuso Sekimen, K.K.) 65
Hokkaido Sand Ore Development Company, Ltd.
(Hokkaido Shaoi Kaihatsu, K.K.) 100
Horokanai Cromu Company, Ltd. (Horokanai Crome K. K.) 75
Ikeda Steel Works, Ltd. (Ikeda Chuko Sho, K.) 50
Imperial Dust-Platinum Development Company, Ltd.
(Teikoku Shahakkim Kaihatsu, K.K.) 100
Imperial Mining Kawaguchi Works (Teikoku Kohatsu Kawaguchi Kosakusho)
(Teikoku Kohatsu Kawaguchi Kosakusho) 100
Imperial Rock Drilling Manufacturing Company, Ltd.
(Teikoku Sakunganki Seisakujo, K.K.) 75
Iwate Mining Machinery Company, Ltd.
(Iwate Kozankikai, K.K.) 22
Japan Ropeway Industry Company, Ltd.
(Nissaku Kogyo, K.K.) 33
Nissan Coastal Steamship Company, Ltd.
(Nissan Kinkai Kisen, K.K.) 25
Okkeshi Gold Mining Company, Ltd.
(Okkeshi Kinzan, K.K.) 50
Ore Distribution Control Company, Ltd.
(Koseki Haikyu Tosei, K.K.) 97
Showa Mining Company, Ltd. (Showa Kogyo, K.K.) 53
Tanagawa Mining Company, Ltd. (Tanagawa Kozan, K.K.) 100
Toho Zinc Company, Ltd. (Toho Aen, K.K.) 21
Tohoku Zinc Mining Company, Ltd.
(Tohoku Aen Kogyo, K.K.) 50
Tokyo Cableway Company, Ltd. (Tokyo Sakudo, K.K.) 72
Yokohama Mining Company, Ltd. (Yokohama Kogyo, K.K.) 15
b. When complying with SCAP Memorandum AG 319.1 (22 Oct 45) ESS/IE (SCAPIN-177), subject: "Reports to be Made by Certain Business Firms," the Okura Mining Company, Ltd., and Mitsubishi Honsha failed to report as subsidiaries the companies listed below:
(1) Subsidiaries of Okura Mining Company, Ltd.
(a) In Japan:
Percentage of Control by Okura Mining Company, Ltd.
Locomotive Rolling Stock Company, Ltd. (Kisha Sharyo, K.K.) 15
Ominato Enterprise Company, Ltd. (Ominato Kigyo, K.K.) 17
Tokyo Bay Land Company, Ltd. (Tokyo Wan Tochi, K.K.) 10
4. The interests of USAFIK have been considered. This action does not affect the Korean area.
5. This is considered an administrative matter.
6. Concurrences: Legal Division, ESS (Lt. Col. E. R. Minnich); Industrial Division, ESS (Lt. Col. J. A. O' Hearn):
Natural Resources Section (Lt. Col. C. J. Bodner).
/s/t/ J. McI. H.