MEMO FOR RECORD: (SCAPIN - 998)
WFM/JMcIH/MEF/mcf
23 May 1946
1. Pursuant to the policy set forth in JCS Directive 1380/15, dated 3 November 1945, investigations are being made of concerns which are not listed on SCAP Memorandum AG 004 (8 Dec 45) ESS/AC (SCAPIN-403), subject; "Establishment of a Schedule of Restricted Concerns."
2. Investigation of the three (3) largest steamship companies in Japan, namely, Nippon Mail Steamship Company, Ltd., and subsidiaries; Osaka Commercial Steamship Company, Ltd., and subsidiaries; and the Yamashita Steamship Company, Ltd., and subsidiaries, disclosed the following:
a. Description and History of the Nippon Mail Steamship Company, Ltd.:
(1) Established in 1865, the Nippon Mail Steamship Company, Ltd. has been for many years the largest shipping company in Japan, with assets totaling ¥480,445,138. Without the assistance of this maritime concern, Japan could have never engaged in international trade to the extent which made her a World Power prior to World War II. The Company manufactures and operates vessels of various types for the shipping of cargo and transportation of passengers. Thirty (30) subsidiaries are controlled by this Concern, and all of those located in Japan are operating at present.
(2) Zaibatsu Control. Over 13% of the capital stock of the Company is owned by Zaibatsu firms already on the Schedule of Restricted Concerns referred to in paragraph 1, above. Mitsubishi interests in the past maintained a close relationship with the "NYK Line," the name by which this Company is often known. As late as 1942 the Mitsubishi Honsha, in one of its official publications, "An Outline of Mitsubishi Enterprises," referred to the NYK Line as a development of Mitsubishi shipping trade. Mitsubishi Honsha owns over 6% of the stock of the Company at present.
(3) Subsidiaries. The affiliates of Nippon Mail Steamship Company, Ltd., listed in paragraph 1 of attached Table A, 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."
b. Description and History of the Osaka Commercial Steamship Company, Ltd.
(1) The Osaka Commercial Steamship Company, Ltd., was established in 1882 and has been for many years the second largest steamship company in Japan, with assets totaling ¥581,226,000. During the time since Japan became an aggressor nation, the Osaka Commercial Steamship Company, Ltd., has doubled in size, acquiring 50% of its subsidiaries during the past seven (7) years. At the present time the Company has the largest capitalization of any steamship concern (capitalization ¥122,600,000) and is exceeded in tonnage only by the NYK Line. The Company operates vessels for cargo shipping and passenger transportation. Subsidiary companies are engaged in shipping, stevedoring, warehousing, manufacturing, real estate, and the operating of office buildings and hotels.
(2) Interlocking Directorates. In a number of companies, the "OSK Line", the name by which this Company is often known, has interlocking directorates in subsidiaries with the NYK Line and Yamashita Steamship Company, (YSK). Intercorporate ownership between the subsidiaries of the three (3) largest steamship companies, namely, NYK, OSK, and YSK, is also existent. During hostilities, directors of the OSK Line cooperated with the Japanese Government and held various positions in the Shipping Control Association and other Government maritime commissions.
(3) Subsidiaries. The affiliates of Osaka Commercial Steamship Company, Ltd., listed in paragraph 2 of attached Table A, 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."
c. Description and History of Yamashita Steamship Company, Ltd.:
(1) During the past ten (10) years Yamashita Steamship Company, Ltd., became the third largest steamship company in Japan. The Company came into being as a corporation during World War I, and during World War II, because of the enormous profits gained in war shipping, acquired over 50% of the subsidiaries which it operates at the present time. This Company is controlled by the Yamashita family, and in the past, as at present, operates vessels of the cargo type only.
(2) Interlocking Directorates. The Yamashita Steamship Company, in conjunction with OSK and NYK Lines, has various interlocking directorates in subsidiary companies, and various companies have intercorporate ownerships. Because of the cooperation of this Company with the Government during war-time, much lucrative shipping was handled by the YSK. The directors held various Government positions in the Maritime Division of the Government, and the president of the Company acted as adviser to the Cabinet.
(3) Subsidiaries. The affiliates of Yamashita Steamship Company, Ltd., listed in paragraph 3 of attached Table A, 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."
3. On the basis of the above facts and in compliance with the JCS Directive referred to in paragraph, above, the Nippon Mail Steamship Company, Ltd.; Osaka Commercial Steamship Company, Ltd.; and Yamashita Steamship Company, Ltd., and the Subsidiaries of each, as listed on Table A hereto, should be added to the Schedule of Restricted Concerns referred to in paragraph 1, above.
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: SCAJAP (Admiral C. B. Momsen, USN); Industrial Division, ESS (Mr. G. T. Walker);
Legal Division, ESS (Lt. Co. E. R. Minnich).
1 Incl: Table "A".
J. McI. H.