Press translations [Japan]. Economic Series 0040, 1945-12-03.
Date3 December, 1945
translation numbereconomic-0198
call numberDS801 .S81
Persistent Identifier
ECONOMIC SERIES: 40
ITEM 1 1,000 Cho Mountain Forest Burnt and 150,000 labor wasted in mining Aluminum Ore - Nagasaki Shimbun - 19 Nov 45. Translator: S. Kinoshita.
Summary:
It has been generally believed that aluminum ore is not produced in JAPAN. To our
amazement, it was revealed that an excellent
ore containing 80 per cent aluminum is located in NAGASAKI Prefecture in such huge
quantities as 20,000 tons at least. Its
mining was carried out under the strict supervision of military authorities. Despite
exceedingly painful labor by both
officials and civilians devoted to the undertaking, not a grain of aluminum was gained.
The story was kept strictly secret
before the end of the war.
The ore was found underground in FUKUEJIMA in NAGASAKI Prefecture, the western tip
of JAPAN in the summer of 1942 when the
Great EAST ASIA War was painted as a brilliant military achievement.
It was found accidentaly by Dr. TAKANE of the TOHOKU Imperial University, when he
visited Mount OTO on his inspection tour.
The OTO mountain is located in the center of FUKUEJIMA and small scale mining of alabaster
was then being undertaken by a
private company. To his great delight, analytical research testified that the ore
contained 80 per cent aluminum he named the
ore DAISU[illegible]OA*. Ascertaining by repeated chemical investigations of the excellence of the ore,
he
formally proposed to the naval authorities that they utilize these resources. However,
the naval authorities gave no heed to
his important proposal. It was not until February, 1945, that the naval authorities,
having been reminded of Dr. TAKANE's
proposal, finally dispatched mining troops to FUKUEJIMA.
In order to make a prompt survey of the total quantity of this underground treasure,
the authorities decided to burn the whole
forest covering OTOZAN. At the beginning of March 1945 they set fire to several points
of the mountain. The fire, which burned
several days, ended in entire destruction of the mountain forest extending over 1,000
chobu.
Actual mining activity began in the middle of March. All inhabitants of the island,
men and women, young and old, school boys
and girls, even primary school children, were called upon to co-operate with mining
troops of the Navy. Even cattle for
cultivation were mobilized. It is matter of curce that tremendous resource and labor
was spent unsparingly by the naval
authorities themselves.
The mining work continued until the war ended. For about five months, all people
engaged worked day and night without any
complaint. Nevertheless, they were not told clearly what they were mining. The splended
words, "CTO ZAN produces splended
things which makes JAPAN victorious" were all they heard from the authorities. Despite
ECONOMIC SERIES: 40 (Continued)
ITEM 1 (Continued)
tremendous resources and labor, all that is revealed by the present investigation
is that only about 150 tons of this aluminum
ore were shipped from FUKUE port. Some one says that 2,000 tons were dug out. But
nobody knows the truth. If the original
prospect had been realized, the output of the ore should have been for more than ten
thousand tons during these five months.
Regarding the cause of t[illegible]failure, some say it was due to conflict among high officials. Others
suggest sabotage by the officials concerned. At any rate, it is certain that the undertaking
was far more difficult than
anticipated.
It is very much to be regretted that the historical events, undertaken at such expence
and with the labor of more than 150,000
people, ended without any fruitful result. Anyhow, it may be a freak of destiny that
Dr. TAKANE, the finder of DAISUROA* was
killed in a [illegible]-29 air raid on 26 June at the NAGASAKI Station en route to TOKYO.
ITEM 2 The Courses of Chemical Industry Control Organizations Still Uncertain - Nippon Sangyo Keizai - 25 Nov 45. Translator: S. Zwata.
Extract:
Control Companies and Control Associations under THE CHEMICAL INDUSTRY CONTROL ASSOCIATION
(KAGAKU KOGYO TOSEI KAI), with
public attention focussed upon them, are in a state of uncertainty as to what changes
in organization should be made. The
following control associations of the Chemical Industry Association, consisting of
fifteen control agencies have started
reorganization, but the others are still uncertain:
The JAPAN Brine Goods Control Association (NIPPON KUJU SEIHIN TOSEI KUMIAI).
The JAPAN Carbon Bisulphide Control Association (NIPPON [illegible]IRYUKA TANSO TOSEI KUMIAI).
The JAPAN Carbon Black Control Company (NIPPON CARBON BLACK TOSEI KAISHA).
The JAPAN Gunpowder Control Company (NIPPON KAYAKU TOSEI KAISHA).
The JAPAN Chemical Industrial Chemicals Control Company (NIPPON KAGAKU KOGYO KAGAKUHIN
TOSEI KAISHA).
The Metal Soda Industry Association (KINZOKU SODA KOGYO KAI).
Reasons given by the others for not yet making changes are:
- 1.The Foundation Law of Industry Party (SANGYO DANTAI KIHON HO) is not plain though they intend to reorganize to associations.
- 2.Opinions have not been formulated as to the future demand and supply. It is impossible to ascertain when they will be reformed to Independent Distribution Organizations (JISHUTEKI HAIDYU KINAN).
- 3.The control organizations (TO SEIKIKAN), which borrow their working fund from The National Welfare Bank (KOKUMIN KOSEI KINKO), will not be reformed of the employees, whom The control organization subsidizes, is forced to change their jobs or to be out of employment.
The causes of all control organs are as follows:
- 2 -
ECONOMIC SERIES: 40 (Continued)
ITEM 2 (Continued)
- 1.The JAPAN Brine Goods Control Association will for the time being be a voluntary association as an Independent distribution organization and will be reformed when The Foundation Law of Industry Party is formed.
- 2.The JAPAN Carbon Bisulphide Control Association will be similar to The JAPAN Brine Goods Control Association.
- 3.The reorganization of the JAPAN Glauber's Salt Sulphuretted Soda Control Association (NIPPON BOSHO RYUKASODA TOSEI KUNIAI) is not certain.
- 4.The JAPAN Chemical Industry Chemicals Control Company will be a commercial company.
- 5.The JAPAN Sulphuric and Nitric Acid Company (NIPPON SHO RYU CAN KAISHA) will be a company under the Commercial Law, which deals in ammoniac and sulphuric acid goods.
- 6.The organization of the Soda Industry Chemicals Company (SODA KOGYO YAKUHIN KAISHA) is still uncertain and will be a metal industry association which will consist of metal soda makers.
- 7.The organization of the Carbide Control Company (CARBIDE TISEI KAISHA) is uncertain.
(ORGANIC)
- 1.The Metamorphusis Goods Company (KASEI-HIN-KAISHA) will be changed to a company.
- 2.The Oil Goods Company (YUSHI-SEIHIN-KAISHA) will be changed to a company under The Commercial Law as an organization for the distribution of oil goods
- 3.The Paints Control Company will probably be changed to a company under the Commercial Law as an organization for the distribution of paints.
- 4.The Synthetic Resin Control Company (GCSEI-JUSHI-TOSEI-KAISHA) is uncertain.
- 5.The Carbon Black Company (CARBON BLACK KAISHA) will remain as it is.
- 6.The JAPAN Gunpowder Control Company will be a company organized for the distribution of industrial powder under The Commercial Law.
- 7.The Coal Oil Control Company (TANYU TOSEI KAISHA) will be an independent manufactures distribution control company under The Commercial Law.
- 8.The Organic Compound Company (YUKI TOSEI HIN KAISHA), now composed of various companies, will be devided into independent units.
ITEM 3 Analyzing the Nakajima Aircraft Company - Nippon Langyo Keizai - 26 Nov 45. Translator: M. Maruyama.
Summary:
The NAKAJIMA Aircraft Company and the MITSUBISHI Heavy Industry Company were the
largest aircraft manufacturing plants in
JAPAN.
- 3 -
ECONOMIC SERIES: 40 (Continued)
ITEM 3 (Continued)
Conjectures are hazarded in some quarters as to the questionable status of that company
(NAKAJIMA), because an enormous sum of
money was dispensed by the military to the company during the confusion immediately
following the termination of the war. The
fact that the company also had failed to make public its balance sheet during the
war has increased public suspicion. This
article deals mainly with the company's past status and partly with the present condition.
The company was established by Mr. NAKAJIMA, Chikuhei on the basis of his technical
knowledge of aviation which he acquired in
the UNITED STATES after World War I. Taking advantage of the universal tendency of
armament expansion, the company was
enlarged. The MANCHURI incident, CHINA affair and War of Greater EAST ASIA had caused
it to expand its equipment on a large
scale. While many other companies usually enlarge their scales of business through
invitation to the public to share
subscriptions, this company has been operated under monopolistic control of men closely
related in blood to NAKAJIMA. The
monopolization of the company is the largest cause of its present growth to greatness.
It also has aroused public suspicion. When the company increased its subscribed capitalization
from 20,000,000 yen to
50,000,000 yen 1933, it borrowed 30,000,000 yen from the Industrial Bank of JAPAN
without offering any shares to the public
for subscription. This is the NAKAJIMA way of management. Someone pointed out that
this policy came from the fact that
aircraft shares were not popular on the stock market, but others said that the important
nature of aircraft industry had
caused the company authorities to take this conservative policy.
The number of shares held by members of the NAKAJIMA family on the increase of capitalization
to 50,000,000 yen consisted of
515,320 shares by NAKAJIMA, Chikuhei; 178,072 shares by NAKAJIMA, Kiyoichi; 137,600
shares by NAKAJIMA, Momkichi; 135,600
shares by NAKAJIMA, Kimihei; 32,404 shares by NAKAJIMA, Chiihei. All these shares
combined make 99.9 per cent of the total.
The remaining shares of less than 1,000 shares were held by SAKUMA, Iehiro; KURIHARA,
Jingo; and KIMURA, Gonshiro.
The company is a joint stock company in name, but the same family is the company
in reality. Especially, CHIKUHEI is the
absolute master of all the shareholders. His predominating position combined with
his political influence in the Diet has
given rise to the public suspicion on the composition and character of the company.
The NAKAJIMA interests have enlarged their business scale by means of frequent issues
of debentures and loans. The balance
sheet as of 31 December 1944. reveals that the company's debentures floated through
the Industrial Bank of JAPAN totalled
1,200,000,000 yen and that as of 30 June 1945, shows that they increased to 2,500,000,000
yen. Recognizing the necessity of
large-scale equipment for aircraft industry, the Government attached great importance
to the expansion of the company's plants
with the result that the NAKAJIMA Aircraft Company formed the mainstay of the eastern
aircraft manufacturing group against the
western aircraft manufacturing group with the MITSUBISHI Heavy Industry Company as
the central figure.
While the MITSUBISHI interests had invested much of their own capital in the expansion,
the NAKAJIMA interests borrowed it
from banks for the same purpose. The company's business scale had reached its height
when it placed under its control the OTA,
KOIZUMI, UTSUNCMIYA and HANDA factories, all manufacturing the fuselage; the MUSASHI,
OMIYA, HAMAMATSU, and DAIYA factories,
all manufacturing motors; the OGIKUBO factory for parts; the MISHIMA factory for munitions;
the MITAKA Laboratory; and more
than 2,500 affiliated factories.
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ECONOMIC SERIES: 40 (Continued)
ITEM 3 (Continued)
There was a movement afoot among young technicians of the NAKAJIMA Aircraft Company
to induce the management to contribute the
whole equipment to the Government. The objective was their earnest desire to improve
their technical status and to realize the
sound development of mechanical industry by placing the equipment under direct State
control. Before their movement matured,
orders were issued by the military to designate the NAKAJIMA plants as the First Munitions
Arsenal. On 1 April 1945, the
movable property fixtures and implements were bought by the Government in accordance
with the Ordinance for the Use of
Factories based on the General Mobilization Law, while its real estate, buildings
and other immovable property were borrowed
by the Government. Rumors say, in connection with circumstances leading up to the
designation of the NAKAJIMA Aircraft Company
as a munitions arsenal, that a monstrous ambition of Lieutenant, General ENDO, Saburo,
and his followers to realize an
aircraft industry monopolization policy, led these schemers to grasp the operating
power of the company, by taking advantage
of its weaknesses.
Why the NAKAJIMA Aircraft Company has not made public its statement of accounts is
due to the fact that, if it is announced,
this will make known an estimated number of aircraft manufactured. The step, therefore,
was taken out of the necessity to keep
this information a military secret. Moreover, there is no need for the company to
make it public, because of the very small
number of its shareholders. There was much talk among the public that the company
must have earned huge profits during the
war. What is the real situation then? The balance sheet as of 31 December 1944, indicates
that the net profit for the term
under review totaled 3,105,000 yen, for which the company paid a semi-annual dividend
of 1,750,000 yen at the annual rate of
seven per cent. As a matter of fact, however, the company paid an interest on the
30,000,000 yen loan to the Industrial Bank
of JAPAN at the annual rate of five per cent. The amount paid was 750,000 yen for
the half year. The net earnings of the
shareholders totaled 1,000,000 yen.
The semi-annual bonus for the company's president was 73,000 yen, that for the vice-president
52,000 yen, that for the
managing-directors ranged from 21,000 yen to 15,000 yen. By the way, the semi-annual
bonus for the chairman of the MITSUBISHI
Heavy Industry Company is 65,500 yen; that for the president 35,500 yen (he gets bonus
also from his concurrent positions);
and that for the managing-directors ranges from 45,000 yen to 25,000 yen. Rumors that
the NAKAJIMA officials get unusually
large bonuses are not correct.
An investigation made by THE NIPPON SANGYO KEIZAI reveals that an average rate of
the retirement allowances for the workmen of
munitions companies in connection with their business dissolution following the termination
of the war was four and a half
months of their salaries and that for other employees was six months. Rumors that
the NAKAJIMA Aircraft Company had paid the
retirement allowances corresponding to several years' salaries are unfounded, although
it is true that the company paid a
little higher rate of such allowances.
The NAKAJIMA Aircraft Company was designated as First Munitions Arsenal in April
this year, when the special commemorative
allowances were announced to be paid, but the actual payment was not made then. The
two kinds of allowances were paid at one
time on the termination of the war. This has given rise to the rumors about the payment
of a huge amount of allowances.
Actually, the allowances ranging from six months to one year were given.
- 5 -
ECONOMIC SERIES: 40 (Continued)
ITEM 3 (Continued)
The amount of indemnity necessary for the company's reconversion into a peacetime
industrial concern is estimated to total
about 1,000,000,000 yen. The company will reduce its capitalization to 20,000,000
yen and will engage in the production of
civilian goods with its title changed to the FUJI Industry Company.
The number of aircraft fuselage manufactured by the NAKAJIMA Aircraft Company during
the last six years follows:
| For the Army | For the Navy | |
| 1941 | 733 | 409 |
| 1942 | l,404 | 1,266 |
| 1943 | 2,760 | 2,881 |
| 1944 | 3,594 | 4,335 |
| 1945 | 744 | 1,428 |
The number of motors manufactured for both the Army and Navy combined fallows:
| 1941 | 3,993 |
| 1942 | 5,660 |
| 1943 | 12,198 |
| 1944 | 11,650 |
| 1945 | 2,173 |
The production during April and May dropped heavily, due to air raids, but it began
to gain gradually during June, July and
August, as its underground factories in FUKUSHIMA-Ken were nearing a full operation
stage.
DISTRIBUTION "X"
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