The Japanese Iron and Steel Industry, 1929-33, and the Establishment of the Nippon Steel Co.

Tetsuji Okazaki

doi:10.5029/jrbh1984.4.126

Tetsuji Okazaki

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JOURNAL FREE ACCESS

1988 Volume 4 Pages 126-151

DOI https://doi.org/10.5029/jrbh1984.4.126

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Published: March 15, 1988 Received: - Available on J-STAGE: June 28, 2010 Accepted: - Advance online publication: - Revised: -
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Date of correction: June 28, 2010 Reason for correction: - Correction: CITATION Details: Right : 1.Tetsuji Okazaki,“1920-nendai no Tekko Seisaku to Nippon Tekko-gyo,”(“Policies Concerning the Japanese Iron and Steel Industry in the1920s”),Tochiseido Shigaku(Journal of Agrarian History),103,Tochiseido Shigakkai(Agrarian History Society),1984.
2.For instance,Juro Hashimoto,Daikyokoki no Nippon Shinhon-shugi(“Japanese Capitalism in the Great Depression”),Tokyo Daigaku Shuppankai(University of Tokyo Press),1984,Chapter5.
3.Tetsuji Okazaki,“Sentetsu Kyodo Kumiai”(“The Pig-Iron Cartel”),in Juro Hashimoto&Haruhito Takeda,eds.,Ryotaisen Kanki Nippon no Karuteru(“Cartels in Interwar Japan”),Ochanomizu Shobo,1985.
4.Tetsuji Okazaki,“Kanto Kozai Hanbai Kumiai to Kozai Rengokai”(“The Kanto Steel-Marketing Association and the Steel Federation”),ibid.
5.Tetsuji Okazaki,1920-Nendai no Tekko Seisaku…,op.cit.,pp.8-10.
6.Rinji Sangyo Shingikai,Tokubetsu Iinkai Gijiroku(“The Minutes of the Special Committee”).
7.Tsusho Sangyo-sho(Ministry of International Trade and Industry),Shoko Seisaku Shi(“The History of Commercial and Industrial Policies”),vol.17,1970,p.287.
8.Okura-sho(Finance Ministry),Showa Zaisei Shi Shiryo(“Materials for the History of Japanese Public Finance in the Showa Period”),1-153.
9.Tetsuji Okazaki,“1920-nendai no Tekko Seisaku…,”op.cit.,pp.14-15.
10.Mitsui Kozan,Mitsui Kozan50-nen Shi Shiryo(“Materials for the50-year History of Mitsui Mining Co.,Ltd.”).
11.Strictly speaking,the sign“=”-should be“∼”in some places,but for the sake of simplicity,it has been used throughout.
12.Depreciation was set at3%and dividends,reserves,bonuses,etc.,at7%.
13.In the first quarter of1931,actual prices for imports of steel materials were11%lower,and for pig iron4%lower,than those estimated in the1931Draft Plan.Okura-sho,Dainippon Gaikoku Boeki Geppyo(“Monthly Returns of the Foreign Trade of Japan”),1931,January-March.
14.Chugai-Shogyo Shinpo(“Chugai Commercial News”),1931,Feb.21.
15.Tetsuji Okazaki,“Sentetsu Kyodo Kumiai”,op.cit.,pp.80-81.
16.Juro Hashimoto,op.cit.,p.309.
17.Nippon Seitetsu Kabushiki Kaisha Shashi Henshu Iinkai(The Editorial Committee of the History of Nippon Steel Co.).,Nittetsu Shashi Henshu Shiryo(“Materials for the History of Nippon Steel Co.”).
18.Tetsuji Okazaki,“1920-nendai no Tekko Seisaku…,”op.cit.,
19.Okura-sho,Showa Zaisei Shi Shiryo,op.cit.,pp.1-61,5-153.
20.Ibid.,3-61.
21.Mitsui Kozan,Mitsui Kozan50-nen Shi Shiryo,op.cit.;Hidemasa Morikawa,Makita Tamaki Denki Shiryo(“Materials on the Life of Tamaki Makita”),Nippon Keiei-shi Kenkyi-sho(Japan Business History Institute),1983,p.314.
22.The two companies,Toyo Seitetsu and Kyushu Seiko,adjoined the state-owned Iron Works and were entrusted to its management.
23.This condition,however,was not immediately apparent.
24.As a special feature of the January1934Draft mentioned below,in contrast to the emphasis of Bunji Nakura,in Nippon Tekkogyo Shi no Kenkyu(“The Study of the History of the Japanese Iron&Steel Industry,”Kondo Shuppan Sha,1984,pp.603-5)on the failure of the policy for reducing the amount of fixed assets per ton and the plan's character a“bailout for zaibatsu capital,” Juro Hashimoto,in pp.310-316in the work cited previously,emphasizes the success of the policy to control fixed assets per ton and the reduction in the valuation of assets for the zaibatsu.
25.As a reason for deleting the article,Minister of Commerce and Industry Kumakichi Nakajima stated that,while financial circumstances were difficult,the new enterprise would have the ability to raise capital even without the government's guarantee.Nippon Seitetsu,Nippon Seitetsu Kabushiki Kaisha Setsuritsu Kankei Shiryo-sho(“Abstracted Materials about the Establishment of Nippon Steel Co.”),1936,p.61.
26.The dividends of Nippon Seitetsu came under the prerogative of the government,and it made the6%range a suitable level.On the other hand,because the financial basis for the new enterprise was sound,it can be supposed that dividends were expected to move at the upper limits of the6%range.The economic value of shares of the new enterprise are estimated in terms of a capitalization value of dividends of6%of the face value by an appropriate discount rate.
27.In this case,the economic value is regarded as a capitalization value of the expected incomes resulting from non-participation in the amalgamation by a discounted rate with a risk premium.
28.Nippon Seitetsu,Hyoka Kankei Shiryo(“Materials on the Valuation of Assets”).
29.Ibid.
30.Okura-sho,Showa Zaisei Shi Shiryo,op.cit.,3-61.
31.Makita thought that keeping iron and steel enterprises under the Mitsui zaibatsu umbrella would make them into“useless treasures.”Mitsui Kozan,Mitsui Kozan50-nen Shi Shiryo op.cit.

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