The kyushu tetsudo kaikaku undo (the Movement for the Reform in the Kyushu Railroad Company) was believed to have resulted from the dispute between Mitsubishi and Mitsui over the hegemony of the Kyushu Railroad Company. Both Mitsubishi and Mitsui were seeking control over the coal industry of the Chikuho region, and to obtain hegemony of the Kyushu Railroad Company was important, for it was the leading company in the transportation of coal in the northern Kyushu region. By examining the kyushu tetsudo kaikaku undo in detail, this paper illustrates that the primary cause of this movement was not the dispute between Mitsubishi and Mitsui but was far more complex. Also, this paper shows the problems in management of the privately owned railroad companies after the Sino-Japanese War. The aggressive policy of the Kyushu Railroad Company played an important role in the formation of the kyushu tetsudo kaikaku undo. The company was forced to take this aggressive policy because of two main reasons. First, the company was established on limited capital; and second, the industrial growth after the Sino-Japanese War placed a great demand on transportation. These forced the railroad companies to upgrade their facilities. This upgrading was supported by various companies involved in the coal industry that held stocks in the Kyushu Railroad Company, while other stockholders were not so eager to support such upgrading because of the decreasing profits. Particularly, it was the stockholders who hoped for the nationalization of the Kyushu Railroad Company and the bankers who held stocks in this company that became the main opponents for the executives of the Kyushu Railroad Company.
The purpose of this paper is a examination of the correlation between a local spinning company and Zaibatsu (financial group) during the period of capitalism establishment by utilizing the data about Kyushu Spinning Company and Mitsui. Kyushu Spinning Company was established by consolidation of three companies, or Miike, Kurume and Kumamoto spinning company, in 1899. This company had about 50, 000 spindles and was a big company at that time as a local one. But its business results was aggravated by an effect of the post Sino-Japanese war depression. Futhermore, the speculation that Matazo Moriyama, the manager of Osaka branch of Kyushu Spinning Company, put into operation to cover above aggravation resulted into failure. Then, managers of this company tried to reform the business by calling up un-paid capital, but this plan did not be realized because a capacity in raising capital of local stockholders was very limited. Consequently, reformation of this company was left to Mitsui accompanied by stockholders' loss from capital reduction. Mitsui obtained the managerial rights of this company, on the other hand it improved a financial position of this company with its large ability in raising capital. And it made efforts to increase the profit through a reduction in interest payment and a utilization of sales ability that Mitsui-bussan (trading company) had. Thus, supported by the recovery of business conditions, Mitsui accomplished managerial reformation of Kyushu Spinning Company with its synthetic ability as a Zaibatsu. And then, Kyushu Spinning Company was absorbed by Kanegafuchi Spinning Company, a company that was a member of the Mitsui Zaibatsu, in 1902.