Zaibatsu

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Zaibatsu
Family Enterprises in Japan
Mitsui
Mitsubishi
Yasuda
Sumitomo
Okura
Annual Income Chart- 1895
Furukawa
Kuhara
Suzuki
Fujita
Asano
Created by Ketan Ramakrishnan
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Mitsui A History
In 1673, the founder of the Mitsui named Mitsui
Hachirobei Takatoshi created shops in Edo and
Kyoto to sell dry goods and premium kimonos. In
1683, Mitsui and his sons created numerous money
changing shops in the employ of the feudal
government, the Tokugawa shogunate. In one task
Mistui and his sons did an operation which
converted taxes paid in koku to money used in
Edo. Mitsui did not charge for these services to
the Shogunate, but they gave the shops funds.
Eventually these services became more important
than the dry goods/premium high quality kimono
shops Mitsui had founded his businesses on. The
services were profitable, but when the shogunate
was in turmoil, they would take the funds they
had given businesses like Mitsui and sons away.
Mitsui found a negotiator named Minokawa who
petitioned, and the price was reduced two thirds.
Also, it was split into three installments. After
the first installment, Tokugawa was overthrown.
The new government of Japan asked Mitsui and sons
to create a new national currency, handle
finances, and create Japans national bank.
Minokawa changed his name to Minomura for this
career. Later the government instructed the
Mitsui company to collaborate with another
company named Ono. Many financial intricacies and
deal modifications ensued. Mitsui formed the
Mitsui Bank in 1876, which would come to be one
of the major and prominent financial institutions
in modern Japan. On a side not Mitsui Hachirobei
Takatoshi is presently dead. This speculation is
subject to change.
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Mitsubishi A History
Iwasaki Yataro of the Tosa domain founded
Mitsubishi, which literally means three
diamonds. Iwasaki later headed the Nagasalo
office of the financial agency of the domain.
They promoted the sales of domain products, using
the proceeds to buy productive goods from foreign
merchants. Iwasakis Nagasaki office was shut
down after the Meiji Revolution and he was
transferred to Osaka. Later the Meiji government
banned domain enterprises, so Iwasaki, the
financial agency, became a private business under
Iwasaki Yataros leadership. It mainly shipped
goods. When the Prefecture system was put into
play, Iwasaki took on the debts of the Tosa
domain. In 1873, the company was again renamed.
This time it was called Mitsubishi Shokai. In
1874 the company moved its headquarters to Tokyo,
and renamed itself Mitsubishi Steamship Company.
The same year, the Meiji government wanted a
military expedition to Taiwan. They looked to
foreign companies for transportation, but they
would not provide it. Then they looked to many
other transporters, all of whom refused to
provide transportation to the bedraggled
government of Japan. In total desperation they
turned to Mitsubishi, who gladly agreed to
provide the transportation the government needed.
Mitsubishi gained the support of the Meiji
government. Soon after they changed their names
to Mitsubishi Mail Steamship Company.
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Yasuda A History
Yasuda Zenjiro, son of a poor, working class
Samurai, founded the Yasuda zaibatsu. His parents
lived in what is now the Toyama Prefecture.
Yasuda went to Edo where he worked in a small
money changing business until 1863, when he was
aged twenty five years, when he decided he was
ready to start his own money changing business.
In 1867, he became a favored political merchant,
working for the shogunate to carry out financial
procedures like the collection of gold and
silver. When Tokugawa was overthrown, Yasudas
services kept being employed by the government,
this time the newly instated Meiji government.
Later, Yasuda bought up paper money which had
been issued by the new regime. When the regime
announced the paper would be accepted by its
value relative to the gold coin, Yasuda became
rich. Yasuda founded the Third National Bank of
Japan.
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Sumitomo A History
The Sumitomo Enterprise had its origins in
mining. Soga Riemon, its eventual founder,
founded a copper refinery in 1590. When Sogas
son married the daughter of a wealthy druggist
named Sumitomo Masatomo, he took on the name.
Later the Besshi copper mine owned by the
government was operated by the Sumitomo family
with the permission of the shogunate. When the
shogunate was overthrown, Sumitomo lost many
things, including special privileges, loans from
powerful daimyos, or feudal lords, etc. The
Sumitomo copper company was experiencing major
financial difficulties in addition to the
implications of Tokugawas overthrowing. But- The
shogunate had given the right to Sumitomo to own
and operate the Besshi copper mine, so it was
really Sumitomos. So the business kept on going,
with many of Sumitomos major sales to buyers.
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Okura A History
Okura Kihachiro, a poor peasant (an interesting
note is the fact that this zaibatsu was founded
by a peasant, not a rich man) moved from Honshu
to Edo in 1854, and worked for a grocery store
before starting his own three years later. He
sold groceries and goods until 1862, when he
began to sell guns. These were the final days of
the shogunate. Eighteen years later he traveled
to Europe and the U.S. There he met members of a
Meiji governmental mission, who were on business
there. He made acquaintances with them. When he
returned to Japan he was able to get government
contracts because of this. He then created a
company which traded and offered services. Okura
provided guns and other weapons and supplies to
the national military. PLEASE CLICK TO ADVANCE TO
THE NEXT SLIDE.
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FURUKAWA A HISTORY
Ono was a national bank that collapsed. When it
did, depositors like the Furukawa lost their
money. Also, a wealthy family named the Soma lost
a lot of money. The Soma were furious. Furukawa
managed to persuade them to give up the claims
for money lost in return for two mines which had
belonged to the once prosperous Ono company and
bank. The Furukawa managed the mines. PLEASE
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Kuhara A History
OPTIONAL Look at Fujiwara first,
Kuhara Fusanoke was the nephew of Fujiwaras
founder. He became the manager of a very bad
silver mine in terms of profit, which he turned
into a profitable copper mine. The mine was
called Kosaka. The Fujita zaibatsu was
overjoyed at this huge success. Later, Kuhara
purchased a profitable mine which he named
Hitachi. This was the start of many profitable
purchases. PLEASE CLICK A BLANK SPACE TO ADVANCE.
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Suzuki A History
Suzuki Iwajiro founded the Suzuki enterprise. In
1874, he began as a small sugar importer, which
earned Suzuki little income. Then he started to
export mint and camphor. In the early twentieth
century he began to move into the industry of
sugar refining. Later he sought to supply the
Japanese army and purchased a steel mill called
the Kobe Steelworks. PLEASE CLICK A BLANK SPACE
TO ADVANCE TO THE NEXT SLIDE.
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Fujita A Brief History
Fujita Denzaburo obtained goods for civil
engineering products through his connections with
prominent government officials. Later he founded
the company Fujita-Gumi with his two brothers.
The company specialized in drainage products and
mining. PLEASE CLICK ON A BLANK SPACE TO ADVANCE
TO THE NEXT SLIDE.
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Asano A History
Asano Soichiro came to Tokyo and slowly
progressed from a vendor of sugar water to many
other businesses. The fruit of one of these was a
brainchild of Asanos. He introduced a Tokyo
paper manufacturer using coke as fuel. He slowly
started to acquire properties, and later gained
the sole right to import Kerosene to his home
country of Japan from a Russian business. PLEASE
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THE NEXT PAGE.
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ZAIBATSU
Annual Income- 1895
Zaibatsus Founding Family
Annual Income 1895Mitsubishi 1,084
yen. Mitsui 529 Sumitomo 156 Yasuda 94
Okura 65 Furukawa 62