0401-1/1

 

INTERNATIONAL COMPARISONS

ON ENTREPRENEURSHIP

Sinzo Kurita

Kobe University of Commerce

 

On November 9th and 10th, 1968, the Business History Society of Japan had her fourth annual meeting at the University of Osaka. On the first day twelve papers were read on “free topics” and on the second day the meeting was devoted to the common topic,  Comparative Studies of Entrepreneurship”.

In the opening address, Kurita explained that all the speakers had common understanding that the international difference of entrepreneurship could be perceived in its relations with social and cultural factors as well as economic conditions.

The first speaker, Professor Masaji Arai of Kansai University analysed

the stagnation of the English economy during the Great Deppression and

explained it by the conservatism of the English businessmen. After pointing

out some of the handicaps of the leader country, he also emphasized the

adverse effect of the imperial market which allowed English entrepreneurs

to  enjoy  high  rates  of  profit  without  drastic  rationalisation  of  their business.

Professor Tadakatsu Inoue of the Kobe University confirmed the proposition that in the era of the nineteenth and early twentieth centuries the

cultural, social, and economic conditions of the United States operated for encouraging the flow of the ablest members of the society into business and for making them devoted businessmen. The proposition was testified by the moves of some individual American businessmen.

  Professor Keiichiro Nakagawa of the University of Tokyo expounded

that the lack of “acquisitive attitudes” and “functionalism” in the Indian

society, which he considered to be the outcome from both the Hinduism

and the “joint-family” system, had been the major abstacles against the

emergence of aggressive entrepreneurship. He also emphasized that the

political unstability, originated from the racial,  linquistic and religions diversities, had greatly hindered in India the entrepreneurial development with long term horizon. After elucidating the rise of some non-Hindu business groups, he made some comments on Morris W. Morris’s inter-pretation of the Indian development.

  Professor Tien-yi Yang of the Kyushu Industrial University elaborated

that the traditional Chinese society was structured primarily on the basis

of kinship, local community, ancestor worship, hierarchical and particularistic pattern of conduct. This whole structure fitted completely with the

well-knownfamilism” of Chinese society. Kinship and territorial community played the pivotal parts in the whole network of social solidarity there characterizing the entrepreneurship in Modern China by the supreme collective interests and business organization exclusively by such personal relations.

Professor Kisou Tasugi of the Kyoto University maintained that the twentieth century entrepreneurship in Japan was more motivated by “promotion profit” rather than nationalism. He verified his theme by some pioneering “engineer entrepreneurs” in the chemical and electric manufacturing industries, such as Jun Noguchi, Seita Kumura and Namihei Kodaira.

After these six reports a panel discussion on this common topic was presided by Professor Mataji Miyamoto of the University of Osaka.

 

0402-1/3

I COMPARATIVE ANALYSIS OF THE HISTORICAL

MOVEMENTS OF THE INDUSTRIAL COMBINATION

IN VARIOUS COUNTRIES

 with Reference to the Fundamental Inducements

Underlying these Movements in Heavy Industry

Kenji Mesaki

Oitemongakuin University

 

 1,  The meanings and characteristics of some terms used in this paper

Konzern is a kind of industrial combination which relates to  its

structure, being a weak capital-concentration. We may include vertical,

horizontal and circular combinations as well as conglomerates in the vector

combination, which indicates not only the direction of the combination,

but also the quantity of industrial operations to be combined. The heavy

Industry is an industry or enterprise which produces iron and steel or

manufactures iron-and steel-products.

 2.  Industrial combination and heavy industry

  Industrial combination can accomplish the increase of profits,  while

heavy industry plays, as a key industry, an important part in promoting

the prosperity of the community, and may, as well, affect the development

of individual enterprises. Furthermore, industrial combination facilitates

the enlargement and growth of a firm operating iron and steel production.

Thus, industrial combination is deeply connected with the heavy industry.

 3.  The fundamental inducements  underlying  the  development  of  the

industrial combination in heavy industry of several countries.

  Among many inducements for industrial combination, a few are conceived

as being worthy of mentioning here. Entrepreneurs or managements resort

to industrial combination as a device for achieving the rationalization of

their firms or to realize the monopoly of markets. So far as these activities are concerned, industrial combination brings forth a Gesellschaft described by F. Toennies, as a society formed for the purpose of promoting the interest of its members. German cartels may be regarded belonging to this kind of society. On the other hand, most of its members exhibit comradeship-spirit attitudes, which places emphasis on the entity of the group concerned, sometimes even regardless of individual interest of the member. The latter state of the group, fraternitas, leads to building up a society Gemeinschaft called by Toennies, a society which has no particular or formal purpose, existing, so to speak, as natural process. Thus, the German cartel is likely to have contained a synthesis of two characteristics of the society, and this particular feature  might have

intensified the controlling power of the German cartel before World War

 

 

0402-2/3

 

HISTORICAL ROLES OF GERMAN COLONIAL

COMPANIES

Jiichi Kitamura

Kwansei Gakuin University

 

  Under German colonialism a series of colonial companies (Kolonialgese-

Ischaft) were organized to obtain basic economic control over German

colonies. The establishments numbered 73 during the comparatively short-

term possession of colonies, from 1884 to 1914, playing an important part

in the activity of German imperialism. [After World War I, notwithstand-

ing the loss of all the colonies, 85 companies were newly organized or

reorganized and shouldered the task of continuing colonialism without

colonies (Kolonialismus ohne Kolonien).) This paper deals with genealogy

and types of prewar colonial companies and aims to appraise their

historical roles and results.

  In German East Africa and in the Pacific colonies,  three chartered

companies (Schutzbriefgesellschaft) were formed, by means of Schutzbrief

copied from the English Royal Charter; Deutsch-Ostafrikanische Gesellschaft

(=DOAG, 1884-1890), Neu-Gumea-Kompagnie (1884—1890) and Jaluit-

Gesellsckaft (1888—1906). They were active in the acquisition of colonies

and the assumption of teritorial sovereignty. Realizing Bismarck's colonial

policy, they intended to collect the monopolistic profits.  After short lives,

they converted into ordinary companies.

  Another type of colonial company is the Konzessionsgesellschaft. In the

Cameroons, South West Africa and Togo, the Government granted conces-

sions (land or rights) to certain companies for the special purposes of

constructing railways or issuing bank- notes. Kamerun Eisenbahngesellsckaft

and Deutsch-Ostafrikanische Bank are examples of these cases; they too

got exclusive profits.

  Various private companies in German colonies were grouped into the

third type of colonial companies, participating positively in the accompli-

shment of colonial policy. Plantagengesellsckaft and Handelsgesellschft

are typical of them; the former had its own afunction in the production

process of colonial economy, and the latter in the circulation process.

  From the business historical point of view, the writer investigates many-

sided managements of colonial enterprisers and analizes the intensity of

native labour.

 

 

0402-3/3

GENESIS OF THE S.A. JOHN COCKERILL

International Entrepreneurial Activities

in Belgian Industrial Revolution

Akio Ishizaka

Hokkaido University

 

 The huge Seraing iron and  machine  works,  founded  by  the  Cockerills

In 1817, was in the first half of the 19th century one of the largest heavy

industry establishments on the Continent, and not only a most formidable

rival  for the British machine industry, but also something like a model

factory and training center for young engineers and skilled workers in

Germany and other nations. In this article we attempt to throw some

light on  the  role  which  the  Cockerills  played in the course of  the

industrial revolution on the Continent.

  The Cockerill family, English mechanics in origin, started their business

in 1799, when William Cockerill with his sons at the request of Simonis,

Biolly & Co., the biggest clothier in the Verviers woollen industry district,

constructed a set of machines for the woollen industry. Afterwards the

Cockerills transferred their workshop to Liege, the iron industry center of

Belgium, to take advantage of the entrepreneurial opportunities for machine-

makers which the prosperous woollen industries, under the  Napoleonic

Empire, guarranteed them.

  After 1815, when Belgium was cut off from France, the Cockerills were

obliged to contend with the economic crisis caused by the fall of the

Napoleonic system, and tried to seek compensation in German markets.

They founded actually several branch-mills for machine construction and

model woollen spinneries in Berlin and other eastern German towns under

the auspices of the Prussian Government, besides some similiar ones in

Russian Poland.

  However, John Cockerill, the successor of this family enterprise, dissatisfied

with this limitation of his business, ventured into the difficult undertaking

of being a steam engine constructor. He converted the Seraing castle,

disposed of by the King William I of the Netherlands at a favourable

price, into a huge machine factory in 1817".

  Moreover,  to secure  materials suitable for machine-building, John

Cockerill was obliged not only to expand his business to iron works and

collieries under the auspice of the Netherlands government, but also to

form a joint enterprise with the State.

  Through several years of hardships and experiments, his business was

established in a complete vertical combination, and after 1830, Cockerill

was able to take full advantages of the excellent capacities of his factories

in the face of new railway age.

  It was duly these legacies of John Cockerill that allowed made the Sera-

ing factory to survive to become the best in European heavy industries,

after his bankrupcy in 1839 and his death in 1842 followed by a reorga-

nization of the business into a joint stock company.

 

 

 

 

 

0403-1/3

The Business Philosophy of Ishida Baigan

Yasukazu Takeaka

Kinki University

 

  Ishida Baigan (1685-1744), who sought to develop a set of business ethics

for merchants, asserted "to obtain business profits fairly is the proper

practice of merchant living," and that this was legitimate because "merchants

are vassals (social servants) of the street." Then, he stressed that the

merchants ought to establish their own viewpoint about the social meaning

of commercial transactions. Furthermore, asking what the true meaning

of a transaction should be, he maintained that "true merchants are those

who satisfy their customers as well as themselves,"—in other words, the

transactions had to benefit both parties in buying and selling. Merchants,

therefore, must respect their customers' interest. Thus, Baigan said that

merchants had to cultivate the mind of the people in the realm. On the

other hand, the thought of Baigan is characterized as "a philosophy of

frugality," which he developed from his experience in a merchant house.

This way of living was named "shimatsu" which implied the maintenance

of a ballance between beginning and end. While shimatsu means economic

rationalism in business philosophy, Baigan, having conceived the idea of

frugality in a higher sense, recognized it as the basis of all moral virtues,

and identified it as honesty. He said that one could lead a frugal life

naturally when he was honest, and that he could recover the genuine

honesty which was innated to every one whenever he put frugality into

practice. Behind such a thought was the idea of "mottai-nai " a sort of

national sentiment. This word implies literally the loss of appearance or

manner proper to its nature, that is intolerable because it is contrary to

the blessing offered by an invisible God. Then, Baigan explained, in brief,

that frugality was "to abide by a law of existence." In such a thought,

frugality is nothing but rationalization itself.

 

 

 

 

 

 

 

0403-2/3

 Procurement of Iron and Steel by the Japanese Shipbuilding

Industry during World War I

—The Case of the Asano Shipbuilding Yard

Takeaki Teratani

Yokohama Municipal University

 

  The unprecedented boom of the Japanese shipbuilding industry during

World War I was accompanied by a serious difficulty in procuring raw materials. The domestic iron and steel industry had not yet developed

elough to supply the local demand. In addition, England and America put

into effect an embargo on iron and steel in 1916 and 1917 respectively,

The Japanese shipbuilding industry, favored with a great deal of orders

from abroad, tried to overcome the shortage of raw materials, first by

contracting with the U.S. Government for a supply of iron and steel in

return for an equivalent amount of ships, constructed at Japanese ship-

building yards.

  But eventually some of the shipbuilding firms, such an Mitsubishi,

Kawasaki and Asano, implemented a more long-ranged project for securing

raw material; that is, ventures into iron and steel production themselves.

In this paper the author has elucidated the procurement policy of Asano

Shipyard, established by Soichiro Asano, president of the Toyo Steam-ship

Navigation Co.

 

 

0403-3/3

The Coal-Mining of Durham CathedralPrioryfromthelll

14th Century to the Time of its Dissolution

Naomi Morimoto

Nagoya Gakuin University

 

 The Valor Ecclesiasticus of 1535 is the most important document for

analysing the economic conditions of the monasteries in England on the

eve of their dissolution.

  The information contained in this material, however, does not tell us

the whole story. Especially, coal-mining, which was an important activity

of the monasteries in northern England during this period, is almost entirely

neglected in this document.

  Therefore, the author has investigated the economic conditions of Durban:

Cathedral Priory at the time of its dissolution through its own documents

and has thrown some light on the coal-mining operations in this priory.

  The details of its management have been elucidated from the 14th

century through the first half of the 16th century.