INDUSTRIAL JAPAN TODAY
Steel and Iron Industry
Steady Growth Features It, Government Stes] Works Lead Private Iaterest
Japan produces about half the pig iron it consumes retiring 83,000 shares at a maximum price of ¥25,
ind about two thirds of the steel. The pig iron is imported Fuji Steel has been hit by panic and earthquake and
from Manchuria, Korea and India. The Hanyehping Coal had one readjustment after another. Its debts are high
& Iron Company supplied pig iron and ore. For the and cost of production is above that of competing com-
iast three years, however, this source has been blocked, panies.
first by peculations of the Chinese managers and secondly The Kobe Steel Works, which was a subsidiary of
5y the seizure of the mines by the Nationalist armies. ‘he Suzuki interests, was seriously embarrassed by the
Private producers are handicaped by the fact that ailure of the parent company but was able to continue
the Government Steel Works dominates the market. Its in business by going below debentures and other indebted-
output is about 55 per cent of the Japanese production. 1ess with a mortgage for ¥3,000,000. It was in difficulties
There handiaped even more, however, by over-expansion decause the parent company sold it the Harima Dackyard
of capacity, Japan's steel industry sprang to life during nd the Toba Shipbuilding Works, accepting notes for
the World War boom, when European and American ¥24,000,000. These notes it discounted with the Bank
stecl was not available. Prices rose to unprecedented f Taiwan, .
heights and steel company after steel company organized. With Hanyehping iron no longer coming to Japan,
When the panic of 1920 broke over the country, some ‘he nation’s steel mills have becn handicaped and the
of these companies were weeded out, but many remained. Jovernment Steel Works is casting about for more sources
These have not been profitable. During 1926 only two of supply. A contract was concluded by the works last
companies reported profits in excess of 4.6 per cent against rear for the purchase of 500,00) tons of ore from the
said capitalization. These were the Kawasaki Dockyard Nanyo Industrial Development Company. This ore is
Company, mhich tampered with its books and since has sroduced at Johore. However, this will not be enough
gone bankrupt, and the Osaka Iron Works. The latter wd another contract waw signed with the Kuhara inter-
was obliged to go through a sweeping readjustment early :sts, involving 250,000 tons or ore a year, to contain not
In 19 7, taking cognizance of the fact that it had not ess than 65 per cent iron. These will come from a state
provided properly for depreciation and that many items ear Hohore, but since production has not yet been started
in its inventory were over-valued. At the same time, he enterprise is in nebulous state, at best. The contract
however, it raised the valuation of its real estate to take s explained by the exceedingly close connection between
sare of the changes elsewhere. “usanosuke Kuhara and Premier Tanaka's Seiyukai party.
The status of the leading companies is summarized In Japan proper, the Pig Iron Joint Sales Guild at-
pelow. empts to control prices. It was formad in 1926 as an
The Kawasaki Dockyard estate has been erected cover- wdjunct of the Iron and Steel Consultation Commission
ing two of its properties and on this security nine banks ind did about 200,000 tons of business the first year, the
aave made a loan of ¥11,000,000. The Navy is to name sulk of which was with manufacturers of cast iron, steel
A new president and the operation of the shipways will nakers preferred imported pig iron.
de in the hands of the Government indirectly. The sheet Early last year the consulting commission sent Mr.
uill will continue in operation. joraji. Lihiki, its managing director, and for other re-
The Osaka Iron Works went through a complete dresentatives to India in an attempt to get the Indian
readjustment last year, taking a loss of ¥1,659,000 for sroducers to limit their shipments to Japan to 200,000
‘he first half. This concern is controlled by the Kuhara ons a year. It was believed that such a limitation would
.nterests. The readjustment included writing off ¥ 1,400,000 nable the Japanese producers to charge higher prices
of bad debts, reducing inventory figures on ships and -nd Mr. Ishiki produced that the import price be raised
materials and adding ¥6,546,000 to the valuation of the ive rupees a ton. British Indian producers, however,
Sakurajima works and ¥1,350,000 to the shipWays at the ould see no advantage in the scheme, which was based
[nnoshima plant. Oshima Steel reported a 4.8 per cent n the idea that the steel trade would stay in its present
profit for the first half of 1627. It declared a 3.2 per :ondition, whereas sales of Indian iron in Japan are in-
sent dividend. ‘reasing rapidly, more rapidly than sales of Javanese pig
Tokyo Steel's future depends upon the ability of the Ton.
Asano interests to pay for the Kokura Steel Works, which The Suzuki Shoten formerly handled imports of Tata
they purchased some years ago. These “Kokura Steel ron. When that concern ran on the rocks, the agency
Accounts” amount to about 89 per cent of the company's vas turned over to the Nippon Commercial Company,
paid capitalization. The Japan Steel Tubing Company is vith which it was affiliated. Burn iron also comes here
bring carried by a subsidiary, the Fushiki Electric Iron in large quantities.
Manufacturing Works, which has been vielding good It was reported last year that imports of steel scrap
orofits. nto Japan were increasing, due to the shortage of ores.
Toyo Iron’s income is derived principally from the While figures for the entire year are not available, it-was
fact that its two smelters are being operat.d by the Govern- reported that imports up to the end of May totaled 20,551
ment Steel Works at a rental of ¥300,000 a year. The ons, a gain of 290 per cent over the corresponding figure
Kuhara interests own a quarter of its shares and Daron of 1926,
Seinosuke Goh is president. Late last year it decided to During June the Asano Shipbuilding Yard at Tsuru-
cut its capitalization from ¥ 40,000,000 to ¥ 36,000,000, mi built in a 150-ton smelter.
The shares were x42.50 paid up. This was done by Ever since the end of the World War pig iron and
