THE MITSUI MILLIONS.

Oamaru Mail, Volume XXXVI, Issue 10096, 13 March 1909, Page 3 (Supplement)

THE MITSUI MILLIONS.

(By Franfc £f. Carpenter.)

Tokio, Japan.—Have you heard of the Mttaui fatnitvl-■-'.. ~ ,;..,. .It is/the richest of all .Japan, and one >o£ the richest of the world. What tho -Rothschilds are-toEurope and Kockefelter is- to- the United States, the Mitatris are: to Japan. They may also be compared with the .Astors and VandetWtts, and their undertakings Invtutfo such as, have made tho fortunes of Krttpp. Marshall Field, Stephen 'tfir-.ird, and John Wana- ' maker. They are\famoaa as merchants, miners, mamrtactnrera, exporters, bankers, and financiers. They have a.capital running into tena of millions of dollars, and thev do a business- of hundreds; of millions a year. fa some years the "foreign ~ trade 0! •j.this _ family is. emtat -to rpnetaeventfc i>\ tho'whole of-fei-tpreign-triidei .■ oßffitpanA. '• ;.'.■:.■■*••.; "A J" , '•":'.;."'• i Its cqal ..mines orodnce'about.'one-third o£> alt-the eoar*mtnedi in the' 'Empire, and they supply ; fc'great part of that ttsedl in the porta of East 'Asia. ■ Tho Mitsnia. own ■rreat cotton mills and'-furnish about onethird of the Japanese exports, of cotton yarn. They have other factories an<{ fonn. dries throughout _ the Empire, and their trading and banking institution* are in all the big cities. This famity has also its. branch establishment* tra the leading seanorta of China, and in Hongkong, Manila, Singapore, an.. Bombay. It has branches, m Australia and Java, and also in Sun Francisco, New York, and London. In some years it ship* as much as 5000 bales of raw ail.c to the United States, and it has a fleet of good-sized steamers, which carry its merchandise: to and from ■Shanghai, Hongkong, the. Philippines, the Strait's _ Settlements,, Burmah, and India. There is no more thriving corporation ,*n the workt to-day. and Just at this time, when we are talking of the; Japanese as being ort the edge- of bankruptcy, it is surprising: to come into- contact with an institution like this.

_ Through the kindness of Mr .1. Yamamoto, one of the directors, I have been: able to spend the greater part of today in going throttgh tho bis office bitil'tlitttcs of the Mitsui Bussun Kafsha here in Tokio, which contains the Mitsui bank and l the exporting and mining departments of the corporation; and I have also visited it.* big tlepartment store across the way, which, has more trade than any dry goods: establishment of the Far East. Each of these institutions is a story in itself. .But before I give it T want to tell yoct more about this' remarkable famity. The Mitsui house is a joint association, consisting of eleven families or partners, who have pooled the'r capital itt their joint name under the system of unlimited! liability. The hank, for instance, which has it capital of 5,000.000 yen and a surplus, of 11,5000,000, inserts a statement in alt its advertisements' that it is owned by the members of the Mitsui famity. antt that they ns partners assume an uniimitedi responsibility for alt debts. As a result the people know that alt the wealth of the family is back of the bank, and it has the highest credit. Its deposits are now about seventy million yen, or almost thirty-live million dollars. The same rule orevail's as to> all the obligations of the eleven families. The properties are all held in. common, although ♦itch family may have independent property of its own. In the Mitsui establishments however, there is no particular property to which anyone can enter ms absolute claim. The institutions are managed by the Mitsui family council, according to the rules taut down by one of the heads, of the family who lived mure than 2Q0 1 years, ago. This, making th.L v family, aud not the individual, the head of the institution, is in accordance with the social organisation of Japan. Etcre the individual is subservient to the famity, and the rights and obligations of thefamily should outweigh, those of any of *t» members. This combination of the Mitsuis. nas now lasted for about 200* years. The family h;is been in busines longer-_ than that, its ancestry dating back t<» a feudal lord who lived at the time of Christopher Uotiimbns. It was somewhere along during the days of Chaucer and Spenser ru England 1 that Takatosht, a descendant c? this lord, begun to engage in trade-. Ho opened a store in 'Kyoto, and established a dry goods wtore in Tokio. He sold fotcush and: also organised » system for the collection and remittance of money, am J it was his sou who wrote out the family rules, which have made the fortune* of the house, He also organised the- first family partnership, tit "this first organisation live brothers engaged to- work with their collective capital, and this system has, continued down to. the eleven branches or partners which constitute the house of todav. The Rothschild's frequently come to the assistance of the great governments ofc Europe. Their fortune whs founded, in fact, on money loaned to one of the Herman rulers who applied to the old house, at -Frankfort. Jay Cooke helped Uncte Sam out during the civil war, and President Roosevelt was glad to have the assistance of Pterpotit Morgan at the time of the last panic. The Mitsufa have occupied even more important positions in regard to the new Japan. When the Emperor was brought out of his seclusion at Kyoto and the present era of western civilisation began, the Mitsuts. tnrmshed most of the money to finance the new Kovernment. They practically, enabled Japan to bridge over the great crisis-which then threatened the empire both kront within ami without, and their service was so valuable that Baron itachtroemon Mitsut. the present head of the house, was. made a peer and alt the other partners. were given titles in acknowledgment ok it. The house today stands very close to the government," and it has great Influence in financial matters. Indeed, the Mitsuis are, perhaps, the most important element in the Japanese situation today. It is through them and the other- bankers and capitalists of note, such as. Matsuo, governor of the Batik of Japan; Takahashi of th-er Yokohama Specie Bunk, and Baron Shibusawa that the new policy of retrenchment, economy and reform is now being introduced, littil within a few months the country has. been managed by a class of men who knew but little of modern, business, methods. The leading officials were apt to took down on trade and to consider themselves us rather superior to those who were engaged in it. This was especially so up to the time of the war between. Kusaia and Japan. . Then the country needed a great deaf ot money, and it had to go abroad to borrow it. It had not done much as to the ptacingof.enbrniuus loans, and it called tit the financiers among the business men to advise it how to proceed. Through theticounset the loans were negotiated which supplied a targe part of the fumts for the war. Agents were sent to Paris. London, and Xcw York, and there was ttttte*trouble- in the disposal of the bonds. As the war continued, other loans were negotiated, and up to the time of its close there seemed to be no financtat trouble tit sight. The business men were now less regarded and the Government went on with its expenditures, not doubting it could get all the money it needed. Then a loan wits, proposed tor the Manchnrian railroads. To the surprise of the Government it was. only half taken. There seemed to bo but little demand for those bonds in London or New York, and the officials were at a loss, what to do. In. the meantime the representatives of the targe banking institutions of Paris. London, and Hew York had come here to Tokio to investigate matters for themselves. They were not satisfied with figures and estimates alone. They wanted to took at the books and to know just what the resources* of the* Government were and whether it could, beyond doubt, meet atl its obligations, when they became due. They wanted to know whether it was advisable for them to investin new bonds, and, '* tike the man from Missouri,"* they had to be shown. It was in connection with their report that Japan found! difficulty in placing farther loans, and on this account the financiers who represent the live, up-to-date banking and industrial interests, of to-day, have taken a hand with the Government in putting Japan on a solid financial basis. This policy has already been inaugurated and through the advice- of such men as the. Mttsms it wilt be carried oat to » strecestsfttf conclusion. i» one can go through.the big banking institution*, of Tokio without being assnred of the material'prosperity and the great resources of this country. The building of the Mitsui Bussan Kaisha is

surrounded by structures whii'h would not seem out of "place in New York or Chicago. Tin; Bank of Jaj»an, an enormous building »f (fray granite, is just over the way. The Yokohama Specie Bank is next 1 door, anrl all about are-other targe modern •'•buildings. -.'The'Mitsui building, is of four r storeys, boilt around the three sinks of ' a court, covering more than an acre. It ia of red brick and white stone and it? in--1 tenor » furnished like one of the beat olfice buildings- of the United Slates. There are wide halls, hig rooms, many windows, and an abundance of electric lights. Elevators take one from storey to storey and there are parlors for the directors, and all modern conveniences. The main room of the bank is larger than that of any bank in Washington - and as well furnished as that of any in New York. As I stood in the gallery and looked down upon the scores of clerks working t away 1 was impressed with the enormous business hteing.tuine;. Money. was*couril!ing ~irt i arid*'gbing'*ont and-1 could* •see where" •' the ' bank'' gets. its'" deposits,; which now amount to about seventy million yen. As 1 went on through the building J scorned to be in a government department. There were rooms filled with clerks everywhere and in one I saw a dozen" Japanese girl stenographers, who were clicking off their notes on Japanese typewriters. An interesting branch of the establishment is the mining department. In this are shown samples of the coat, surphur. copper, silver and other ores being mined by this great corporation. There are also models of the machinery used in the mines, showing how each of the improved type of machinery for hanlage, ventilation, and drainage, and that everything is done to protect the lives of the miners and to maintain a uniform output at the lowest expense. 1 saw models of some of the Mitsui coal mine* near .Nagasaki. They are known as the MEke mines, and are one of the largest of such enterprises in the world. There are now six different workings, and the annual production is over one million *tons. The mines have an area of 16,000 acres, and tho coal veins average about eight feet in thickness. This coal is bituminous and is used for cooking. It is regarded as a standard coal in the Asiatic market. Another Mitsui property is the Tagafcn coal mines, which produce the best steam coal of Japan, ami largely supply the navy and the railroads. And another is the Yamano coal, noted for its easy firing and its high evaporation power. In addition to these coal mines the Mitsms. have silver and lead properties, which are turning out considerable ore, and they have two large sulphur mines. The M r tsuis have a big engineering works here in Tofcio. where engine* and boilers are made, and where they are also turning out electrical machinery which :s-----noted! throughout the Far Kast. They are making steel chimneys arid railway bridge material. Their steel chimneys are said tobe earthquake-proof. This is a very important item. Japan has, on the average an earthquake a day throughout the year, and evcy now and then a big one. At such times the brick chimneys and smokestacks are the Brst to fall". They often cause great damage, crashing through the roots below. When i was in Japan fourteen years ago. about one-half the household department of the palace, which I was vtsiting.at the time was thrown down and the chimneys flew far ,and wide. I narrowly escaped with my' life, in that earthquake the chimneys on the parliament house tumbled, waking a hole tti the roof as large as though the biggest elephant had dropped through from the skies. It would' pay some of our bis exporting Firms to go through the foreign trade rooms of the Mitsat house. They have a commercial .nwseunt which enables their clerks and employees to study all sorts of raw materials and manufactured goods. These rooms are somewhat similar to those of our Philadelphia Commercial Museum. and one could hardly imagine such a collection; being gotten together by a private company. Connected with the museum is a large library of up-to-date books on textiles, ores, milting and manufactures, and the elerfes are well educated. The Mitsui family has its own system of education for its. employees. It has set apart a fund of thirty thousand yen annually to aend its clerks to Chtita and other countries to enable them to acquire the languages and education necessary for their business.. It is now exporting all sorts of goods to the amonttt of ninety million yen or more every year. It ha* a huge import trade and brings into Japan locomotives, steel bridges and electrical machines. It purchases steamers, warships and ordinance for the government, and also railway equipment and materials. ft deals largely in cotton and woo!, and handles American -canned meats, wheat flour, and other such things. The company also acts as insurance agents, representing some of the largest of the American and Knglish insurance companies, and that not only in Japan, but in India, the Straits Settlements and China as well. Leaving the Mitsui Bussan Kaisha. 1 crossed the street and went through the big department store belonging to tho Mitsui family. This is by Far" the largest and most complete store in the Japanese empire. It has a capital of I.OUO.QCO yen, and it does a daily business of abonc 30,000 yen. It is "like nothing else in Japan, and is one of the best examples of how the western movement is captur ing the empire, and also of the solidity of the new institutions. It is known as the Mitsui dry goods store. .Marshall Field, who was at the time he died worth about £10,000,000, made as" a storekeeper. never liked the words "department store.'' He called Ms big establishment in Chicago a dry goods store. The Mitsoi follow the same rule, and that, perhaps, because the fortunes of the family were founded on dry goods. As I have said, the business was Begun during the sixteenth century — almost a hundred years before Boston was founded—and it was 'only a few years later that a store was opened right here on the site of this big establishment of to-day. After the combination of the live Mitsui brothers in 1725 this store steadily grew, and it covered a targe area, about one-half of which is now occupied by the Mtttsui OoFuJcutcn, as the store is called to-day. The Mttsuis in the past started the cash business in Japan, and this new store has fixed prices marked on Use goods. It has cash carriers to take the money from one part of the store to the other, and also a big mail order department, through which goods are sent to all parts of the empire, and collections Are made through the post offices. It has automobiles to deliver its good* the city, elegant dining rooms and resting rooms, for its customers and special exhibitions of new goods, -which bring ont fashionable society. It-has a photographic department a-ptctn.e gallery, ladies' dressmaking and tailoring establishments and, in fact, almost everything found in the best department stores in the United States. The building is of three stories, with -wide plate-glass windows and a spacious entrance hall. In the centre of it are two courts roofed with glass, so curtained that just the right light can be admitted whether the day be bright or dark. In these courts are fountains, in the basins of which goldfish swim and about which are palms rising high into the air. The whole of the three storeys are carpeted with tho softest of white mattings ami arc filled with Japanese goods of various kinds, beautifully displayed in glass cases. This big store, with its vast quantities of new goods of at] Kinds, issupported by the Japanese, although it has its departments intended for foreigners. There are about two million people in Tokio alone, and the country around is more thickly populated than any part -of the United States. The store is so beautiful that no one would think of entering it-with muddy shoes, and the Japanese men arid women alt check their shoes and umbrellas at the door. I,came out of the jinrikisha and one of the clerks drew over my shoes a pair of soft cloth slippers, and it was in them that I walked through. The matting is as white as a tablecloth, and there is not a spot of dirt anywhere to be seen. The store was- full of Japanese women „ and girls looking over and going through the other operation of shoj>pinir just as our women do in the 1 ititcd States. Some were examining the magnificent obis or wide belts, which form "the most decorative part of the Japanese costume: others were looking up stuff for kimonos, and others buying shoes, jewellery, pictures and. in fart, everything under the sun. Sjme of the shoes are beautifully lacquered, and I .saw single obis which sell for £6O. Think of a belt

for you* ctnsa which might. co»t you £2O or »V>r«. ami yoii haw .in idea »i a possible extravagance of the Japanose women. .As. I walked through the establishment a concert began in the music room, and for an hour or more, a Japanese girl played on a grand piano, being accompanied by two others with violins. I cannot say "much for the music. It was an attempt at one of Souaa'a marches, and was not a success. I was taken through the store by one of the managers, -who spoke English.' We went together from story to story from the toy department at the bottom, -where little dolls ami dolls housekeeping ouiits are «oM. Dp the great photograph gallery and -reception parlours at ihc top. Wo visited rooms beautifully furnished, some of which were for the tea drinking ceremony.- and altogether saw what I consider one of the best dry goods establishment and one of the most artistically decorated' stores.! in -.the./world. I understand . that*!other departmenf stores are gradually•sprihging.tip'- in ;Tokio and another big cities of the enfpire, and that they are fircatly competing with the boothlike little shops which line nearly all the business streets of Japan.