ECONOMIC RESEARCH CENTERDISCUSSION PAPER
E-Series

No.E18-1

Labor Management System in Fushun Coal Mines
under the South Manchurian Railway Company
byYoshinori Kigoshi

September 2018

ECONOMIC RESEARCH CENTERGRADUATE SCHOOL OF ECONOMICSNAGOYA UNIVERSITY

Labor Management System in Fushun Coal Mines under the South
Manchurian Railway Company

1

Yoshinori Kigoshi (Nagoya University, Japan)

Abstract
This study, which examines a case of a Manchurian coal mine operated under a Japanese company,
elucidates reasons for the extensive use of contract systems throughout modern China. A particularly
clear feature of the modern Chinese economy is the so-called “Bao” contract system, which has existed
for a long time. It was designated as the "Batou" system, named after a contractor in Manchuria.
Historically, the contract system has existed universally during the rise of the modern mining industryin Europe and Japan. Nevertheless, it disappeared along with the development of the urban labormarket and with the progress of mechanization in European and Japanese production processes. Whatis the “Chinese feature” of the contract system? Japanese companies attempted to reform thecontracting system in Manchuria to produce a direct labor management system. At that time, Japanesemanagers restricted the power of contractors, but failed to eliminate the influence of Chinese foremen(Xiao Batou) who oversaw the Chinese miners directly. This study specifically examines the role ofChinese foremen. Results suggest that the essence of the Chinese contract system is embodied in the
Chinese foreman function.

1 This article is based on an article that originally appeared in Nihonshi Kenkyu (Journal of Japanese

History) No.560: pp.1-22. (Apr 2009). The English version has been revised substantially.
1

Introduction
Why did Japanese companies succeed in modern China? This paper presents a discussion of thishistorical problem by examination from the perspective of the labor management system. Labor
management is the most difficult task confronting foreign companies entering China. The contractsystem was the safest and easiest way to avoid many difficulties. However, Japanese companies boldly
challenged the contract system. They set up a system that expelled contractors and directly hired
Chinese workers. With abolition of the contract system, Japanese companies were able to promotescientific management and mechanization efficiently.2 In other words, explaining labor management
system innovation is the key to explaining the success of Japanese companies in modern China.
Chesneaux, Elvin, and Wright explain the reasons for the extensive existence of the contract system
in modern China.3 Nevertheless, they do not elucidate reasons for Japanese companies’ ability to2 This paper presents the coal industry as a case, but Japanese companies are known to have aimed

for direct employment in other industries in China. Notable examples include the spinning industry,banking business (Yokohama Specie Bank), and trade business (Mitsui Bussan Shanghai Branch).
Cochran, Encountering Chinese Networks, and Tomizawa, et al. ed, Kindai Zhugoku wo Ikita.
3 Chesneaux, ‘The Chinese Labour Force’. Elvin, The Pattern of the Chinese Past. Wright, ‘A

Method of Evading Management’. Regarding the Chinese contract system, points of emphasis differ
among researchers, but opinions on the basic contents of the system are consistent. Basic facts thathave been confirmed can be summarized as three points. First, the form of the Chinese contracting
system is similar to institutions in other countries, such as the butty subcontracting system in Britain,
the Naya system and Hanba system in Japan, the cai in Vietnam, and the ticcadari system in India.
Secondly, the Chinese contract system was formed in accordance with capitalistic management, not
as a remnant of the traditional Chinese system. It has been deployed widely in coal mines where thescale of management is large, and where mechanization is advancing. Thirdly, though having a modern
personality, the members of the organization consisted nearly entirely of homeland members.
Therefore, it has the character of a common organization like Chinese traditional native-placeassociation. Wright, ‘A Method of Evading Management’, p. 663.
2

manage Chinese workers directly.
This paper specifically examines the labor management of the Fushun Coal Mine in Liaoning under
the South Manchurian Railway Company (SMR). Fushun, the largest coal mine in China before theSecond World War, had a huge production mechanism in which enormous amounts of capital had been
invested based on a new technology that was effective for the mining of the thick-layer coalfield.4 It
was necessary for Fushun to employ tens of thousands of Chinese miners to produce coal. As a key tocoal mine development, SMR undertook the recruitment of many Chinese miners in a stable manner.
It was a key to building a labor management system that accomplished the intentions of the Japaneseengineers at the mining site. History shows that SMR positively reformed the labor management
system.
In China, the contracting system was common among labor-intensive businesses. A company
owner entrusted the contractor to do everything related to the workers.5 In Manchuria, it was common
for contractors called Batou to undertake labor-intensive businesses. Of course, Fushun also adopted
Batou into the work to hire numerous Chinese workers. Ninsaburo Murakushi presents the first
framework of analysis through comparison with the history of coal mine labor management in Japan.
According to Murakushi, contract systems of two types were used in the mining industry. The first
type was the form which undertook process management and labor management collectively. The
second type was a form which only the labor management undertakes. Murakushi points out that thecontract system of the Fushun Coal Mine under SMR was a first type initially. It shifted to the second
type according to the advancement of mining technology and developed into a direct employment
system in the 1930s. Murakushi referred to the first Batou system as the first type, and to the second

4 The coal seam of Fushun coalfield has been thick so far to a degree that Japanese engineers had

never witnessed. Because coal mine technology in mainland Japan could not be applied, SMR
independently developed a coal mining technology suitable for the Fushun coalfield.
5 In modern China, the contract system was seen too widely. For that reason, Japanese researchers

who directly observed China at the time understood the contracting system as reflecting the characterof Chinese society. Kashiwa, Keizai Titsuzyo and Muramatsu, Chugoku Keizai.
3

Batou system as the second type.6 Additionally, he classified the labor management functions of Batou
into three fields: (1) supervision of labor, (2) welfare, and (3) recruitment.
Takatsuna Hirofumi points out that Japanese staff members conducted almost all of the labor
management in Fushun under the second Batou system, except for recruitment, and that the second
Batou system was managed almost entirely under the direct employment system.7 You Byoungboo
also points out that Batou had lost the labor management function outside the recruiting department,
and that the second Batou system was arranged to be a system which contracted the recruitment ofminers professionally. He called this the Labor Supply Contract System.8
Opinion is divided among Murakushi, Takatsuna, and You Byoungboo because of an evaluation
for the existence of the Chinese foreman, called Xiao Batou, who manages the Chinese miners directly
as a subordinate of the Chinese contractor, called Da Batou. The organization of the Chinese contractsystem included managers of two kinds: Da Batou and Xiao Batou. In the second Batou system, Da
Batou was not going to the mining site. The Japanese staff came to command Chinese miners with ahelp of Xiao Batou. Murakushi summarizes the function of the entire Chinese contract system with
the Xiao Batou in mind. By contrast, Takatsuna and You Byoungboo evaluate the system from thestatus of Da Batou. Succinctly put, the point whether the existence of Xiao Batou was a subordinate
of Da Batou or it was one employee of the company became a difference of the evaluation.
Takao Matsumura has conducted comprehensive research on the labor management system ofSMR. Matsumura, after distinguishing between Da Batou and Xiao Batou, points out the presence oflabor control functions by Xiao Batou in the second Batou system, and the subordinate relation
between Da Batou and Xiao Batou. However, because the emphasis of his analysis is on the wartime
labor management system, it does not refer to the concrete contents of the position and the function of
Xiao Batou.9 Kenji Eda also points out the presence of Xiao Batou in the case of loading and unloading

6 For the second Batou system concept of Murakushi, see Murakushi, ‘Manshu heno Sekitan

Gizyutsu Iten’, p. 35.
7 Takatsuna, ‘”Manshu” ni okeru Tankou’, pp. 112–4, p. 121.
8 You, Mantesu Buzhun Tanko, Chapter 5.
9 Matsumura et.al eds, Mantesu Roudoushi, p. 300.

4

at Dalian Pier. However, Xiao Batou given from Dalian Pier’s case means the Chinese contract systemwith a small number of workers as subordinates. Also, the position and function differed from the Xiao
Batou in the Fushun Coal Mine.10
Earlier studies show that Xiao Batou acted as middleman between the Japanese staff members andthe Chinese contractor in labor management. However, no report of the relevant literature describes
an independent study of Xiao Batou. One reason is that Da Batou and Xiao Batou are not distinguishedin the historical materials of SMR. They are often described collectively as Batou. A second reason isthat, although the labor survey in Fushun Coal Mine had become abundant since the 1930s, few
investigations have examined the 1910s and 1920s, when Xiao Batou played the most important role.
Yoshinori Kigoshi assesses labor surveys conducted at Fushun Coal Mine in the 1920s, withinvestigation by SMR and the government of the Republic of China, which were less likely to be usedin prior studies.11 Kigoshi inherits the concept of Murakushi. Murakushi does not conceptualize thecontract system of Fushun Coal Mine in the form which distinguished it as Da Batou and Xiao Batou.
Therefore, Kigoshi divides the concept of Murakushi into two types: the form in which the labor
management function is borne intensively by Da Batou, and a form in which the labor management
function of the mining division is borne by Xiao Batou. He designates these as the Da Batou systemand the Xiao Batou system, and points out that if the change in status and function of Xiao Batou is
examined, then SMR’s ability to eliminate the contracting system can be clarified. Although heclarifies the function of labor management of Xiao Batou, he does not consider it in a form including
the recruitment function. Additionally, he does not independently consider the status and function of
Da Batou under the Xiao Batou system.12 This article will reexamine the essence of the Batou system
by integrating the functions of Da Batou on the Xiao Batou system.
The structure of this paper is the following. Section I presents a review of the Xiao Batou systemformation process. Section II presents an examination of the labor management system in the 1920s,

10 Ibid., p. 498. For the author’s evaluation about Matsumura et al. eds, Mantesu Roudoushi as awhole, see Kigoshi, ‘Syohyo: Matumura Takao’.
11 SMR, Kounai Sagyou and Yu Heyin, Fushun Meikuang.
12 Kigoshi, ‘Labour Management System’.

5where Xiao Batou system was most popular in Fushun Coal Mine. Section III examines the process
by which Xiao Batou system was substituted for direct management by Japanese staff. Section IV
explains the recruitment that Da Batou had consistently grasped. This section presents examination of
the social significance of the contract system in the context of Chinese rural society.
In fact, this paper presents analysis of the development process of mine digging and does notinclude an analysis of open air mining. Although Fushun Coal Mine is famous for open air mining,underground mining occupied over 50 per cent of the coal output for the entire period.13

I. Xiao Batou system formation process: 1901–11

1. Labor management system before SMR
Development in the modern era of Fushun coal field was started by two Qing dynasty patentcompanies in 1901: Huaxingli Company and Fushun Coal Mining Company.14 The founders of eachcompany were Chinese.15 On January 13, 1905, after the Russo-Japanese War broke out, the Russianarmy took over the entire mine and dominated the coal mines, but on 9 March of the same year, as theJapan army advanced, Russian troops abandoned the coal mine.16 Thereafter, the mining team was set
up by the Japanese Army to recover the coal mine. Under supervision of the Japanese Army, mining
was conducted until the facility was handed over to SMR.17
Mining had been done under the contract system until the coal mine was transferred to SMR.

13

This is true because there is no trace of reform debate as far as one can see with regard to thelabor management of open air mining. It is necessary to compare the coal extraction systems of open
air mining and the pit mining. Through comparison, it is also necessary to consider the reason there
was no necessity for labor management system reform as a response to open air mining.
14 SMR, Buzhun Tanko, pp. 7–8, pp. 23–7.
15 Ibid., p. 33.
16 Ibid., p. 21, p. 33, p. 37.
17 Ibid., p. 37.

6

According to materials on the Japanese side, during the Russian management age, "the engineer andthe process master were arranged, but everything inside the pit was entrusted to the Chinese contractor(Da Batou)".18 Even in the Japanese army management era, "coal mining still has been contracted by
the Chinese people".19 The Chinese contract system was adopted because the coal mining technology
level was low. Moreover, it was more important to collect workers rather than scientific process control.
Regarding the mining method, the conventional method of manually digging as far as the groundpressure and aeration allowed was adopted.20 Coal extraction was done using a pick and a shovel inhemp bags, which were then carried to the outside of the pit manually. No mechanization was done atall.21 As for the composition of the miners, by July 1906, two pits were arranged and a "Coolie Head
(Chinese)" was placed in each pit: "200 miners (Chinese) and 300 carriers (Chinese)" were there.22
The “Coolie Head” is Batou. Chinese contractors were called Coolie Heads until SMR began to callthem Batou.23 Coal mining engineers were only 14 Japanese.24 The recruitment figure is unavailable
because of limitations on materials. However, because it was reported that "Fushun were formerly
insignificant, in one cold village the number of houses of the residents was just fifty", it is easy to
imagine that about 1,000 miners had to be recruited in remote areas.25 Before SMR management, thetechnology level was extremely low, the amount of labor under the jurisdiction of the coal mine was

18 Fujitaira, Kouzan Roudousya, p. 248.
19 Ibid., p. 248.
20 Kanto Totokufu, Manshu Sangyo, p. 124.
21 Ibid., pp. 125–6.
22

Ibid., pp. 131–2.

23 According to Ohashi, Shina Kougyou, p. 9, the word Batou is said to be a word created by

Japanese at the time the Fushun Coal Mine started in the hands of Japan in Manchuria. The material
that can confirm that Fushun Coal Mine first used the word Batou is "Internal Regulations of
Newcomer Miner Treatment" on April 7, 1911. Earlier materials are stated as Coolie Head or Coolie
Contractor.
24 Kanto Totokufu, Manshu Sangyo, p. 131.
25 SMR, Buzhun Tanko, p. 2.

7

small, and the conditions to procure the miners locally were also restricted. The company wascompelled to rely on Batou for the entire coal mining operation.
2. Chinese contract system reform in 1908
On April 1, 1907, SMR took over all assets from the Kanto Totokufu (Japan's Guandong GovernorGeneral Office) and started business under the name "Fushun Coal Mine."26 SMR Governor Shinpei
Goto decided to select the chief in charge of development of Fushun and invited Takeichiro Matsuda,
the director of the Mitsubishi Namazuta Coal Mine.27 Matsuda had the experience of studying inGermany, where he learned advanced coal mine technology. He improved China's conventional
method of coal mining into the advanced Western style. A new shaft was opened. Also, a steam hoistingmachine and a ventilator were introduced.28
Labor management system reform started in 1908, only two years after SMR began operating thecoal mine.29 SMR states the purpose of the reform as follows. "Because miners have been slaughteredby Coolie Heads, incomes of miners have declined. Because they had an adverse effect on work, it
was necessary to control the exploitation of Coolie Heads and to protect the miners."30
Two labor management systems were introduced experimentally. One was a company directcontrol system under which Japanese staff members directly recruited and supervised Chinese miners.
Another was a contracting system by which Japanese staff conducted process control, with labor
management delegated to the Chinese contractors. Reviewing the agreement between SMR and thecontractor in 1910, one can confirm that the status of the Chinese contractor changed from work
contractor to worker supplier by the reform of 1908.31 The contractor status was stipulated by SMR as

26 Ibid., pp. 38–9.
27 Ibid., p. 98. Matsuda was the forerunner of the Japanese coal mine industry at the time. For

details related to Matsuda's career, see Takanoe, Nihon Tankou Shi, p. 445.
28 SMR, Buzhun Tanko, pp. 98–114.
29 Ibid., p. 245.
30 Ibid., p. 226.
31 Jie, Mantie Shi, p. 276.

8follows. First, the fee received by the Chinese contractor was paid according to the total operation
amount of the subordinate miners, not the contract work volume. 32 Secondly, miners’ wages weredelivered through the contractor as before, but they were paid according to miners' piece work volumes
rather than being paid at the discretion of the contractor.33 Thirdly, the authority in the coal mining
division of the contractor was to collect Chinese miners of the number specified by SMR, send themto the mine, and command and supervise them.34 In other words, the job of the Chinese contractor was
limited to a labor supervisory function.
Because of SMR testing of the two systems, results showed that the outcome of the company directcontrol system was higher than that of the contract system. SMR reports, “(the company direct control
system) not only increased the income of miners, but also reduced coal extraction costs. It was allright.”35 In March 1911, SMR judged that the company direct control system was best, abolished theChinese contract system, and put all miners under the direct control of SMR.36
However, when the Togo pit newly opened in April 1911, it turned out that the miner recruitment
did not go as SMR had expected.37 On April 7, 1911, SMR had no choice but to revive the contractsystem.38 SMR failed to abolish the contract system.
3. Chinese contract system Reform in 1911
On September 10, 1911, SMR enacted the "contractor rules" and aimed to construct a new labor
management system with lessons learned from the failure of the reform in 1908.39 The point of reformin 1911 is summarized in three points. First, the Chinese contractor was divided into Da Batou and32

Ibid., p. 276.

33 Ibid., p. 276.
34 Ibid., p. 276.
35 SMR, Buzhun Tanko, pp. 226–7.
36 SMR, Zyunen Shi, p. 496.
37 Ibid., p. 495.
38 Fujitaira, Kouzan Roudousya, p. 243.
39 Ibid., p. 245–7.

9

Xiao Batou. Each position and authority was determined. SMR made Da Batou a contractor. The
manager who oversaw Chinese miners as Da Batou’s subordinate was stipulated as Xiao Batou.40 It
was stipulated that the authority of adoption and dismissal of Xiao Batou was in SMR, not in Da Batou.
SMR made it impossible for Da Batou to intervene at the coal mining site.41 Secondly, the wage
payment system was changed. The miners’ wages were handed over directly to the miners from thelabor section of the company, rather than passing them through Da Batou.42 In addition, the wages of
Xiao Batou were not paid out from the account of Da Batou but were paid directly from SMR
according to a fixed percentage of the total operating amount of Chinese miners under Xiao Batou.43
Third, SMR divided the labor management task into a field managed by SMR and a field entrusted to
Da Batou. SMR was responsible for welfare benefits and provided accommodation and meals to
Chinese miners.44 Recruitment was delegated to Da Batou.45 Supervision of the labor process was
entrusted to Xiao Batou.
The system introduced in the reform in 1911 differed from the labor management system
introduced in the 1908 reform from the viewpoint of labor management leaders. In the reform of 1908,a system directly under the company and a contracting system were adopted simultaneously. In thecontracting system, all labor management was entrusted to Da Batou. Reform in 1911 entrusted therecruitment department to Da Batou; Xiao Batou was responsible for labor management of the coal

40 Ibid., p. 245.
41 Ibid., p. 246.
42 SMR, Dai Nizi Zyunen Shi, p. 570.
43

Fujitaira, Kouzan Roudousya, pp. 245–6.

44 SMR, Zyunen Shi, p. 497. Da Batou was permitted to run a shop. However, in 1930, the company

began to manage shops directly. The existing Da Batou shop was acquired and merged into thecompany’s shop. Sumii, Manshu Tangyo, p. 136.
45 From the time of establishment of the Xiao Batou system, the company set up a recruitment

branch and made a direct recruitment attempt. However, the direct recruitment ended in failure, as
explained in Section IV. The recruitment branch was closed or became a subsidiary of Da Batou
recruitment. SMR, Dai Nizi Zyunen Shi, p. 565.
10

mining department.

II. Xiao Batou labor supervision function 1911–30

1. Technology and labor management system
The Xiao Batou system re-announced the same contents as the September 1911 “Contractor Rules”
in May 1915 and January 1920. It continued until labor management system reform in 1931.46 The
period during which the system was adopted corresponded to the period when the “the shortwall
mining with sand filling method” coal mining technology was used. This technology allowed miningof the deep part of coal seam by pouring sand into the excavation and tunnel. Filling with sand wasable to prevent ground pressure. Moreover, because sand was poured with water, it was possible toprevent fires in the mine.47 This technology was adopted in July 1911, two months before the Xiao
Batou system was established. It was later applied to all mines from November 1912.48
The sand filling method was a technological innovation that lowered the probability of accidents
from falling timbers and fires, but remained at the level of old technology in terms of coal extraction
efficiency. The difficulty was that countless scattered mining sites existed. The number of mining sites
in August 1920 is shown in Table 1. The number then reached 3,887 sites. Scattering of the mining
sites made the gallery distance long and complicated, preventing mechanization of the transportation
processes.
In the 1920s, mechanization of transportation and digging at the pit was not yet realized. Coaltransportation was divided into three divisions. The first was transportation from the working face tothe main tunnel. The second was transportation in the main tunnel. The third was transportation fromthe shaft to the outside of the pit. Of the three processes, mechanization was limited to transportationin the shaft. Transportation from the working face to the main tunnel, scoops and bamboo baskets were46 SMR, Dai Nizi Zyunen Shi, p. 573.
47 SMR, Tankou Dokuhon, pp. 122–6.
48 SMR, Zyunen Shi, p. 491.

11

used. In the main tunnel, the miners pushed a half-ton coal car by hand.49 Coal was mined manuallyby pickaxe. Blasting mining methods were sometimes adopted. However, drilling holes for loading of
explosives was done manually with a hammer and chisel.50

Table 1. Current number of working faces in the Fushun Coal Mine

Pit Stations

August 1920

September 1935

Oyama
Togo
Laofutai
Wandawu
Xintukeng
Longfeng
Yangbaibao
Qianjinzhai
Total

947
400
516
383
37
241
789
574
3,887

19
16
25
26
42
13
Transition to open air mining

141

Source: Yu, Fushun Meikuang, pp. 39–69 and SMR, Tankou Dokuhon, p. 107.
Note: This table does not include the Yantai coal mine: a branch of Fushun Coal Mine.

The labor organization for coal mining and transportation was a small unit consisting of two to four
Chinese miners.51 The labor organization of the timbering work was the same as that for the mining
work. A working unit was organized from two to four Chinese workers. The actual number of workers
changed flexibly according to the support timber size.52 The labor organization of sand filling work
consisted of people who put sand in a basket and those who carried the baskets. The number of
constituents varied based on the conveying distance and the inclination of the working face. It was

49 Manshikai, Manshu Kaihatsu, p. 87.
50 SMR, Kounai Sagyou, pp. 11–15.
51 Fujitaira, Kouzan Roudousya, pp. 99–100. I cannot find the name of this work unit in the Fushun

Coal Mine despite intensive examination. In the Chikuho coal field in Japan, this kind of work unit
was called Hitosaki or Saki. Ogino, Chikuhou Tankou, p. 22.
52 SMR, Kounai Sagyou, pp. 23–35.

12organized roughly into two to five Chinese people.53
Looking at the labor management system operating this unit of work, the Xiao Batou system wasapplied to the mining and transportation process, which is the core process of coal extraction. In thetimbering and filling process, which is a maintenance work, the Da Batou system and the company
direct control system were used together.54 The numbers of Chinese miners in the pit according to thelabor management system, as of August 1920, were 7,028 for the Xiao Batou system, 6,041 for the Da
Batou system, 4,482 for the company direct control system, and 17,551 as the total of Chinese
miners.55
2. Role of Xiao Batou

Command line in the pit
First, one must inquire into the status of Xiao Batou in SMR by reviewing company documents.
SMR describes the status of Batou in Fushun as the following quotation. “Those commonly called
Xiao Batou have more than 50 miners under control. Their task is to command the miners directly.
Those who called Da Batou lead several Xiao Batou. They indirectly supervise the miners.”56 This
document states that the labor management of Da Batou is indirect and that the supervision of Xiao
Batou is direct. It is readily apparent that Xiao Batou was in direct contact with the miners.
Next, SMR refers to the relationship between Xiao Batou and Japanese staff members. “Xiao Batou
makes a tour of inspection around the working faces and supervises work. He supervises operationaccording to the command of the Japanese Xiao Batou.”57 In this passage it is described as "Japanese
Xiao Batou". From many other materials, it was confirmed that all Xiao Batou was Chinese.
Apparently, this is the only description of "the Japanese Xiao Batou" in the related literature. "Japanese

53 Ibid., pp. 36–54.
54 Ibid., pp. 11–54.
55 Yu Heyin, Fushun Meikuang, pp. 39–66.
56 Fujitaira, Kouzan Roudousya, pp. 244–5.
57 SMR, Dai Nizi Zyunen Shi, p. 571.

13

Xiao Batou" is regarded as an incorrect transcription of Kogashira (Japanese foreman). In Kanji, Xiao
Batou and Kogashira are only one character different. The Japanese foreman was an employee of
SMR who was engaged in underground labor. His position was also a supervisor. 58 Xiao Batou
supervised Chinese miners under the command of a Japanese foreman. By contrast, no materials
describe the relationship between Da Batou and Xiao Batou in the pit. However, in 1929, SMR states,“Da Batou does not enter the pit. Xiao Batou conducts the site.”59 This example clarifies that Xiao
Batou commanded labor at a place beyond the purview of Da Batou.
It is circumstantial evidence that Xiao Batou supervised miners under the instruction of a Japanese
foreman because the numbers of both are almost equal. The figures in December 1918 show that the
number of Xiao Batou was 153.60 By contrast, the Japanese foremen were 143 in August 1920.61 One
Japanese foreman was placed for almost every Xiao Batou.
As shown there, SMR states, “Xiao Batou have more than 50 miners under control”. We examine
this number in more detail. According to the data of August 1920, an average of 7,028 Chinese miners
per day entered the pit. The number of Xiao Batou in December 1918 when the data were available
was 153. The number of Chinese miners per Xiao Batou is 45.9. This number demonstrates that Xiao
Batou managed about 50 Chinese miners. It follows from what has been said that the command line
under the Xiao Batou system is summarized as the following. One Japanese foreman – One Xiao Batou– Fifty Chinese miners.
Command line outside of the pit
The Chinese miners were almost all single migrant workers. They lived together in a dormitory
prepared by the company. Who decided when and where over 7,000 Chinese miners work? Labor
placement is the most important decision outside of the pit. I would like to examine who owned the

58 Japanese staff members with the ability to become a supervisor, in particular, were appointed as

Kogashira. Fujitaira, Kouzan Roudousya, p. 236.
59 SMR, Buzhun Tanko Togokou, p. 12.
60 Yu Heyin, Fushun Meikuang, p. 165.
61 Ibid., pp. 162–4.

14

real power of labor placement after the 1911 reform of the contractor system.
SMR states on labor management of Chinese workers in lodging as follows. “Management ofChinese workers is controlled by the Department of Chinese Labor at each coal station. ……thehousemaster and Chinese watchman patrol to monitor.” 62 And, “Xiao Batou is arranged for eachaccommodation and place one to three or four housemasters as their assistant. ……Aside from this,secretaries, servants, choremen, watchmen, cook are working. We designate these various employees
all together as the care staff members for Chinese miners. The total number currently arranged in all
stations is 172 people.”63
To summarize the description, the General Supervision Department of labor management was the
Department of Chinese labor established for each coal mining station. The Department of Chineselabor was made up of the housemaster and the care staff members. The housemaster was a Japanese
SMR employee of the same class as Japanese foreman.64 All care staff were Chinese.65 Therefore, I
think that the housemaster and Xiao Batou were in the position of the manager.
Therefore, what was the difference between the housemaster and Xiao Baotou’s role? We can learnsomething about the difference between the housemaster and Xiao Batou's role from the SMR 1935
survey. This is material from the 1930s, but it constitutes a clue to learn a part of the order system oflabor placement in the 1920s. In the 1930s, the name of the Department of Chinese labor changed to
the labor service department. This survey states that the housemaster conducted labor placement ofChinese miners. “Usually, one housemaster is assigned to one Batou (miners are 50, 60 to 100 people)
by order of the labor service department. The housemaster takes care of matters related to Chineselaborers, such as management of lodging houses or maintenance of tools as well as the laborarrangement of miners.”66 From this survey, we cannot ascertain whether the housemaster is assigned
to Da Batou or to Xiao Batou. Judging from the fact that the housemaster was assigned to Xiao Batou

62 SMR, Dai Nizi Zyunen Shi, p. 571.
63 Ibid., p. 574.
64 Yu Heyin, Fushun Meikuang, pp. 157–62.
65 Ibid., pp. 157–162.
66 SMR, Manshu Kouzan, pp. 170–1.

15

in the 1920s and that the number of miners under his honor was between fifty and one hundred people
in the 1930s, I thought that the housemaster was also assigned to Xiao Batou in the 1920s.67 There are
two notations of "miners" and "laborers" in the material. The “miners” refer to Chinese miners under
Batou; “worker” is a generic term for Chinese employees.68 The housemaster was responsible not only
for the Chinese miners under Batou, but also the overall management of the Chinese employees ingeneral.
Next, we consider the role of Xiao Batou in labor allocation. SMR states, “In the labor allocation,
he [Xiao Batou] arranges appropriate miners of skill according to difficulty of work and abrupt rushingof the working face. For poor grade miners, he encourages them to demonstrate their spontaneous
spirit.”69 This passage says Xiao Batou did labor placement. I think that the differences in the role oflabor placement between housemaster and Xiao Batou are distinguishable as follows. Labor placement
includes two contents. First, the designation of location and time of work for each coal mining unit.
Secondly, selection of miners with appropriate skills based on the designation. SMR clearly states thatthe role of labor placement of Xiao Batou is the latter. Then, the role of housemaster would have been
the former. The coal mining department gives instructions to the housemaster for personnel, place andtime necessary for coal mining. The housemaster accurately conveyed the order to Xiao Batou.

67

In the 1920s, Xiao Batou had about 50 miners per person. However, in the 1930s, as the numberof Xiao Batou decreased compared with the number of miners, the number of miners per one Xiao
Batou probably increased. For example, the number of Xiao Batou in 1938 was 54 people. Kondo,
Buzhun Tanko, p. 5. Since it was 153 people in 1918, it declined to about one third. The reason for thedecrease in the number of Xiao Batou is the progress in centralization of the working faces as describedin Section III.
68 SMR, Dai Sanzi Zyunen Shi, p. 1720.
69 SMR, Manshu Kouzan, p. 182.

16

3. Why did the company need Xiao Batou?

Difficulty coordinating and motivating Chinese miners
Chinese miners engaged in coal mining activities in small work units consisting of two to four
people. The SMR records show an interesting remark about how the small units were organized.
“There is a habit of equally distributing the volume fee of one work unit among them. Therefore, evenfor a miner who belongs to the same Batou, the partner of the work is limited to the same villagers,
relatives or friends who live together in the same dormitory. Who pairs with whom resembles animplicit agreement, so it cannot be forced by others.”70 As SMR emphasizes, “even for a miner who
belongs to the same Batou," the unit of work was not based on Xiao Batou's command, but it wasorganized based on one’s own selection of Chinese miners. Xiao Batou failed to organize the work
unit because the method of assessing wages was a calculation of the volume for each unit of work, notthe individual miner. More precisely, wages were paid based on the number of coal cars conducted by
the unit of work.71 The number of coal cars was the result of collaborative work of all miners insidethe unit of work. Therefore, unless an opponent was conscious of it, the Chinese miners greatly
disliked becoming partners.
The wages of the Chinese miners also varied depending on where they were placed. Conditions of
the working faces were diverse. Consequently, the Chinese miners had a strong interest in which
working face they were placed. SMR states, “If the Chinese miners fail to take over and exchange theworking face smoothly, their income is likely to be uneven. In that case, Chinese miners have strong
discontentment. Some of them are determined to leave the coal mines. Therefore, it is important toequalize the wages of Chinese miners fairly by taking over and exchanging the working faces.”72
Maintaining fairness in wages was important for increasing the willingness of Chinese miners to work.
Considering the behavior style of such a Chinese miner, it can be understood that the role of Xiao

70 Fujitaira, Kouzan Roudousya, p. 100.
71 Ibid., p. 242.
72 Ibid., pp. 100–1.

17

Batou in labor placement was difficult for Japanese staff to substitute.
Difficulty in overseeing work
When the Xiao Batou system was applied in Fushun, the coal mining technology remained at a low
level called shortwall mining. The greatest shortcoming of shortwall mining is that the working faces
are scattered. As a result, the units of work are also dividing into exceedingly numerous units. As
pointed out already, the current number of the working faces reached 3,887 places in the 1920s. As aresult, labor oversight was held on a tour, not on the spot. Because the Chinese miners were notsupervised at all times, laziness and stopped work often occurred among them. Actually, SMR points
out three examples of such sabotage. First, when the supervisor is not at the site, the work efficiencyof the Chinese miners declines. The SMR record describes the following as sabotage in the case oftimbering work. “When the supervisor visits, they pretend to complete the assembly of timber poles.
It is normal to not reach the completion immediately afterwards.” 73 Secondly, the workers lose afeeling of tension as the number of workers inside the work unit increases. Consequently, theefficiency decreases. The SMR investigator recommends that it is desirable to reduce the number ofpeople in a work unit. However, SMR did not pick up this recommendation. It is impossible to reduce
the number of workers because it is based on process requirements.74 Thirdly, when Chinese miners
achieve a certain amount of work, they do not do any further work. SMR points out, “Even though
they have finished their work, they still have plenty of room to work. It is strange that they will not domore work.”75 The SMR records state that “they are innocent lazy, so getting enough income to eat ameal of a day will not work anymore.”76
What SMR did to crack down on such sabotage is to establish a system to award monetary bonuses
to supervisors when they catch laziness on the job. Because of coal mining technology constraints, it
was impossible to consolidate work units. In fact, SMR had no choice but to choose how to raise the73 SMR, Kounai Sagyou, p. 25.
74 Ibid., p. 26–7.
75 Ibid., p. 25.
76 Ibid., p. 25.

18

supervisor's auditing capability. In fact, the purpose of reforming the contracting system in 1911 wasaimed at improving the supervisor's ability. The supervisor as the reform target was Xiao Batou. SMR
conducted two institutional reforms so that Xiao Batou actively seized cases of laziness among
workers. First, as described earlier, SMR deprived Da Batou’s authority to appoint Xiao Batou. SMR
gained control over Xiao Batou in the pit. At the Da Batou system before the reform, Xiao Batou
appointed by Da Batou did not fully fulfill its responsibilities as a supervisor. In the 1920s, thetimbering work remained under the Da Batou system. The SMR investigator states about thesupervision situation in the timbering work. “Unnecessary supervisors are dispatched. No matter how
lazy they are, if they can receive more wages according to the workload of the day, will they not do
considerable work even if the supervisor is absent?”77 Secondly, SMR gave Xiao Batou a financial
motive to monitor sabotage actively. SMR linked income of Xiao Batou to the work volume of Chinese
miners.
The Xiao Batou system limit
The Xiao Batou system protected the status and authority of Xiao Batou from Da Batou. SMR wasable to reflect management intentions more strongly in the coal mining department than in the case of
Da Batou system. Regarding this point, certain achievements were made.
However, new difficulties occurred under the Xiao Batou system. There are two main difficulties.
First, as the authority of Xiao Batou rose, a tendency was found for the slavery relation to strengthen
between Xiao Batou and the Chinese miners. For the labor dispute that occurred on April 3, 1924,
caused by dissatisfaction with Xiao Batou's wages, they mobilized subordinate miners to protest thecompany.78
Secondly, the reform of the labor management system itself did not raise labor productivity. Figure
1 shows almost no change when comparing the labor productivity before and after the reform in 1911.
The rise in productivity since 1921 was attributable to the full-scale mining of a strip coal mine. The
rise from 1928 was attributable to intensification of the working faces by the introduction of new

77 Ibid., p. 37.
78 Jie, Mantie Shi, p. 366.

19technology, as detailed in the next section. Xiao Batou made the mining wage leveling through laborarrangement. This approach "protects incompetent workers and guarantees they receive fair wages."79
Although the power of Xiao Batou was able to reduce the miners' escaping rate, the effect of increasing
the coal extraction efficiency was low, which indicates a limit to the crackdown on the Chinese miners’
idle acts as long as the working faces were dispersed. The Xiao Batou system was constructed as asystem that enables Japanese staff to operate the processes necessary for shortwall mining.

Figure 1. Trend of labor productivity in Fushun Coal Mine, 1907–1931.
Coal production per one Chinese miner per day
Year

Source: SMR, Toukei Nenpou Taisyo Ni Nen, p. 425, p. 431. SMR, Toukei Nenpou Taisyo Yo Nen,
p. 439, p. 445. SMR, Toukei Nenpou Taisyo Roku Nen, p. 457. SMR, Toukei Nenpou Taisyo ZyuichiNen, p. 437, p. 459. SMR, Toukei Nenpou Syouwa Ni Nen, p. 489, p. 551. SMR, Toukei Nenpou Syouwa
Roku Nen, p. 789, p. 809.
Note: Labor productivity is calculated by coal production per one Chinese miner per day.

79 SMR, Kounai Sagyou, p. 39.

20

III. Company direct employment system 1930–40

1. Coal mining system in the 1930s
In the 1930s Fushun coal mining system, all line management of the mining section was directly
managed by Japanese staff members. This coal mining system had been progressing because of
invention of new technology to consolidate the working faces in 1928. It was a new technology
developed by SMR. After concentrating the working faces with the technique called longwall mining,
the company further enhanced the efficiency of drainage and transport by inclining the working
faces.80 As a result of the introduction of a belt conveyor in 1930, the mechanization of coal mining
was almost realized.81
This highly intensive and mechanized situation naturally changed the labor management system
dramatically. We will confirm the concrete situation from the survey of SMR conducted in August
1940.82 Figure 2 shows the work process and personnel at Laofutai station in Fushun Coal Mine.83

80 SMR, Tankou Dokuhon, pp. 102–4.
81 SMR, Dai Sanzi Zyunen Shi, p. 1717.
82 SMR, Buzhun Tanko Kounai Saikutsu.
83 After the outbreak of the second Sino-Japanese War, labor shortages occurred, especially since1939. To strengthen the recruitment capability of the company, the "Fushun Coal Mine Batou
Regulations" were revised in February 1940. The authority of Da Batou was strengthened. The number
of Da Batou increased, as described by Matsumura et al. eds, Mantesu Roudoushi, p. 301. However,in some coal mining stations, the direct employment system in the 1930s was maintained. Laofutaistation was one such station. In this section, Laofutai is picked up as a case study. In September 1944,
the Da Batou system was revived in Laofutai station. Matsumura et al. eds, Mantesu Roudoushi, p.
302. War prisoners, designated as “special workers” were introduced after 1940 in Fushun. The limitsof the company direct control system must be considered according to wartime labor difficulties.
21

Figure 2. Coal mining system under direct company employment in 1940.

Source: SMR, Buzhun Tanko Kounai Saikutsu, pp. 32-33.

Eleven workers were in the first coal mining team in charge during the day. The group leader, oneof them, commanded 10 workers. He was responsible for all the coal mining work at the working face.
The unit manager is a Japanese employee of SMR. The unit manager was appointed after a rigorous
exam, called the underground leader qualification test, to take the most important responsibility at thefront line of in-pit work.84 The remaining ten people are all Chinese. Chinese laborers are divided into

84 SMR, Tankou Dokuhon, pp. 387–8. Tim Wright emphasizes that the inability to speak Chinese

was widespread among the Japanese staff at Fushun. Wright, ‘A Method of Evading Management’, p.
667. His remark is true of the entire Japanese staff. However, it appears that Japanese staff who
commanded labor in the basement had acquired a lot of Chinese language ability. One piece ofevidence is the existence of a work instruction manual in Chinese. Because this manual was pocket
sized, Japanese staff members were able to carry it at all times. A conversation case ordering Batou is
described in the manual as follows. “Wang Batou, come on. Why do your working faces always have22

blasting work by technical workers of fixed daily salary and simple task by coal miners of volume pay.
The configuration of the second coal mining team in charge of night work is almost identical to thatof the first coal mining team. The maintenance work on the second team is a filling of sand. Therefore,
the first team’s timbering workers are replaced with filling workers. Compared with the Xiao Batou
system explained in the previous section, it is readily apparent that the coal extraction system has
undergone a major change. The entire coal mining process is integrated into one work team.
Supervision of the team is enforced by one Japanese staff member. Xiao Batou does not exist in thecoal mining process.
2. Emergence of Working Batou
We shall now look more carefully into how Xiao Batou’s position and function had been substitutedfor Japanese staff in the division of coal extraction. In August 1931, SMR established the "Fushun
Coal Mine Batou Regulations". This was the first Chinese contract system reform in about 20 years.85
You Byoungboo already pointed out the contents. The purpose of the reform was to reduce theauthority of Da Batou significantly by improving the status of Xiao Batou in terms of salary andtreatment.86 SMR remarks at the result of this reform as follows. “Miners are assigned under unit
managers. Instruction and supervision of work is done according to the lineage described above. The
Fushun Coal Mine adopts the Chinese contract system in addition to this. Batou oversees work andguides the miners according to the instruction of staff at the pit”.87 What the passage clarifies is that
Xiao Batou remained responsible for supervision of coal mining work in 1935. This material does not
explicitly describe who the staff members giving instructions to Xiao Batou are. However, as presented
in figure 2, it is reasonable to think that the staff is the unit manager.
At the same time, the advancement of the mining technology gradually changed the position ofa shortage of people? Do you not know how to recruit workers?”. SMR, Kouzan Yougo Syu, Vol. 1, p.
159.
85 SMR, Manshu Kouzan, pp. 182–5.
86 You, Mantesu Buzhun Tanko, pp. 198–9.
87 SMR, Manshu Kouzan, p. 159.

23

Xiao Batou. Records of SMR include the following quotation: “Batou was mainly responsible for theduties of teaching, helping, and training the subordinate workers.”88 In addition, "On the abolition of
Batou" was an agenda item at the Fushun Coal Mine labor team president's meeting held in August
1932. At the meeting, it was resolved that "it is necessary to have a spiritual leader to replace Batou".89
Around 1938, Xiao Batou's position in the division of coal extraction was effectively replaced by
Japanese staff. In September 1938, SMR described the following. “Xiao Batou are appointed by eachdirector belonging to the coal station chief. They are 54 people in the coal mine. The guidance andsupervision of workers are their duties, but recently Japanese staff members are in charge of this.”90
The importance of Xiao Batou declined from 1937 because the company chose Chinese miners
who would be proficient in their work and had them instructed unskilled miners.91 These skilled miners
were called various names such as Lingtou, Piaotou, and Wuzhang.92 The name of Lingtou is usedmost frequently when referring to the material. This paper therefore unifies the name with Lingtou.
SMR summarizes the relation between Lingtou and Chinese miners as the following quotation. “The
Lingtou is a leader of a work unit that has appeared recently because of the necessity of the working
faces. The significance of Lingtou is fundamentally different from that of Batou. The relation between
Batou and the workers is still a vertical relationship even when no slavery relationship exists, although
the relationship between the Lingtou and the worker is a colleague, so it is readily apparent that laboris done together."93
When the Batou regulation was revised in February 1940, the skilled miners called Lingtou werenamed Working Batou. Working Batou were defined as tutors of an unskilled miners in the 1940
revised regulations.94 SMR emphasizes that Working Batou is not Batou. “It is not a Batou of the88 Ibid., p. 182.
89 Sumii, Manshu Tangyou, p. 140.
90 Kondo, Buzhun Tanko, p. 5.
91 Sumii, Manshu Tangyou, p. 144.
92 Ibid., p. 145. Kondo, Buzhun Tanko, p. 5.
93 SMR, Dai Sanzi Zyunen Shi, p. 1725.
94 Sumii, Manshu Tangyou, pp. 143–4.

24

conventional meaning. Working Batou is almost a working leader. There is no longer any sort ofpositional dependency between Working Batou and his underlying workers.”95
In other words, in 1931, the "Fushun Coal Mine Batou Regulations" were content to strengthen the
Xiao Batou system. However, the progress of mechanization clarified that the role of Xiao Batou washandled sufficiently by skilled miners. Rationalization of the organization was realized far beyond theintent of 1931’s institutional reforms.96
3. Why did Xiao Batou's role decline?
Aggregation of the working faces and complete mechanization of the transportation process has
greatly changed the preconditions for setting Xiao Batou at the center of the labor management system.
The largest factor is that decentralized work based on small units of work has disappeared. As theprevious section showed, Xiao Batou was responsible for maintaining a fair sense of the Chinese
miners' wages through a labor arrangement. However, in the coal mining system of the 1930s, theremarkable progress of mechanization made it very unlikely that a difference in wages occurs at theplace of labor placement. For example, the use of electroporating drills had become generalized formining in the 1930s. Thereby, blasting mining was established.97 The time required from perforation
to the bombing of the coal seam was only one and a half hours by a blast engineer. More than 20 tonsof coal were excavated in one blast.98 As a result, the work of the Chinese miners has become simple

95 Ibid., p. 144.
96

You Byoungboo states that the labor management system of the 1930s in Fushun is Sagyou

Kashira Seido (Foreman System). His Sagyou Kashira Seido seems to correspond to Lingtou
mentioned in this thesis. The word Sagyou Kashira probably was diverted from Japanese coal mining
terms. The word Sagyou Kashira appears in the SMR history published in July 1938. Since around1938 the name of Lingtou was holding various aliases, it is considered that the word Sagyou Kashira
was used with the meaning that Lingtou is the same as Sagyou Kashira of the Japanese coal mine.
97 SMR, Tankou Dokuhon, p. 111.
98 SMR, Buzhun Tanko Kounai Saikutsu, pp. 32–3.

25

manual labor of loading coal on the belt conveyor.99 The fact that the skill of the partner affects thepay wage is also less. The Xiao Batou's role of labor placement changed from an important order
determining wages so far to a message directing the Chinese miners to a work place.
Agglomeration of facings made it possible for Japanese staff members to grasp the entire processof the coal mining operation at once. It became possible for Japanese staff members to monitor lazyacts of Chinese miners directly. Xiao Batou's mission at the coal mining site, at most, was to teach therookie miner the basic knowledge related to the work. This task was sufficient for a skilled Chinese
miner. Xiao Batou no longer must go to a coal mining site like Da Batou.

IV. Recruitment of Chinese miners and the Chinese contract system

1. Status and role of Da Batou
This section specifically examines the Chinese contract system function in the recruitment ofChinese miners, mainly in the 1910s and 1920s when the Xiao Batou system was adopted. Even underthe Xiao Batou system, the recruitment of the Chinese miners was consistently held by Da Batou. The
aim of this section is to confirm the function’s differences between Da Batou and Xiao Batou in the
recruitment.
The characteristic of the status of Da Batou was that it was an independent entrepreneur, not coalmine staff, except for a period of World War II.100 Da Batou was not only a contractor of a coal mine
but also a manager who ran various businesses simultaneously. For example, Zheng Fuchen, who was
the largest Da Batou in Fushun, managed a civil engineering company, a tea trade company, and a realestate business. He owned more than 200 houses in Beijing and Fushun.101 Da Batou Mou Jinyi andKang Pinqing engaged in contract work of civil engineering and cargo handling at railway stations

99 Ibid., pp. 32–3.
100 It was around 1940 that Da Batou was treated as an SMR employee. Matsumura et al. ed,

Mantesu Roudoushi, p. 301.
101 He, ed. Rijun Qiangcixia, p. 133.

26

and wharfs other than Fushun. 102 For Da Batou, Fushun Coal Mine was just one of his diverse
businesses: Xiao Batou was one employee of Da Batou's labor contracting work. In addition to Xiao
Batou, various subordinate occupations were known. To give same examples, Xiansheng is a teller
who calculates all payments. Dashifu is not only cook’s chief but also a butler responsible for all ofbusiness when Da Batou is absent in office. Furthermore, Xiaoda is a servant who deals withmiscellaneous affairs of all kinds.103
In addition, Da Batou has the character of a representative of the same native-place group. Looking
at the hometown of the Chinese miners under Da Batou in 1917, they are classifiable into two majorgroups. The first is the people from Hebei and Liaoning Province, mainly in Chaoyang prefecture,
currently Hebei province. 104 The second is from along the Shandong Railway, mainly in Jimo
prefecture.105 Here we will call the first group Hebei group and the second group Shandong group for
convenience. The Hebei group originated in 1910 when Zheng Fuchen, who was from Chaoyang
prefecture, was adopted as Da Batou in Fushun. Zheng recruited those from Chaoyang prefecture as
miners. He had Xiao Batou from the west of Liaoning province recruit miners from theirhometowns.106 The Shandong group is derived from the fact that Da Batou, which the Japanese Army
adopted at the Yantai branch of Fushun Coal Mine during the Russo-Japanese War, was from Jimo
prefecture. Subsequently the number of miners from Shandong Province arriving in Fushun
increased.107 In April 1914, 13 Da Batou were present in Fushun, among whom seven Da Batou had

102 Ibid., p. 133.
103 Takei, Manshu no Kuli, pp. 38–9.
104

Calculated from “Comparative table of hometown of miners” in Fujitaira, Kouzan Roudousya,p. 234–5, Chaoyang prefecture is currently included in Hebei province, but during the republic ofChina, it belonged to Rehe province. Japanese Guandong Army integrated Rehe province into
Manchukuo in 1933. Chaoyang prefecture seemed to have strong regional ties with Liaoning province
where Fushun Coal Mine is located.
105 Fujitaira, Kouzan Roudousya, pp. 234–5.
106 Ibid., pp. 49–50.
107 Ibid., p. 40.

27

miners who were 77–98 per cent from Shandong Province; four Da Batou had miners who were 72–
90 per cent from Hebei Province.108 In Fushun, there were Shandong native-place association andZhili (formerly Hebei province) native-place association. The report of SMR states, “The majority ofthe members in these associations are Chinese people engaged in coal mining”.109 Da Batou Zheng
Fuchen was serving as director of the Zhili association.110
The most important role of Da Batou is to recruit miners through relationships of themselves ortheir subordinates. Herein, I would like to talk about the importance of Da Batou being an independent
entrepreneur. During the period when the Xiao Batou system was adopted in Fushun, the burden of
recruitment costs was important in the relationship between Da Batou and SMR in the recruitment.
"The internal rule about Chinese miners in Fushun Coal Mine,” enacted in 1917, stipulated the burden
and guarantee of recruitment costs by the following passage. “The railway and steamship fee ofrecruited miners are borne by the company. If the recruited miner has reached 30 working days, thenthe company pays the same amount of the above railway and steamship fee as bonus to Batou to which
the miner belongs. However, if the miner escapes without reaching 30 working days, the company
collects the same amount money from Batou to which the miner belongs.”111 The recruitment costs
were borne by SMR, but if the miners escaped, Batou was to compensate it. In the background of thissystem, the migration rate of Chinese miners was very high. By making Da Batou a contractor, SMR

108 According to "Miner’s origin table as of 18th April 1918 in Fushun Coal Mine" in Fujitaira,Kouzan Roudousya, pp. 232–3, the remaining two Da Batou had nearly the same number of miners in
Hebei and Shandong. One of them, in the case of Xu Diankui, the circumstances in which thesubordinate miners are divided into Hebei and Shandong were as follows. “Although Dainkui is a
Shandong people, he later transferred his domicile to Hebei Province. It is said that his father iscurrently serving as a manager of coal mine in Xinqiu, Hebei province. Fujitaira, Kouzan Roudousya,p. 50.
109 SMR, ‘Taisyo Zyuyonen Do’, p. 106.
110 SMR, Mantesu Kaku Kasyo, p. 262. I cannot confirm the director of Shandong native-placeassociation with materials.
111 Fujitaira, Kouzan Roudousya, p. 62.

28

was able to reduce the cost and risk of recruitment. I think that the position of Da Batou was maintained
because the costs and risks for recruiting miners were great.
2. Role of Xiao Batou in recruitment
There were two kinds of recruitment methods of Chinese miners: local recruitment and remoterecruitment. SMR explains the following related to local recruitment. “There are two kinds of miners
coming directly to this coal mine. One is a person who moves through each station of this mine. The
other comes from the rural along the South Manchurian Railway or remote areas. Both come to dependon relatives, friends, and persons from the same province. According to the recommendation of Xiao
Batou, the Chinese labor department of each station decides hiring after doing a physicalexamination.”112 As described in the material above, the miners needed an identity guarantee by Xiao
Batou at the time of adoption.
Remote recruitment was conducted as follows. “Recruiters are selected from the subordinates of
Batou under the coal mine. Many of them are senior miners. They head for their hometown and explain
the facilities and treatment of the coal mine, thereby soliciting migrant work.”113 Senior miners wereskilled Chinese miners with long service years. Who selected recruiters? SMR states the following.
“Batou bears all responsibility for the actions of recruiters sent by him. The company has a policy of
avoiding imperative interference to the greatest extent possible, except to provide predeterminedallowances.”114 Judging from the contents of the materials described above, Da Batou seems to haveselected recruiters.
The company set up recruitment offices in many areas of Hebei and Shandong. After finishing therecruitment at the hometown, the Chinese recruiter led the applicants to the recruitment office. 115
According to Qingdao office documents in the latter half of the 1910s, recruitment proceeded in thefollowing procedure. “First, anyone who hopes to go to Gold Mountain (another name for Fushun

112 SMR, Dai Nizi Zyunen Shi, p. 564.
113 SMR, Dai Nizi Zyunen Shi, p. 564.
114 Ibid., p. 565.
115 Ibid., p. 565.

29

Coal Mine), be sure to look for an identity guarantor. Because it is necessary to check the creditability
after interviewing with the office staff, come to the Qingdao office with a letter of introduction.
Secondly, if the miner worked on Gold Mountain for 30 working days, the relationship with theguarantor will disappear. Thirdly, if the miner escapes before 30 working days, the company willcollect five Chinese yuan of transportation charge as compensation from the guarantor.” 116 The
material does not specifically mention who the guarantor is. According to the internal regulations
examined in the previous section, because it is stipulated that the guarantor is Da Batou, it isappropriate to judge that the financial guarantor is Da Batou. A skilled Chinese miner, who is a
recruiter, seems to have played a role in guaranteeing the identity of applicants to the company. Five
silver Chinese yuan is a large amount of money equivalent to the average miner's wage for threemonths. It is too large a deposit to be borne by a skilled miner.117 Moreover, it is unlikely that theguarantor is a farmer. Even if farmers were accredited as guarantors, if they escaped, the company
would have required a great deal of labor and time to collect the deposit.118
Because direct recruitment was unfavorable in terms of cost, unless there was something special,
the company had adopted a policy to leave all the recruitment to Batou.119 The company raises two
reasons for entrustment to Batou. First, the problem of money lending and borrowing between Batou
and the miners arises. The company points out that “Particularly in the case of recruitment, it is always
accompanied by a problem of money lending and borrowing, so Batou is not pleased to undertake an

116 Fujitaira, Kouzan Roudousya, pp. 64–5.
117

The average wage of Chinese miners' daily labor in 1917 was 0.505 Japanese yen. SMR, Buzhun

Tanko Kounai Saikutsu, p. 288. By contrast, one Japanese yen of 1917 was worth 0.70 Chinese yuan
(Fengtian piao). SMR, Manshu Kakou Zhizyou, p. 61. Converting to Chinese yuan, the average wage
per day for Chinese miners amounts to 0.354 yuan.
118 SMR states that ‘it is a very disadvantageous method for mining management to dispatch

recruiters especially at a high cost’. It is unlikely that it was adopting a collection method that further
requires expenses. SMR, Dai Nizi Zyunen Shi, p. 566.
119 Ibid., p. 565.

30

unfamiliar miner who was recruited by other people together with his debt.”120 Unless Da Batou is
fully entrusted with recruitment from the company, he did not accept the guarantee of a recruitment
fee. Secondly, it is a matter of emotion and communication between Batou and miners. The company
explains this difficulty as follows. “Occasionally company recruitment office might recruit with myown staff members and sometimes direct miners to engage in recruitment. However, because therelationship between Batou and the miners is a custom in maintaining the relationship between bossand servant in the work scene, in the case of a miner who is recruited for office, there is a tendency
for a lack of emotional communication with Batou. As a result, the escape rate of miners increases.”121
Difficulty of communication is thought to refer to the relationship between Xiao Batou and miners.
Xiao Batou was also originally a miner. SMR points out that the miner develops into Xiao Batou byexperiencing the role of a recruiter. “When the farmers migrate for work, they do not leave theirhometown without clear consciousness. In every village, a head exhorts them to move.”122 And, “thehead is a senior member of the hometown who has many years of experience in migrant work.”123 I
think that the head refers to Xiao Batou. Apparently, SMR hoped that Xiao Batou would look after theminer. Therefore, an introduction letter and identity guarantee of Xiao Batou is requested at the timeof adoption.
3. Why did the company need Batou?
Based on the analysis above, the recruitment method in the Xiao Batou system can be summarized
as a guarantor system based on nepotism. This system was consistent with the employment patternsof rural areas. SMR points out that the most common reason for the high escape rate of Chinese miners

120 Ibid., p. 565. During recruitment, SMR states that the difficulty of borrowing money is ever-present. Results suggest a financial relationship between Batou and the miners, such as subsidies andadvance payment of wages. From the aspect of financial relations, it is also necessary to assess thelogic and functions of the Chinese contract system.
121 SMR, Dai Nizi Zyunen Shi, p. 565.
122 Fujitaira, Kouzan Roudousya, p. 31.
123 Ibid., p. 31.

31

is that they returned to their homeland during the farming season because 99 per cent of them had
migrated from rural areas.124 Most of the Chinese miners who left the coal mine returned to the coalmine again. By introducing a fingerprint registration system in 1924, SMR tried to ascertain the
movement of Chinese miners.125 According to a survey based on the fingerprint registration system,“of 10,854 new recruits [in 1934], there were 9,635 people who have worked in the coal mine in thepast.”126 When hiring farmers with such employment patterns, SMR did not care about their movement
itself. Rather SMR was conscious of the two difficulties. First, miners escape before SMR recovers
recruiting costs. Secondly, they do not return to the coal mine again after they returned home. To
resolve these difficulties, SMR considered the contracting system effective because a slavery
relationship existed between Batou and miners with rural society as a background. SMR strengthened
the recruiting capacity of Batou by combining the guarantor system into the contracting system.
Finally, I would like to mention only one point related to development after the 1930s. I havealready stated that SMR revised the regulations to reduce the status of Da Batou sharply in 1931. Suchreforms were conducted because of the influence of the Great Depression, when it was possible tosecure the labor necessary for local recruitment sufficiently without remote recruiting.127 The main

124 SMR points out two reasons of the labor movement other than this. First, laborers turned toother business with favorable conditions of employment. Secondly, laborers moved between stationsin the coal mine. SMR, Dai Nizi Zyunen Shi, p. 568.
125 Introduction of the fingerprint registration system might have promoted the introduction of adirect management system in 1930s. Tim Wright points out that the Kailuan coal mine, the second
largest coal mine in China, also intended to abolish Batou in the 1930s, but because the system forregistering workers was not complete, it was frustrating. Wright, ‘A Method of Evading Management’,p. 674.
126 SMR, Tankou Dokuhon, p. 442.
127 Regarding the recruitment situation from the Great Depression to the outbreak of the Sino-

Japanese War, the company states the following. “About 100 people were recruited around the South
Manchurian Railway line. Workers who escaped were able to be replaced mostly with personnel whocame directly to the coal mine.” SMR, Tankou Dokuhon, pp. 438–9.
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function in the recruitment of Da Batou lies in the guarantee of recruiting costs. Without the need forremote recruitment, SMR has also decreased the status of Da Batou. In addition, revision of the Batou
regulations in 1931 included contents of strengthening of authority of Xiao Batou. The reason for thisinclusion is mainly because local recruitment is the main reason why Xiao Batou's identity guarantee
function has become more important. In addition, because the number of local hires increased, theimportance of an identity guarantee by Xiao Batou increased.

Table 2. Transition of labor management system in the Fushun Coal Mine

Coal mining section

out of the pit
in the pit

Welfare section
Recruitment section

Selection of supervisor
Labor placement
Line management
Work supervision
Instruction and training
Management of lodging / cooking
Recruitment planing
Burden of recruitment fee
Guarantee of recruitment fee
Selection of recruiters
Recruiters
Identity guaranteeFirst Stage
Da Batou System
1901–1911
Da Batou
Xiao Batou
Da Batou
Xiao Batou
Xiao Batou
Da Batou
Da Batou
Da Batou
Da Batou
Da Batou
Xiao Batou
Xiao Batou

Second Stage
Xiao Batou System
1911–1930
Company
XiaoBatou
Company
XiaoBatou
XiaoBatou
Company
Company
Company
Da Batou
Da Batou
XiaoBatou
XiaoBatou

Third Stage
Direct Mangement
1930–1940
Company
Company
Company
Company
Skilled worker
Company
Company
Abolition of remoterecruitment
XiaoBatou

V. Conclusion
We can summarize the analysis results above to elucidate the development of the labor management
system at Fushun Coal Mine. Table 2 shows that labor management is classified into three groups: thecoal mining section, the welfare section, and the recruitment section. The area of the Chinese contractsystem is gray. The area of the company is color coded with white. Looking from the first stage to thethird stage, the area that Da Batou traditionally managed has shifted from grey to white. Looking onlyat the change in this part, the transition of the labor management system will be arranged as the processof decreasing the authority of Da Batou as Takatsuna and You Byoungboo state. However, by
clarifying the person in charge of labor management for each section, we can obtain four newimportant points of knowledge as explained below.
First, reduction of Da Batou's position did not directly engender direct labor management in the33

working faces. The second stage labor management system was the system centered on Xiao Batou.
The coal mining technology at this stage failed to realize aggregation of working faces. The unit ofwork consisted of countless small units. SMR entrusted labor management related to the operation ofsmall work units to Xiao Batou and established a system to reflect the management intentions of thecompany in Xiao Batou through Japanese staff members directly under the company.
Secondly, in the third stage, reforms were developed to replace Xiao Batou's functions with thedirectly company-controlled staff members and skilled Chinese miners. The coal mining technology
at this stage succeeded in disassembling small work units by concentrating the working faces. As aresult, the functional advantage of Xiao Batou was lost. A system under direct control of the company
system centered on the Japanese chief and a skilled miner’s leader was established.
Thirdly, the labor management functions of the Da Batou system and the Xiao Batou system differ.
In the Da Batou system, the authority of Da Batou in coal extraction has penetrated until the selectionof a work supervisor. Therefore, it was an insufficient system to reflect the company's management
intention in coal mining. The Xiao Batou system was a system that cuts out the order relation in thecoal mining division of Da Batou and Xiao Batou. This system incorporates contents that enhance thecapabilities of Xiao Batou as a work supervisor.
Fourthly, the recruitment section in the Xiao Batou system developed as a guarantor system basedon nepotism. The function of the Batou system as a whole is a labor supply contracting system, butwhen divided into Da Batou and Xiao Batou, their different functions become apparent. Da Batou
guarantees offering expenses. Xiao Batou is responsible for the identity guarantee. The authority of
Da Batou shrank sharply in 1930 because the necessity of a guarantee function for the recruitment fee
diminished.

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