Evening star., 1945-11-06
Macarthur Smashes
Japan 5 -Four Greatest
Industrial Combines

S0 VU OlO0sSSt
Industrial Combines |
By the Associated Press.
TOKYO, Nov. 6.-Gen. Mac
Arthur today smashed Japan'st
four greatest financial and in-l
dustrial families and gave notice
Of his intentions to break up all
such combines to laid japanese
economic development along
democratic lines"
The Japanese government was or
dered to prepare to dissolve Mitsui,
Sumitomo and Yasuda
Zaibatsu and their holding COM
panies and to eliminate their con-
trolls OF japanese finances and in
dustries.
Gen. Macarthur further told the
to set up holding COM
pany liquidation association to direct
the dissolution under indirect Allied
control and warned that all policiesi
and personnel must have his ap-
proval.
Intends to Smash Combines.
Along with the directive aimed at
the great Zaibatsu interests with
their ramifications. which spread
throughout the world before the
war, the supreme Allied commander
said he intended to smash all such
combines SO as to permit wider dis
tribution of income and ownership
of the means of production and
trade in Japan and to aid the Jap
anese economic development along
peaceful, democratic lines"
The gocernment also was directed
to take immediate steps to ter
inmate and prohibit Japanese par
ticipation in private international
cartels or other restrictive private
international contracts or arrange
ments.
The sweeping order-the most
drastic of all against individuals or
corporations yet issued by Gen.
MacArthur-me the complete re-
tirement from Japan's business life
of Yasuda, Mitsui and Sumitomo
families whose companies bear their
names, and Iwasaki. which controls
the Mitsubishi interests.
THE way has now been cleared
for the first time in japanese his
tory for the Japanese people to
achieve economic freedom" Gen.
Macarthur said.
Ordered to Quit All Offices.
All members of the four families
were directed to resign Immediately
from "all Offices held by them in any
financial. commercial, noncommer-
cial or industrial enterprises" and
Ito cease forthwith to exercise any
influence either directly or indi-
rectly" in their management.
The japanese government must
present for Allied approval a pro-
gram for abrogation Of current laws
and regulations which foster pri-
vate monopolies and enact new laws
preventing monopolies and provid-
ing business opportunities on COM
petitive basis.
All securities owned by the hold
ing companies or other evidence Of
ownership or control in any firm
must be transferred to the new
holding company liquidation COM
mission, after which all holding
company directors and officers must
resign.
International Headache.
The breaking up of these indus
trial houses was expected to create
an international financial headache
in the question of how to dispose of
thousands of shares OF. stock held
by American and other foreign
firms.
Supreme Allied headquarters is
sued a survey revealing widespread
ramifications in the prewar tieup
between Japan,s industrial empire
and Arms throughout the world.
The survey said American cor
porate big names such as Westing-
house, Tidewater Associated Oil Co,
International Telephone e. Tele-
graph, Aluminium Co. of America
and Libby Owens Ford had business
links with such houses as Mitsu-
bishi and Mitsui. All of their stock
holdings and unsettled debts pose a
huge problem.
There also was a close relation
ship between the powerful big
Five" banks and American banking
institutions from coast to coast.
AS an example of japanese con-
nections, the survey said that in 1928
Mitsubishi signed contracts with
Westinghouse Corp, East Pitts
burgh, Pa, and westinghouse Elec-
trio International Co., New York
to obtain technical advice and in
formation. Mitsubishi was per-
mitted to use Westinghouse patents
and to manufacture and sell prod
ucts based on them.
Westinghouse held SO 700 shares oi
Mitsubishi Electric stock at the out
break of the war, equaling 3 pei
cent of the issue, the survey said
In return for patents and product
rights, Mitsubishi paid Westing-
house royalties that reached a peak
of 900, 900 yen (about 1918 900 prewal
foreign exchange rate) in 1910.
Tidewater Supplied Mitsubishi.
Mitsubishi Electric also had con-
tracts with Westinghouse Airbrake