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CORNELL 

UNIVERSITY 

LIBRARY 




THE 

CHARLES WILLIAM WASON 

COLLECTION ON CHINA 

AND THE CHINESE 



Cornell University Library 
DS 916.069 



Prospectus of the Oriental Development C 




3 1924 023 520 848 



'M 




Cornell University 
Library 



The original of this book is in 
the Cornell University Library. 

There are no known copyright restrictions in 
the United States on the use of the text. 



http://www.archive.org/details/cu31924023520848 



Prospectus 



The Oriental Development 




ompany 



^ 




w 






Thf Oriental Developifient Go.^ LtA 

Tokyo, Japaiv 
Ivlay, 1921 



on p. 5,. line to for Kokai read Kokeu 
„ „ „ lines i8, and 1 9 /br Basan T-^aia^ Masan.. 

on p. 10, line 6tfor imporovement r^asT improvement. 
,, „ „ line ajj/kTT miscellanious r^«ii miscellaneous. 

on p. II, line 6, for Kljo read Keijo. 
„ „ „ line 2 1 ,.for Kigys read Kigyo, 

on p. 1 2, line 6, for Kaisha reofd Ginko. 

on p. 21, line 5, for Bye-Eaw read Bye-Law. 



Contents ' 



CHAPTER I 

The Organization of the Company 

The Origin of the Company 1 

The Capital Stock of the Company^ 2 

The Company's Debenture and the reserve fund 3 

The Head office and branch offices of the Company 4 

The extension of the Company's work 5 

The Company's officials — principal and others 6 



^ CHAPTER II 

The Description of the Company's business 

The business capacity of the Company 7 

The Company as a Banking Organ 8 

The Development work undertaken by the Company .. 13 

The Company's work in giving facility to the settlers 18 



CHAPTER III 

The State of the Company's Business and its assets ... 19 

CHAPTER^ IV 

V 

The Law and the Bye-laws concerning the Company . . 21 
Thei Bye'-Laws of the Oriental Development Company, 
limited 38 

APPENDIX A 

The President's Speech at the 12th General Meeting of 
Shareholders 51 



APPENDIX B 

The Economic Condition of Chosen 57 

CHAPTER I 

General remarks 57 

CHAPTER II 

Industries in Korea 59 

CHAPTER III 

Progress of the modern manufacturing industry in 
Korea .' 62 

CHAPTER IV 

Currency and Banking in Korea 64 



CHAPTER V ' 

The System of Communication in Korea 65 



The Work of the Oriental Development 
Company, Limited. - 

Chapter I. 
THE ORGANIZATION OF THE COMPANY. 

THE ORIGIN OF Early in the beginning of the Twentieth 
THE COMPANY. century Japan was forced to take a. 
special position concerning the political as well as economic 
-afi;aa;rs of the Korean peninsula. The relation between Japan 
and Korea has gradually become much closer and far stronger 
. thaii before and the heavy burden of giving guidance and sup- 
port to the Koreans has fallen on the shoulders of Japan and 
her people. It is therefore a matter of responsibility for 
Japan that she should faithfully discharge her new duty of 
helping Korea and the Koreans in the material and spiritual 
development in order that they also may become partakers of 
tlie gifts of modern civilization. 

Tiius the interdependence of Korea and Japan has actually^ 
been formed, and it has become one of very pleasant duties of 
the latter to promote the economic and industrial growth of the 
former by developing the natural resources thereof. As a result, 
the Government authorities of the two countries, after a series- 
of deliberate consultations, at length came to a conclusion that 
they should start a company for the purpose of the develop- 
ment of Korea and that they should enter into a treaty about 
the matter, w^hich was finally concluded in 1908. 

According to this treaty, it was arranged that a company 
with the development of Korea for its sole aim and purpose^ 
should be organized, that the government of Japan should grant 



an annual subsidy of three million yen for eight years after its 
establishment, that the government of Korea should furnish the 
company with a part of the land owned by the government for 
the Company's use, that a certain number of competent farmers 
with exempolary conduct should be sent from Japan as sett- 
lers for the model farms to be set up. 

The result of this treaty was the advent of the Oriental 
Development Company, Limited, in Korea. The law concern- 
ing this company was promalgated almost simultaneously by 
tlie respective Governments both in Seoul and in Tokyo, on the 
26th of August, 1908, and on the 29th of January, 1909, the 
actual work was started at the capital of Korea. 

In August, 1910, Korea was incorporated with Japan and 
became a part of the Empire, The Imperial Government, none 
the less continued in encouraging the industrial development 
of Korea and pushed on the work already begun farther than 
before. The work of the company also began to take good 
turns and has made steady progress. But in order to keep pace 
with the progress of the times the Company found it necessary 
to alter its rules so as to adjust itself to the situation. Con- 
sequently, in July, 1917, the alterations were made in the Laws 
of the Company, and both the scope and the description of the 
business of the company were greatly enlarged whilst its dis- 
trict of business was extended to the outside of Korea. 

In October, 1917, the Head office was removed from Keijo 
(Seoul), Korea, to Tokyo and at the same time a branch office 
was opened at Mukden and another at Dairen. Again, in 1919, 
a branch office was opened at Kharbin and another at Tsingtao. 
It is also said that the establishing branch offices at New York 
and in some of the South Sea Islands has been under conside- 
Tation, and will be realized in the near future. 

THE CAPITAL STOCK The capital stock of the Company 
GF THE COMPANY. was originally ¥10,000,000. But it 
was first increased to ¥20,000,000 in May, 1918, and then to 
¥50,000,000 in October, 1919, for the second time. This was due 
to the fact that the post-bellum industrial work required a muchi 



larger fund than was originally expected. The increase of 
the Capital and the payment thereof may be tabulated as under : 



Year 


Amount of 
capital 


Paid up 
capital 


Unpaid 
capital 


Remark Colum 


1908 


¥10,000,000 


¥ 2,500,000 


¥ 7,500,000 


1st payment made on the 14 of Decem- 
ber, 1908. 


1909 


10,000,000 


2,500,000 


7,500,000 




1910 


10,000,000 


2,500,000 


7.500,000 




1911 


10,000,000 


5,000,000 


5,000.000 


2nd payment made on the 5th of July, 
1911. 


1912 


10,000,000 


7,500.000 


2,500,000 


3rd payment made on the 6th of June, 
1912. 


1913 


10,000,000 


10,000,000 


nil 


4th payment made on the 10th of 
April, 1913. 


1914 


10,000,000 


10,000.000 


n 




1915 


10,000,000 


10,000,000 


,, 




1916 


10,000,000 


10,000,000 


,, 




1917 


10,000,000 


10,000,000 


1, 


1st payment for the first new shares 


1918 


20,000,000 


12,500,000 


7,500,000 


made on the 31, July, 1918. 
2nd payment for the first New shares 


1919 


50,000,000 


27,500,000 


22,500,000 


(¥2,500,000) made on 15th Oct., 1919. 
1st payment for the 2nd New shares 

(¥77,500,000) made on 29th Nov, 1919. 
3rd payment for the first New. shares 

(¥2,500,000) made on 29th Nov, 1919. 
4tii ptiyment for the first New shares 

(¥2,500,000) made on 20th, March, 

1920. ' 



The stock of the Company is divided into 1,000,000 shares in 
all, each share being ¥50. The first 200,000 shares were sub- 
scribed and issued in 1908 and another 200,000 shares in 1918, 
These two kinds are designated as "the old shares" and they 
are all paid up. The remaining 600,000 shares subscribed and 
issued in 1909 are called "the New shares," each share of which 
is only one-fourth paid up. 



THE COMPANY'S DEBENTURE 
AND THE RESERVE FUND. 



According to "the Law con- 
ing the Oriental Develop- 
ment Company," the Company has a right to issue "the Oriental 
Development Company's Debentures" as much as ten times of 
the amount of the Company's paid up capital. At present, 
however, the issue of the company's Debentures amounts only 
to ¥81,950,000. 

I The Company, as mentioned in Art. 31, at the end of each 
business year, had to set aside eight per cent or more of the 

i 

3 



profits as a reserve fund for making good any deficit in its 
capital stock and two per cent or more of the profits in order 
to equalize dividends. At present, the former amounts to 
¥3,888,443, whilst the latter to ¥340,788, the total reserve fund 
of the company being ¥4,229,231. 

To the Company the Government granted a subsidy at the 
rate of ¥300,000 per annum for a period of eight years from 
its establishment. Again, the -Government decided that for 
the period of the business years running from 1917 to 1924, the 
dividends for the 60,000 shares owned by the Government shall 
not be claimed. This is a special favour and is really a subsidy 
in disguise, whilst the Government gives another favour in the 
from of a special security against the payment of both the prin- 
cipal and the interest of the Oriental Development Debenture 
floated in any other country than Japan. 

THE HEAD OFFICE The Head office of the Company 

AND BRANCH OFFICES was formerly situated in the 

OF THE COMPANY. Kogane Machi, Seoul. It existed 

there from the time of its establishment in November, 1908 to 
July, 1917, when it was removed to Tokyo. There are at present 
14 branch offices stationed in different parts of Korea, Man- 
churia, Eastern Siberia and Central China. The following 
seats of branch offices may show how widely the business dis- 
trict of the Company is extended over different parts of the Far 
East. 

The Head office : The Oriental Development Company, 
Limited : 

No. 1, 1-chome, Yurakucho, Kojimachi-ku, Tokyo, 
Japan. 

The Branch offices : 

The Keijo (Seoul) Branch office of the Company. 
No. 195, 2-chome, Kogane-machi, Keijo, Chosen 
(Korea). 

The Mukden Branch office : 

No. 18, Nishi Rokujo-machi, Mukden, Manchuris^ 



The Dairen Branch office : 

No. 38, District III, Dairen, Kwanto-shu (Kwan- 
tung Province). 
The Kharbin Branch office : 

Novogddanaya Street, Wharf District, Kharbin. 
The Tsingtao Branch office : 

IS'o. 25, Saga-machi, Tsingtao, China. 
The Suigen Branch office : 

Suigen-men, Suigen-gun, Kejki-do, Chosen. 
The Kokai Branch office : 

Kokei-men, Ronsan-gun, Chusei Nando, Chosen. 
The Kintei Branch office : 

Kintei-men, Kinten-gun, Zenra Hokiido, Chosen. 
The Moppo Branch office : 

Moppo, Ra-shu-gun, Zenra Nando, Chosen. 

The Taiku Branch office : 

Taiku Fu, Keishodo, Chosen. 

The Basan Branch office :^ 

Basan Fu, Keisho Nando, Chosen. 

The Shari-in Branch office : 

Heisen-men, Jlosan-gun, Kokaido, Chosen. 

The Heijo Branch office : 

HeiJQ-fu, Heian Nando, Chosen, Chosen. ^ 

The Gensan Branch office. 

Gensan-fu, Kankyo Nando, Chosen. 

THE EXTENSION OF THE Originally the aim and purpose 
COMPANY'S WORK. qt the company was limited only 
to the development work in the Korean peninsula. But the 
progress of the world and the necessity of the times compelled 
the Company to extend it business district beyond Korea and 
by the end of 1917 the development work in Kwantung 
Peninsula and that in Manchuria and Mongolia besides 
that in Eastern Siberia, more especially, that in the East 



of Baikal, at last came under the management of the Com- 
pany, whilst in 1919 the Company had to carry out its business 
in the Provinces of Pechili, Shantung, and Kiansu in China as 
well as in some of the South Sea Islands. 

THE COMPANY'S OFFICIAL— The principal officials of the 
PRINCIPAL AND OtHERS. Company consists of one Pre- 
sident, four Directors and three Supervisors. The President is 
appointed by the Government and the term of his office is five 
years. According to the law, the number of Directors may be 
three or more. The Government appoints the Directors from 
among the candidates who are again elected twice the number 
to be appointed at a general meeting of share-holders from 
the share-holders holding not less than fifty shares each. The 
term of their ofiice is four years. 

The supervisors are elected at a general meeting of share- 
holders from among the share-holders holding not less than 
thirty shares each. The term of their of&ce is two years. 

The following are the Principal Officials : 
Hon. Eizo Ishizuka, President, 
Viscount Naohira Matsudaira, Director, 
Hon. Tsunero Kawakami, Director, 
Hon. Jiro Hitomi, Director, 
Hon. Juro Natsuaki, Director. 

The personnel other than the principal officials are 443 per- 
sons consisting of one advisor, 10 technical Experts, 63 coun- 
sellors, 218 clerks and 131 assistant-Engineers besides 12 men 
on probation service. 



6 



Chapter 11. 
THE DESCRIPTION OF THE COMPANY'S BUSINESS. 

THE BUSINESS CAPACITY According to Art. II of the Law 
OF THE COMPANY. concerning the Oriental Deve- 

lopment Company, Limited, the company has to conduct the 
following business in Korea and elsewhere : 

1. Supplying funds necessary for development; 

2. Agriculture, water utilization undertakings, and ac- 
quiring, managing and disposing of lands all necessary 
for development; 

3. Eecruiting and distributing settlers necessary for deve- 
lopment ; 

. 4. Constructing, purchasing, selling, leasing and renting 
of building necessary for settlers ; * 

5. Furnishing settlers and farmers with articles necessary 
for development and for distribution of articles pro- 
duced by them; > 

6. Managing or taking charge of land in trust; 

7. Other undertakings necessary for development; 

8. Receiving the fixed deposit. 

In short, the business of the Company may be summed up 
under three heads, the work of banking, fostering the growth 
of agriculture and industry and that of giving facility-^to the 
.settlers. Needless to say, this last work of giving facility to 
the settlers is only limited to those in Korea. But from the 
• beginning the Oriental Development Company has been very 
keen in trying to be useful as a banking organ to those who 
are engaged in the agricultural and industrial work whilst it 
has been successfully farthering the growth of agriculture and 
industry in the peninsula. 



THE COMPANY AS A This side of the Company's work may 
BANKING ORGAN, be treated under the four headings : 
Tirst, How the fund necessary for development is supplied; 
secondly, the actual state of loans; thirdly, the Company's 
subscribing or underwriting shares or debentures issued by the 
Corporation engaging in development undertakings; and final- 
ly, How the Special loan on the security of real property is made,' 

(A) How the fund necessary for development is supplie4 
by the Company. 

In July, 1917, from regard to the progress of the times many 
alterations were made in the laws of the Company. Above all, 
the complicated formalities through which the fund for deve- 
lopment could only be supplied have greatly been dispensed^ 
with. 

At present, it is effected by the following : 

1. To make loans to settlers for expense concerning settle- 
ment, to be reduced in annual instalments within twen- 
ty-five years, or a fixed times within five years; 

2. To make loans to producers for a period less than one 
year on the security of articles produced by them; in 
making this loan, discount bills may be used; 

3. To make loans on the immovable properties, railways, 
mining concessions and legal right on immovable pro- 
perties, to be redeemed in annual instalments within 
thirty years, or at fixed times within five years ; 

4. To make loans without security to Public Corporations 
or the Industrial Associations organized by virtue of 
Special Laws, to be redeemed in annual instalments 
within thirty years, or at fixed times within five years; 

5. To make loans without security to farmers not less than 
twenty in number bound by a joint obligation, to be 
redeemed at fixed times within five years; 

6. To make loans on the security of the shares or deben- 
tures issued by such Corporations engaging in dealing 
with emigrants or in development undertakings; 

■8 



7, To make loans on the security of estates (Zaidan) creat- 
ed be virtue of special laws, or on other reliable securi- 
ties, to be redeemed in annual instalments within thirty 
years, or at fixed times within five years, 

(B) The actual state of loans made by the Company. 

The value of land in Korea gradually rose; and all the in- 
dustrial undertakings began to take better turns. More especi- 
ally, during the Great European War, as elsewhere, business 
activities became very brisk. Consequently, the demand for 
funds to continue the work in Korea suddenly increased. 

Furthermore, a great amount of funds is required for the 
industrial undertakings in Manchuria and Mongolia. At pre- 
sent, the Company is discharging this duty too. The following 
will show the actual state of 16ans made by the Company during 
the last 11 years : 







Fixed loan 


Annual instalment 
payment 


Sum Total 


Average 


rear 


No. of 
loans 


Amount 


No. 


Amount 


No. 


Amount 


per head 


'- ''*—- 

1909 


17 


¥ 221,900 


, 


¥ — 


17 


¥ 221,900 


13,052 


1910 


126 


429,730 


6 


157,800 


132 


587,530 


4,450 


1911 


210 


514,369 


57 


623,100 


267 


1,137,469 


4,260 


1912 


314 


925,147 


132 


1,476,679 


446" 


2,401,826 


5,385 


1913 


391 


1,452,668 


272 


2,457.022 


1,063 


3,909,690 


3,677 


1914 


1,032 


1,667,962 


603 


3,604,708 


1,635 


' .5,272,670 


3,224 


1915 


1,005 


1,441,597 


977 


4.158,878 


1,982 


5,600,476 


2,825 


1916 


828 


1,287,631 


1,069 


4,320,967 


1,897 


: 5,608,598 


2,808 


r Seoul 


600 


1,621,274 


1,462 


6,646,287 


2,062 


8,267,561 


4,009 


1917 J Mukden 


18 


938,020 


62 


526,300 


80 


1,464,320 


18,304 


Dalny, 


3 


38,000 


76 


661,820 


79 


699,820 


8,858 


^Total 


621 


2,597,294 


1,600 


7,834,407 


2,221 


10,431,701 


4,787 


Seoul 


872 


3,680,289 


2,668 


13,981,238 


3,540 


17,661,527 


4,989 


1918 J Mukden. 


161 


8,288,285 


230 


2,095,400 


391 


10,383,685 


26,556 


Dalny 


131 


1,205,094 


279 


2,377,600 


410 


3,582,694 


8,738 


^Total 


1,164 


13,173,668 


3,177 


18,454,238 


4,341 


31,627,906 


7,285 


[Tokyo 


9 


3,030,800 





— 


9 


3,030,800 


336,755 




Seoul 


1,755 


7,934,883 


5,126 


24,660,575 


6,8.81 


32,595,458 


4,737 


1919 


-Mukden 


491 


8,919,198 


427 


6,999,390 


918 


15,918,588 


37,185 


Dalny 


197 


4,365,423 


421 


5,264,051 


618 


9,629,474 


15,518 




Kharbin 


86 


5,029,162 


14 


421,846 


100 


5,451,008 


54,510 




Tsinetao 


38 


3444,400 


31 


487,300 


69' 


3,631,700 


52,633 


Tot^ 


2,576 


32,423,866 


6,019 


37,833,162 


8,595 


70,257,028 


8,175 



Note! The branch office at Kharbin was opened on the 10th of June, 1919, whilst that of Tsingtao 
on the 10th of July, 1919. The Dalny (Dairen) branch' off ice has 8494,000 in special loans. 



9 



How the funds supplied by the above loans are used may 
be learned from details tabulated as under. The table shows 
the loans at the end of 1919 against those of 1918. 



Use 



19 19 



Land imporovement aid the 
work of clearing laud ■ • • ■ 

Streets laying 

Utilization of water ^ 

Agricultural works 

Forestry 

The ginseng cultivation 

Fruit-tree planting 

Sericulture 

Live-stock 

Aquatic products industry ■ • • • 

Mining 

Paper manufacture 

Rice-cleaning work 

Ceramics 

Brewery 

Sanitary works 

Educational works 

Iron works 

Industries 

Transportation & Commuication 

Miscellanious 

Sum total 



No. 



4,490 

1,588 

101 

1,087 

263 

27 

109 

210 

34 

27 

25 

19 

42 

29 

54 

11 

32 

6 

73 

19 

349 

8,595 



Amount 



¥18.141,496 

19,806,196 

4,011,876 

4,745,329 

2,927,339 

275,365 

274,636 

412,788 

659,029 

143,418 

4,470,100 

35,332 

347,318 

365,514 

455*206 

535,407 

237,272 

109,096 

2,282,743 

3,028,500 

6,993,067 

70,257,028 



19 18 



No. 



2,396 

527 

114 

351 

203 

40 

109 

149 

13 

20 

14 

20 

18 

13 

32 

9 

37 

2 

47 

7 

220 

4,341 



Amount 



¥ 8,860,883 

6,009,592 

3,737,146 

2,050,369 

2,209,309 

367,324 

187860 

255,275 

250,244 

52,824 

2,588,000 

33,417 

85,237 

120.218 

123,433 

571,263 

226,483 

13,208 

751,907 

816,910 

2,317,002 

31,627,904 



Increase or decrease 



No. 



2,094 
1,061 

* 13 
736 

60 

* 13 

61 

21 

7 

11 

* 1 
24 
16 
22 

2 

* 5 
4 

26 

12 

129 

4,254 



(*show 
decrease) 



9,280,613 

13,796,604 

274,730 

2,694,960 

718,030 

91,959 

86,776 

157,513 

408,785 

, 90,594 

1,882,100 

1,915 

262,081 

245,296 

331,773 

35,856 

10,789 

95,888 

1,530,836 

2,211,590 

4,676,065 

38,629,124 



(C) Subscribing or underwriting shares or debentures 
issued by other Corporations. 

As a result of the revision of the Law concerning the Oriental 
Development Company, the Company is now entitled to sub- 
scribe or underwriting shares or debentures issued by the Cor- 
porations engaging in dealing with emigrants or in development 
undertakings. The details of subscribing or underwriting may 
be tabulated as under : 

(a) The shares subscribed by the Oriental Development 
Company. 



10 









Capital 


Number of 


Amount 
paid 




Date of 


Main 




shares 


Name of companies 


establishment 


office 


and 


subscribed by 


in by 

the 

O.D.C. 








shares 


the O.D.C. 


The Kaigai Kogyo Kaisha, 


Nov., 10, 1917. 


Tokyo 


¥ 10,000,000 
(shares 200,000) 


50.200 shares 


¥627.500 


The Toyo Chikusan 


Oct., 10, 1918, 


Keijo 


¥ 2,000,000 


10.000 


502.500- 


Kogyo Kaisha, 






(shares 40,000) 






The Chosen Denki 


May, 10, 1919, 


Senkyori 


¥10,000,000 


50.000 


750.000 


Kogya Kaisha. 






(shares 200,000) 






The Chosen Shoku- 


Oct,, 10, 1918. 


Kijo 


¥ 30,000,000 


609 


15.225- 


san Ginko. 






(shares 60p,000) 






The Chosen Hiryo 


Dec, 10, 1919. 


Shin-gishu 


¥ 3,000,000 


24.000 


300.000* 


Kaisha. 






(shares 60,000) 






The Toindo Kigyo 


July, 29, 1919. 


Tokyo 


¥ 1,000,000 


2,000 


25.000^ 


Kaisha. 






(shares 20,000) 






The Chosen Sangyo 


Feb., 10, 1910. 


Keijo 


¥ 20,000,000 


30.000 


150.000 


Tetsudo Kaisha. 






(shares 400,000) 






The Asia Tobacco 


Sept., 30,1919. 


Shanghai 


¥ 10,000,000 


3.000 


37.500 


Kaisha. 






(sharrs 200,000) 






The Chosen Chuuo 


Apr., 26, 1916. 


Taiko 


¥ 12,00a,000 


5.000 


62,500 


Tetsodo Kaisha. 






(shares 240,000) 






The Manmo Keori 


Dec, 25, 1918. 


Mukden 


¥ 10,000,000 


40.000 


700.000 


Kaisha. 






(shares 200,000) 






The Tosho Jitsngyo 


May, 14, 1918. 


Mukden 


¥ 3,000,000 


15.300 


765.000' 


Kaisha. 






(shares 60,000) 






The Kyoto Ginko 


Apr., 2, 1916. 


Dairen 


¥ 1,000,000 
(shares 20,000) 


2.000 


75.000 


The Chosen Shinrin 


Feb., 00, 1920. 


Keijo 


¥ 20,000,000 


87.000 


435.000- 


Tetsudo Kaisha, 






(shares 400,000) 






The Hokuman Denki 


Apr., 10, 1918, 


Kharbin 


¥ 1,200,000 


6.000 


225.000 


Kaisha. 






(shares 24,000) 






The Seisen Shokusan 


Nov,, 11, 1919, 


Keijo 


¥ 10,000,000 


50.000 


750.000- 


Tetsudo. 






(shares 200,000) 






The Hishika Ginko. 


Jan., 00, 1917, 


Hishika 


¥ 1,000,000 
(shares 20,000) 


5.000 


62.500 


The Toa-doboku Kaisha. 


Jan,, 10, 1920, 


Dairen 


¥ 5,000,000 
(shares 100,000) 


2.000 


25.000 


The Ryuwa Koshi. 


Feb., 6, 1920. 


Tentsing 


¥ 5,000,000 
(shares 100,000) 


50.000 


625.00a 


The Santo Kigys Kaisha. 


Jan., 17, 1920. 


Tsingtao 


¥ 10,000,000 
(shares 200,000) 


44.000 


550.000 


The Nippon ■ 


Mar., 10, 1920, 


Osaka 


¥ 50,000,000 


50.000 


1,250.000 


Shintaku Ginko. 






(shares 1,000,000) 







-Total shares subscribed by the company being 526,^109, whilst Total amount paid by the com- 
pany ¥7.632.725. 

The Company may supply the above mentioned companies, 
working fund as the case may require. 

(b) The Debentures subscribed by the Oriental Develop- 
ment Company, Ltd. 
Besides these shares mentioned above the Company sub- 
scribed the Debentures, at the end of November, 1920, to the 
extent mentioned below : 

11 



¥2,800,000 for the Debentures issued by the Kaigai Kogyo 
Kaisha; 

¥1,325,190 for the Debentures issued by the Tosho Jitsugyo 
Kaisha ; 

¥2,950,000 for the Debentures issued by the Chosen Shoku- 
san Kaisha; 

¥600,000 for the Debentures issued by the Hokuman Denki 
Kaisha ; 

¥170,000 for the Debentures issued by the Toyo Chikusao 
Kogyo Kaisha; 

Sum total being ¥7,845,190. 

(c) The Debentures issued by the Oriental Development 
Company. 

The Company, as mentioned in the Law concerning the 
Oriental Development Company, Limited, may issue the Deben- 
tures provided that their maximum limit does not exceed ten 
times the amount of the Company's paid up capital. The actual 
debentures may be seen from the details tabulated as under : 





Total 






(ft 


Date 


period 
deben- 
re left 
ideemed 


1 1 


Date of 


Kind 


amount of 
depentures 


Amount 
redeemed 


Amount 
unredeemed 


s 


of 


1^1 


Interest 




issued 






3 


issue 


si-i 


{3 1 


paid , 














March, 


Sept., 


Sept., 


Marc'F ~ 


1st 


S 19,350,000 


5 852,367 


50 


¥18,497,632:50 


5% 


1913 
April, 


1917 
March, 


1942 
March, 


Sept. - 

1) 


2iid 


2,000,000 


50,000 


— 


l,950,000j— 


5j%% 


1917 
Oct., 


1920 
Oct., 


1937 

Oct., 


II- 

June 


3rd 


10,000,000 


250,000 


— 


9,750.000.^ 


6% 


1917 
Nov., 


1920 

Nov, 


1930 
Nov., 


Dec. 


4th 


5,000,000 






5,000,000h- 


5% 


1917 
Jan., 


1921 
Jan., 


1932 
Jan., 


11 


3th 


5,000,000 


~ 




5,000,000h 


6W 


1919 

Aug., 


1921 
Aug., 


1926 
Aug., 


1* 


<6th 


5,000,000 






5,000,000;— 


%% 


1919 
Oct., 


1921 
Oct., 


1926 
Oct., 


M 


■7th 


10,000,000 


"~ 




10,000,000 i— 


f>\% 


1919 
Dec, 


1921 
Dec, 


1929 
Dec, 


•• 


Sth 


2,000,000 


~ 




2,000,000.i— 


Ho% 


1919 

March, . 


1924 
March, 


1929 
March, 


II 


9th 


5,000,000 






5,ooo,ooo;i— 


1% 


1920 
March, 


. 1921 
March, 


1925 
March, 


II 


10th 


3,000,000 


— 




3,000,000^ 


1% 


1920 


1921 


1925 


11 ' 


11th 


600,000 


— 




600,000k- 


H% 


April, 
1920 


April, 
1922 


April, 
1925 


11 
11 


12th 


5,000,000 


— 




5,ooo,oooU 


n% 


July, 
1920 


July, 
1921 


July, 
1922 


II 

11 - ■ 



12 





' Total 








Date 


period 
deben- 

e left 

.deemed 


1 § 


Date of 


Kind 


amount of 
depentuTcs 


Amount 
redeemed 


Amount 
unredeemed 


U 


of 


1A 


Interest 




issued 






" 


Issue ' 


The 

the 

tui 

unfe 


The 
rede 


paid 












Aug.. 


Aug., 


Aug,, 


June 


13th 


¥ 5,000,000 


* —1 


¥ 5,000,0001— 


IVA 


1920 


1921 


1922 


Dec. 


14th 


5,000,000 


H 


5,000,00^;— 


n% 


Sept., 

1920 
Sept., 


Aug., 

1921 
Sept., 


Aug., 

1923 
Sept., 


If 


ISth 


5,000^000 


— ; 


^,0W),00tf— 


n% 


1920 


1922 


1925 


11 


Total 


86,950,000 


1,132,367 150 


85,797,63250 


— 


— 


— 


— 


— 



Note : The first Depentures of the Company were issued in Paris to the extent of 50,000,000 francs- 
in March, 1912, through the instrumentality of the Industrial Bank of Japan. The 2nd, the 
4th, the 8th and the 11th Debentures were all subscribed by the Deposit Section of the 
Imperial Finance Department whilst the rest were all subscribed by the public at home. 

(E) Special loans. 

Since May, 1910, the Yokohama Specie Bank, through its 
Branch offices in different parts of Manchuria, has been prac- 
tically a banking organ supplying the necessary funds to the 
Japanese for the development work there. It so far made 
lang-dated loans at a comparatively low rate of interest. But 
in October, 1917, the Oriental Development Company was able 
to open its -branch offices at Mukden and Dalny. Hereupon, 
the Government thought it proper that all loans made by the 
Yokohama Specie Bank should be transferred to the Company 
and that the Company should undertake all sorts of business 
concerning the same. As a result, on the 10th of November, 
1917, the loan amounting to ¥1,581,897.85 was transferred tO' 
the Company whilst at the end of February, 1918, ¥224,000 in 
silver was transferred. These special loans so called amounted 
to ¥1,076,117 contracted by 125 persons. During the Year 1919, 
¥581,455 by 65 persons were redeemed, leaving ¥494,662 con- 
tracted by 60 persons unredeemed. These show how the Special 
loans stand at the and of 1919. 



THE DEVELOPMENT What is meant here by the Develop- 

WORK UNDERTAKEN ment Industrial work is no other 

BY THE COMPANY. than all the industrial undertakings 

carried on by the Company. It, therefore, includes all the work 

and undertakings conducted by the Company with the excep- 

IS 



iion of Banking and the work of giving facility to the settlers. 
In other words, acquiring and managing and disposing of land, 
iDesides agricultural improvement works, and planting of fruit- 
trees and forestry and utilization of water and clearing land 
are greater part of the Company's responsibility. 

(A) Acquisition and management of land. 

The land owned by the Company consists of the land origi- 
nally contributed by the Korean Government for the payment 
of the shares subscribed and also the land which was bought 
by the Company. 

At the end of March, 1920, the Company was in possession 
of 3932 acres of land. According to the custom of the country, 
the larger part of the land belonging to the Company is tilled 
hy the Koreans. 

It is only in such land as intended for orchard, afforestation 
^nd Nursery-ground that are under the direct management of 
the Company. 

The ground-rent paid by the tenant-farmers for the last six 
years may be tabulated as under : 



Income of 1919 


Average of five years 
prior to 1919 


Kinds of 
payment 


Carried for- 
ward from 
the pre- 
vious year 


Income of 
the year 


Sum total 


Price 
sold 


The whole 
income 


Price sold 




bushel 

561 
bushel 
10 

¥ 914 


bushel 
1,036,364 

bushel 
26,284 

bushel 
30,348 

bushel 

2,993 
lbs. 

5,467 

¥1,714,511 


bushel 
1,046,824 

bushel 
26,294 

bushel 
30,348 

bushel 

2,993 
lbs. 

5.467 

¥1,715,436 


¥1,178,507 

36,864 

26,144 

9,042 

383 

1,715,436 

2,966,376 


bushel 

1,402,878 

bushel 

40,884 

bushel 

47,361 

lbs. 
15,322 

¥ 282.720 


¥ 1,426,278 
54,301 
36.807 




Miscellaneous cereals 
Vncleahed rice •• •• 

tTnUnn 




1,524 


Total 


282,720 
1,801,630 



a^ote ; Koku is a little over 4} bushel. Strictly speaking ,it is 4.626 bushel. 



The details of the Agricultural products received and ex- 
pended by the Company during the year 1919 may be seen from 
"the following : 

14 





Received 


Expended 


Carried 


Kinds 
received 


Carried 

forward from 

the previous 

year 


Ground 

rent of 

1919 


Miscellan- 
eous income 
other than 
rent 


Total 


Sold 


Other- 
wise 
disposed 


Total 


forward 


Paddy 

Bean 

Miscellaneous 
cereals 

Uncleaned rice,. 
Cotton 


bush 
432,079 

43,871 

3,946 

lbs, 
6,544 


bush 
1,046.827 

26,293 

30,348 

2,993 

lbs, 

5,467 


bush 
108,329 

1,251 

308 

149 
lbs. 


bush 
1,896,349 

70,913 

34,621 

3,142 

lbs. 

12,011 


bush 
91l;341 

58,829 

21,256 

lbs, 
12,011 


bush 
326,376 

938 

179 


bush 
1,131,717 

59,748 

21,435 

lbs. 
12,011 


bush 
659,520 

10,167 

12,167 

3,142 



(B) Agricultural improvements. 

For the purpose of giving encouragement to agricultural 
improvements in general and more especially to improve the 
cultivation of rice, the Company must be said to have done a 
bit of its duty. It has kept a small seed-bed farm on each farm 
whether under the Korean or the Japanese tenant and ever since 
1910, it has been able to supply the farmers with well selected 
seeds for sowing. Again, the Company undertook to give both 
the Korean and the Japanese tenant-farmers instructions con- 
cerning how to make a rice seed-bed and how to apply manure, 
and how to weed and how to exterminate noxious insects as 
well as how to combine different kinds of fertilizers whilst the 
Company undertook to supply in advance the necessary seed- 
paddy, fertilized and plough-cows to the tenant farmer. This 
makiiag advance supplies was formerly limited only to the 
Japanese settlers and tenants, but now this privilege has been 
extended to the Koreans as well. Besides money, fertilizers and 
seeds, agricultural tools needed may be lent to them. In fact, 
the Company is trying to do all it can to promote the agricul- 
ture in Korea. 

(C) The cultivation of Tobacco. 

In April, 1918, the Company for the first time entered into 
contract with the Standard Trading Corporation Company 
regarding the supply of Tobacco plant seeds for Korea. At 
present, tobacco plant is under cultivation in different parts of 

15 



Kogendo, Keikido, Chusei Nando, Keihi Hokudo and Kokai- 
do districts. During 1918, the Turkish Tobacco seeds yielded, 
183,333 lbs., whilst the vernacular seeds 1,666,668 lbs. 

(D) Pomiculture work. 

The Tokuson orchard was started in 1909. It is situated 
in a suburb of the capital of Korea and covers some 56 acres 
of ground. During 1919, this orchard yielded 666,051 apples and 
105,844 pears and 9,667 Ibs.of grapes. A part of the first men- 
tioned fruit was exported to South Manchuria whilst the rest 
are all consumed in Korea. 

(E) Afforestation work. 

The work of afforestation in Korea was undertaken for the 
fixst time in 1910. The work has been going on steadily. At 
the end of March, 1920, the Company succeeded in afforestatiag 
about 82,750 acres in different parts of Kyokando, Kogendo,, 
Kokaido and other districts. The laJch-tree the redpine, the 
tree , technically called Zelkova acuminata, the chestnua tree, 
the walnut tree and the quasi-acacia, are cultivated in the timber 
forestry, whilst the trees known as quercus serrata and quer- 
cus dentata and glandudifera are planted in the fuel forestry. 
The Company has the nursery ground amounting to the extent 
of 37 acres in various plac^ such as Tb-to in Keikid®^ and 
Toku-gun in Kankyodo, and Doku-shin in Kankyo Hokudor 

(F) The Cultivation, of Bamboo. 

In the Southern part of Korea formerly the bamboo used 
to grow abundantly as the soil is suited to its growth./ But 
bamboo cultivation was neglected assail other industrial works- 
generally were for a long time whilst the country in general 
was left to the natural course of desertation. 

The Company started to undertake bamboo cultivation 
in the most advanced and scientific way so that the people 
might be well supplied with one of the most useful materials 
for all sorts of things in Korea. 

In 1912 the Company acquired bamboo bushes amounting 
to about 200 acres in Keishonando and Zenranando whilst both 

16 




g 

00 

o 

H 



n3 



ft 

a 

o 
O 



ft 



in 1913 and 1914 bamboo bushes amounting to 200 acres were 
newly planted in Keishonando. The result of the Company's 
new attempt in bamboo cultivation is now said to be very satis- 
factory in every way. 

(G) Utilization of-water and reclamation of waste land. 

(a) About 7,500 acres of land located in the basin of Sembo- 
ko, a tributary river of Taineiko, in the district of 
Heianhokudo was originally very fertile and could be 
reclaimed with a great profit if it had been properly 
irrigated. The Company began to undertake the re- 
clamation and irrigation of this district in May, 1913, 
and at last completed the work in November, 1916. 

(b) Irrigation in some parts of Zenranando. 

The two districts of Eyokomen and Okumen in Zenra- 
nando are situated on the left banks of the Eizanko 
River and the soil was originally very rich and fertile. 
But the irrigation had long been entirely neglected 
and the people have not be able to reap sufficient crops 
for many years. The Company undertook the work 
of irrigation in June, 1916 and completed it in Decem- 
ber, 1916. 

(c) The reclamation of Cho-an-hyo. 

About 1,250 acres of waste-land owned by the Korean 
Government are situated in Choanhyo, Totomen, a 
suburb of the capital. The strong embankment was 
built against the inundation of the Kanko and the 
district was successfully reclaimed. The work began 
in September, 1912 and was finished in July, 1915. 

(d) The reclamation of Ragunri. 

About 350 acres of waste-land are situated in Ragunri, 
Bojomen, Zenrahokudo. These are entirely owned by 
the Korean Government. The strong embankment 
was built against the inundation of the Kinko whilst 
the perfect system of irrigation was introduced by the 
Company. The work of construction began in April, 

^- 17 



1916 and was completed in 1920. • It was also found 
that this reclamation was most successful, 
(e) Other reclamations and irrigations.' 

The Company did the work of reclamation in Jo-sei- 
men, Ryosangun, Keishonando, and that in Okoku- 
men, Shoyogun, Keikido, besides it succeeded in the 
construction of irrigation reservoir as well as irrigation 
race and such constructions as were necessary for the 
utilization of water on the plain of Kokyo, Zenrahoku- 
do, whilst that of the embankment and irrigation at 
the Daichiri, Dokomen, Rashugun, Zenranando was 
also carried out. In short, the Company has been 
doing its best effort for the improvement of agricul- 
ture by promoting reclamation and irrigation work in 
Korea. 

THE COMPANY'S WORK The Company, ever since its estab- 
IN GIVING FACILITY TO lishment, has been very assidious 
THE SETTLERS. ^^ doing all that was necessary for ; 

the improvement of agriculture in Korea. It was from this 
motive that the Company undertook to bring over some very 
good farmers of exemplary character and wide experience to 
Korea in order that Korean farmers might be guided through; 
them. At the end of March, 1920, there were 3,938- families of 
these settlers. Some of them are allowed to cultivate only about 
five acres of the Companys' farms whilst others, who are more 
capabble, are allowed about 20 acres. But they are all engaged! 
in agriculture only. 



18 



#f* #»» *T» T» T* T* *T» ^^^T^^W^^^^ ^^ /^ *^ ^^ ^^ rf^ "^ ^^ ^* ^* ^^ ^^ /^ /T» •?» •^ ^* ^^ '*• 



Chapter III. 

THE STATE OF THE COMPANY'S BUSINESS 
~ AND ITS ASSETS. 

The Company has been fortunate enough to make a 
regular and steady progress ever since its establishment. Its 
business has been extended whilst its income greatly increased. 

The Company, therefore, may be said to have reached a 
position to carry the great work with which it has been entrust- 
ed without receiving the annual subsidy from the government. 
It however received the annual sum of ¥300,000 for eight years 
previous to 1915. 

With regard to the Qompany's income it mtist be said that 
it increased by leaps and l6ounds. lii 1917, the Company was 
able to see the sum of ¥657,698 for its profit, but in 1918, the 
profit was ¥1,443,385, whilst in 1919 the profit announced to 
¥1,983,600. The details of the profit and loss for the last 12 years 
beginning with the year in which the Company was established 
may be tabulated as uhder : 







Successive Account of profit and loss for 12 years 






n 


II 


la 
. ca.S 




Z 
H 

in 


« = g 

= S a 
-<!o.'S ■ 


1 
B 




i 




11 


¥300,000 
300,000 
30ff,000 


¥ 6,386 
83,940 
72.515 


83,940 
699-,373 


¥ 5,589 
40.472 

earn 


¥ 311,975 

559,085 

!' 1.078,061 


152,221 
for 1908 
298.385 
for 1909 
513.347 
for 1910 
510.281 
for 1911 
522.665 
for 1912 
804.49.'i 
for 1913 
515,241 
ior 1914 


¥ 159.754 
206.700 
564,714 


¥ 17,686 
76,522 
93,925 


¥ 89,950 
184.178 
470.789 


- 


¥ 52.118 


278.Cf0O 


110,544 


1,155,181 


21,789 


1.565.523 


£.055.242 


98.5'0 


689.590 


76,395 


190.713 


300,000 


28? ,390 


1,422,847 


53,292 


2.064 529 


1.491,''64 


118.233 


835.444 


469,180 


69,007 


300,000 


767 092 


1.945:421 


26.757 


3,039,270 


2 234,772 


126.121 


995.456 


977.518 


135,677 


300.000 


859,906 


1,674.692 


27,636 


2.862.237 


1,346,992 


, 120,479 


1,129,624 


990,509 


106.384 



19 



Successive Acconut of' profit aid loss for 12 years ' 



Subsidy 
Granted 


II 
11 


is 
ll 




1 


«°1 

III 


1 


r 
I 


s 


8 
ll 

M 0. 


ft: 


¥300,000 


¥ 968,486 


¥ 1.479,910 


¥ 32.240 


¥2,780.636 


703.675 
for 1915 

817.970 
for 1916 

657.008 
for 1917 
1.440.385 
for 1918 
1,983.600 
for 1919 


¥2.073.961 


¥ 298.939 


¥ 847.448 


¥ 873.135 


¥ 54,43> 


- 


1.010,814 


1.877.073 


42.918 


2,930,805 


2,112.835 


:05.619 


730.458 


844.028 


232,7» 


- 


1.356,611 


3.041-213 


49.607 


4,447.431 


3.790.333 


338.102 


1,752.420 


1.107.241 


592370 


— 


2,912,256 


5 135,749 


856.646 


8.227,000 


7,401.843 


391.468 


2.165.545 


2.522.182 


2,322,6« 


- 


4.593,937 


6.588.652 


660,592 


11.843.185 


9.859,585 


521,521 


4.556,195 


3.834.549 


947.01S 



Note : Interest received includes interests of loans and deposited money by the Company as well as 
interests of the debentures and dividends of the shares snsbcribed by the Company, The 
profit mentioned in 1918 and 1919 includes the preminm for new shares issued. The 
Government subsidy ceased in 1915, 

The profit and loss account of 1919 may be tabulated as 
under; the profit of this year amounting ¥1,983,600 is the 
greatest Company has yet realized : 

Balance sheet showing the profit and loss of 1919 



Profit 


Loss 


Item 


Amount 


Item 


Amount 


Interest from loans 


? 3,461,081 

413,506 

517,992 

6,528,652 

201,358 
121,051 
539,541 

11,843,185 


Regular salarv 


i 382 845 


Incomes from shares and deben- 
tures 


Extraordinary salary 


138,676; 
380,993 
999,41& 
273,380 

2,576,111 
326,593 

3,834,549 
947,016 


Interest from deposit 


Taxes 


Agricultural income 


RcDairintf building . . 


Interest from land sold to the 
settlers 


Miscellanious 


Incomes from things lent 

IViscellanious 


Interest paid 

Sinking fund paid 




Profit of the year 


1,983,600 
11,843,185 


Total 


Total 







The profit of 1819 was divided as under : 



Profit 


Loss 


Item 


Amount 


Item 


Amount ] 


The profit of the year 

Carried forward from the previous 
year 


¥ 1,983,600 
344.285 

2,327,885 


Reserved fund against loss 

Reserved fund for equalising 

dividend 

Bonus to official 


S 207,912 

158,18» 

99,000 

1,518,000 

344,285 

2,327,885 j 






Dividend, 9Ji 




Carried forward 


Total 


Total 









20 



The ,state of the Company's property. 
The details of the company's assets may be tabulated as under : 









Credit. 




/ 








Debt. 




V 




Unpaid 
capital 


Loan made 
by the 
company 


Shares 

and 

debentures 


Land 
and build- 
ing 


Deposit 
and 
cash 


Miscella- 
neous 


Total' 


Year 


Capital 


Reserve 
fund 


Debentures 
issued 


Borrowed & 

deposited: 

money and 

special 

deposit 


Miscella- 
neous 


Carried for- 
ward & 
profit of the 
year 


Total 


¥7,500,000 


— 


¥493,490 


¥ 750,000 


¥1,460,662 


¥ 1,293 


¥10,205,445 


1908 


¥10,000,000 


— 


— 


¥52,11^ 


¥ 1,106 


¥ 152,221 


¥10,205,445 


7,500,000 


5 221,900 


— 


1,080,721 


1,558,419 


81,569 


10,442,609 


1909 


10,000,000 


¥ 15,300 


— 


— 


26,607 


400,702 


10,442,609 


7,500,000 


595,330 


— 


1,971,567 


1,125,535 


1,137,974 


12,330,456 


1910 


10,000,000 


55,500 


— 


1,500,000 

f 


71,102 


703,854 


12,330,456 


5,000,000 


1,166,769 


1,000,000 


5,774,059 


1,118,780 


2,303,173 


16,362,781 


1911 


10,000,000 


126,000 


— 


5,000,000 


278,346 


958,435 


16,362,781 


2.500,000 


2,473,494 


1,000,000 


10,474,579 


10,503,014 


4,679,166 


31,630,253 


1912 


10,000,000 


207,800 


¥19,350,000 


770,000 


148,752 


1,153,701 


31,630,253 


— 


4,045,719 


2,300,000 


15,090,872 


^ 5,648,558 


4,220,973 


31,306,1^2 


1913 


10,000,000 


299,600 


19,350,000 


— 


265,122 


1,391,400 


31,306,122 


— 


5,451,189 


2,300,000 


15,459,866 


3,323,692 


4,460,777 


30,995,424 


1914 


10,000,000 


428,400 


. 19,350,000 


— 


169,183 


1,047,841 


30,995,424 


— 


5,813,587 


1,650,000 


15,569,866 


3,522,543 


4,474,389 


31,030,385 


1915 


10,000,000 


• 511,000 


19,350,000 


— 


107,469 


1,021,916 


31,030,385 


— 


5,839,271 


1,100,000 


16,291,998 


4,695,746 


3,372,155 


31,299,170 


1916 


'10,000,000 


581,800 


19,350,000 


— 


283,683 


1,083,687 


31,299,170 


— 


12,278,038 


3,627,500 


16,634,856 


18,843,011 


3,320,586 


54,703,991 


1917 


10,000,000 


663,700 


36,350,000 


6,281,692 


440,614 


967,985 


54,703,991 


7,500,000 


32,914,386 


6,475,500 


16,731,171 


9,374,417 


1,817,881 


75,813,551 


1918 


20,000,000 


729,500 


40,944,617 


10,998,135 


1,356,627 


1,784,672 


75,813,551 


22,500,000 


70.968,612 


15,527,840 


18,740,363 


14,018,316 


7,038,196 


148,793,327 


1919 


50,000,000 


3,862,631 


65,944,618 


23,378,235 


3,279,235 


2,327,886 


148,793,327 



Note : In estimating the ralue of the Company's property the utmost care has been taken not to over-estimate it 
which cost the Company in the acquisition about ten years ago. This is to say so far as the land property 
sent. Likewise, a most strict estimate of other assets is given here. 



bv any means. Thus the estimate of landed property is aU mentioned at the price 
is concerned it is estimated at least less than one-fifth of the actual pnce at pre- 



^^■aie^9$e5^)^^^«BMe^^9^^e^9^.9^^^e*)je^^ 



(I) The Law Concerning the Oriental Deve- 
lopment Company, Limited 

(The Toyo Takushoku Kabushiki Kaisha) 



Chapter IV. 

THE LAW AND THE BYE-EAWS CONCERNING 
THE COMPANY, 



CHAPTER I. 

GENERAL PROVISIONS. 

Art. 1. The Oriental Development Company shall be a 
Joint-stock company whose object is to engage in supplying 
development funds and in other development undertakings in 

Chosen and foreign countries, and shall have its head office 

in Tokyo. 

Art. 2. The capital of the Oriental Development Company 
shall be ten million yen, which amount may be increased with 
the sanction of the Government. 

Art. 3. The shares of the Oriental Development Company 
shall all be registered, and only Japanese subjects may be 
eligible to the shareholders. 

Art. 4. The total amount being paid up in upon the shares 
; shall not be a prerequisit for an increase of the capital of the 
^Oriental Development Company. 

21 



Art. 4—2. A resolution to alter the Oriental Development 
Company's Bye-Laws shall be passed by a majority vote of the 
shareholders present holding not less than one half of the 
amount of capital. 

Art. 5. The period of duration of the Oriental Develop- 
ment Company shall be one hundred years computed from the 
day when the registration of its formation is made ; but the said 
period may be extended subject to the sanction of the Govern- 
ment. 

Art. 6. The Oriental Development Company may, with 
the sanction of the Government, set up branches or sub-branches 
in Keijo, Mukden and elsewhere. 

CHAPTER II. 

PEINCIPAL OFFICIALS. 

Art. 7. The principal officials of the Oriental Development 
Company shall consist of one President, three or more Directors 
and two or more Supervisors. 

Art. 8. The President shall represent the Oriental Deve- 
ment Company and superintend its business. 

In the event of the President's inability to discharge his 
duties one of the Directors shall act as his deputy, and in the 
case of the vacancy of the office of President he shall exercigei 
the functions of the President. 

The Directors shall assist the President, and each shall; 
manage a specially entrusted part of the business of the Oriental 
Development Company. 

The Supervisors shall inspect the business of the Oriental 
Development Company. 

Art. 9. The President shall be appointed by the Govern- 
ment, and the term of his office shall be five years. 

As for the appointment of the Directors a General Meeting 
of Shareholders shall be caused to elect candidates, twice the 
number to be appointed, from among the shareholders holding 
not less than fifty shares each, and the Government shall ap- 

22 



point Directors from among the candidates elected in the fore- 
going manner, and the term of their office, shall be four years. 

The Supervisors shall be elected a^ a General Meeting of 
Shareholders from among the shareholders holding not less than 
thirty shares each. The term of their office shall bei two years. 

Art. 10. The President and Directors shall not engage in 
any other profession or business; this does not apply when the 
permission of the Government therefor has been obtained. 

CHAPTER III. 

BUSINESS. 

• Art. 11. The business of the Oriental Developmeiit Com- 
pany shall be as follows : — 

1. Supplying funds necessary for development; 

2. Agriculture, water utilizatiop undertakings and acquir- 
ing, managing and disposing of lands all necessary for 
development; 

3. Eecruiting and distributing settlers necessary for deve- 
lopment ; 

4. Constructing, purchasing, selling, leasing and renting 
of buildings necessary for settlers; ^ 

5. Furnishing settlers and farmers with articles necessary 
for development, and distribution of articles produced 
by them ; , 

6. Managing or taking charge of lands in trust; 

7. Other undertakings necessary for development. 

In conducting the undertakings mentioned in No. 7 of the 
foregoing paragraph in the Japanese terriiiories, or in conduct- 
ing the undertakings m^entioned in Nos. 1-6 of the foregoing 
paragraph in foreign countries, the Government sanction must 
previously be obtained. 

Art. 12. The Government shall, if deem it necessary, 
impose limitation upon the amount of the funds used for other 
purpose than that mentioned in No. 1 of the first paragraph of 
the foregoing article. 

2a 



Art. 13. The supplying of funds mentioned in No. 1 of 
the first paragraph of Art. 11, shall be effected in the following 
manner : — 

1. To make loans to settlers for expense concerning settle- 
ment, to be redeemed in annual instalments within 
twenty five years, or at fixed times within five years; 

2. To make loans to producers for a period less than one 
year on the security of articles produced by them ; 

3. To make loans on the security of immovable properties, 
railways, mining concessions and legal right on immov- 
able properties, to be redeemed in annual instalments 
within thirty years, or at fixed times within five years; 

4. To make loans without security to Public Corporations 
or the Industrial Associations organized by virtue of 
special laws, to be redeemed in annual instalments 
within thirty years, or at fixed times within five years ; 

5. To make loans without security to farmers not less than 
twenty in number bound by a joint obligation, to be 
redeemed at fixed times within five years ; 

6. To subscribe or underwrite shares or debentures 
issued by the corporations engaging in dealing with 
emigrants or in development undertakings; 

7. To make loans on the security of the shares or deben- 
tures issued by such corporations engaging in dealing 
with emigrants or in development undertakings, to be 
redeemed at fixed times within five years ; 

8. To make loans on the security of estates (zaidan) created 
by virtue of special laws, or on other reliable securities, 
to be redeemed in annual instalments within thirty 
years, or at fixed times within five years. 

In making loans mentioned in No. 2 of the foregoing para- 
graph, discount bills may be used. 

Art. 13—2. The Oriental Development Company may 
receive fixed deposits. 

The fixed deposits mentioned in the preceding paragraph 
shall not be used for any other loans than those mentioned in 
Nos. 1, 2 or 7 of the first paragraph of the preceding article. 

24 



Art. 14. The amount of loans to be made on the security 
of immovable properties shall not exceed two thirds of the value 
appraised by the Oriental Development Gompany. 

Art. 15. The security of immovable properties covering 
loans made by the Oriental Development Contpany must be 
good for the first charge; but this doe$ hot apply, if they may 
be converted into first security in course of redeeming an old 
loan with a new loan furnished by the Oriental Development 
Company. 

Art. 16. As regards the loans to be redeemed in annual 
instalments unredeemable period shall be allowed within the 
first five years. 

Art. 17. Annual instalments shall include both the prin- 
cipal and interest and shall be fixed at equal amounts for each 
year; but this does not apply to the interest for the unredeem- 
able period. 

Art. 18. A debtor whose loan contract provides for re- 
dem'ption in annual instalments may reedem ithe whole or a 
part of the loan prior to the expiration of the term of redemption. 

In the case mentioned in the foregoing paragraph, the 
Oriental Development Company may . demand adequate fees 
according to the rates specified in the Bye-Laws of the Company. 

At. 19. In the following cases the redemption of the whole 
of a loan may be demanded even prior to the expiration of the 
term of redemption : — 

1. When a loan is employed by the debtor contrary to the 
purpose the loan was made for; 

2. When a debtor has delayed the payment of annual 
instalments and has failed to make payment even after 
the receipt of a notice thereof; 

3. When the whole or a part of immovable properties held 
as security has been appropriated for ptiblic use; this, 
however, does not apply when the debtor has deposited 
money covering the appropriated isecurity or has sup- 
plemented with other- adequate immovable properties. 

If the appropriation is partial in the case mentioned in 

25 



No. 3 of the foregoing paragraph, the demand for redemption 
shall be proportioned to the amount appropriated. 

Art. 20. When the value of securities has so depreciated 
that its proportion to the balance of the loan falls short of the 
limit mentioned in Art. 14, a demand may be made for supple- 
mentary securities or for the redemption of a part of the loan 
corresponding to the shortage. 

When the debtor does not comply with the -demand men- 
tioned in the foregoing paragraph, the redemption of the whole 
of the loan may be demanded even prior to the expiration of 
the term of redemption. 

Art. 21. When unemployed funds occur in the course of 
regular business, the same may be temporarily invested in 
national loan bonds or in valuable papers sanctioned by the 
Government, or deposited with the Government or with the 
banks designated by the Government : such funds shall not be 
employed in any other way. 

Art. 22. The Oriental Development Company may, if 
necessary on account of business, contract la loan with the 
sanction of the Government. 

Art. 22 — 2. The Oriental Development Company may act 
as an agency of the Hypothec Bank of Japan. 

When the Company made a loan as an agency of the 
Hypothec Bank of Japan, the former may stand security tb the 
latter for the sake of the debtor. 



CHAPTER ly. 
ORIENTAL DEVELOPMENT DEBENTURES. 

Art. 23. The Oriental Development Company may issue 
the Oriental Development Debentures, provided their maximum 
limit does not exceed ten times the amount of the Company's 
paid-up capital. 

The provisions of Art. 199 of the Commercial Code do not 
apply to the case of issuing the Oriental Development Deben- 
tures. 

26 



Art. 24. Whenever the Company desires to issue the 
Oriental Development Debentures, the amount and condition 
thereof as well as the manner of issuing and redeeming them 
shall be determined and the sanction of the Government there- 
for shall be obtained. 

Art. 25. When the Oriental Development Debentures are- 
issued, payment on them may be made in several instalments. 

Art. 26. The Oriental Development (Debentures shall ij^e 
unregistered after the whole amount has been paid up : they 
may,' however, be registered at the request of subscribers or 
owners. 

Art. 27. Owners of the Oriental Development Debentures 
shall have the right to claim settlement out of the assets of the 
Oriental Development Company in preference to other creditors. 

Art. 28. For the purpose of conversion, the Oriental 
Development Company may issue the Oriental Development 
Debentures without observing for the time being the restrictions, 
mentioned in Art. 23 ; but in this case, the old Debentures cor- 
responding to the total amount of the new Debentures shall be 
redeemed within one month after the issuance of the new 
Debentures. 

Art. 29. The Oriental Development Debentures shall be 
redeemed within thirty years of which five years or less shall 
be the unredeemable period. 

Art. 30, The Oriental Development Company may, with 
the sanction of the Government, purchase the Oriental Develop- 
ment Debentures for amortisation. 

CHAPTER V. 

RESERVE FUNDS. 

Art. 31. The Oriental Development Company shall set 
aside, at the end of each business year, eight per cent or more 
of the profits as a reserve fund for making good any deficit in 
its capital stock, and two per cent or more of the profits in 
order to equalise dividends. 

27 



CHAPTER VI. 

GOVERNMENT SUPERVISION AND SUBSIDY. 

Art. 32. The Government shall ^supervise the affairs of 
the Oriental Development Company. 

Art. 33. The Government shall appoint Controllers of the 
Oriental Development Company and shall cause them to super- 
vise the business management of the Oriental Development 
Company. 

The controllers of the Oriental Development Company may, 
at any time, inspect the money safes, books, all kinds of docu- 
ments and articles of the Company. 

The Controllers of the Oriental Development CornpanyJ 
should they deem it necessary, may at any time order the 
Company to report on the various accounts and state of business. 

The Controllers of the Oriental Developm'ent Company 
may attend the General Meeting of Shareholders or any other 
meetings, and may express their views thereat. 

Art. 34. The Government may issue any order -that may 
be deemed necessary for supervising the Oriental Development 
Company. 

Art. 35. Should any resolution of the Oriental Develop- 
ment Company or any act of its officials be regarled as either 
contrary^to Laws, Ordinances, or Bye-Laws, or injurious to the 
public interests, the Government may cancel the said resolution 
•or dismiss the officials concerned. When any official of the 
Oriental Development Comjiany has failed to execute matters 
ordered by the authorities supervising the Company, he shall 
similarly dealt with. 

Art. 36. The Oriental Development Company shall not 
<iispose of its profits without obtaining the sanction of the Gov- 
-ernment. 

Art. 37. When the Oriental Development Company deter- 
jnines regulations concerning settlement or any other provisions, 
the sanction of the Government shall be obtained. 

:2S 



on loans to be furnished by the Oriental Development Company, 
the Government sanction shall be obtained at the beginning of 
each business year. 

Art. 38. When the Oriental Development Company desires 
to alter the matters sanctioned by the Government, the further 
sanction of the Government shall be obtained. 

' Art. 39. The Government shall grant to the Oriental 
Development Company a subsidy, at each business period, at the 
rate of three hundred thousand yen per annum for a period of 
eight years computed from the day when the registration of its 
formation is made. When, however, the rate of dividends for 
any business period exceeds eight per cent per annum of the 
paid-up capital, the amount corresponding to the excess shall 
be deductel from the subsidy. 

Art. 40. When the rate of dividends exceeds ten per cent 
per annum of the paid-up capital, the amount in excess shall 
be applied for the redemption of the subsidv mentioned in the 
preceding article. ' 

When the redemption mentioned in the foregoing paragraph 
has been completed one half of the said amount in excess shall 
be set aside as a special reserve fund. 

Art. 40 — 2. The dividends for the shares held by the Gov- 
ernment are not required for a period of the business years 
running from 1917 to 1924; but when the rate of dividends ex- 
ceeds eight per cent per annum of th6 paid-up shares owned 
by those other than the Government, the amount corresponding 
to the excess, shall be applied to the dividends for the shares 
owned by the Government as much as to^reach the same rate 
of dividends for the shares owned by those other than the Gov- 
ernmentj and if there are any surplus profits, they shall be 
distrihuted equally. 



29 



CHAPTER VII. 

PENAL PROVISIONS. 

Art. 41. Should there be a breach of law as raentioned 
below, in the business management of the Oriental Development 
Company, the Preside,nt, or Directors acting as, or taking charge 
of ofl5cial duties of the President shall be liable to a fine of from 
€ne hundred yen to one thousand yen. If the violation relates 
to special busfness entrusted to a Director he shall be liable to 
a fine in a similar way -.-^ — 

1. When the Company has not obtained the sanction of 
the Government, where such sanction is required under 
this law; 

2. "When the Company has engaged in business without 
observing the provisions of Art. 11; 

3. When the Company has not observed the orders issued 
in accordance with the provisions of Art. 34; 

3 — 2. When the Company has furnished funds in contra- 
vention of the provisions of Arts, 14 — 17 ; 

3 — 3. When the Company has used the deposits in con- 
travention of the provisions of the second paragraph 
of Art. 13—2; 

4. When unemployed business funds have been employed 
in contravention of the provisions of Art. 21 ; 

5. When the Company has issued the Oriental Develop- 
ment Debentures in contravention of the provisions of 
Art. 23 : this, however, does not apply to the case men- 
tioned in Art. 28; 

6. When the Company has not redeemed the Oriental 
Development Debentures as required- by the provisions 
of Art. 28; 

7. When the Company has disposed of its profits in con- 
travention of Arts. 31 and 40. 

Art. 42. When the President or Directors of the Oriental 
Development Company have acted in contravention of the 
provisions of Art. 10, they are liable to a fine of from twenty 
yen to two hundred yen. " 

30 



Art 43. The provisions of Arts. 206—208 of the Law con- 
cerning the Procedure of Non-Contentious Matter shall apply 
correspondingly to the fines provided for in the two preceding 

SUPPLEMENTARY PROVISIONS. 

Art. 44. The Government Shall appoint an Organising 
Commission and cause it to conduct all business connected with 
the establishment of the Oriental Development Company. 

Art. 45. The Organising Commission shall make a draft 
of the Bye^Laws of the Company, and after obtaining the sanc- 
tion of the Government shall invite subscriptions. 

Art. 46. When the sufficient number of subscribers has 
been secured the Organising Commission shall present to the 
Government the subscription list and request sanction for the 
establishment of the Oriental Development Company. 

Art. 47. When the said sanction has been obtained, the 
Organising Commission shall without delay cause the first pay- 
ment to be made upon each share. 

When the payment as provided in the foregoing paragraph 
, has been made, the Organising Commission shall without delay 
convene the General Meeting for Organisation. 

Art. 48. When the General Meeting for Organisation has 
been concluded, the Organising Commission shall hand over its 
business to the President of the Oriental Development Company. 

Art. 49. The Directors and Supervisors for the first term 
shall be appointed by the Government without election at the 
General Meeting of Shareholders. In all other matters the 
precedence of Art. 9 shall be followed, provided that when the 
respective terms of office specified in Art. 9 have been ended 
they may remain in office until the next Ordinary General 
Meeting. 

The present Law shall be enforced on and after the first 
of October of the sixth year of Taisho (1917). 

The term of office of Directors who were in service when 
the present Law has been enforced, shall follow the previous 
example. 

31 



^'-:^; 



(II) The Bye-Laws of the Oriental Deve- 
lopment Company, Limited. 



CHAPTER I. 

GENERAL PROVISIONS. 

Art. 1. The Company having been formed in accordance 
with the Law No. 63 of the forty IBrst year of Meiji (1908), or 
the Law of incorporation of the Toyo Takushoku Kabushiki 
Kaisha, shall be called "The Toyo Takushoku Kabushiki Kai- 
sha," but "The Oriental Development Company, Limited" in 
English. 

Art. 2. The object of the Company is to carry on supply- 
ing funds necessary for development and on various develop- 
ment underta,kings in Chosen and foreign countries. 

Art. 3. The Company shall have its head office in Tokyo. 

Branches or sub-branches may be set up in Keijo, Mukden 
and various other convenient localities with the sanction of the 
Government. 

Art. 4. The capital of the Company shall be fifty million 
yen, which amount may be increased with the sanction] of the 
Government. 

Art. 5. The total amount being paid up in upon the shares 
shall not be a prerequisite for an increase of the capital of the 
Company. 

Art. 6. The period of duration of the Company shall be 
one hundred years computed from the day when the registra- 
tion of its formation is made; it may, however, be extended 
subject to the sanction of the Government. 



Art. 7. When the Company desires to alter the matters 
sanctioned by the Government the further sanction of the Gov- 
ernment shall be obtained. 

Art. 8. Any notifications of the Company shall be made 
public in the Official Gazette and such newspapers as are used 
by the Local Court of Justice for publishing notifications in the 
place where the head office is located : but when such notifica- 
tions are required to be made public in a place where a branch 
office is located, the President shall select local newspapers. 



CHAPTER II. 

Art. 9. The shares of the Company shall all be registered, 
and only Japanese subjetcs may hold the same. 

Art. 10. The Company shall accept the following contri- 
bution in property by the Government to be valued at three 
million yen, and sixty thousand shares shall be given in ex- 
change : — 

1 . Rice fields 5,700 cho (1 cho being 2.45072 acres) : 

2. Other cultivated fields 5,700 cho. 

Art. 11. The shares of the Company shall be one million 
in number, each share being fifty yen. 

Art. 12. The liability of the shareholders of the Company 
shall be limited to the amount of the shares they; hold. 

Art. 13. The share certificates of the Company are of six 
denominations; namely, 50 yen, 250 yen, 500 yen 2,500 yen, 
5,000 yen and 50,000 yen. 

Art. 14. Each share certificate of the Company shall be 
signed and sealed by the President, and shall bear the Com- 
pany's name, the date of registration, the total amount of capi- 
tal, the face value per share, the amount paid in and the serial 
number for it. 

Art. 15. The call of the first instalment shall be twelve 
yen and fifty sen per share, and for the second and later instal- 
ments the President shall determine the amount and the time 

34 



of payment according to the necessity of business, and shall 
notify to each shareholder at least thirty days beforehand; but 
the amount to be paid upon per share shall not exceed twelve 
yen and fifty sen each time. 

Art. 16. If a shareholder does not make payment on a 
call by the day fixed, the interest on such arrear shall be required 
at the rate of four sen per diem, per hundred yen. 

Art. 17. If a shareholder does not make payment of the 
first instalment within fifteen days after the date appointed for 
the payment, the Company may notify such shareholder that 
payment must be made within another fifteen days, and that 
otherwise the rights as shareholder shall be forfeited. 

When the forfeiture of rights takes place in the manner 
mentioned in the foregoing paragraph, the security money paid 
on applica,tion shall not be returned. 

Art. 18. If a shareholder fails to pay a call for the second 
or later instalments, within fifteen days after the date fixed, 
the Company may notify such shareholder that payment must 
be made within another fifteen days, and that otherwise the 
rights as shareholder shall be forfeited. 

When the rights as shareholder are forfeited in the manner 
mentioned in the foregoing paragraph, the Company shall 
notify the respective assignors of the shares to pay within 
fifteen days, and the assignor who first pays the amount in 
arrear shall acquire the shares. 

If no assignor pays, the Company shall dispose of such 
shares by public auction, and if the amount thus realised d(;es 
not cover that in arrear, the former shareholder shall be re- 
quired-to pay that deficit. If the said shareholder fails fo pay 
it within fifteen days, the Company shall demand such payment 
of the assignors. 

Art. 19. The liability of the assignors provided in the 
preceding article shall cease when two years shall have elapsed 
lifter the recording of the assignment in the shareholders' list. 
Art. 20. A company or any other public or private juridi- 
cal person who owns a share of the Company shall appoint a 

35 



representative and have the latter's name and domicile entered 
in the list of shareholders. 

If a share is owned by several persons m common, they, 
shall appoint one person to exercise their rights as shareholder./ 

Co-owners of a share are jointly liable for payment of the 
share. ' 

Art. 21. When a share is taken, the shareholder or the 
legal proxy shall notify his name, domicile and seal to the Com- 
pany; the same holds good when an alteration takes place in 
the matters mentioned above. 

Art. 22. When a share is assigned, the parties concerned 
shall apply for the renewal of the share, in writing with their 
joint signatures in accordance with the form determined by 
the Company. In the case such application is made by a per- 
son who has come to own the share by succession, by a will, 
or by the ex|Bcution of the court's decree, he shall produce the 
register's certificate or any documentary proofs required by the 
Company. 

No assignment of a share shall be valid against the Com- 
pany, unless the assignee's name and domicile have been 
entered in the list of shareholders and his name has been in- 
serted in the certificate. 

Art. 23. When any share certificate be mutilated or lost, 
its owner may apply to the Company for the delivery of a i.ow 
certificate by forwarding a document stating the circamstanceS; 
in detail and signed jointly by two or more guarantors whom 
the Company deems proper. In case of loss, however, the new 
certificate shall not be delivered until after the matter has been 
publicly notified at the applicant's expense and no objection 
has been raised against it within thirty days from the date of 
such notification. 

Art. 24. When a shareholder desires to have the deno- 
mination of his share changed, he shall apply in Writing, for- 
warding the said share certificate at the same time. 

Art. 25. Fees shall be charged, as fixed by the Companyf 
for inserting in a share certificate the new owner's n^me in lietf 

36 



of that of the former owner, for the delivery of a new share 
certificate, and for altering the denomination of a share. 

Art. 26. The Company shall suspend the insertion of as- 
signee's name in the share certificate in the case of assignment, 
for a term not exceeding thirty days immediately prior to each 
Ordinary General Meeting. 



CHAPTER III. 

GENERAL MEETING OF SHAREHOLDEES. 

Art. 27. An Ordinary General Meeting shall be convened 
by the President in May, each year. An Extraordinary Gene- 
ral Meeting shall be convened likewise by the President, when 
the President or the Supervisors consider such a step necessary, 
or when it is requested in writing by the shareholders repre- 
senting not less than one-tenth of total number of the shares, 
specifying the objects of the Meeting and the reasons for its 
convening. In case, an Extraordinary Meeting is called for 
by shareholders, the President shall take steps to call the Meet- 
ing within fourteen days. 

Art. 28. The discussions at a General Meeting shall be 
confined only to the object and matters previously notified. 

Art. 29. The President shall fix the day, hour and place 
of the General Meeting and give notice to each shareholder at 
least fourteen days before the Meeting. 

Art. 30. The President shall act as Chairman at a Gene- 
ral Meeting. In the event of the President's office being vacant 
or his being prevented to do so from unavoidable causes, one of 
Directors shall preside at the Meeting. 

Art. 31. A shareholder shall have one vote for each share 
he owns. 

Art. 32. A shareholder may vote through another share- 
holder present by means of a proxy which shall be produced 
to the Company. 

37 



Art. 33. The Chairman of a General Meeting shall not be 
debarred from exercising his voting powers as a shareholder.- 

Art. 34. Unless otherwise provided in the Commercial 
Code, any resolutien of the General Meeting shall be passed by 
a majority vote of the shareholders present; for an alterations 
of the Bye-Laws, however, it shall be decided by a majority, 
vote of the shareholders present holding not less than one half 
of the total amount of the Company's capital. 

In case of a tie in the foregoing paragraph the Chairman 
shall decide. 

Art. 35. The essentials of discussions at a, General Meet- 
ing shall be recorded in the minutes of the Meeting, and shall 
be signed and sealed by the President as well as other ofi&cials 
present at the Meeting. 

Art. 36. The Chairman of a General Meeting may post- 
pone the Meeting or change* the place of it; but no other matters i; 
except those left undecided at the former Meeting shall be dis- ;; 
cussed at the later Meeting. 



CHAPTER IV. 

PEINCIPAL OFFICIALS. 

Art. 37. There shall be one President, three or more 
Directors, and two or more Supervisors in the Company. 

Art. 38. The President shall represent the, Company and 
have general control over its affairs. 

One of Directors shall take charge of the official duties of 
President when the latter is prevented from discharging them, 
and in the case of the vacancy of the office of President, one 
of Directors shall exercise his functions. 

The Directors shall assist the President, and each shall 
manage a specially entrusted part of the Companys' affairs. . 

The Supervisors shall inspect the affairs of the Company. 

Art. 39. The President shall be appointed by the, Gov- . 
ernment, and his term of office shall be five years. 

38 



With regard to the appointment of the Directors, a Gene- 
ral Meeting of shareholders shall be caused to elect candidates, 
twice the number to be appointed, from among the shareholders 
holding not less than fifty shares each. The Government shall 
appoint Directors from among the candidates elected in the 
foregoing manner, and their term of office shall be four years. 

, The Supervisors shall be elected at a General Meeting of 
Shareholders from among the shareholders holding not less 
than thirty shares each, and their term of office shall be two 

' years. 

Art. 40. The annual remuneration of the President and 
Directors shall be as follows :— 

1. President 6,000 yen; 

2. Director first class 4,000 yen; 

second class 3,500 yen. 

The remuneration of the Supervisors shall be fixed by the 
resolution of the General Meeting of Shareholders. 

Allowances may be given to the Directors residing in 
jDhosen or foreign countries : which amount shall be settled 
by the Government. 

Art. 41. During the term of office, the Directors shall each 
deposit with the Supervisors fifty shares they own. On the 
[former's retirement from office the shares thus deposited shall 
not be returned to them until a General Meeting of Shareholders 
shall have approved of their management of business while 
they held office. , 

Art. 42. In the event of the office of President becoming 
vacant, the Government shall appoint successor and cause him. 
to hold the office for the remaining term of his predecessor.. 

Art. 43. If any vacancy arises among the Directors and 
circumstances require the vacancy to be filled up, an Extraor- 
dinary General Meeting shall be held to elect candidates, twice 
the number to be appointed, from among the. shareholders hold- 
ing not less than fifty shares each. From among' such can- 
didates, the Government shall appoint successors and cause 

39 



them to hold the office for the remaining term o| their pre- 
decessors. 

When the number of the Directors is required to be increase 
ed, the foregoing paragraph shall apply except as to the ter^i 
of office. 

Art. 44. If any vacancy arises among the Supervisors and' 
circumstances require the vacancy to be jBiUed up, an; Extraor- 
dinary General Meeting shall be held to elect successors from 
among the shareholders holding not less than thirty shares 
each; the successors thus , elected, shall be caused to hold the 
orffice for the remaining term of their predecessors. 

Art. 45. The President and Directors shall not engage in 
any other profession or business, unless the permission of the 
Government* therefor shall have been obtained. 

Art. 46. The President shall keep at the head office and 
at each branch office, copies of the Bye-Laws of the Company 
and the minutes of the resolution passed at General Meetings. 
At the head office there shall also be kept the list of shareholders 
and the original entry book of the debentures. 

Art. 47. The President shall submit to the Supervisors' 
the following docpments seven days previous to the day of an 
Ordinary General Meeting, namely : — 

1. The inventory; 

2. The balance sheet; 

3. The report on the business of the Company; 

4. Thfe* account of profits and losses; 

5. Proposals concerning the reserve fund and the distribu- 
tion of profits. 

' Art. 48, The President shall have the documents men- 
tioned in the preceding article and the report of the Supervisors 
kept at the head office previous to the day of an Ordinary. 
General Meeting. - 

Art. 49. The President shall submit the documents men- 
tioned in Art. 47 to the Ordinary General Meeting and obtain 
the approval of the same. 

40 



After the above approval has been obtained the President 
shall publish the balance sheet. 

Art. 50. The Supervisors shall examine the documents 
which are to be submitted to the Shareholder's Meeting by; the 
President, and report their views thereon to the Meeting. 

Art. 51, The Supervisors may, at any time, require the 
President to be informed of the business, or may inquire into 
the affairs of the Company and the state of its property. 



CHAPTER V. 

BUSINESS. 

Art. 52 The business of the Company shall be as fol- 
lows : — 

1., Supplying funds necessary for development; 
2. Agriculture, water utilizing undertakings and acquir- 
ing, managing and disposing of lands all necessary 
for development; 
,3. Recruiting and distributing settlers necessary for deve- 
~ lopment; , 

4. Construction, purchasing, selling, leasing and renting 
of buildings necessary for settlers; 

5. Furnishing settlers and farmers with articles necessary 
for development, and distribution of articles produced 
by them; 

6. Managing and taking charge of lands in trust; 

7. Other undertakings necessary for development. 

In conducting the undertakings mentioned in No. 7 of the 
lipregoing paragraph in the Japanese territories, and in con- 
ducting the undertakings mentioned ii^ Nos. 1-6 of the foregoing 
paragraph in foreign countries, the Government sanction must 
previously be obtained. 
Art. 53. (omitted.) 

41 



Art. 54. The supplying of funds mentioned in No, 1 of 
the first paragraph of Ait. 52 shall be effected in the following 
manner : — 

1. To make loans to settlers for the expenses concerning 
settlement, to be redeemed in annual instalments within 
twenty-five years; 

2. To make loans to producers for a period less than one 
year on the security of articles produced by them; 

3. To make loans on the security of immovable properties^ 
railways, mining concessions and legal right on immov- 
able properties, to be redeemed in annual instalments 
within thirty years or at fixed times within five years; 
4. To make loans without security to Public Corpora- 
tions or Industrial Associations organized by virtue of 
special laws to be redeemed in annual instalments 
within thirty years or at fixed times withini five years; 

5. To make loans without security to farmers not less than 
twenty V in number bound by a joint obligation, to be 
redeemed at fixed times within five years; 

6. To subscribe or underwrite the shares or debentures, 
issued by such Corporations engaging in dealing with 
emigrants or in evelopment undertakings; 

7. To make loans on the security of the shares or deben- 
tures, issued by such Corporations engaging in dealing 
with ^migrants or in development undertakings, to be 
redeemed at fixed times within five years; 

8. To make loans on the security of estates (zaidan) creat- 
ed by virtue of special laws or on other reliable securi- 
ties, to be redeemed in annual instalments within thirty 
years or at fixed times within five years. 

In making the loans mentioned in No. 2 of the foregoing 
paragraph, discount bills may be used. 

Art. 54-2. The Company may receive fixed deposits. 

The fixed deposits mentioned in the foregoing paragraph 
shall not be used for any other loa^ns than those mentioned in 
Nos. 1, 2 or 7 of the first paragraph of the foregoing article. 

42 



Art. 55. The amount of loans to be made on the security 
of immovable properties shall not exceed two-thirds of the value^ 
appraised by the Company. 

Art. 56. The security of immovable properties covering 
loans made by the Company must be good for the first charge ; 
but this does not apply, if it may be converted into first security 
in course of redeeming an old loan with a new loan furnished, 
by the Company. 

Art. 57. As regards the loans to be redeemed in annual 
instalments, an unredeemable period shall be allowed within 
the first five years. 

Art. 58. Annual instalments shall include both the pria- 
cipal and interest and shall be fixed at equal amounts for each 
year; but this does not apply to the interest for the unredeem- 
able period. 

Art. 59'. A - debtor whose loan contract provides for re- 
demption in annual instalments may redeem the whole or a part 
of the loan prior to the expiration of the term of redemption. 

In the case mentioned in the foregoing paragraph the Com- 
pany sail demand fees, the amount of which shall be fixed by 
the Company within two per cent of the amount redeemed. 

Art. 60. In the following cases the Company may demand 
the redemption of the whole of a loan even prior to the expira- 
tion of the term of redemption : — 

1. When a loan is employed by the debtor contrary to the 
purpose the loan was made for; 

2. When a debtor has delayed the payment of annual in- 
stalments' and has failed to make payment even after 
the receipt of a notice therefor; 

3. When the whole or a part of immovable properties held 
as security has been appropriated for public use : this, , 
however, does not apply when the debtor has deposited 
sufficient money to cover the appropriated security, or 
has supplemented the security with other adequate 
immovable properties. 

43 



If the appropriation is partial in the case mentioned in No. 
3 of the foregoing paragraph the amount to be redeemed shall 
1)6 fixed in proportion to the amount appropriated. 

. Art, 61. When the value of securities has so depreciated 
"that its proportion to the balance of the loan falls short of the 
limit mentioned in Art. 55, a demand may be made for supple- 
mentary securities or for the redemption of a part of the loan 
•corresponding to the shortage. 

When the debtor does not comply with the demand men- 
tioned in the foregoing paragraph, the redemption of the whole 
of the loan may be demanded even prior to the expiration of 
the term of redetnption. 

Art. 62. When the Company determines regulations con- 
cerning settlement or any other provisions, the sanction of the 
•Government shall be obtained. 

Art. 62 — 2. Of the maximum rate of interest and discount 
on loans to be furnished by the Company, the Government 
.-sanction must be obtained at the beginning of each business year. 

Art. 63. When unemployed funds occur in the course of 
regular business, the same may be teinporarily invested in 
national loan-bonds, or valuable papers sanctioned by the Go v- 
■ernment, or deposite with the Government or with the banks 
'designated by tHe Goyernment : such funds shall not be employ- 
ed in any other way. 

Art. 64. The Company may, if necessary on account of 
l)Usiness, contract a loan with the sanction of the Government. ; 

Art. 64^-2. The Company may act as an agency of the 
Hypothec Bank of Japan. 

When the Company made a loan as an agency of the 
Hypothec Bank of Japan, it may stand security to the latter 
ior the debtor. 



U 



dHAPTER VI. 

ORIENTAL DEVELOPMENT DEBENTURES. 

Art. 65. The Company may issue the Oriental Develop 
ment Debentures to the extent of ten times the amount of its-, 
paid-up capital. 

The resolution of a General Meeting of Shareholders shalF 
not be required in issuing the Oriental Development Debentures.. 

Art. 66. Whenever the Company desires to issue the- 
Oriental Development Debentures, the amount and condition 
thereof as well as the manner of issuing and redeeming them 
shall be determined, and the sanction of the Government there- 
for shall be obtained. 

Art. 67. In the case of issuing the Oriental Development; 
Debentures, payment on them may be made in several instal- 
ments. 

Art. 68. The Oriental Development Debentures shall be- 
unregistered after the whole amount has been paid up : they 
may, however, be registered at the request of either subscribers^. 
or owners. 

Art. 69. Owners of the Oriental Development 'Debentuit^s 
shall have the right to claim settlement out of the Comp^ny's- 
-assets in preference to other creditors. 

Art. 70. For the purpose of conversion, the Company may 
issue the Oriental Development Debentures without observing- 
for the time being the restrictions mentioned in Art. 65. 

In this case, however, the old debentures corresponding to 
the total amount of the new debentures shall be redeemed wichin. 
one month after the issuance of the new debentures. 

Art. 71. The Oriental Development Debentures shall be- 
redeemed within thirty years of which the first five years or 
less shall be unredeemable period. 

Art. 72. The Company may, with the sanction of the 
Government, purchase the Oriental Development Debentures 
for amortisation. 

45* 



Art. 73. When any of the Oriental Development Deben- 
tures or coupons are mutilated or lost, their owner may apply 
ior the delivery of new ones. The Company, however, shall not 
deliver such debentures or coupons, until the fact of mutilation 
or loss shall have been publicly notified at the owner's expense 
and their invalidity shall have been declared. As regards re- 
.gistered debentures, the provisions of Art. 23 shall apply cor- 
respondingly. 

Art. 74. Fees shall be charged as fixed by the Company 
for the change of names registered on the debentures, for the 
delivery of new debentures or coupons, and for the alteration 
of debentures denominations. 



CHAPTER VII. 

CONTROLLERS. 

Art. 75. The Controllers of the Oriental Development 
Company may supervise the business management of the Com- 
pany, and may, at any time, examine the money safes, books 
^nd all kinds of documents and articles of the Company. 

The said Controllers may, whenever such measure is deem- 
(Bd necessary, order the Company to report on the various ac- 
counts and state of the business. 

The said Controllers may attend the General Meeting of 
Shareholders or any other meetings, and may state their views 
thereat. 

CHAPTER VIII. 

ACCOUNTS. 

Art. 76. The business year of the Company shall begin 
•on the first of April each year and end on the thirty-first of 
March next. 

Art. 77. At each business year the Company shall deduct 
from the gross profits various interests, business outlays, and 
all losses incurred, and the remaining amount added by the 

^46 



lubsidy of the Government shall bie taken as the profits of the 
Company. 

Art. 78. The profits of the Company shall be disposed of 
in the following manner : — 

1. Eight per cent or more of the profits, as a reserve fund 
against losses; 

2. Two per cent or more of the profits, as a reserve fund 
for equalising dividends; 

% Ten per cent or less of th« profits, as a bonus to the 
officials ; 

5. The sum of the abov^ three items being deducted from 
the profits, the remaining amount shall be distributed 
among the shareholders, or carried to the next year's 
account. 

Art. 79. The Company shall receive from the Government 
a subsidy amounting to three hundred thousand yen per annum 
for a term of eight yoars computed from the date when the 
registration of its formation is made ; but when the rate of divi- 
dends for any business year exceeds eight per cent per annum of 
the paid-up capital, the amount corresponding to the excess shall 
be subtracted from the subsidy. 

■ Art. 80. When the rate of dividends exceeds ten^per cent 
per annum of the paid-up capital, the excess amount shall be 
applied for the redemption of the subsidy mentioned in the 
preceding article. 

When the repayment mentioned in the foregoing paragraph 
has been completed, one half of the said amount in excess shall 
be appropriated as a special reserve fund. 

Art. 80 — 2. The dividends for the shares owned by the 
Government are not required for a period of the business years 
6th— 13th year of Taisho (1917-1924); but when the rate of divi- 
dends exceeds eight per cent per annum of the paid-up shares 
Owned by those other than the Government, the amount cor- 
responding to the excess shall be applied to the dividends for 
the shares owned by tiie Govjernment as much as to reach the 

47 



same raie of dividends for the shares owned by those other than 
the Government, and if there are still any surplus profits, they 
shall be distributed equally. 

Art. 81. The Company may not dispose of the profits 
unless the sanction of the Government therefor shall have been 
obtained. 

Art. 82. The payment of the profits shall be made to the 
shareholders according to the list of the shareholders on the 
first of May. 

As for the amount of shares newly paid up, the dividends 
shall be calculated from the following month after that in which 
such payment was actually made. The President shall fix the 
date and place of the payment of dividends and notify the same 
to the shareholders. 

CHAPTER IX. 

SUPPLEMENTAEY PROVISIONS. 

Art. 83. The Company may appoint I<ocal Commissioners. 
The Local Commissioners shall be appointed by the Presi- 
dent, who also shall fix their number and remuneration. 

Art. 84. The organising expenses to be borne by the 
Company shall not exceed the amount of seventy thousand yen. 

Of the above sum, the amount advanced by the Govern- 
ment shall be returned to the same. 

Art. 85. The term of ofl&ce of Directors who were in ser- 
vice when the present Bye-Laws has been amended, shall follow 
the previous example. 

Art. 86. Sixty thousand shares amounting to three million 
yen out of ten million yen, the increased capital which was 
approved by the resolution of the Ordinary General Meeting of 
Shareholders held on May 22nd of the seventh year of Taisho 
(1918), shall be issued at prices a;bove the face value. 

Art. 87. Ninety thousand shares amounting to four mil- 
lion and five hundred thousand yen out of thirty million yen, 

48 



the increased capital which was approved by the resolution of 
the Extraordinary General Meeting held on September 10th of 
the eighth year of Taisho (1919), shall be issued at prices above 
the face value. 



49 



Appendix A. 

THE PRESIDENT'S SPEECH AT THE 12 GENERAL 
MEETING OF SHAREHOLDERS. 



The following is the speech delivered by Mr. Ishizuka, the 
President of the Company, at the 12th General Meeting of 
shareholders, held on the 22nd of May, 1920, at the Tokyo 
Chamber of Commerce. 

Gentlemen : Nothing could give me more pleasure to see 

you on this occasion and to give you a report of the financial 

result of the Company's business during the year. Needless to 

say, no sooner than the Peace Treaty had been concluded than 

the tide of business depression began to set in. As was foreseen, 

the wartime business activity was sooner or later checked 

whilst the collision of labour and capital took more serious turn 

than before. But, contrary to expectation, the economic world 

continued for a while to show great activities during the year 

1919. As a result, the fund for ihe industrial enterprises carried 

on by the Japanese in Korea and Manchuria was increased ; and 

to meet this need the Company with the sanction of the Gov- 

;ernment was obliged to increase its capital from ¥20,000,000 to 

, ¥50,000,000 besides it had to issue the Company's debentures 

at five different, times which amounted in all to ¥25,000,000 

whilst it had to open branch-offices at different parts of Eastern 

Siberia, Central China, the Philippine Islands and the South 

Sea Islands. And now I am glad to say that the financial result 

of the Company's business for this year proved better than that 

of the preceding year. 

51 



With regard to the Company's supplying the fund for the 
development work, I must say that the Company has discharg- 
ed its function very well. In Korea, although the agriculture 
crops were on the whole greatly diminished on account of the 
unusual draught the country experienced last summer, the 
price of agricultu'ral products was very high, and it made the 
Korean farmers comparatively well-off whilst it raised the price 
of land very much, which again greatly encouraged the reclama- 
tion of waste-lands and dry beaches besides agricultural im- 
provements such as irrigation and water utilization, etcr Over 
and beyond these agricultural improvements great amount of 
funds was needed for the industrial works as well as for the 
construction of railways in Korea. This need was also well 
met by the Company. 

In Manchuria, the business activity was very lively and 
an enormous sum of money was needed for the enterprise newly 
launched by the Japanese, whilst a scarcity of houses and fac- 
tories there, offered great opportunity for the promotion of 
public works in general. Consequently, the Company's loan 
increased by leaps and bounds during the business year. 

Regarding the branch office recently opened at Kharbin, it 
inust be said that the Company has limited the loan only to 
those absolutely indispensable from the fact that the financial 
state there has been very uncertain owing to the Bolsheviki 
troubles and the fall of the Russian rouble. 

In Tsingtao and its neighbourhood, as there were scarcely 
any banking corporations which might make long loans on the 
security of immovable property, the Company made loans to 
those people who are most reliable only after making minute 
investigation of the personal credit. The Company's total sum 
of loans made during the business year amounts to ¥70,000,000 
which is more than that of the previous year by ¥38,000,000. 

Concerning the Company's subscribing or^ underwriting 
shares or debentures issued by the corporations engaging in 
dealing with emigrants or in development undertakings it must 
be said that after a most careful consideration, the Compaify 
decided to subscribe 412,000 shares of thirteen companies besides 

52 



the Korean Electric Industry Company amounting to ¥5,007,- 
250. This being added to the number of shares previously sub- 
scribed, the Company actually had 525,903 shares in all which 
amounted to ¥2,802,650 at the end of the year, whilst the Com- 
pany have subscribed the debentures amounting to ¥3,250,000 
of the Over-Sea Industrial Company and two other companies. 
This made the whole debentures subscribed by the Company 
¥7,725,190 at the end of the year. 

Referring to the agricultural work in Korea, it must be said 
that, owing to the failure of water supply caused by an unusual 
draught which the country experienced during July and August 
last year, the rice crops would be about 20 per cent less than 
the average crops. But by the timely precautions taken by the 
Conipany the land rent was paid in by the peasants without 
any serious difficulty. The crops other than rice were so good 
that the actual harvest of a farmer amounted to 99.9 per cent 
to that which had been pre-estimated. 

Again, regarding the rice cultivation improvement, the 
Company has always been trying to diffuse improved seeds ; and 
more than 50,000 acres have been planted with improved rice 
seeds, of which about 5,000 acres have been planted during this 
year. During the year 1920 about 2,000 acres will be newly 
planted with the same. 

Furthermore, in order to prevent the seed from degenera- 
tion the Company began to carry out, as previously arranged, 
the renewal of the seed every three years. During this year, 
about 15,000 acres have been renewed. On a plantation-field 
where the improved seed will not thrive, the best seed among 
the seeds growing indigenously in that locality was selected 
and sowed. It is said that more than 32,000 acres of land are 
going to be planted with renewed seeds by the end of 1923. 

Again, the Company has been most successful in supplying 
seeds, manures, agricultural tools in advance. More especially, 
bean-refuse, superphosphate of lime, rice-bran, seed-refuse have 
been applied to 50,000 acres of the farm with a remarkable result 
of increase of rice crops. It is said that every 2 cakes of bean- 

53 



refuse used as manure gave the increase of rice by 4 bushels per 
half an acre. 

Owing to the outbreak of an epidemic, the calamity caused 
by the draught and then by the typhoon, etc., the tobacco crops 
did not come up to expectations. But the Company raised about 
200,000 lbs. of the Turkish Tobacco and about 20,000 lbs. of the 
native tobacco. 

Regarding the reclamation work it must be said that the 
Company has been doing its best in reclaiming the waste-land, 
in constructing irrigation systems and other water-utilization 
work. For instances. 

Six reservoirs have been newly constructed for the nearly 
,1,000 acres of land owned by the Company, which had formerly 
no water supply whilst about 500 acres of waste-land belonging 
to the Government in Muan-gun, Zenra Nando, and about 300 
acres in Eyoko-gun, Heian Nando have been successfully re- 
claimed by the Company, besides about 5,000 acres of waste- 
land and dry-beaches have been granted to be Company for 
reclamation. This also will be successfully carried out in the 
course of a few yeairs. 

With regard to the aforestation work carried out by the 
Company it is fair and just to say that they have been very 
successful. 

The Company at present possesses about 70,000 acres for 
forestry work which promises much indeed. 

In reference to the work of sending settlers into Korea, it 
must be said that the Tenth Emigration of settlers took place 
during this year. The Company so far succeeded in imigrating ■ 
680 families out of 2,000 applicants. These 680 families are scat- 
tered into 68 different counties throughout Korea. About 3,200 
acres in all are cultivated by them. There are at present 3,900 
families of these settlers in all, cultivating about 16,000 acres 
of land. Generally speaking, the settlers are doing very well. 
They are very industrious and take delight in the work in which 
they are engaged whilst their economic status is being much 
improved by the increase as well as the high price of agricul^ 
tural products. 

U 



The Company is now co-operating with the Government 
«;authorities as well as the Japanese people in Korea in perfect- 
, ing educational, sanitary and other social amelioration. 

Finally, I must say that the Company's work is making 
good and steady progress in every direction. In fact, the Com- 
pany's credit is so great that about ¥900,000 of its debt was 
paid off from the premium of the Company's debentures, etc., 
whilst increase of the dividend is going to be decided at this 
' very general meeting to-day. 



125 



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131 



Appendix B. 
ECONOMIC CONDITION OF CHOSEN. . 



' Preliminary Remarks : The Oriental Development Com- 
pany, Limited, was originally established for the purpose of 
developing the natural resources in Korea. This original aim 
and purpose of the Company could be seen very clearly frqm 
the fact that the development work in Korea is still occupying- 
a greater part of the Company's business although the Company 
recently has extended its sphere of activities far and wide. In 
fact, it has its branch offices in different parts of Manchuria,, 
lilongolia. Central China and Eastern Siberia and also in some- 
of the South Sea Islands. Korea itself, however, remains the- 
central field of the Company's work. Such being the case, a. 
, few words concerning the Economical as well as the industrial 
state of Korea may not be out of the place added here. 

CHAFTKR I. 

> GENERAL REMARKS. 

Korea or Chosen as it is called is a country which extends- 
between the Lat. 34-43 N. and the Long. 125-130 E. forming a. 
peninsula, which is about 600 miles long by 135 miles broad. 
It is, therefore, a little more than 80,000 square miles in its- 
area. It is divided on the North, from Mg,nchuria by the Yalu 
River, 'On the north-east, the Tuman King river separates it 
from the Russian Territory. It boarders on the South the Strait 
of Tsushima, on the East the Japan Sea and on the West the 
Yellow Sea. 

5T 



A range of mountains closely following the Eastern coast 
leaves only a narrow tract of land for cultivation. But in the 
West the mountains slope more gradual whilst the Elvers 
Taidong and Han and their tributaries, some of which are navi- 
gable for some distance, traverse this western part of the coun- 
try. The valleys are on the whole comparatively fertile an-l 
.generally capable of irrigation. The East Coas.t of Korea which 
boarders the Japan Sea is not indented with many bays and 
-harbours and the sea is tideless. The only harbours on this 
coast are Gensan and Seisin. On the contrary, the south as 
well as w6st coast is very much indented with many bays and 
liarbours whilst many islands are scattered off the coast. On 
the western coast the sea is shallow, and affected by strong 
iiides whilst the character of the south coast is more abrupt, 
with deeper water. The well known harbours along the coast 
^re Fusan, Moppo, Gensan, Jinsen, Chinnanpo. 

The climate differs very much. The thermometer ranges 
"from 32°C. to below zero. In Fusan district, for instance, the 
average is 13°C., but the northern part of the country is much 
-colder and there generally the rivers are frozen for months, 
it is said that Gensan District which is in the north is colder 
hy ten degrees than Jinsen and other southern districts. Be- 
tween October and May it has generally the North or the West 
wind whilst it has the south wind generally prevails during 
June, July and August. The rain fall is almost entirely in 
^summer and the snow fall is in winter. The annual average 
of rain or snow fall is said to be about 1,000 millimetre in the 
south-eastern district and Fugan district which is on the west- 
ern coast and Gensan which is situated on the north-eastern 
coast about 1,400 millimetre whilst in the northern plateau 
about 600 millimetre. 

For a long time the erroneous idea about the climate of 
Korea prevailed amongst the outsiders. By them its cold and 
jheat had been exaggerate^ to the extreme, and it was carelessly ;| 
presumed that the country was not fit for agriculture from its 
scarcity of rainfall. Nothing however could be farther from 
ihe truth than these wrong notions about the Korean climate. 

58 




03 



O 

o 
o 



a 

re 



tD 

§ 



In fact, the climate in certain parts of Korea is much better, 
and certainly it is far more suitable to agricultural purposes, 
than that of Japan. 

The population of Korea, at the end of December, 1918, was 
found to have been 17,057,032 persons, in 3,237,961 families. 
These may be subdivided into the following figures : 

Koreans : 16,697,017 persons in 3,139,140 families; 

Japanese: 336,872 persons in 93,626 families; 

Foreigners : 23,143 persons in 5,195 families. 

The density of population is less than 190 persons per square 
mile. Korea, therefore, may be said to have plenty room for 
the increased of population provided that the land-production 
is increased by means of agricultural improvement as well as 
industrial development. 



CHAPTER 11. 

INDUSTRIES IN KOREA. 

Strictly speaking the industries in Korea at present may 
be divided into two classes; Primitive industries and Modern 
iactory industries. To the former class belong the agricultural 
industry, stock-farming, forestry, mining industry and aquatic 
products industry, whilst to the later belong Gas, Electric and 
other modern factories. 

1. The Agricultural Industy in Korea. 

Korea has been an agricultural country. In the southern 
part of the country the climate is mild and good throughout the 
year. Even in winter, cold as it is, the wheat grows fairly well 
in the south. There is no fear of freezing, whilst in April it 
I becomes warm suddenly and the air gets gradually dry. So 
that the agricultural products in the south are reputed to be 
on the whole of good quality. With the completion of the 
irrigation system the area of the rice-field will be greatly in- 
creased, although the cultivation of rice at present is not so 

59 



successful as it should be owing to the scarcity of water in 
summer. 

It is Siaid that of all the arable lands in Korea about 7,930,- 
000 acres of land are under, cultivation already whilst about 
162,500 acres of land are not yet cultivated. Of this latter, about 
100,000 acres belong to the Government whilst the remaining 
62,500 acres are said to be of private possession. Almost all 
of these could eventually be made into a valuable rice field. 

Furthermore, there are a great number of dry beaches found 
along the Korean coast. Some of them are very big and wide 
and extend to several thousands acres in area. These could 
also be made very good land for cultivation if the necessary 
expenses be expended, which expenses big as they may be, will 
surely be paid back in time. 

Among the chief agricultural products of Korea, rice, beans, 
barely, cotton, tobacco and ginsan, etc., may be mentioned. 

2. Stock-farming. 

Stock-farming has been more |jrosperoiis in Korea than it 
was in Japan. As a result, the country is comparatively rich 
in stpck-lives such as the cattle, the horse, the donkey and the 
swine. 

The cattle in Korea are comparatively big and strong and 
are very tame and quiet. They are used in many ways. The 
horses are small but they are pretty strong and active and are 
very useful not only as a beast of burden but also as a carrier 
of man and woman. The donkies are also used as beasts of 
burdens but they are not many in number nor very strong. 

Among the live-stocks in Korea, the rearing of cattle is a 
most promising one. Kankyo Nando, Kankyo Hokudo, Heian 
Nando, Heian Hokudo, Keisho Nando and Keisho Hokudo are 
well known homes of the cattle. 

In fact, the cattle breeding occupies an important place in 
stock farming in Korea since the cattle form the principal mer- 
chandise of a Korean market. 

There is, however, much room for improvement in methods 
of breeding. 

60 



3. Forestry. 

Forestry seems to have a great future in Korea. In fact, 
the work of forest planting is now being carried out by many 
large corporations such as Messrs. l^itsui & Company, the Fusan 
Schools Corporation, The Korean Noblemen's Forestry Associa- 
tion, The Kawasaki Experimental Farm, besides the Oriental 
Development Company, Ltd., whilst very many individuals in 
different localities have begun the steady work of afforestation 
within their means. Among the trees planted and which grow 
comparatively rapidly, the quasi-Accacia, the red-pine, the 
poplar, the chestnut tree and the tree known as quer'cus 
glanduli'fera may be mentioned. 

4. The Mining Inhustry. 

The mining industry in Korea is also a promising one. 
The chief mineral products are gold, silver, copper, iron, mer- 
cury, zinc, lead, black-lead, coal, etc. 

The annual product of gold amounts to ¥10,000,000 at least. 
The gold mine at Unzan alone produces annually about 
¥3,500,000 whilst that of Suian amount ¥2,000,000. Next to the 
gold mines come the iron mines, a great quantity of brown iron 
ore is produced whilst red iron ore from the iron mine at 
Angaku is well known. 

The magnetic iron ore is found in several iron mines but 
the quantity is said to be limited. 

5. The Acquatic Industy. 

The coast line of the Korean peninsula including its islands 
reaches 9,300 knots in length. Along the Eastern coast the sea 
is deep and the coast has very little difference of tide and it is 
touched by the cold stream from the sea of Okotsuku. Thus 
the cod-fish, the herring and many other cold stream fish are 
found off the eastern coast. On the other hand, the warm stream 
touches the western coast and this brings the turbot, the fish 
called cybium Niphonium (Sawara) and many other warm 
stream fish to the sea along the coast of Fusan and Moppo. 

61 



The Korean coast from Moppo in the south to the mouth of 
the Yalu River in the northwest is washed by the Yellow sea. 
The coast is indented by many small inlets whilst it has man^^ 
isles dotted along the sea coast besides it has sounds and deltasjl 
The sea is comparatively shallow, the deepest of the Yellow sea 
being 50 fathoms. Even in winter time the warm stream brings 
to this coast the warm stream fish and keeps rthe fishermen 
very busy all through the year. Moreover,, small islands scat- 
tered off the south-western coast give the aquatic animals a 
shelter for the development and fostering of their kinds. Amongi 
the fish, the sea-bream, the sea-bass, the turbot, the cod-fish, 
the herring, the sardine, the makerel, the bonito, the shark, 
cybium Niphonium, the white-bait and the devil fish are very 
common whilst some of the sea animals such as the dolphin, 
the seal and the fur-seal are found off the North-eastern coast 
of Korea. The edible sea-weeds such as the larba and the 
tangic are also found in plenty. 

In the year 1909, the whole income enjoyed by the people 
was estimated to have been ¥7,240,000 of which ¥3,690,000 by 
the Koreans and ¥3,550,000 fey the Japanese, but in 1917 the 
whole income amounted to ¥32,860,000, ©f which ¥14,670,000 
was earned by the Koreans themselves whilst the remaining/ 
¥18,190,000 \)j the-J'apanese. 



CHAPTER HI,. 

PROGRESS OF THE MODERN MANUFACTURING 
INDUSTRY IN KOREA. 

^ It is very fair and just to say that the modern manufactur- 
ing industry had made very little progress in Korea previous to 
the time when the country was incorporated into Japan in^ 1908; 
But no sooner had order and peace been established than larger' 
investments began to be made in the agricultural and mining' 
industries as well as other industrial work in the peninsula. 
Moreover, the cheapness oMabour at the time naturally at- 
tralcted the attention of the enterprising capitalists; and a large* 

62 



amount of capital began to flow into the country. Thus the 
modern manufacturing industry took its rise in Korea and at 
present it is making good and steady progress whereas the sys- 
tem of banking organization is being completed for the purpose 
of giving facility to the development of the country. 

At the end of 1917 there were 47 manufacturing companies, 
with ¥5,863,000 of paid-up capital whereas at the end of 1918 
[there were 66 of those with ¥7,885,000 of paid-up capital besides, 
14 Gas and Electric companies with ¥1,370,000 of paid-up capi- 
tal. The capital of those eighty or more companies is said to< 
amount over ¥40,000,000 but the number of the Companies a& 
well as the amount of the capital is ever on the increase. 

The number of factories in Korea and the amount of paid-. 
up capital and the annual output of production estimated for 
the last 7 years (1911-1917) may be tabulated as under : 



Year 


Factory 
Number 


Index N. 


Capital 


Index N. 


Operatives 


Index N. 


Output 
estimate 


Index 

.N, 


1911 


252 


100 


¥10,613,000 


100 


14,575 


100 


¥19,639,000 


100 


[ 1912 


328 


130 


13,121,000 


125 


17,376 


119 


29,362,000 


150 


1913 


532 


211 


17,478,000 


165 


21,032 


144 


36,066,000 


184 


' 1914 


654 


260 


17,371.000 


164 


20,963 


144 


32,754,000 


167 


1915 


782 


310 


21,113,000 


199 


24,539 


168 


45,931,000 


234 


1916 


1,075 


427 


24,613,000 


232 


38,646 


265 


59,026,000 


300 


1917 


1,358 


589 


39,038,000 


368 


41,543 


285 


98,972,000 


504 



These figures show how rapid is the progress of the manu- 
facturing industry in Korea. During these 7 years the number- 
of factories was increased nearly six times with average annual- 
addition of 157 factories whilst the number of operatives was 
almost trebled. Moreover, it is said that the number of the. 
power engines used was 619 at the end of 1917, which had been 
only 149 in 1911. This is about fourfold. In 1911, the capital 
amounted to ¥10,613,000. But this was increased to ¥39,038,000* 
in 1917. This is more than three and half fold whilst the annual 
production was increased with leaps and bounds fiom 
¥1&,6S9,000 in 1911 to ¥98,932,000 in 1917. This is more than 
five times increase. But the year 1918 witnessed a still greater 
progress. The number of factories reached to 1700 with 46,749 

63. 



operatives, whilst the amount of capital was ¥48,309,000 with 
an output of an annual production amounting to ¥156,801,000. 
From these facts it will not be very difficult for any one to 
-form a correct opinion concerning the future progress and deve- 
lopment of industry in Korea. Indeed, the prospect of the 
TQanufacturing industry in Korea is as bright as that of the 
agriculture. It is also said that the introduction of some new 
schemes and plans are now under consideration which no doubt 
-will promote the industrial progress still greater when executed. 



CHAPTER IV. 

CURRENCY AND BANKING. 

In August, 1910, the Japanese currency was introduced" into 
:Korea so that the whole Empire might come to use gradually one 
-^nd the same unified currency. With this object in view the coins 
issued under the old regime were allowed only to be circulated- 
until the end of December, 1920. But at present, the bank note 
"issued by the Bank of Chosen are the chief medium of circula- 
tion. The volume ot coins in circulation for the last four years 
:inay be tabulated as under : 





Rough Estimate of Coins in circulation. 




Year 


Gold 


Subsidiary 
coin 


I^ew coin issued 
by the old Korean 
' Government 


Bank Note 

ol the Bank of 

Japan 


Bank Note 

of the Bank of 

Chosen 


Sum total - 


1916 
1917 
1918 
1919 


5 5,000 
3,000 
3,000 
3,000 


« v5,352,000 
5,848,000 

' , '8,247,000 
8,958,000 


¥ 1.193,000 
1,905,000 
1,905.000 
1,905,000 


S 132,000 

366,000 
160,000 
215,000 


¥ 46,627,000 
60,910,000 
93,175,000 
80,056,000 


S 54,030,000 

69,034,000 

103,491,000 

91,138,000 



MONEY MARKET IN KOREA. 

(1) Banking Organ : It goes without saying that the 
Bank of Chosen is the centre of all the Banking organs in Korea, 
The Oriental Development Company's Banking Department as 
well as the Agricultural and Industrial Bank of Chosen serves 

^4 



as the Banking organ of industry whilst 19 banks (of which 16 
have their head offices in Korea, the rest in Japan) do the 
work of the Commercial Banking organs besides 340 small local 
banking associations which are doing the service of a banking 
organ for the smaller amount but wider in circulation. 

(2) Rate of interest : The rate of interest used to be very- 
high in Korea. This natujally hindered the industrial develop- 
ment of the country very much. The agricultural and indus- 
trial banks and small lo_cal banking associations were started 
by the Government in almost all towns and large villages so 
that the rate of interest might be lowered. Besides, in Nov., 
1911, the Law against usury was issued and enforced and the 
maximum rate of interest was fixed to be less than 30 per cent. 
Furthermore, The Bank of Chosen ever since its establishment 
has been endeavouring to lower the rate of interest in Korea 
giving guidance to the money market in Korea. As a result, 
in 1909, the average interest was at the rate of 4 sen 8 rin i)er 
diem but it was gradually on the descendant and in 1915 it was 
at the rate of 3 sen 6 rin per diem whilst in December, 1918 it 
was at the rate of 3 sen 2 rin per diem. 



CHAPTER V. 

THE SYSTEM OF COMMUNCATION IN KOREA. 
I. Railway in Korea. 

The trunk line of the State owned Railway tr avers the 
peninsula from one end to the other. This railway line piac- 
tically consists of two main lines which are known as the Keitu 
Line and the Keigi Line. The former line starts from Fusan and 
reaches Keijo, the capital of Korea, whilst the latter starts from 
Keijo and reaches Shin Gishu, which is the terminus of the 
line. This line, however, crossing the Yalu River by the Sail- 
way Bridge into the Chinese territory joins the South Man- 
Note : 5 sen consists of 50 rin which corresponds to^one tenth I of 'one shilling. So 4 sen 8 rin is a 

little more than a penny. 

65 



churian Railway. This trunk line, therefore, is practically 
running between Fusan, the sea port town on the south-eastern 
coast, and Antuhg, a town on the Chinese side of the Yalu 
River. The main line only is 592 miles long, whereas it has 
two branch lines worth mentioning which amount to over 300 
miles in all. These branch lines are; 1st, the Konan Line, which 
starts from-Taiden, a station on the Keifu Railway Line and 
reaches Moppo. The whole line is 176 miles long ; and the 2nd, 
the Keigen Line, which starts from Ryusan, a station on the 
Keifu Line and' reaches Gensan. Besides these branch lines 
there is a new line under construption which is going to run 
between Gensan and Kainei, 30 miles of which is already open- 
ed for traffic. Including all short branch lines, the whole rail- 
way line in Korea amounts to 1,100 miles in all. 

A light railway and tram way in Korea amounted to 1,197 
miles at the end of September, 1919. Of this 272 miles arfl 
already opened 'for traffic. The Government encourages the 
laying of light railways by granting a certain amounts of sub- 
sidies and there are at present several light railway companies 
organized. , 

11. The Condition of Roads in Korea. 

As a rule, all the roads in Korea were narrow and very 
rugged. In. old days the overland transportation was gene- 
rally done on the backs of men and beast. In 1911, the Govern- 
ment set up a new scheme for the construction of improved 
roads all over the country. According to this scheme, 96 lines 
of new roads, amounting to 3142 miles long in all, have to be 
constmcted. Of which 685 miles long were completed in March, 
1918. These new roads are all wide and are good enough for 
motor cars. The remaining part are now in course of con- 
struction. 

III. The Condition of Transportation by Sea. 

Korea had no good harbours or sea ports worth mention- 
ing except a few new open ports. Even these few ports are 

m 



nothing but. natural inlets or bays used for loading and unload- 
ing small junks. Steam ships of good size had to cast anchor 
few miles off the coast. 

In 1906 for the first time the Japanese Government began 
to look after the affairs of Korea; and during this very year, 
the construction or reconstruction of the harbour and the im- 
provement of the sea ports were started by the Government. 
Old ports of Jinsen, Fusan, Chinnanpo, Gunsan, Moppo, Keijo 
and Gensan have begun to be greatly improved. In 1910, the 
reconstruction of the four last named ports were nearly com- 
pleted. But to complete more thoroughly these first named 
ports Jinsen, Fusan and Chinnanpo — it was found that another 
eight years or more would be needed whilst its expenditure was 
estimated to be ¥8,270,000. In the year 1915, however, Gensan 
had to be enlarged, whilst in 1917 again, the original scheme 
of Jinsen harbour had to be greatly altered and to be done on 
a larger scale. Thus the Government will have to spend about 
¥12,130,000 in all by the time when almost all these ports are 
completed. Only a small part of Jinsen harbour and that of 
Kensan are not yet completed. Needless to say that after the 
further completion of the harbours and ports along the coast of 
Korea not only they will facilitate the communication of the 
country by sea and land but also will contribute to the deve- 
lopment of industry and commerce. So far the poHcy follow- 
ed by the Government for the improvement of the ports being 
successful, the number of ships increased tremendously in 
course of past 9 years. The recent statistics show that the 
number of vessels was increased fifty three times whereas in 
the tohnage it was increased tenfold. 




67