Iwasaki Yataro

Yataro Iwasaki (岩崎 弥太郎 "Iwasaki Yatarō", January 9 1835–February 7 1885) was a Japanese financier and shipping industrialist, and the founder of Mitsubishi.

Early life and the beginning of his career

He was born in a provincial farming family in Aki, Tosa province (now Kochi prefecture), the great grandson of the man who had sold his family's samurai status in obligation of debts. The son of a provincial farmer, Yataro began his career in the employ of the Tosa clan. The clan held business interests in many parts of Japan, which whetted the young man's ambition.

Yataro began his career working in the employ of the Tosa clan, he left for Edo (now Tokyo) aged nineteen in search of an education to further his ambitions. The serious injury of his father in a dispute with the village headman brought him home from Edo a year later and briefly interrupted his studies. The local magistrate refused to hear his case and Yataro accused him of corruption. He was sent to prison for seven months. After his release he was without a job for a time before finding work as a village school teacher.

Returning to Edo, he socialised with political activists and studied under the reformist Toyo Yoshida, who influenced him with ideas about opening and developing the then-closed nation through industry and foreign trade. Soon, through Yoshida, he found work as a clerk for the Tosa government, and bought back the family's samurai status with the wages he saved. He was later promoted to the top position at the Tosa clan's trading office in Nagasaki, responsible for trading camphor oil and paper to buy ships, weapons, and ammunition.

Following the Meiji Restoration in 1868 which forced the disbandment of the shogunate's business interests, Iwasaki travelled to Osaka and leased the trading rights for the Tosa clan's Tsukumo Trading Company. The company changed its name to Mitsubishi in 1873.

Mitsubishi

The company adopted the name Mitsubishi in March 1870, when Yataro became president officially. The name Mitsubishi is a compound of "mitsu" ("three") and "hishi" (literally, "water chestnut", often used in Japanese to denote a diamond or rhombus). Its emblem was a combination of the Iwasaki family crest and the oak-leaf crest of the Yamanouchi family, leaders of the Tosa clan which controlled the part of Shikoku where Yataro was born.

Mitsubishi was later almost on its feet when the Formosan Incident occurred. Fifty-four Japanese fishermen died on the island of Formosa (China) but the Chinese government didn't take responsibility. Yataro's company was initially blamed for that but later things got better and Yataro even won the right to operate the government ships and the transportation of men and material and his company began to flourish again.

Yataro Iwasaki was dutiful to the new Japanese government, as well as to his company. Mitsubishi provided the ships that carried Japanese troops to Taiwan. That earned him more ships and a large annual subsidy from the government. He agreed, in turn, to carry mail and other government supplies. With government support, he was able to purchase more ships and increase Mitsubishi's shipping lines. That helped him drive two large foreign shippers out of the lucrative Shanghai route through the Mitsubishi Transportation Company which Yataro founded. Later the now-giant shipping company also carried troops to put down a rebellion in Kyushu. Yataro taught his subordinates to "worship the passengers" because they were sources of revenue. The modern attitude of "the customer is always right" was the major weapon of his company.

Mitsubishi diversified rapidly, first acquiring extra ships and expanding its passenger and freight services, later providing transportation for Japanese troops to Taiwan and Kyūshū. This led to more government support, leading to mail supply contracts and further shipping rights on the lucrative Shanghai route through the Mitsubishi Transportation Company which Yataro founded. Subsequently he invested in mining, ship repair and documentary finance. In 1884 he took a lease of the Nagasaki Shipyard and renamed it Nagasaki Shipyard & Machinery Works, allowing the company to undertake shipbuilding on a full-scale.

In 1885, Yataro lost control of his shipping company in the wake of a political struggle that had buffeted Japan's marine transport industry. The company merged with a rival and became Nippon Yusen (NYK Line), which would return to the ranks of the Mitsubishi companies in later years.

Though Yataro lost his shipping company, he established other businesses (in banking, mining, newspapers and marine insurance) and that formed the foundation for the Mitsubishi organization. His wealth exceeded one million yen. Yataro was so confident of his power that he could allow himself to participate in many businesses. Mitsubishi Kawase-ten, for example, was a financial exchange house that also engaged in warehousing business. It was the forerunner of today's Mitsubishi Bank and Mitsubishi Warehouse & Transportation. Yataro had also purchased a coal mine and a copper mine and had leased a Nagasaki shipyard from the government. He had participated in establishing the insurance company that now is Tokyo Marine and Fire. He even headed up the school that became the Tokyo University of Mercantile Marine.

Iwasaki Yataro was a very visionary businessman. He often gave dinners in the company of dignitaries. Iwasaki spent a huge amount of money on these occasions but he also gained a lot. Yataro made many friends who later helped him by doing many favors. He was very good at cultivating business connections which would help him in the future.

Yataro, however, was not destined to lead the Mitsubishi organization in its new phase of growth. He died of stomach cancer aged 50, and was succeeded at the helm of the family business first by his brother, and later his son.

ee also

* Thomas Glover

References

* [http://www.mitsubishi.or.jp/e/h/feature1/intr_sph.html "The Man Who Started It All"] , Mitsubishi.or.jp
* [http://www.mhi-ir.jp/shokai/history_e.html "The origin of MHI can be traced all the way back to 1884"] , MHI-ir.jp
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* [http://www.mitsubishi.com/e/group/mark.html "The Mitsubishi Mark"] , Mitsubishi.com