Masaya Suzuki : Part 2

Author: Teruaki Sueoka

Interviewing prospective recruits

It was the custom of Director-General Masaya Suzuki, accompanied by other executives, to participate in the interviews of prospective recruits, carefully appraising each candidate. An interview with a student applicant might take a couple of hours. Suzuki and members of his executive team would leave the Osaka Head Office to conduct interviews in Tokyo, staying in the capital for a week or so. One employee voiced concern that the time spent by the director-general and other executives in interviewing candidates might result in delay in attending to business, causing Sumitomo to lose business opportunities and suffer damage. Suzuki responded, “Any negative impact would be temporary and inconsequential, whereas the loss resulting from the failure to recruit a single outstandingly talented individual could never be made good.”

The courtesy and consideration Suzuki extended to candidates during the hiring process were noteworthy. Tadayoshi Obata—a graduate of Tokyo Imperial University who went on to become a director of Sumitomo Electric Industries and subsequently served as deputy director of the Cabinet Planning Board—received a letter from Director-General Suzuki dated November 15, 1916 offering him employment. Assuming the letter was written on the director-general’s behalf, Obata paid no special attention to it. But after Suzuki’s death Obata noticed it was indeed written by Suzuki and regretted not having realized this while Suzuki was alive. This letter, in Suzuki’s own hand, expresses his desire to treat Obata with the utmost courteousness in welcoming him to Sumitomo.

Masaya Suzuki(晩年)
Masaya Suzuki toward the end of his life

Fostering capable people

Letter written by Masaya Suzuki
Letter written by Masaya Suzuki dated November 15, 1916
Tadayoshi Obata framed this letter and displayed it in his study in memory of Suzuki’s virtue.

Suzuki had the Head Office handle the recruitment of all new Sumitomo employees. Reflecting their preferences, new employees were assigned to Sumitomo Besshi Mine, Sumitomo Copper Works, Sumitomo Casting Works, Sumitomo Electric Wire & Cable Works, Sumitomo Bank, and so on. Regardless of the enterprises to which they were assigned, whether at the Head Office or other organizations, a uniform system of remuneration and benefits was applied to all new employees.

In November 1918, Suzuki built the Neisei Dormitory, company quarters for unmarried employees, at Unagidani in Osaka where Sumitomo family’s main residence had once stood. Suzuki’s commitment to fostering capable people who would be the future leaders of Sumitomo is evident in the name of the dormitory, coined by Suzuki, which alludes to the maxim “Tranquility yields transcendence” in The Three Kingdoms, a 14th century Chinese romance. Based on his conviction that “business ought to endeavor to serve the nation and work for the benefit of humanity,” Suzuki recognized the need to recruit talented young people, develop their capabilities, and give them opportunities to apply those capabilities to the maximum extent. Suzuki sometimes stayed at the dormitory and engaged in heart-to-heart discussions with the young employees.

寧静寮にて寮員と共に
Third Director-General Masaya Suzuki (at center in the front row wearing a hat) with employees at the Neisei Dormitory in March 1919
Photo courtesy of Sumitomo Historical Archives

Inazo Nitobe, a professor of Tokyo Imperial University, who referred students to Sumitomo commented on Suzuki: “Masaya Suzuki, who is the director-general of the House of Sumitomo in Osaka, is unique in the business world of Japan. Our nation is truly fortunate to have such a man in the commercial realm and we should be thankful for this.”

Talented people gathered around Suzuki like stars revolving around the North Star

四阪島製錬所
Shisakajima Smelter with its tall chimney and utility poles early in the Showa era following a comprehensive refurbishment.
Photo courtesy of Sumitomo Historical Archives

Suzuki attracted talented people from diverse backgrounds who joined Sumitomo from the end of the Meiji era through the Taisho era. Among these people who had already made their mark in the world were Kinkichi Nakada (fourth director-general) from the Tokyo Court of Appeals (the present-day Tokyo High Court), Kankichi Yukawa (fifth director-general) from the Ministry of Communications, Masatsune Ogura (sixth director-general, subsequently Minister of Finance) from the Ministry of Home Affairs, and Komatsuchi Odaira (general manager of Besshi Mine Office, subsequently vice president of the South Manchuria Railway) from the Ministry of Agriculture and Commerce. Suzuki paid just as much attention to cultivating young men fresh from university who were taking their first steps in the world of work and went on to propel Sumitomo’s development, such as Jun Kawada (managing director of Sumitomo Head Office, subsequently a poet), Kageji Washio (managing director of Sumitomo Besshi Mine), Shunnosuke Furuta (seventh director-general), Keijiro Kitazawa (director of Sumitomo Head Office, subsequently president of Daimaru), Yoshio Tanaka (director of Sumitomo Head Office, subsequently chairman of the Board of Education of Osaka City), Shozaburo Kawai (director of Sumitomo Head Office, subsequently president of Osaka Building), and Tadayoshi Obata. Sumitomo alumni also included the architects Eikichi Hasebe and Kenzo Takekoshi (founders of the present-day Nikken Sekkei); Banri Ebara (professor of Tokyo Imperial University), Kokichi Kurosaki, and Tadao Yanaihara (president of The University of Tokyo), who were Christians and followers of the evangelist Kanzo Uchimura; and Karoku Hosokawa who subsequently became a member of the House of Councilors.

The Analects of Confucius states, “To rule by virtue is like the way the North Star rules, standing in its place with all the other stars revolving around it and paying court to it. “Like the North Star, Suzuki exerted a powerful attraction, causing people to gather around him.

Deploying people

Masatsune Ogura, who became the sixth director-general, commented on his experience of working under Masaya Suzuki: “Director-general Suzuki would give a subordinate meticulous instructions until he was confident of the individual’s capability. But once he had gained that confidence, he would wholeheartedly trust the individual, putting him completely in charge and letting him get on with the work without any interference.”

Komatsuchi Odaira, who was appointed general manager of Besshi Mine Office in May 1918, formulated a plan for the comprehensive refurbishment of Besshi Mine and Shisakajima Smelter, comprising 15 projects covering mining, concentration, smelting, transportation, ore trading, power transmission, and so on. There were objections to Odaira’s plan, particularly on account of the heavy investment totaling eight million yen and the laying of a 20-kilometer submarine cable, which would be the world’s longest, from Niihama to Shisakajima. Overruling the naysayers, Suzuki gave the green light for the projects based on his trust in Odaira, resulting in the revival of Besshi Mine.

When Kageji Washio was a non-managerial employee at Besshi Mine Office, he proposed measures to improve labor-management relations at Besshi but his direct superior rejected the proposal. Washio’s disappointment was short-lived because Suzuki not only adopted the proposal but also gave Washio the task of implementing it. Suzuki also supported Washio’s plan to open Jikyo-sha, a private school for mineworkers. In recalling his experience of working with Suzuki, Washio reached for a maxim: “A true gentleman will sacrifice his life for those who understand him.”

Meanwhile, the booming Japanese economy during World War I triggered a flurry of activity among business groups as they scrambled to establish trading companies from 1914 onward. Although several people within Sumitomo advocated setting up a trading company, Suzuki was opposed to the idea: “Establishing a trading company would be a premature move as Sumitomo has not fostered people specialized in trading.” As Suzuki foresaw, many companies suffered heavy blows as their trading companies went bankrupt in the aftermath of World War I. Sumitomo, without a trading company, was unscathed.

Establishment of a limited partnership and managerial system

住友総本店・合資会社ビル
Sumitomo General Head Office/Goshi Kaisha Building (Kitahama, Osaka)
Photo courtesy of Sumitomo Historical Archives

On February 26, 1921, Masaya Suzuki reorganized Sumitomo General Head Office, which was a private concern of Kichizaemon Sumitomo (the head of the Sumitomo family), into Sumitomo Goshi Kaisha (limited partnership) with capital of 150 million yen. Mitsui and Mitsubishi had already established Mitsui Gomei Kaisha (general partnership) and Mitsubishi Goshi Kaisha (limited partnership). Tadayoshi Obata who was involved in the reorganization wrote in his memoirs: “Neither Director-General Suzuki nor anyone else told us to use Mitsui or Mitsubishi as a model.” In fact, at other zaibatsu, managers (employees) were not permitted to be partners. At Sumitomo Goshi Kaisha, as well as the owner, managers were also partners. Specifically, Kichizaemon Sumitomo (the head of the Sumitomo family) and four cadet families contributed property (148 million yen and 2 million yen, respectively) while General-Director Masaya Suzuki and Directors Kinkichi Nakada and Kankichi Yukawa were working partners managing the business. Moreover, whereas the head of the Sumitomo family and the managers (Suzuki, Nakada, and Yukawa) were equal partners with unlimited liability, the heads of the cadet families were partners with limited liability having no voice in management.

住友吉左衞門友純とMasaya Suzuki・安子夫妻
Masaya Suzuki and his wife Yasuko with Kichizaemon Tomoito Sumitomo in 1919
Tomoito and Suzuki had a “water and fish relationship.”

Obata, who drafted the proposal of a limited partnership, was at first unsure about the feasibility and sought the opinion of Naoji Hidaka, the general manager of the Head Office, by asking this question: “According to the commercial code, business execution of a limited partnership shall be determined by a majority of the partners who have unlimited liability. Do you think my draft in which management has a majority of the voting rights is acceptable?” Hidaka answered: “The current head of the Sumitomo family and Director-General Suzuki have a ‘water and fish relationship’ (an allusion to a Chinese proverbial expression referring to a relation that is so close it can never be unraveled). Transition to a limited partnership would only be possible because of their close relationship. We must not miss this opportunity. Do you think it would be feasible to continue with the current structure in which there is one master and the rest are all servants?” Tomoito, the head of the Sumitomo family, had great confidence in Masaya Suzuki. In the Rules Governing the House of Sumitomo composed by Saihei Hirose, it is envisaged that the role of the head of the Sumitomo family is “to reign but not govern.” Suzuki definitively clarified this role and Sumitomo’s managerial system was instituted.

Retirement and legacy

In a letter dated November 29, 1920 addressed to Komatsuchi Odaira, Suzuki wrote: “I would like to have a lifelong relationship with Sumitomo and do my utmost to be of service.” While expressing his willingness to continue serving as director-general, Suzuki also wrote “Please give me a hint when you think I should step down,” as he did not wish to become overbearing. By then Suzuki had already served as director-general for 16 years since 1904 and was well aware that authoritarian management should be avoided. However, the relationship of trust with Tomoito, the head of the Sumitomo family, meant it was difficult for him to retire. In January 1921, Suzuki fell ill and told Tomoito of his desire to resign but persuaded to continue serving as director-general. He again fell ill in March 1922 and Suzuki’s resignation was accepted on December 5, 1922. In his letter of appreciation to Suzuki, Tomoito wrote that “You have greatly enhanced Sumitomo’s presence in Japan and overseas. The rejuvenation of the House of Sumitomo, which Saihei Hirose commenced, has been accomplished by you.” On reading Tomoito’s letter, Suzuki must have felt a glow of satisfaction. He passed away on December 25, 1922, at the age of 62.

Masaya Suzukiの墓所
Grave of Masaya Suzuki
A peaceful final resting place among the graves of his family in Takanabe Town, Miyazaki Prefecture

In a document titled “Appreciation of a wise man,” composed following Suzuki’s death, Jun Kawada expressed his thoughts and feelings about Suzuki: “‘People make the enterprise’ was a favorite maxim of Director-General Suzuki. For him, fostering Sumitomo employees was not an obligation but a delight. He was a man convinced that preparing capable successors and laying the foundation of the business were equally indispensable tasks.”

Almost a century after Masaya Suzuki passed away, his grave in his hometown of Takanabe, Miyazaki Prefecture, continues to be maintained by members of the Kyusenkai (association of Sumitomo Group companies in Miyazaki Prefecture and neighboring prefectures) in honor of his virtuous life.

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