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03 — A Hagi network outside politics

From uncle to nephew,
from nephew to brother-in-law.

Behind the loyalists who formed the core of the Meiji government, a family with ties to Hagi was quietly building the very lineage of Japan's heavy industry. Fujita Denzaburo, who made his fortune in Osaka. His nephew Kuhara Fusanosuke, who founded the Hitachi mine. And Kuhara's brother-in-law Ayukawa Yoshisuke, who inherited the business and grew it into the Nissan konzern. We trace three industrialists joined by blood.

The big picture first

One family's lineage, three companies

Detailed biographies follow below, one by one. First, an overview of how the three men are connected.

Fujita Denzaburo1841–1912 / born in Hagi
Uncle and nephew
Kuhara Fusanosuke1869–1965 / born in Hagi
Brothers-in-law (Kuhara's wife Kiyo was Ayukawa's sister)
Ayukawa Yoshisuke1880–1967 / born in Yamaguchi, from a Hagi-domain samurai family
→ Fujita Kanko → Hitachi, Ltd. → Nissan (Nissan Konzern)
Portrait of Fujita Denzaburo
1841 – 1912 (died at 71)

Fujita Denzaburo

Founder of the Fujita zaibatsu / born in Minamikatakawa-cho, Hagi castle town

Fujita Denzaburo was born into a family of sake brewers and soy sauce makers in Hagi. From a young age he mingled with loyalist activists of the sonno joi (revere the emperor, expel the barbarians) movement alongside the family trade, and helped fund their activities. Around 1869, after the Meiji Restoration, he moved to Osaka, where he began building his fortune supplying military boots and blankets. In 1877, the business he had founded in Osaka grew into "Fujita-gumi," expanding into mining, civil engineering and construction, textiles, and more, eventually becoming a zaibatsu (the Fujita zaibatsu) spoken of in the same breath as Mitsui and Mitsubishi.

Fujita Denzaburo
(Fujita zaibatsu, from 1877)
Fujita Kogyo Tourism division spun off independently (1955) Fujita Kanko

Today's Fujita Kanko (operator of the Chinzanso and Hakone Kowakien resorts, among others) was not a company founded by Fujita Denzaburo himself, but rather emerged in 1955 when the tourism division of Fujita Kogyo — the successor to the Fujita zaibatsu he built — became independent. Fujita Kanko can be said to stand atop the "lineage" of wealth built by an industrialist from Hagi.

Portrait of Kuhara Fusanosuke
1869 – 1965 (died at 95)

Kuhara Fusanosuke

Founder of the Hitachi mine / born in Hagi, nephew of Fujita Denzaburo

Kuhara Fusanosuke was born in Hagi, the son of Kuhara Shozaburo, Fujita Denzaburo's elder brother — making Denzaburo his uncle. He joined his uncle's company, Fujita-gumi, at a young age and made his name in the practical side of mine management, before striking out on his own in 1905. He bought the Akazawa copper mine in Ibaraki Prefecture and renamed it the "Hitachi mine," launching it as his own enterprise. Through the introduction of modern mining and smelting technology, the Hitachi mine rapidly grew into one of Japan's leading copper mines.

The birth of Hitachi, Ltd.: The Hitachi mine included a division responsible for repairing mining equipment. Working there as an engineer was Kodaira Namihei, a native of Tochigi Prefecture. Kodaira grew the repair division into an electrical machinery manufacturer, establishing a factory in 1910 and, in 1912, spinning it off as "Kuhara Mining's Hitachi, Ltd." There is no question that Kodaira Namihei is the man who built Hitachi, Ltd. as a corporation — but the Hitachi mine itself, the stage on which that happened, was founded by Kuhara Fusanosuke, a native of Hagi. Hitachi can be said to have emerged from the combination of these two engineers and businessmen, from two very different hometowns.

In 1928, Kuhara handed management of the business to his brother-in-law Ayukawa Yoshisuke, and himself turned to politics, later serving as Minister of Communications, among other posts.

Portrait of Ayukawa Yoshisuke
1880 – 1967 (died at 87)

Ayukawa Yoshisuke

Founder of the Nissan konzern / born in Oichi village, Yoshiki District, Yamaguchi Prefecture (present-day Yamaguchi City), from a family of Hagi-domain samurai

Ayukawa Yoshisuke was not born within Hagi's castle town itself, but his family had served Hagi Domain as samurai for generations, and his mother was a niece of Inoue Kaoru, one of the Choshu Five. After studying mechanical engineering at Tokyo Imperial University, he founded the casting company Tobata Imono, establishing himself as a businessman. When his younger sister Kiyo married Kuhara Fusanosuke, the two became brothers-in-law, and in 1928, as Kuhara turned to politics, management of Kuhara Mining was entrusted to him.

Ayukawa reorganized the company as "Nihon Sangyo Co., Ltd." (Nissan), rapidly growing it through his own method of listing subsidiaries' shares one after another to raise capital. Hitachi, Ltd. became one of the core companies of the Nissan konzern under this structure, and expanded further under Ayukawa's leadership. In 1933 he founded Nissan Motor, and also brought under his umbrella Nippon Suisan (a fisheries company) and Nippon Chikuonki Shokai (a record company in the lineage of today's Columbia and Victor labels), building in a single generation the "Nissan Konzern," one of the leading new zaibatsu of prewar Japan.

Kuhara Mining Nihon Sangyo (Nissan, from 1928) Nissan Konzern Nissan Motor, Hitachi, and others

Why did industrialists emerge from Hagi?

A domain in crisis, and a family's business acumen

At the end of the shogunate, Hagi Domain fell into serious financial distress from war indemnities and military expansion. For samurai, understanding the practical workings of finance and commerce had become directly tied to the domain's very survival. Just as Fujita Denzaburo's family ran a sake and soy sauce brewing business, a practical sense for finance and trade had taken root among both the samurai and merchant classes of Hagi. That sense was passed down by blood to his nephew Kuhara Fusanosuke, and by marriage to his brother-in-law Ayukawa Yoshisuke, shaping across three generations the skeleton of Japan's heavy industry — mining, electrical machinery, automobiles. While many loyalists went on to careers in central government after the Restoration, it was surely no coincidence that this particular family found its path in the world of business instead.

Next

What remained in the town they left behind

While talented people left one after another for the capital or for Osaka, the castle town of Hagi itself changed hardly at all, for a surprising reason.

Read the story of the old townscape →
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