37 Establishment of the Mitsui’s House Constitution

Establishment of the Mitsui’s House Constitution

To address the modernization of Japanese society following the Meiji Restoration, particularly the establishment of a modern legal system and changes in people’s attitudes, a new supreme code for the Mitsui Family-the Mitsui’s House Constitution-became necessary to replace the Sochiku Isho, which had guided the Mitsui family since the 18th century. During the reorganization of various Mitsui enterprises in the 1890s, Inoue Kaoru (→Fig. 37c) was a strong advocate for the need for a Mitsui’s House Constitution, and full-scale deliberations began around 1898. Drafts were prepared by Tsuzuki Keiroku (a diplomat and stepson of Inoue Kaoru) and Hozumi Nobushige (a legal scholar), and after a series of reviews by family members and executives, a formal document consisting of 109 articles was completed in 1900.

On July 1, 1900, a dedication ceremony to mark the execution of the Mitsui’s House Constitution was held at the Mitsui assembly hall. The heads of the 11 Mitsui families signed an “agreement upon the establishment of the Mitsui’s House Constitution,” confirming the effectiveness of the Mitsui’s House Constitution among those families. The agreement was also signed by Inoue Kaoru, Mitsui Takashige (retired from the Isarago family), Mitsui Takatoki (retired from the Shinmachi family) and Tsuzuki Keiroku, as witnesses. At the same time, the “act for the enactment of the Mitsui’s House Constitution” and the “regulations of the Family Meeting secretariat” were also established.

Extent of the “Family”

Article 1 of the Mitsui’s House Constitution defines the “Family” as follows: “The Mitsui Family shall refer collectively to the eleven Mitsui families, which include the descendants of the ancestor Mitsui Takatoshi, especially those families that have been included in the family lineage according to the family system.” (See above historical document.) Further, in Article 6 it limits the extent of the Mitsui Family, fixing it at 11 families and noting that, “Based on ancestral legacy, this House Constitution establishes the Mitsui Family as an unchanging entity, and prohibits the dissolution of the Family or departures from the Family regardless of future events, and further does not permit the addition of other families to the Family.”

Obligations of the Families and Rules Regarding their Actions

Under the Mitsui’s House Constitution, obligations of the families included the expectation that Family members should work together in the spirit of unity and cooperation, maintain the Family tradition of frugality, and should engage in business at each of the Family’s branches of operation. They were prohibited from joining political parties, openly involving themselves in politics, incurring debt or acting as guarantor for the debts of others. Engaging or investing in commerce or industry, becoming an executive or employee of companies unrelated to Mitsui, and assuming government or public service positions, among other activities, required the approval of the Family Meeting.

Property

The Mitsui’s House Constitution also established detailed rules regarding Family property. That property was divided into business assets, joint assets, and family assets. Business assets included assets invested in Mitsui Family businesses and operating reserves. Joint assets included, among others, those designated for assisting Family households in times of disaster, for covering joint temporary Family liabilities, and for preparing for increases in operating assets. Business assets and joint Family assets were to be managed as shared property of the Mitsui Family under the control of the Mitsui Family Meeting (→38). Other property held by the families was considered family assets, and use of those assets was left to the discretion of each family.

It was mandatory for each business branch to allocate profits to the Family’s reserve fund (joint assets) and to each family’s reserve fund. Those reserve funds were managed by the Family Meeting and expenditures could only be made with the approval of the Family Meeting. The Family’s assets and revenues were thus structured to come under strict regulation by the Family Meeting.

Maintaining the Shared Property System

One important objective in establishing the Mitsui’s House Constitution was to maintain the shared property system in place since early modern times, at a time when the development of modern legal systems based on individualism was progressing and the attitudes of the Family itself were gradually changing. The Mitsui’s House Constitution contains no explicit article openly calling for a shared property system. That said, in the provisions regarding sanctions, it was stipulated that in the event of expulsion from the Family, the expelled party’s share of business assets and joint Family assets would be confiscated as a penalty, thereby attempting to avoid the division of shared property.

Further, Article 14 stipulates that, “No disputes between family members should be brought to court. In the event of such disputes, the parties should first seek arbitration by a mediator designated by the Family Meeting. This was intended to restrict the exercise of individual (or individual family) rights as provided for under the modern legal system, including the division of property.

Inoue Kaoru, Mitsui Family Advisor

Inoue Kaoru, who had taken the lead throughout the establishment of the Mitsui’s House Constitution, had a lifetime position as advisor to the Mitsui Family in accordance with the Act for Enactment of the Mitsui’s House Constitution, and was tasked with overseeing both family members and executives to ensure their adherence to the Mitsui’s House Constitution. In the preamble to this Act, it states that, “Count Inoue Kaoru averted crises for the Mitsui Family in 1874 and 1891, helping to restore its declining fortunes and contributing to building its current prosperity.” It is thus evident that Inoue played a critical role in helping the Mitsui Family overcome crises during the early Meiji period.

Established as the supreme code for the Mitsui Family, replacing the Sochiku Isho (→09), the Mitsui’s House Constitution was enacted on July 1, 1900. It continued to exist after World War II, undergoing several revisions, until a decision was made to abolish it at a meeting of the Mitsui Family Meeting on July 16, 1946 (→49). A major revision took place in 1904, as the administrative functions of the Mitsui Family Meeting secretariat were being strengthened. At the time, articles pertaining to the Mitsui Branch Executive Committee were entirely removed. Further revisions were enacted in 1909 as needed to align with the establishment of Mitsui Gomei Kaisha (Mitsui Partnership Company) (→38). The Mitsui’s House Constitution was kept strictly confidential; its full contents became known to the public only after the war. The above historical document is an original copy handed down through the Mitsui Family Meeting, with revisions made after its enactment added in red (and in some cases, black) ink.

A Marquis and one of the elder statesmen of the Meiji era. He held various key positions, including Minister of Foreign Affairs, Minister of Finance, and Minister of Home Affairs, and had a strong influence on the financial world. In 1873, during a brief period when he was out of office, he established Senshu Kaisha (→30), which would become the predecessor to Mitsui Bussan. This photo was taken from Segai Inoue-ko Den (a biography of Inoue).