Japan Railway & Transport Review No. 8 (pp.44–48)
Japanese Railway History 7 |
The Japanese economy achieved sharp growth in its heavy and chemical industries after WWI. Tokyo, Osaka and other big cities saw a marked concentration of wealth and population, leading to rapid expansion of urban areas. By the mid-1920s, the population of the Tokyo metropolitan area had already topped 4.1 million. It was against such a backdrop that railways in cities underwent both qualitative development as a means of urban transportation and rapid expansion of networks between the 1920s and early 1930s. |
Photo: Shinkeihan Railway Series D100 |
Formation of Urban Private Railway Management |
Private railway companies operating on the outskirts of Tokyo and Osaka attempted to diversify their management in order to stimulate passenger transportation demand. They looked at business areas closely related to urban life, such as development and sale of residential land along their lines, construction and operation of department stores and development of tourist sites along the routes as well as inducement of passengers to those sites. A typical example of systematic diversification was seen in the approach taken by Osaka's Hanshin Electric Express Railway (now Hankyu Corporation). The company initially developed and sold residential areas in the suburbs of Osaka with the aim of securing passengers for its first railway route. Then, it began running zoos, sports arenas, theatres and other amusement facilities. Furthermore, a business that started with a small-scale restaurant in its station building at Osaka, later grew, and, as station buildings were expanded and improved, shops increased. In 1929, the company eventually started operating Hankyu Department Store. All these developments, which served as a role model for diversification of private railway business management, were led by Ichizo Kobayashi, who had headed the company since its establishment. In Tokyo, Keita Goto, the president of Meguro Kamata Electric Railways (currently Tokyu Corporation), learned directly from Kobayashi about management methods and implemented them in his own company's diversification. One of the most characteristic aspects of Goto's approach was how the company attracted universities and other educational institutions originally located in the urban centres to areas along its railway routes. However, for a majority of operators, the railway business was still the mainstay of total revenues. It was only after WWII that the pattern of so-called Japanese-type urban private railways featuring diversified management took shape. |
Photo: Hankyu Umeda Railway Terminal before WWII |
Transportation inside Tokyo |
In late 1880s, when building of electric railways in Tokyo was planned, heated discussion took place as to whether the railways should be public or private. The private sector won the debate and three private operators, which initially took up the task, merged into a single organization in 1906. But this, in turn, was acquired by the municipal government of Tokyo in 1911 and came under public management. The total length of tram routes operated commercially by the Tokyo city government reached 140 km in the 1920s and peaked in the 1930s at 210 km. The maximum number of tramcars was 1,400 during the peak, and the average number of passengers each day passed 1.3 million. Thus, the electric trams in Tokyo were among the largest scale in the world. But the facilities were poor quality. Consequently, the trams went through management hardships during the 1920s. The first reason was the enormous demand for transportation in the city, causing difficulties in meeting demand. The tram railway was always preoccupied with increasing and reinforcing facilities aimed at securing quantity rather than quality. Second, since the municipally-operated transport business was limited to inside Tokyo due to administrative zoning, it could not keep pace with the changes taking place in the market structure as the Tokyo metropolitan area expanded to include neighbouring regions. The national railway in Tokyo also dealt a blow to trams because it was beginning to take on the functions of city transport. The third reason was that intervention by politicians forced the Tokyo municipal government to pay a high price to acquire the private railway company originally operating the tram railway. As a result, capital costs burdened its management. Further pressure on the city trams was caused by costs incurred to repair the tram railway, which suffered enormous damage in the Great Kanto Earthquake of 1923. No subsidies or loans were then extended by the national government for transport run by local government. |
Map: Suburban Tokyo Rail Network in 1934 (Ministry of Railways Official Timetable) |
Arrival of Subways |
The first application for approval to build an urban underground railway was submitted in 1917 by Tokuji Hayakawa, a pioneer in this field. After researching actual systems in London, Paris and New York, Hayakawa advocated subway construction in Tokyo. He succeeded in organizing a private company called Tokyo Underground Railway Company and opened initial services of 2.2-km in 1927. By 1934, the company extended the line to 8.0 km connecting Asakusa and Shimbashi through the busiest commercial district of Tokyo at that time. In a separate move, another company set up in 1934, called Tokyo Rapid Transit Company opened a 6.3-km route between Shibuya and Shimbashi. Both were operated practically as a single line, forming the only subway route in Tokyo before WWII. Tunnel structure, the third-rail method, and other technical specifications were modelled after the New York Subway System. |
Photo: Early Subway at Ueno Station Ichizo Kobayashi (1873-1957) Ichizo Kobayashi was the founder of the present Hankyu Corporation and was one of the leading executives of the private railway industry in Japan. As an energetic innovative president, Kobayashi contributed to the progress of railway management as a service industry during the period when the urban private railways were taking shape after mainline railways came under ownership of the national government. As described in the main text, he promoted land development, department store operation, tourist site development, etc., in relation to the mainstay railway business, thereby creating a management style for Japanese urban private railways. His talent for writing (he once wished to be a novelist) as well as his skills in public relations and advertising, helped his appeal to the public. Among the variety of company businesses, a girls' opera troupe, which attracted spectators along the railway lines, is uniquely recognized worldwide and still enjoys nationwide popularity. The company's film and theatre division, which evolved from the opera troupe, is a major player in the industry in Japan. Kobayashi's competence in corporate management brought him the position of president of Tokyo Electric Light Company, Japan's largest electric utility, before WWII. He was also a government minister in 1940 and 1945. (Transportation Museum) |
Shinichi Kato Mr Kato graduated in economics from Tokyo University in 1973, and, after joining the Ministry of Finance where his responsibilities included research into fiscal policy and railway history, he became Professor of Finance Study in the Department of Economics at Teikyo University in June 1996. He is the author of Fiscal and Monetary Policies During the Reconstruction and High-Growth Period, and Bibliography of Japanese Private Railways and Bus History. He is currently a board member of the Railway History Society. |