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The trial began on June 22, 1935, and ended on October 5, 1937. Judges issued a verdict on December 16. Thus, the Teijin scandal resulted in the longest district criminal court trial in pre-1945 Japan; it continued for a record-setting 265 sessions, excluding the day the verdict was issued. There were criminal cases that lasted longer, but they involved appeals to higher courts. Fujii Goichirò, who presided over the sensational Blood Pact Group trial (the defendants were convicted of killing Dan Takuma and Inoue Junnosuke in 1932), was the chief judge. His assistants were Ishida Kazuto and Okazaki Tòichi. Kishi Seiichirò was the supplementary judge. Procurator Biwada together with colleagues faced a reinforced platoon of defense lawyers (fifty-one on opening day) coordinated by Imamura Rikisaburò, a famous criminal lawyer. Among the sixteen defendants were four who had never signed a confession: Òno, Aida, Shidomoto (Finance Ministry), and former minister Mitsuchi. Judge Fujii, who had visited Meiji jingû (Emperor Meiji’s shrine) early that morning, opened the court at 8:30 A.M. Procurator Hirata Susumu, for about one and one-half hours, outlined the prosecution’s indictment, which focused on three crimes: misfeasance (hainin), bribery (zòshûwai), and perjury (gishò). Although eight defendants faced multiple charges, the prosecution mainly aimed the misfeasance charge at Bank of Taiwan officials (Shimada, Takagi, Yanagida, and Okazaki) and the bribery charge at former minister Nakajima and the five Finance Ministry officials (Kuroda, Òkubo, Òno, Aida, and Shidomoto). Former minister Mitsuchi was charged with perjury. Bank of Taiwan officials, said the prosecution, were guilty of misfeasance, because they sold the shares well below the proper price. Moreover, they received a bribe in the form of 1,300 Teijin Company shares, and they in turn used some of the shares to bribe others. These 1,300 shares, in 100-share units (i.e., thirteen share certificates) Chapter 5 Trial 110 were received from Nagasaki on about June 19, 1933. Furthermore, the prosecution claimed that Shimada wrote a memo in which he outlined the division of 1,000 shares (300 shares were already deducted for use by Shimada, Takagi, and Yanagida): Kuroda (400), Mitsuchi (300), Nakajima (200), and Òkubo (100).1 Next, Procurator Hirata explained the Teijin stock deal and analyzed the motive for giving the 1,300 shares. Besides the money made by brokering the deal (Kawai was paid a one-yen commission by each side for a total of ¥200,000), Nagano and his colleagues (Kawai, Kobayashi, and Nagasaki) made a handsome profit of ¥100,000 on a joint purchase of 5,000 shares of Teijin stock (this was part of the 100,000 shares); the 5,000 shares were listed under the name of Sekihara Kenji, Kawai’s secretary. This profit, noted Hirata, resulted from the rapid rise in the worth of Teijin stock during mid-June. The group of four delegated Nagano to express their appreciation to the Bank of Taiwan directors. Their decision fit neatly with Nagano’s ambition to move up in the business world. Hirata then traced Nagano’s background, his aid to Fujita Kenichi, and the encouragement he received from Baron Gò. From stockbroker Nagano’s perspective , said Hirata, this Teijin stock deal represented a ladder he could climb into a prestigious company directorship, perhaps even with the Teijin Company. With an eye on future needs, Nagano decided to expand the gift giving to Ministers Nakajima and Mitsuchi, and to the Finance Ministry people who helped with the stock transfer. For the gifts, Nagano turned to Kobayashi, who was manager of the Fukoku Chòhei Insurance Company (the joint-purchased 5,000 shares were in this company’s safe as security for a loan of ¥625,000), asking him to borrow 1,300 shares. Furthermore, Nagano decided that Bank of Taiwan officials should distribute gift shares to the ministers and the finance officials; this, he reasoned , would place more people under obligation than if he simply gave them directly. As this plan progressed, Takagi got Nagasaki to convert 300 shares (out of the 1,300 received) into cash at ¥140 per share (total,¥42,000). Some of this cash was kept by Bank of Taiwan officials, and the balance went to finance officials Òno, Aida, and Shiomoto. Shimada and Takagi personally handed over this money, said Hirata.2 As for the two ministers, noted Hirata, Nakajima received 200 shares and ¥10,000 in cash from Nagano and others. The shares were presented to Nakajima...

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