The following is the Founding Prospectus of Tokyo Telecommunications Engineering
Corporation that Mr. Ibuka drew up in 1946. During the war, I worked at Japan
Precision Instrument Co. with a number of engineers testing and producing new
military equipment. We worked so hard that we literally forgot to sleep or eat.
After the war and dissolution of the company, about 20 of these dedicated and
truly worthy engineers joined me to start Tokyo Tsushin Kenkyujo (Tokyo Telecommunications
Laboratory), for he development and production of communications equipment.
The first and primary motive for setting up this company was to create a stable
work environment where engineers who had a deep and profound appreciation for
technology could realize their societal mission and work to their heart's content.
During the war, though we were subjected to some of the poorest conditions,
we tried hard to fulfill our mission. I experienced how passion together with
capabilities can be driven by a profound and fascinating mission. On the other
hand, I also realized what could weaken these intense motivations. . We first
became aware of this strong need through the activities of the Ministry of Posts
and Telecommunications, the Ministry of Transportation and other government
agencies related to the field of communications. Unlike the other ministries,
which seemed to wallow with their problems, the ministries related to communications
defined a clear direction by taking the initiative and announcing numerous detailed
plans, such as the release of all-wave receivers to the general public, the
liberalization and initiation of private broadcast stations, the overseeing
of trial television broadcasting and the rapid rebuilding of the communications
network devastated by the war. These ministries made it seem as tough public
companies were being lead by them. Such activities had a direct influence on
us. Due to our close ties with the Ministry of Posts and Telecommunications
from the wartime, we soon began receiving large orders for vacuum-tube voltmeters
and the like. In little time, proposals for new product research and requests
for trial tests grew significantly. In addition, the licensing of all-wave receivers
to the public rapidly increased interest in post-war radio programs and in radios
themselves. This, coupled with a huge number of 'sets' (such equipment as gramophones)
which were destroyed during the war, the demand for radios from our company's
radio service division grew by the day. We were also receiving many requests
to manufacture quality parts from cooperative university scholars, research
laboratories and conscientious enterprises with similar intentions as us. As
mentioned above, the increase in demand from various customers made us more
determined. Namely, we realized the importance and need to increase capital
and equipment. I feel joy beyond expression that our diligent effort has produced
such a great response from all levels of society and that our company has become
successful in such a short period of time since its founding. I am delighted
not only because this promises our company's rapid growth in the future, but
because it means that the ideals we set forth coincided with the role and function
a company had to play during the period of Japan's reconstruction. a) To establish
of an ideal factory that stresses a spirit of freedom and open-mindedness, and
where engineers with sincere motivation can exercise their technological skills
to the highest level; b) To reconstruct Japan and to elevate the nation's culture
through dynamic technological and manufacturing activities; c) To promptly apply
highly advanced technologies which were developed in various sectors during
the war to common households; d) To rapidly commercialize superior technological
findings in universities and research institutions that are worthy of application
in common households; e) To bring radio communications and similar devices into
common households and to promote the use of home electric appliances; f) To
actively participate in the reconstruction of war-damaged communications network
by providing needed technology; g) To produce high-quality radios and to provide
radio services that are appropriate for the coming new era; h) To promote the
education of science among the general public. a) We shall eliminate any unfair
profit-seeking practices, constantly emphasize activities of real substance
and seek expansion not only for the sake of size; a) We shall maintain our business
operations small, advance technologically and grow in areas where large enterprises
cannot enter due to their size; b) We shall be as selective as possible in our
products and will even welcome technological challenges. With this in mind,
our company plans to provide the best service by utilizing both its technological
skills and measuring instruments. The use of compact service cars is an example
of such a service. These cars will service various weights and sizes of electronic
phonographs, high quality receivers and television sets. The car contains all
the necessary equipment for measuring, fixing and servicing home electronic
appliances and will respond speedily to a phone call. The car will improve our
work efficiency,and the number of technicians and equipment that is needed can
be minimized. For rural areas, since the number of high quality products are
still small, we plan to service our products on a specific date by making arrangements
with a specified radio shop. Introducing technologies from overseas, creating
a library which has information and books on radios, holding workshops to educate
consumers on the basics of electronics will also be important issues the service
department must address. We will give away new equipment, such as a device which
prints the contents of a newspaper that it receives over the radio, to develop
a more intimate relationship with the shareholders. As household appliances
flourish, this becomes an extremely valid method to communicate with our shareholders.
2) Measuring Instrument Department Compared to the number of radio manufacturers,
there are only a few companies that make measuring instruments needed to produce
and repair radios. The number is even smaller for radio dealers that are capable
of repairing products with these instruments. Although radio receivers which
are commonly used by the public can be fixed by non-scientific methods, it will
not be possible to do so in the future as equipment becomes more complex, and
as people begin to use high quality receivers and all-wave receivers. In the
past, the reason why measuring instruments were not frequently used was because
they were difficult to use and required many other additional equipment. Either
way, the limited number of measuring instrument manufacturers clearly illustrates
the ample room that is left for growth in this field, both technologically and
from a business point of view. It is a favorable direction for any business
that employs sophisticated technology. Profitability is high due to few input
materials and high selling price. Moreover, there is very little competition.
Nihon Measurement Company, that we used to belong to, is one of the rare measuring
instrument manufacturers. To respond to their needs, our company has developed
the following new products. a) Time Split Multiplex Method Making use of the
existing wire and radio, and with a simple piece of equipment, 3-4 layers of
communications become possible. Research began in 1943, at Tohoku Teidai's (university)communications
research center during the war. This equipment works uniquely since it employs
the most advanced wave-detector technology. The aforementioned government agencies
are deeply interested, and if the prototype ordered by the Railway Ministry
proves to be successful, the order for the planned 12 layered ultra short wave
radio phone device will be ours at an estimated price of 5,600,000 yen. b) Simple
Multiplex Telephone This is a simple device that uses existing telephone wires
to double the amount of communications. A simple multiplex telephone can be
made from equipment that we developed with many years of research for a different
purpose.
