However, he adopted no prudent measures to cope with the business slump during the prolonged recession period from 1920 to 1931, and instead implemented a diversification strategy that led to bankruptcy of Kawasaki Dockyard amid the financial crisis in 1927.
しかし大正9年から昭和6年までの連続不況期に、慎重な不況対策を一切採用せず、無謀ともいえる多角化戦略のため昭和2年の金融恐慌で、川崎造船所は破綻した。