Kaiko, an anthropomorphic cat, was a rude and arrogant merchant who ran the Kaiko Silk Works.
Kaiko owned a silk works which produced very high quality silks. However, Kaiko was a miser with his money, and so he retained all the profits while paying his workers a pittance. He hired a yojimbo, Matsutaro, to protect him as the annual Silk Fair was regularly attacked by brigands.
When Miyamoto Usagi arrived in the town, when it was being threatened by brigands, he quickly exposed Matsutaro as a blustering fraud and then played upon Kaiko's cowardliness to force the merchant to pay him 200 ryo to protect the town. Usagi defeated the bandits with the help of the silk workers, and then donated the money to them. With it, they hoped to establish their own silk works, and planned to outproduce Kaiko within a year.