HISTORY OF REIKI (scroll down)
The history of Reiki is to be found in many books on the subject. The histories vary a little, but are essentially taken from the verbal stories passed on from a Mrs. Takata. I will outline the story as it is frequently told!
It was discovered by a Dr. Mikao Usui in the late 1800's. He was a teacher, or perhaps a Dean of a Christian school for boys in Japan.
He went on to use his newly acquired gift to help others, and spent the next 7 years working amongst the begger community in Tokyo. He healed the poor and sick, and helped them to find work so that they need never return to a life of begging. But it gradually became apparant to him, that beggars were returning to him for healing, saying that they preferred the life of begging to that of hard work. They did not value health! They did not understand the value of the gift of healing they had received. There was no gratitude! Following these years in Tokyo, he then travelled around teaching and healing wherever he went.
One day Dr. Usui met a Dr. Chujiro Hayashi, a reserve Naval Commander and they struck up a friendship. Dr Hayashi was very impressed by Usui , by his convictions, healing abilities and beliefs, and agreed to accompany him on his travels.
Reserve; and would be responsible for killing people. He did not wish to return to this former life, and decided to commit suicide. Before ending his life in May 1940, he passed on the Reiki leadership to a Mrs Takata who would not be residing in Japan. Hopefully she would be safe during the war and be able to continue practicing Reiki and training others.
wanted to learn this form of healing herself.  But, due to her being a foreigner, Dr. Hayashi was unwilling to teach her. However, due to her doctor's support, Mrs. Takata was able to pursuade Dr. Hayashi to train her in Reiki.  This training took a year and brought her to what we would now call Reiki Level II (she could do everything but train other practitioners).
She returned to Hawaii at the end of that year, and commenced practicing Reiki. However she soon learnt that patients to whom she gave the treatment for free; did not value their healing. They reverted to sickness. But those who paid her; remained well. Thus the tradition of charging for Reiki treatments was reinforced. In November 1936, Dr. Hayashi came to Hawaii to promote Reiki Healing, and met up with Mrs.Takata again. During this time he trained Mrs. Takata to teach Reiki, thus making her what we now call a Reiki Master. Before he left Hawaii, Dr Hayashi told Mrs. Takata to expect a request from him in the future, to join him. After some time, when World War II was imminent,  Dr. Hayashi appeared to Mrs. Takata in a dream asking her to come to Japan.  She did this and found a very anxious Dr. Hayashi.  With the coming war he knew it was only a matter of time before the Navy would call him out of retirement and he would be asked to perform actions he was not capable of doing due to his spiritual development.  So, it was at this time that he decided to pass on to Mrs. Takata, the Reiki leadership.  He gathered all the Reiki Masters together, in order to introduce her as new the leader of Reiki, and then announced his intention to kill his physical body through bursting three blood vessels.  And as he continued speaking and lecturing, those blood vessels did indeed burst and he died.
Mrs. Hawayo Takata was born in Hawaii, on Kauai, on Christmas Eve 1900 of Japanese descent.  In the 1930's she went to Japan to visit her family.  Whilst there, she became very ill and was admitted to the hospital. As she was being prepared for an operation, she kept hearing a voice saying "Operation not necessary".  After hearing this voice repeatedy, she jumped off the table and asked "Is there another way?".  The doctor had a sister who had been cured of dysentery at Dr. Hayashi's clinic. He suggested to Mrs. Takata that she should talk to his sister.  His sister brought Mrs. Takata to the Hayashi clinic and she commenced treatment. Mrs. Takata was healed, and consequently
Reiki is the Japanese word meaning 'Universal Life- Force- Energy'. The "Ki" is same word as the "Chi" or "Qi"; the Chinese word for 'life energy'. Reiki is the system for channelling that energy for the purpose of healing.
One day, he was asked by a pupil if he believed in the miracles of Jesus. He answered that he did, and was then asked whether he knew how Jesus had performed them. He did not; but resolved to research until he discovered the answer.
He then spent many years studying this subject, including at Christian schools in the USA. He also went to the Orient to study Bhuddist writings, as Bhudda had also performed healing.
Some years later, still not having found the knowledge he was seeking, he resolved that his next step should be to spend time alone fasting and in meditation. So he climbed a mountain, collecting 21 stones as he went, in order to count the 21 days he intended to spend there.
On the final night, he saw a bright ball of light approaching towards him from the horizon. Though fearful, he stood his ground, and it struck him full on his forehead. As it struck him, he was taken on a journey and shown bubbles of all the colours of the rainbow in which were depicted the symbols of Reiki. In fact, the same Tibetan symbols he had recently been studying, but without understanding. But now he had received total understanding!
The next day, he returned down the mountain, stumbling on a stone and broke a toe nail. He was immediately able to heal this injury, discovering that he now had the power to heal! His prayers had been answered!
When Dr Usui died, Hayashi became the leader of Reiki. He opened a clinic in Tokyo specifically to train others to treat patients there using Reiki . The healers would also visit the homes of the sick to perform healings.
Prior to the commencement of World War II, Hayashi knew that he would be recalled to duty as he was in the Naval
Mrs. Takata returned to Hawaii and continued healing, and teaching Reiki.  Eventually she moved to California, using and teaching Reiki there as well.   She did not teach other masters until 1975, but by the time of her own death in 1980, she had trained 22 Reiki Masters.