Five of Hawaii’s most powerful businessmen are convinced there’s nothing conflicting about serving on the boards of more than one firm — even if one of the firms is Matson Navigation Company.
Besides, said one, his firm would just as soon be rid of its Matson stock — "We do not believe we need Matson. … Matson needs us."
Four of the businessmen are presidents of Hawaii’s so-called "Big Five" — firms which are being scrutinized by the House of Representatives in a joint Judiciary and Trade and Commerce committee hearing over antitrust legislation. …
Generally describing Matson in ailing condition, the businessmen yesterday declared that the firms’ interlocking connections with the shipping company have not resulted in preferential treatment in the matter of freight rates.
Frederick Simpich Jr., vice president of Castle and Cooke, testified that while sitting as a director of Dole Corporation, he has voted for a reduction of pineapple freight rates.
He also testified that while sitting on Matson’s board, he has voted consistently in favor of freight rate increases, including pineapple, "so Matson could continue operation." This met with lifted eyebrows and a volley of questions from committee members.
"Every business to be successful has to be able to carry its own weight," Simpich said, explaining that he acts in the interest of whichever board he is sitting on. …
Boyd MacNaughton, president of C. Brewer and Company and also a Matson director, said it is his firm’s desire to "divest ourselves of ownership of Matson stock. …
"We do not believe we need Matson. We believe Matson needs us. … We do not think Matson is a good investment."
MacNaughton said his company would have sold its Matson shares in 1959, but "we’re not in favor of breaking up Matson."
Simpich said Castle and Cooke would, in the event its interlocking directorate with Matson were found illegal, "try to dispose of our Matson business."
But he said his company’s stevedoring and shipping agency business would remain in operation, seeking contracts from other shipping companies.
"It would go very hard with this community if Matson were dissolved," he added.
