Veteran helped transform society, politics in isles

Matsuo Takabuki, who helped to usher in the rise of the Hawaii Democratic Party in the 1950s and later led a financial turnaround at Kamehameha Schools/Bishop Estate, has died.

Takabuki died on Christmas Day at his home in Honolulu. He was 93.

“He was an architect of what we are today,” said former Kamehameha Schools President Michael Chun. “He had a major role in transforming the estate … to one that was going to be cash rich. That was his genius.”

Born on Feb. 25, 1923, Takabuki, whose father owned a delivery truck business in Haleiwa, served in the Japanese-American 442nd Regimental Combat Team during World War II, at a time when the loyalty of Japanese in the United States was in question after the attack on Pearl Harbor.

He was among Japanese-American veterans who returned to Hawaii and successfully sought economic and social change through public office.

After earning a law degree from the University of Chicago under the GI Bill, he opened a law office and won a seat on the Honolulu Board of Supervisors (later the Honolulu City Council) in 1952, serving for 16 years. He also helped in the political campaign of Democrat John Burns, who served as a U.S. territorial delegate and later as governor.

University of Hawaii professor Dennis Ogawa said Takabuki’s contribution to social change was “huge” as a pioneer in shaping a new economy and the creation of a middle class in Hawaii.

“This was a guy who had the respect of Wall Street,” said Ogawa, who teaches American history.

In his early years, Takabuki served as the lawyer for financier Chinn Ho, who went outside Hawaii to secure investment loans to develop the Ilikai Hotel.

Takabuki, whose work as an attorney and financial adviser eventually spread to other local businesses, continued to build and cultivate relationships with mainland U.S. and global investors.

During his tenure as a trustee of Bishop Estate, now called Kamehameha Schools, the estate was invited to purchase an 11 percent share in the private investment firm Goldman Sachs for $500 million.

Former Bishop Estate trustee Oswald Stender said when Goldman Sachs went public, the value of that 11 percent rose to $3 billion.

Takabuki served 21 years on the board of trustees.

In his autobiography, “An Unlikely Revolutionary,” Takabuki described how the Hawaii Republican Party was aligned with the ruling oligarchy that had overthrown the Hawaiian monarchy and that candidates such as himself felt the Democratic Party offered a vehicle for change.

Takabuki said he wanted to support changes in land, taxes and education at a time when land ownership was greatly consolidated in Hawaii in the hands of five major corporations known as the “Big 5” and the University of Hawaii was known as a teachers college.

Retired Judge James Burns said his father, the late Gov. John Burns, relied on Takabuki as a financial adviser in state politics.

“Anything that dealt with the world of finance, he was the man to go to,” Burns said. “He was a very smart man, a good organizer and very good strategist.”

Burns said in the 1940s and 1950s, many Hawaii residents, particularly Asians, had limited opportunity in becoming professionals and securing business and homeownership loans.

One of the ideas supported by Takabuki was to have land taxed at its highest and best use — a standard designed to force major landowners to sell some lands for subdivisions and commercial developments, rather than continuing to allow them to hold onto the land.

Political observers said before Takabuki became a trustee in 1971, Bishop Estate was land-rich but cash-poor and its assets were valued in the millions rather than billions. Its lands were being sold to meet payroll.

Under his leadership, the educational trust embarked on supporting major commercial developments on key properties and making investments outside Hawaii to diversify its assets.

His selection as a trustee by the Hawaii Supreme Court was criticized by a number of community groups who wanted a Native Hawaiian appointee, and the church bells at Kawaiha‘o Church rang in protest of his appointment.

Chun said he felt the criticism was misplaced by some in the Hawaiian community.

“They were looking at his political affiliations and, quite frankly, that he was not Native Hawaiian.” he said. “I don’t think they were looking at his expertise.”

One former colleague said Takabuki also had a warm side to his character and would take high-powered bankers to have lunch with him at the Kamehameha Schools cafeteria to show them the purpose behind their investment.

“There’s no question he was one of Hawaii’s brilliant investor mind,” said Eric Martinson, the chief investment officer for Queen’s Health Systems. “His mentorship was invaluable to my career.”