Matson Interests

In Hawaii

interesting Result of a Federal investigation

From Our Own Correspondent

Honolulu, Sept. 27.

T ITTLE things, as the adage says, grow into big things. But little did the U.S. Federal Government investiga tors suspect where their work would lead to when they were assigned early this year to inquire into complaints lodged by Honolulu stevedores (“wharfies” to Australians) that Hawaiian business interests, bossed by the Matson Steam ship Company, were antagonistic to organised labour, in a manner contrary to American law.

Evidence was heard before Examiner George 0. Pratt, of the National Labour Relations Board (N.L.R.8.). The Matson interests were watched by an array of legal talent.

Mr. Pratt’s report and conclusions have just been made public; and, because they compose an outstanding, impartial summary, they must be regarded as a faithful picture of modern Hawaii—at least, of its economic status.

The Big Five

The sugar and pineapple industries are the lifeblood of the islands, and they are controlled by the interlocking director ates of five firms, known locally as The Big Five.

“Of The Big Five, however, the finan cial relations of Castle & Cooke are the most far-reaching,” says Mr. Pratt’s summary. “Their unity of control is tacitly recognised by the inhabitants of the territory, and this recognition has had the effect of giving Castle & Cooke and the Big Five a measure of control far greater than the circumstances war rant, and greater than can be demon strated on paper ... (as a result) there is an attitude of feudal paternalism on the part of the employers toward the working peoples of the islands. The con dition, it is believed, is unique among U.S. possessions to-day . . .”

Evidence indicated that Castle & Cooke, agents for the Matson Line and heavy stockholders in it, created sub sidiaries purposely to play the red herring trick, a familiar weapon of U.S. capitalist monopolies. In speaking of these subsidiaries, Mr. Pratt says: “ . . . The acts of one melt into the acts of another without line of demar cation that it is impractical to separate.”

The effect of this monopoly in the labour as well as the business market Mr. Pratt summarises: “No impartial person who observed the demeanour of witnesses on the stand and who heard the testimony and read the exhibits could fail to be impressed with the fact that the longshoremen (wharfies) in the employ of the respondents (the Matson interests) are afraid, and they have reason to be. Their employer con trols virtually the entire economic life of the territory. To be discharged as a wharfie at the port of Honolulu means

that either one must eke out a living fishing, or go as a suppliant to one of the other enterprises owned or controlled by Castle & Cooke and seek employment.

“If one makes a remark that reflects in any manner on Castle & Cooke (the Matson agents and stockholders) it is sure to get back to the management and one is called on the carpet for it. An employee must remember this, even when seeking relaxation in drink, for his irresponsible statements made under the influence of liquor are reported and he is penalised just as if they were made when sober. The police department works in with the Castle & Cooke (Mat

son) to check any untoward activity (to their interests) and this is well under stood,”

This industrial spying, Mr. Pratt found, is “an outgrowth of the economic setup of the territory,” and naturally attacked organised labour, and Mr. Pratt calls it “an unhealthy condition.”

Outcome of the whole evidence and its consideration is that Examiner (or Judge) Pratt concluded and recom mended: “That the respondents (Castle & Cooke-Matson) cease and desist from interfering with, restraining or coercing their employees in the exercise of the

right to self organisation, to form, join or assist labour organisations, to bargain collectively, etc. . . .

“That the respondents post notices on the blackboards in recreation halls and on the docks in conspicuous places stat ing that respondents will cease and desist in the manner aforesaid, such notices to be kept posted for a period of 30 days.”

The Matson interests immediately notified the court that it would abide by the decisions and obey the law.

Summarised from the Australian point of view, it is an interesting example of how U.S. capitalism operated un checked, until Uncle Sam stepped in.

You cannot monkey with U.S. Federal justice.

Mr. R. M. Glasson, a well-known N.G. gold-prospector, sailed from Brisbane for Boram by the October Macdhui.