More Trouble for Matson

Line Directors

A GROUP of shareholders who allege that the directors of the Matson Navigation Company have been wasteful in refitting “Mariposa,” “Mon terey” and “Lurline” have begun an action to recover £12,600,000.

They contend that the directors should have entrusted the reconversion of these ships, after war service, to an “inde pendent, experienced and responsible ship yard under a master contract that would have fixed the total cost.”

The directors, however, had given the work to a subsidiary of the Matson Com pany, which the shareholders claim, did not have the facilities, experience or staff to carry out the work. (When the liners “Mariposa” and “Monterey” had finished their war service they were put into dock on the American Pacific coast for refitting for the Pacific run. In 1947, however, work was suddenly stopped and the directors of the Matson Company announced that as the cost of reconversion would be more than the original cost of the ships, due to inflated wages and material costs, it was con sidered uneconomical to put them back on the Pacific run. Later the directors were seeking another shipyard that might complete the job but as far as is known none was forthcoming, it was announced earlier this year that the ships would be sold. Reconversion of the “Lurline” was completed and she has now gone back on the San Francisco-Hono lulu run).

The Fiji Director of Public Works, Mr.

J. L. Brown, and the Director of Educa tion, Mr. H. Hayden, are both expected to return to Fiji towards the end of No vember from the United Kingdom, where they have been on leave.