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Broken Trust Introduction to the Open Access Edition of Broken Trust Judge Samuel P. King and I wrote Broken Trust to help protect the legacy of Princess Bernice Pauahi Bishop. We assigned all royal- ties to local charities, donated thousands of copies to libraries and high schools, and posted source documents to BrokenTrustBook.com. Below, the Kamehameha Schools trustees explain their decision to support the open access edition, which makes it readily available to the public. That they chose to do so would have delighted Judge King immensely, as it does me. Mahalo nui loa to them and to University of Hawai‘i Press for its cooperation and assistance. Randall W. Roth, September 2017 “This year, Kamehameha Schools celebrates 130 years of educating our students as we strive to achieve the thriving lāhui envisioned by our founder, Ke Ali‘i Bernice Pauahi Bishop. We decided to participate in bringing Broken Trust to an open access platform both to recognize and honor the dedication and courage of the people involved in our lāhui during that period of time and to acknowledge this significant period in our history. We also felt it was important to make this resource openly available to students, today and in the future, so that the lessons learned might continue to make us healthier as an organization and as a com- munity. Indeed, Kamehameha Schools is stronger today in governance and structure fully knowing that our organization is accountable to the people we serve.” —The Trustees of Kamehameha Schools, September 2017 “In Hawai‘i, we tend not to speak up, even when we know that some- thing is wrong. Especially in the Hawaiian community, the common practice has long been to avoid confrontation at almost any cost. This approach does not serve us well in today’s world. We must learn to be good stewards of all that we have been given, and this sometimes re- quires that we take a stand. The way the Kamehameha ‘ohana rallied and worked together as a family to defend Princess Pauahi’s legacy says much about how to live effectively and righteously in a fast-changing world. It demonstrates the power of informed people unified by moral conviction, and should always be a source of pride and inspiration.” —Winona Beamer (in a letter to the Broken Trust authors) COMMENTS ABOUT BROKEN TRUST “Broken Trust brought me through every emotion. It is a straightforward lesson in trust obligation and accountability for sure, but it is also a glimpse into the communal conscience and value system of our ances- tors and the Hawaiian community today. Whatever one takes away from the reading of this book — you cannot miss the opportunity to be in- spired by everyday community members who put a stake in the ground, tied themselves to it, and faced the storm.” —Robin Danner, President of the Council for Native Hawaiian Advancement “Broken Trust contains interesting facts about Hawaiian history, anec- dotes demonstrating leadership at its best (and worst), and an inspiring story of grassroots democracy. Our teachers use it in Modern Hawaiian History, Participation in Democracy, and Hawaiian Academy. We be- lieve this book will spark many lively and informed discussions, not just among students in the classroom, but also at home around the dinner table.” —Catherine Payne, Principal of Farrington High School (since retired) “I loved this book! It was like reading a thriller; I could not wait to find out what would happen next. Who would have thought that a book about a charitable trust could be so exciting? Some of the characters are truly unforgettable. I am still shaking my head at the fiduciary breaches and the conflicts of interest.” —Professor Mary LaFrance, University of Nevada School of Law “What makes Broken Trust so fascinating is that it works on multiple levels. It’s a well-researched book about Hawaii’s history and culture; a dramatic story of judicial, political, and corporate corruption; and a cautionary tale for acting or future charitable trust board members on everything you shouldn’t do if you want to respect your organization’s mission and ensure the public’s trust. The players in Broken Trust jump off the page.” —Christopher Quay, Exempt Organization Tax Review “The book is quite extraordinary. It reads like a story—with the figure of B. P. Bishop looming silently in the background—rather than a his- torical text. Perhaps most importantly, I appreciate the apparent balance represented in the work. Whenever I began to think the book reflected a pro-Western bias, the pendulum would swing almost immediately in the other direction. Or maybe it’s just that I began to see, as I turned the pages, how the issues surrounding the Bishop Estate and Native Hawai- ians are not black and white.” —Professor Trina Jones, Duke University School of Law “Broken Trust is rich in anthropological detail and spiced with charac- ters and quotations that would comfortably populate a John Grisham novel. The authors are fearless and uncomplimentary when document- ing the role and ethical quandaries of lawyers and judges.” —James Daw, Estates, Trusts & Pensions Journal “Broken Trust reads like a political thriller with a whole assortment of characters straight out of a Tom Clancy novel and plot twists that are always unexpected. It was hard to put down. A great read!” —W. Scott Simon, author of The Prudent Investor Act: A Guide to Understanding Broken Trust Broken Trust Greed, Mismanagement & Political Manipulation at America’s Largest Charitable Trust Samuel P. King & Randall W. Roth A Latitude 20 Book © 2006 University of Hawai‘i Press All rights reserved Printed in the United States of America 15 14 13 12 12 11 10 9 8 Library of Congress Cataloging-in-Publication Data King, Samuel P. Broken trust : greed, mismanagement & political manipulation at America’s largest charitable trust / Samuel P. King & Randall W. Roth. p. cm. “A Latitude 20 Book.” Includes index. ISBN-13: 978-0-8248-3014-4 (hardcover : alk. paper) ISBN-10: 0-8248-3014-8 (hardcover : alk. paper) ISBN-13: 978-0-8248-3044-1 (pbk. : alk. paper) ISBN-10: 0-8248-3044-x (pbk. : alk. paper) ISBN 978-0-82483-809-9 (PDF e-book) ISBN 978-0-82483-813-2 (EPUB e-book) ISBN 978-0-82483-814-9 (Kindle e-book) 1. Kamehameha Schools/Bernice Pauahi Bishop Estate—Trials, litigation, etc. 2. Charitable uses, trusts, and foundations—Hawaii. 3. Hawaiians—Legal status, laws, etc. 4. Charities—Corrupt practices—Hawaii. I. Roth, Randall W. II. Title. KF228.K36K56 2006 345.969'028—dc22 2005032815 University of Hawai‘i Press books are printed on acid-free paper and meet the guidelines for permanence and durability of the Council on Library Resources. The open-access version of this book is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BYNC-ND 4.0), which means that the work may be freely downloaded and shared for non-commercial purposes, provided credit is given to the author. Derivative works and commercial uses require permission from the publisher. For details, see https://creativecommons.org/licenses/ by-nc-nd/4.0/. Cover art: Princess Bernice Pauahi Bishop (Bishop Museum photo) To Gladys Kamakakūokalani Brandt and Monsignor Charles A. Kekumano, whose wisdom, unfailing humor, and guidance helped to restore a legacy. Pau ka ‘oe hana, pio ka ‘oe ahi. Lele ka haka, ‘ēheu o na manu. Your work is done; your fire is extinguished. The spirit has flown away, borne on the wings of birds. Contents Acknowledgments xiii Foreword by Gladys Kamakakūokalani Brandt xv Introduction by David Shapiro i 1. Princess for a New Hawai‘i 11 2. A Culture Suppressed 31 3. “Where Are All the Hawaiian–Looking Ones?” 43 4. Newfound Wealth, Cultural Rebirth, Seeds of Discontent 53 5. The Trust Plays Politics as Activism Grows 65 6. Shell-Shocked Lottery Winners 81 7. The “Black and Blue” Panel 89 8 . Five Fingers, One Hand 97 9. The Education Trustee 105 10. “We Must March!” 125 11. A Tinderbox Waiting for a Match 143 12. Time to Say “No More” 151 13. Like Investigating the CIA 167 14. Mistrust and Paranoia 185 15. A World Record for Breaches of Trust 195 16. “That’s Just the Way You Do It” 211 xi 17. Public Pressure Forces a Political Shift 219 18. Trustees Surrounded 229 19. End of the Line 245 20. “Healing” and “Closure” 267 21. Eternal Vigilance 283 Afterword by Jan Hanohano Dill 299 Appendix: The Charitable Trust Provisions of Princess Pauahi’s Will and Two Codicils 301 Credits for Photographs and Editorial Cartoons 305 Index xii Broken Trust Acknowledgments This book describes events in the political, economic, and educational life of Hawai‘i that were precipitated by the turmoil at Kamehameha Schools/Bishop Estate between 1997 and 1999. A defining moment oc- curred on May 15, 1997, when a large group of Kamehameha ‘ohana (close-knit supporters) marched to the offices of the Bishop Estate trustees to protest aspects of the school’s management. The marchers then formed Na Pua a Ke Ali‘i Pauahi (the Children of Princess Pauahi), whose membership quickly grew to about four thousand. Na Pua kept the public informed as it pursued meaningful infor- mation from the trustees and appropriate action from the attorney gen- eral and the state judiciary. Na Pua’s leaders included Leroy Akamine, Charles and Bobbie Arnold, Roy Benham, Fred Cachola, Tomi Chong, Beadie Dawson, Donne Dawson, Jan Dill, Irene Dupont, Karen Farias, Rod Ferreira, Chris Hong, Patrick Iona, Albert Joy, Marion Joy, Peter Kama, Carol Kapu, Dutchie Kapu-Saffery, Guy Kaulukukui, Toni Lee, Dudley Makahanaloa, Robin Makapagal, Lopaka Mansfield, Bob and Paulette Moore, Dutchy Mossman, Norman and Bonnie Nam, Julie Nurre, Victor Punua, Leona Seto-Mook, Rocky Tokuhara, Mervyn Thompson, and Noe Noe Wong-Wilson.
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