ustxtxb_obs_1992_08_21_50_00007-00000_000.pdf

THE TEXAS OBSERVER 7 received $9,000 from Hollywood LPG No. 2. Since then, Bush’s annual income from the venture had gradually increased over the years to about $35,000 annually in 1991. \(Since Baker and Bush have the same amount of ownership in Hollywood LPG No. 2, it is fair to assume that Baker also makes about $35,000 annually from this venture. In 1991, Mosbacher’s annual income from this partnership Overall, Bush has more than quadrupled his original $50,000 investment, receiving approximately $211,500 from Hollywood since 1978. Adjusting for inflation, Bush’s Hollywood investment has generated an average rate of return of 27 percent annually nearly triple the rate of return for ordinary investments. As Mosbacher told The Washington Post in 1988, Hollywood Marine has turned out to be a “very, very good investment.” Moreover, the Bush task force could have directly enhanced Baker and Mosbacher’s larger stakes in Hollywood Marine. Baker originally invested $200,000 in a total of 29 Hollywood barges and four tow boats, while Mosbacher initially put up roughly $3 million for investments in four tow boats and 49 barges. This amount does not include other funds Mosbacher raised on behalf of Hollywood through family, friends and banks. Neither Baker’s nor Mosbacher’s exact annual income from these Hollywood investments is publicly reported. Baker’s investments are placed in a non-public trust. In financial disclosure reports, Mosbacher’s Hollywood assets and revenue are reported in vague categories. Records show Mos bacher’s Hollywood investments are val ued at more than $1 million, while his div idends fall somewhere between $100,000 and $1 million. While complete financial data is not available, Hollywood and its prominent investors appear to be doing quite well. Despite the barge industry suffering its worst recession ever during the 1980s, Hollywood grew from about 60 vessels in 1981, to over 230 barges in 1989 an increase of more than 380 percent. Environmental Damage Because the Bush task force killed the double hull proposal, at least some of Hollywood’s profitability has occurred at the expense of the environment. When the Coast Guard first pro posed the measure in 1979, it stated that “approximately 80 percent of the oil pollution caused by tank barges could have been prevented if these barges had double hull construction.” The Coast Guard said a double hull requirement was necessary to meet a congressional goal of eliminating pollution discharges by 1985. According to a former Coast Guard official familiar with the ’79 proposal, the agency decided to target barges because those vessels cause more environmental damage than larger oil tankers. “We wanted to get the most bang for the buck” by focusing on barges, the former official says.