AUSTIN, Tex. — George Bush and two long-time friends he has named to his Cabinet are partners in a Texas barge company, an investment that earned the President-elect more than $20,000 last year.
Bush, Secretary of State-designate James A. Baker III and Commerce Secretary-designate Robert A. Mosbacher are all limited partners of Hollywood LPG No. 2 Ltd., one of several limited partnerships run by Houston-based Hollywood Marine Inc., state records show.
Bush in 1987 reported $20,773 in income from the company. The money was listed as "passive income" on his federal tax return, meaning Bush has no say in business decisions. The investment also is listed on his annual financial disclosure forms, which are reviewed by government ethics officials.
"We think it's an honor to have them" as part of the company, said Robert Egan, vice president and secretary of Hollywood Marine.
Hollywood LPG No. 2 Ltd. was formed in 1978 and at the time owned four barges, according to records filed with the Texas secretary of state.
Bush and Baker each were given 2.2% ownership of the company for an investment of $50,000 apiece. Mosbacher was assigned 4.7% interest for $105,000. Hollywood Marine was assigned 67% ownership for an investment of $1,000, a routine arrangement with general partners.