IN CASE YOU MISSED IT

To the editors,

Paul Krugman (column, July 16) says George W. Bush’s investment in the Texas Rangers entitled him to $2.3 million from the baseball team’s sale. But, Mr. Krugman writes, “his partners voluntarily gave up some of their share, and Mr. Bush received 12 percent of the proceeds – $14.9 million. So a group of businessmen, presumably with some interest in government decisions, gave a sitting governor a $12 million gift. Shouldn’t that have raised a few eyebrows?”

We were among Mr. Bush’s partners. In 1989, when we bought the team, Mr. Bush became the co-general partner with Edward Rose.

At that time, the two general partners were granted a 15 percent share (Mr. Bush received 10 percent and Mr. Rose, 5 percent) in the investment, after each investor got back his investment plus interest. This is a standard limited-partnership structure. At the time, Mr. Bush was a private citizen, not governor of Texas.

When we sold the team in 1998, Mr. Bush received his 10 percent share. This was not “a $12 million gift” to “a sitting governor.”

Mr. Bush had a good idea and the ability to make it happen. He was a dedicated manager and investor, exactly what we hope for in our business leaders.
–
TOM A. BERNSTEIN
ROLAND W. BETTS
New York, July 22, 2002