Statement of Ex Chairman William Denman of California On the Relationship of T

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Statement of Ex Chairman William Denman of California On the Relationship of T
James D James Duval Phelan
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Goethals, but $880, 000, or under 5 per cent of the investment. 1 An option to purchase the plant was to be given to the private owner of the land, in this case the Ameri- can International Corporation, one of the Vanderlip group of companies. The proposed plant was to consist largely of piling, docks, and improvements permanently attached to the land.
" It will be noted that it was the private person who had the option on the Government plant. The Government had no option until the private cor
...poration had refused to exercise its right. The attorneys, Messrs. Cotton and Rublee, share in the responsibility for this provision.
" With such an extraordinary provision in the contract, we were necessarily the more anxious to have the figures of the cost of the ships to be fabricated. The total cost was stated to be $150 per deadweight ton plus $9 commission plus upkeep and amortization of the plant; in all, around $175 per dead- weight ton. This was with the steel at 2* cents per pound for plates.


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