The_Open_Door_deel1

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L.M.C. would have acted in conformity with "generally accepted
accounting practices" (62).
L.M.C.-. 's sales agents, the former participant in the concession
Wm.H.Muller & Company of the Netherlands and the majorityshareholder
Republic Steel, also shared in the proceeds of the
sales of Bomi Hills ore. Muller & Company had been appointed
L.M.C.'s sales agent on April 9, 1948, which agreement had been
renewed in 1961 and altered in 1973. In 1948 it had been agreed
that the Dutch company would receive a sales commission of 3.5?
of the net value f.o.b. Monrovia of the ore exported or 10 cents
per ton of ore exported, whichever was higher (in case of sales
to countries other than the U.S.A.), and a commission of 1.75?,
or 5 cents per ton exported, the higher of these amounts, in
case of exports to the U.S.A., regardless of the fact whether or
not the ore would have been exported through the intermediary of
the Dutch company. Muller would also be paid an additional fee
of 5 cents per ton of ore exported for examination,
checkweighing, sampling, and analysis immediately upon arrival
at the port of debarkation, except for a U.S. port. It is
noteworthy to recall here the initial arrangement made between
L.M.C. and the Liberian Government whereby it was agreed that
the owner of the sub-soil and its wealth would be paid a basic
royalty of 5 cents per ton of ore exported. On June 3, 1973 a
new sales agency agreement was signed with Muller & Company
whereby the sales commission was reduced to 2.5? of the net
value f.o.b. Monrovia of all iron ore exported to countries
other than the U.S.A. and to 1.25? on all sales of iron ore
exported to the U.S.A.
In the same year in which it had bought a majority interest in
the Liberia Mining Company (1949) Republic'Steel had been made
L.M.C.'s non-exclusive sales agent in the U.S.A. (additional to
Muller) at a commission fee of 1.75? of the net value f.o.b.
Monrovia or the sum of 5 cents per ton of ore exported,
whichever amount was higher. Sales to Republic Steel, however,
had been explicitly excluded (63). Simaltaneously with the change
of the sales agency agreement with Muller, the arrangement with
Republic Steel had in 1973 been revised and the commission
reduced to 1.25?.
Compared with other mining ventures these fees which L.M.C, paid
its sales agents were rather high, notably with respect to
Muller & Company. In the 1951 - 1977 period the total of sales
expenses amounted to about $ 17.5 million (64). In general,
commission fees paid were a minimum of 3.5? (until 1973) which in
the case of sales in the U.S.A. were equally shared between
Republic Steel and Muller. LAMCO e.g. has since 1963 paid a sales
agent's fee of 2? of the f.o.b. value for the first five million
tons, and 1? for additional tonnage. A reduction of 1? of
L.M.C.'s selling expenses would have meant an additional tax
revenue of nearly $ 100,000.00 a year prior to 1965 (65).
The singularity of the arrangement according to which Muller was