The Providence news. (Providence [R.I.]) 1891-1906, 1902-06-04
Magnificent Structure to Be
Erected on Site Of Plaza.
STEEL MEN IN The SCHEME.
Land and Building Have Been PuTchasec
and the Present ediIce VIII Be
Demolished Vary Soon.

New York. June 4--Another hotel. and
the greatest OF all. the most magnificent
An the world. is TO be erected In New
York. The Plaza hotel. built less than IS
years ago. long one OF the show places
Of the city. is TO be destroyed 10 make
way for the structure now planned.
Capital 10 the amount OF $1,000 700 is
20 be invested I'm the enterprise The
greater share OF this sum will be fur
nished. IL is understood. by men whose
fortunes have been created out OF the
steel industry.
AS II is now planned. the new hotel
will have a frontage OF 200 feet In the
Plaza. while I'm Fifty-ninth street. over
looking Central Park. the frontage Will
be $50 feet. III property for which ne
gotiations are now pending is obtained
the frontage in Fifty-eighth street will
be the same as that In Fifty-ninth street
The structure will be OF 20 stories, and
In design will be In keeping with its pro-
portions.
From the New York Life Insurance com
pany the Plaza hotel has been purchased.
and with IL three lots In Fifty-ninth
street The purchase price was SO, ,0cO. 900.
and the deal was carried through by the
George A. Fuller company, the Central
Realty Bond * Trust company. and Hall
garten & Co. John N. Golding had
charge OF the details and one OF the M
teresting features OF the purchase is that
the property was paid for with casn.
making II the largest transaction OF the
kind that has ever taken place In this
city.
While three firms named are given as
the purchasers. the announcement was
made on authority yesterday that the In
vestment Is being made for Charles NJ.
Schwab. J. j. Mitchell. c. A. Fleming,
John w. Gates and others prominent IN
the steel industry. These men recently
purchased a large block OF the preferred
stock of the George A. Fuller company,
a preliminary of the transaction com
pleted yesterday.
Possession will be taken Immediately OF
the three lots in Fifty-ninth street, and
II Is possible that construction work will
begin there before the Plaza hotel is de-
molshed 1t is hoped, however, that an
agreement will be arranged with the pres
ent lessee OF the hotel which will give
possession of the entire property TINS
summer. The lease of the Plaza will not
expire until July l. 1904
+. A. Hammond. who now holds the
lease Is now In Europe. Negotiations
with him have been begun, and, accord
ing to Henry Morganthau president OF
the Central Realty Bond e. Trust com
parry. there are good reasons for believing
that the terms offered by Mr.. Hammond
will be acceded to.
There IL little to be said In addition 10
that which has already been told" said
Henry Morganthau. "The property ha.
been purchased from the New York Life
Insurance company for 81, 900, 600 The fur
ther plans are not yet sufficiently matured
to warrant their discussion. All that
We know is that 20-story hotel will be
erecte.. The cost will be about $4,000, 900
and II will be the most magnificent build
ing OF its kind In the world"
+. A. Hammond leased the hotel from
1sSS until 1885, at sliding rental which
finally reached 1927 900 a year II was re-
newed for six years. and Il is understood
the rental is now sl50.o00 a year.