The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-03-04
Trust Companies Ask Promoters to
Put Up Less Than Half of
tile Capital.
ANOTHER H0STELRY NEEDED.
Financicrs Are Still Figuring Up
on Proposition to Erect
Hotel at Ninth and Pine
Streets.

Every trust company In st. Louis has one
or more propositions from parties who pro-
pose 10 build in the downtown district OF st.
Louis another big hotel. the need OF which
Is generally recognized. The financial in
stitutions are ready 10 provide most of the
funds provided the promoters can raise Il
reasonable nucleus.
Ono OF the trust companies. the officials
Of which do not care TO he quoted in the
matter. has received recently no less than
four propositions each one of which is con-
sidered me5torious and IT is stated that
the only difficulty is that local capitalists
DO not seem to realize how urgently addi-
tlonal hotel accommodations are needed IN
this city even after the Twelfth street hotel
shall have been completed.
- Among the propositions which are receiv-
ing favorable consideration Is THAT of a first
class hotel TO he located al the northwest
corner of Ninth and Pine streets. The site
Is regarded as excellent, and an option on
the ground under a ninety -nine-year lease
has been secured.
Independent of the leasehold. the promo
tiers propose TO expend $1,000 on a building.
and the plan of financing the enterprise Is
follows:
The promoters are to raise 500. 900 in sub
scriptons TO the capital stock. taking a
second mortgage. They expect to secure
lessee an experienced hotel manager, who
Will eNpend 10000 in finishing and furnish
ing the structure. and then place first-mort-
gage bonds with one of the trust companies
for the remaining 10000.
pny stated yesterday that under these terms
his company would take the bonds and sup
Ply the $500 O0G
This proposition" he said. 'fs fair to
us and fair 10 the persons who contemplate
erecting hotel 1t should be safe for both
Sizes
INVESTORS ARE SLOW
That ST. Louis is still in dire need of one
or more first-class hotels. even after the
one on Twelfth street is finished. cannot
be doubted by any one at all familiar with
n Qir nzi-
tion. The additional hotels are needed now
under normal conditions, and the demand
Of the great natural growth Of this COM
nunity.
Men OF means will admit that this is
true. yet they seem to hesitate about sub
scribing TO the capital stock of an enter
prise which. in all reason. should be as
prStssle -, as S sny other realty investment
project as an example. Responsible parties
have been working on 1t for several weeks.
sary $4,000 to begin operations. There
would be no difficulty In pacing bonds for
the remaining SOo.0o0. and it might not be
hard TO get a hotel manager who would
take a lease for the length OF time the bonds
would have TO run. say twenty years. be-
sides putting up Sl01Gnb for furnishings"
Trust company officials agree that upon a
general proposition a hotel project can be
easily financed where the promoters put up
half of the funds.
Real estate men believe that the ayita- |
ton now heard in almost every Office will |
result in an additional hotel
The site for the Twelfth street house IS |
being cleared. and ii is said that work On |
the Buckingham. at West Pine and King |
highway. win begin in short time. |
1T is true sad a trust company official. |
that hotels in this city UP TO a few years |
ago were not profitable investments to the |
stockholders. but that time has passed In |
vestors should realize this. and not let an |
old prejudice against this form OF security i
shut their ears to CRYING demand. Insd- |
tutions that are needed and managed |
with ordinary care are mighty apt to pay" |