Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-06
SALE OF BELVEDERE
Transfer of Big Baltimore Hotel
Property.
GREAT CHANGE IN VALUES
The Price Paid Was About One Mil
lion Dollars.
BOUGHT BY TRUST COMPANY
President Blackstone on the Value Of
Real Estate Investments in the
Monumental City.
SOUGHT BY TRUST COMPANY
Special Dispatch to The Star.

Special Dispatch to The Star
BALTIMORE. July G.-The consensus of
opinion among those familiar with the Hotel
Belvedsre property and its possibilities Is
that the Union Trust Company has secured
a bargain at the price paid The price WAS
100000. including furnishings and fix
lures. The property was bought by Mr.
George Blackstone, president of the COM
pany, which was the trustee under the first
and second mortgages.
Mr.. Blackstone has already been an
preached by parties seeking TO obtain the
property. He said that he had been offered
considerable advance on the price paid
for the hotel
This, he continued, demonstrates my
position, which has always been that the
property could be made to pay In Balti-
more, and that on sound basis it would
be a good investment"
Mir. Blackstone said that at present the
hotel is not for sale, but that it Will be
conducted on irst-class Zines. and every
. thing that a good. up-to-date management
can provide the patrons of the hotel viii
have.
Another Offer.
Who the would be purchasers were was
not divuged nor would the figure they
is understood that at least one offer came
from those conducting the Hotel Rennert.
That is one of the most prosperous hotel
properties In the city. 1t has been SO since
its establishment by the late Robert Rem
merit more than a quarter Of a century
ago. After his death the hoter property
was valued and a stock company formed,
which has since conducted il under the dl-
rection of Mr.. James Z. a. OConor as
manager.
Could this company secure the Belvedere
it is believed the two could be worked IN
conjunction-one to serve what is known as
the uptown trade and the other The GOWN
town custom, which it has developed ana
holds. That is largely the transient tray
cling guests who seek to get close to busl-
| ness patrons in getting hotel accommoda-
| tons.
That the two interests not together
| now is certain. What may come OF he6o-
| tiations in the future Will depend on the
| value the recent purchasers place on the
! property and the value the intending Duy
ers might name. AT aLl events hesotla'ioi's
| to that end could not begin until the late
| sale is ratified 10y the courts. Ihat VIII re-
quire thirty days at least
| In the purchase the Union Trust Company
| will pay SlOoCOo for the SJOU,Ooo OF out
standing second mortgage bonds 1t is un-
| derstood the amount paid for the FURNISH
| ings and fixtures will be used TO make tnat
settlement That will give those bondhoid-
/ ~ cents on the uollaT ioI lhS iHNS't
F, ment they have made. basing the price paid
| for the bonds at par. 1t is believed they
| were sold below that figure; some nave
| changed hands in the past much below par.
Protected Bonds.
| At the price of 100000 paid for the
! hotel building the buyers have protected
| the $780, 900 of first mortgage bonds. Ihey
now practically own it, as it is believed
| the $4,000 paid in excess OF that inquire
! will be needed to pay the trustees charges
| and other expenses in connection with the
| sale.
OF the $3.50, coo of first mortgage bonds
| 1t Is well understood that the Union Trust
| Company holds about s650,o00, and the es-
| tate of the late Nelson Perrin, represented
| by MI Lawrence Perrin, the weli-known
| banker, holds nearly all the balance. 1T Is
| further said that just prior to the sale OF
| the hotel Mr. Perrin had suggested n propo
| sition which would give the hotel add
| tional working capital and at the same
| time afford some additional security to the
| 100000 of second mortgage bonds, or
| which his family is also considerable
| holder. The proposition was said to pro-
| vide for the increase OF the hrst mortgage
| from $3.50, eco to $1,000,0o0 The increased
| bonds were to be subscribed for at par, as
| ii was believed the hotel property would
! stand the additional fixed charge and give
| ample security to the buyers OF the further
| first mortgage. 1t Is ulltSIStoou lliriA 4hI
| Perrin had practically agreed to form a
| syndicate to underwrite the additional
| bond issue. provided the company would
give capital stock as bonus to each pur-
| chaser The bonus was matter of con-
| lecture. Some said that $1,000 in common
| stock would be asked for each new bond
| bought 1t is believed that clause in the
| first mortgage precluded the carrying out
| of such a project and that it has been
| abandoned
| Mortgage Wiped Out.
| The hotel sale wipes out the 100000 OF
| third mortgage bonds and 100000 OF
| original capital stock. AS the building and
| it's furnishings are estimated to have cost
| in the neighborhood of S2.Ooo.O0O, the
| shrinkage in the sum has fallen on the
| shoulders of some one, presumably local
capitalists.
| The enterprise will soon have an en-
| tirely clean balance sheet, as 1t Were.
| Those best informed say the outlook Is
| more than encouraging for securing sufii-
| cient revenue to meet the first mortgage
| bond interest and perhaps to lay aside
| surplus as we'll: that is. on the supposi-
| ton that the bondholders will assume con-
| troll If the property is sold the matter
| will be out of their hands