Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1910-08-16

Wish best wises for the Courier.
Yours truly.
Crawford Davis.
Editor Courier:
In your report Of the meeting of the
Commercial association, your state
ment of the two hotel propositions Is 4
little misleading, wherein you say the
Reed and Hoyt proposition is for $780,
900 (Which includes furniture and
equipment, while mine was for $780,
900 (that being for building and site
only. Briefly, the two propositions
are as follows: Hoyt and Reed pro-
posed to put in the site corner of Sec
ond and Green streets at valuation
of $4,000 if the people Of Ottumwa
will loan them $4,000 with which to
erect the building for which those fur
nishing the money would receive Is
year per cent bonds. Hoyt and Reed
would also agree to furnish and equip
the hotel, when built, at an estimated
cost of $4,000 (thus making a total
of $19O,OOO), and to secure these bonds
would give mortgage on the hotel
and furnishings, Creed and Hovt to
own the entire property subject to
this mortgage).
MY proposition was to put in the
site corner of Main and Jefferson
streets at valuation of 100000 and
furnish $4,000 in cash, and for the
$50 900, I would receive a like amount
of common stock. The citizens Of OF
tumwa to furnish 100000 and receive
5 per cent cumulative preferred stock,
making the total issue of stock $780,
600, the additional 100000 to be OBJ
tanned from the sale of 20 year bonds
for that amount which agreed to sell
at par, the rate of interest not to ex-
coed 6 per cent.
also proposed to furnish a respon-
sible, experienced lessee, who, as
security for a lease for not less than
ten years, would properly furnish and
equip the hotel, new throughout, at an
estimated cost of not less than $685.
900, the furnishings to be entirely free
from any encumbrance whatever, thus
making an investment in the hotel and
it's equipment of $1S5,000, only 100000
of which the people of Ottumwa were
asked to furnish
I also proposed, if desirable to my
prospective lessee and to our people,
to build six stories high, In which case
l would expect the people Of OttumWa
to take $4,000 of s per cent stock
while the common stock and bonds
would also be increased to provide the
additional funds required. This 5 per
cent stock would pay the holders
larger net income than the bonds, as
the bonds if held by local parties
would be taxable here while the stock
cannot be taxed separately as under
the laws of Iowa, the taxes would be
assessed against the property and
would all be paid by the hotel COM
pany. The common stock that would
receive for my investment Of $4,000
could not at any time participate IN
any dividends until all taxes, insur-
ance, interest on bonds and. the 5 per
cent dividends on the preferred stock
were earned and paid, while the per
cent on the preferred stock would &C.
cumulate, the same as interest on
bonds, from date of issue.
Now as to location and value OF
site, will say forty-four feet frontage
on Main street, just across Jefferson
from my proposed site with two brick
buildings each more than forty years
old has been sold within two weeks
for $4,000 and the forty-four feet ad-
Joining this with double brick build
ing some thirty years old was sold
about the same time for $4,000, max
ing $4,000 for Lightweight feet front.
I proposed to furnish 1873 feet front
containing frame building on the cor
ner in fair. condition, built by my
father forty years ago, (now renting
! for $50 a month";, and double brick
building also built by my father some
| thirty-two years ago, while east OF
these buildings there is sixty-seven
feet vacant frontage that I have had
| cleared preparatory to building At
the valuation proposed, 1t certainty
cannot be charged that am attempt
ing to palm off gold brick. AS to
location, will say the only effect or
| tendency building at Main and JEFF
ferson streets would be to maintain
the present recognized, established re-
! tail business center Cat Market ana
Main streets), and the business dis
strict would continue to expand from
that center, as it has heretofore,
whenever there might be demand FOR
/ such expansion. No one owning retail
business houses on Main street west
/ of Market, or elsewhere, could truth
| fully say that his property would be
injured, while on the other hand II
the hotel is built al Second and Green
streets the effect, If any, would be to
. disturb the present center and the
tendency to draw away from Main
street.
The corner of Main and Jefferson is
no farther from the Union depot than
is the corner of Second and Green.
The travel from the Jefferson street
depot naturally is towards the center
of town, when it reaches Main street
on Jefferson. The surface of Main
street at jefferson is much higher
than at Market, so much so, in fact
that the floor of the cellar of my brick
building is more than six feet above
ll:~N - so, y,,ork pf 1909 which will