Arizona republican., 1910-05-22
Starting Right.

ical busness-like. and therefore en- couraging lines for assuring the inn
 mediate construction Of d hotel on the site of the burned Hotel Adams
 and the city of Phoenix is to be con- graduated The financial plans make
 II certain that the new structure is to be adequately commodious and strict ly modern. and that it will be. as The Republican has urged il should be. the most attractive hotel in the southwest.
 As detailed in our news columns, an entirely practical course of pro- cedure was adopted. A corporation, the articles of which were approved st the meeting. is to be legally formed at once with capitalization of S250.- OoO. divided into 2,5OO shares of s1O0 each. The Ieasehold on the Adams hotel site. which is owned by MT. J. C. Adams and has eighty-five years to run. is to be taken over by the cor poration at a fixed rental of s6,5OO a year. if being agreed that there is to be no reValuation during the life of the lease On the basis of the pres ent value of the ground rent this IS a reasonable rental. and inasmuch as it is to remain at this figure throughout the eighty-five years, notwithstanding the growth of the city and the in crease of property values that is bound 10 come in the near future. il is an exceptionally attractive propo- sition for the company.
 Subscriptions to the stock are to be made by the citizens of Phoenix generally Nobody is barred; on the contrary. the whole town is invited to take part To make the project an immediate success-and time is pre- cious. as everybody knows-it will be necessary for everybody to give the scheme every practical help.
 As to whether MT Adams himself will take stock in the corporation will depend upon whether his assistance is needed He proposes to turn his Ieasehold over to the corporation at the stipulated rental. upon satisfac- tory assurance that a building cost ing at least $l5O,OOO will be erected; and if it is necessary to make the project success he will take stock 10 the amount of s75,OOO. But the corporation is at liberty to take the first section of his proposition-the Ieasehold-only. and finance it with out his help if it desires, and such course will be entirely agreeable to MT. Adams. as he explained yester- day.
 NIT. Adams has been careful to make it clear that his proposed sub scription to the stock is not d piece of phiIanthropy-he has suffered too severely from the fire to indulge in benevolence But, having an intimate knowledge of the hotel business in Phoenix. he knows that a strictly modern hotel, costing approximately S25O.OOO will pay, and he is willing. if his cooperation is needed, to put in s75.OOO in cash as a purely busi- ness investment.
 As to the financial success of the hotel as proposed, there can be no questions, as every intelligent citizen of Phoenix knows The Hotel Adams last year paid a net profit of over 1000. That hotel was more ex- pensive to operate than d new and old hotel had to turn away a large amount of profitable business for want of room. It is MT Adams judgment. as he explained at the meeting yesterday, that the new hotel will yield d net income of at least s25. 900 over all fixed charges, and he is ready-if needed-to back his judg- ment with cash to the amount of S75. 1000 A net income of s25,000 will yield satisfactory dividend tG the and in addition to that, a sinking fund which within a reason able period will retire any indebted ness it may be necessary to incur.
 So urgent is the necessity of inn mediate action that it must be as- stunned that the project cannot fail, and all steps taken must have imme- diate construction in view. While the committee is at work. an architect should be ct. work on the plans An architect should be en- gagged tomorrow, and he can have his estimates so nearly verified within three or four days that work on the can begin this week. This first work of construction need not wait at all on the letting of the general contract for construction, but