Arizona republican., 1911-03-31
WHY WORK STOPPED
ON THE HOTEL ADAMS
A Statement Regarding Action of
Stockholders.

TO the EDITOR OF Inc republican, SlT.
There seems to be a misapprehension
concerning the action of the stOckhold-
ers of the Hotel Adams company in or
dering a suspension of operations on
the new hotel building. In some quar-
tiers that has been construed as a
threat, and it is supposed to have been
taken to influence the vote at the local
option election.
That was not the purpose OF the
stockholders. 1t was not believed by
them that any action they might take
would change the result of the election
and at the meeting there was no dis
cussion or suggestion of such thing.
II was with the stockholders pure
~ business proposition i'm which all
present. representing IS per cent of the
stock. were in accord. No doubt, all
the other stockholders, IL they had been
present, would have concurred.
The Hotel Adams company is pc
culiarly situated 1t has proposed to
erect a hotel at cost of 100000 on
which the stockholders believed that
undertake conditions that existed at the
time the project was undertaken, ii
could derive a reasonable income.
Guided by the experience OF other
hotels in dry towns. which have all
been operated at a loss. the stockhold-
ers concluded that they were not war
ranted in making such an investment
in a prohibition town. The hotel bust
ness is different from most others.
especially in co-called tourist towns.
Phoenix. for example. has an abnormal
hotel business-three times as great
| -. -,
the east In the experience of proprie-
tors of tourist hotels. they are not
profitable in prohibition communities.
The Hotel Virginia at Long Beach.
| Cal. was built at a cost of one mill
lion dollars and was found to be UNI
profitable. II was closed for a period
of three years and was then reopened
and is now run with what is called
table license" Ga special permit pro-
vided by the California law, under
which drinks are served to the guests
of the hotel at table or in their
apartments. In Pasadena, Cal, also a
dry town. are the Hotel Green and
the Hotel Maryland. The former was
closed for a time after Pasadena went
dry but was reopened and is allowed to
| operate a bar. The hotel Maryland ex-
ercises a similar privilege.
The original Antlers hotel at Colo
RADIO Springs. built at a cost of $4,000.
was conducted at an enormous profit
until it's destruction by fire. II was
replaced by the New Antlers at cost
of one million dollars. In the mean
time. Colorado Springs went dry and
the New Antlers has since been run at
4 loss.
| With these and other similar facts
before them, the stockholders believed
| that If Phoenix should go dry. the
amount they proposed to expend upon
hotel. catering chiefly to the tourist
trade. would be most unprofitably in
vested 1t was decided then to suspend
4 Operations at this time fore the reason
that the pouring of cement for the
meZzanine floor was TO be begun this
morning That work. in case the build
| ing should not ultimately be used for
Ihotel purposes would be worse than
wasted. for il would have to be removed
with great difficulty and at great cost.
This is a matter which. of course.
concerns only the stockholders. and
can be of no moment to other. IL was
therefore not the belief of the stock
holders that those who nave no finan-
cial interest in the enterprise would
have a vital concern in the success or
failure of the hotel project; that they
would care whether the structure
should be devoted to hotel purposes or
to some other. Thus. it was not ex-
,pected by the stockholders that the
position of voters in the local option
campaign would be affected by any
action of the stockholders.
]. G. ADAMS.