The Washington herald., 1913-07-01
WORK ON Hotel
MARKING Time
Financial Unrest of Present
Days and Other Causes Par.
tally Halt Construction.
OFFICIALS DENY DELAY
Charles P. Taft and Late J. P. Nor
gan Were Interested in Project
for Hosiery.
OFFICIALS DENY DELAY
BY 1. A. FLEMING.

Washington, one of the first capitals
of the world. needs a magnificent nos
telry, constructed along the lines ana
plans proposed by the promoters OF the
Arlington Hotel 1t is - be hoped that
they will be able to finance 1t to compile
ton as planned.
George Howard, president of the Ar
lington Hotel Company, is confident OF
being able TO accomplish the huge task,
nor will he admit any serious delay IN
the project. Other members and former
members OF the directorate acknowledge
that, in a way, the Arlington project Is
today marking time. For the delay there
are numbers of causes. The financial
world has been in a semi-panicky condi-
ton for nearly a year; investors were not
willing to take chances, even with the
| highest rate bonds, while short-term
notes OF the very best railroad compa-
nies and the credit of the municipalities
have been greatly strained. even when
offered with the additional inducement Of
extraordinarily large interest payments.
| Had William H. Taft been reelected
IN the last campaign for the Presidency,
there is no doubt that the financial
sinews for the carrying out of the plans
for the Arlington would have been fur
| nished by Charles p. Taft, probably the
| heaviest stockholder in the Arlington
Hotel Company and until recently one of
| its directors. 1t is understood that Mr..
| Taft's subscription was about s250,0O0. 1t
| is possible too, that ]. Pierpont Morgan's
death had something to do with causing
the delay. as Mr.. Morgan was deeply in
terested in the plan.
Ritz-CnrIIons Interested.
Eldridge z. Jordan, of the United
States Trust Company. resigned his posi-
| ton as treasurer of the Arlington Hotel
To-
resignation with the assurances OF his
belief in the ultimate success of the
project and his assurances to Mr.. How
ard that he would help in any manner
possible to advance the project. Mr.. Jor-
dan succeeded William r. Hibbs as
treasurer some months ago, and IL was
understood at the time that he repre-
sented certain large shareholders in the
enterprise.
Mr.. Howard has worked indefatigably
on the proposition. and it was through
his individual effort that men like
Charles p Taft, ]. Pierpont Morgan,
T. Coleman Du Pont. and others be-
came interested in the project Quite
recently the Ritz-Carlton people have
been investigating the property and its
future, and it has been reported that
they might become the lessees and
firaac!ers of the hotel scheme
The venture has gone too far and is
of two great Importance TO be aban-
doned. Work is still going on, but not
with the rush of hundreds of workers;
rather in the timbering up and snoring
Of the great excavation, for the plans
of the Arlington contemplated practically
three stories below the level of the
street.
All OF the steel work. tons of II.
ch nd ha, foh ~
and is in the freight yards in Wash
ington, so that once the finances are in
shape the erection of the structure need
not long be delayed.
The interests of the investors are be-
ing conserved during the temporary
stress, and there are no small stock
holders in the corporation-none but
wealthy men having subscribed to the
venture which could not promise returns
for a considerable period OF time.
May Need New Plan.
The old Arlington Hotel property, in
cluding the building which stood upon it.
was acquired from George p. Eustis. who
was represented by Woodbury. Blair and
the National Savings and Trust Com
pany. The price paid was sl.400,0o0, $780,
900 having been raised by the corporation
and $4,000 advanced by the Equitable
Assurance society OF New Inc
Equitable agreed to lend about 5000, 600,
but between the $4,000 advance for OBJ
tanning clear title to the property and
additional moneys the Arlington Hotel
Company was to invest in the project
over $1,OOO00o. The financial conditions
and other troubles referred to have made
the task much more stupendous than it
would have been in ordinary circum-
stances, and while no official of the Ar
lington Hotel Company will admit that
the work is even temporarily delayed.
the chances are at this time that some
other financial plan will have to be
worked out.
The contract for the building was let,
and the excavation itself as it stands to-
day shows the immenseness of the
project, for the new hotel must occupy
the Vermont Avenue frontage, between
II and Streets, and Street to Sixteenth
Street, except a frontage of 100 feet on
the southeast corner of Sixteenth and 1
Streets. The project in its entirety. fur
nished. stocked, and ready for business,
will be a s6,OOO,OOO proposition, an enor-
nous undertaking, and on a scale en-
tirely different from anything else in
Washington, with plans for monopolizing