The Washington herald., 1913-08-29
Hotel TROUBLES
Will BE TALKED
Shareholders in Arlington
Company to Meet
September 2.
INTEREST is VITAL
Very Life Of Project May Depend on
Outcome of Gathering in
New York.
IS VITAL
By /. A. FLEMING.

The annual meeting OF the Arlington
Hotel Company will be held in New York
City September 2
In the call for the meeting. George
Howard, president OF the company, upon
whose shoulders the burden OF the entire
proposition to date has fallen, makes It
plain to the shareholders that the very
life OF the project depends upon action to
be taken at this gathering: indicates the
absolute necessity of agreeing upon a
financial plan for continuing the work.
and failure, with total loss not only to
the present shareholders, but to every
one in any way interested in the enter
prise" Is the alternative.
The call cites the progress of the fnanc-
ing and work to date. Original payment
Of property. S1,4OOOOo. was accomplished
by payment of $4,000 on account of the
| Equitable Life Assurance Society, $500, 900
| obtained from subscriptions. and an
$4,000 note of the Arlington Hotel Com
pany. endorsed by Charles P. Taft. broth
er Of the former President. William H.
Taft.
The Equitable loan was to be $500, 900
| In toto, but before further payments were
made. 1850, 900 had to be expended on the
building. The total subscriptions 10 stock
were Sl,OO1.7OO. but the subscribers. or
some OF them, were delinquent in all or
part of their subscriptions, and II became
necessary, on or about June TO- 1913, TO
| shut down work, with the great excava-
ton practically completed.
Three Plans Considered.
The directors have not been idle, hav-
ing earnestly exercised every effort to
secure the necessary financing.
Three propositions have been promi-
nently considered. Additional subscrip-
tions to the 100000 preferred stock; a
bond issue, secured by a second mort
gage; through a larger frst-trust loan in
connection with the second trust mort
gage.
But the first proposition has been
worked to a hnality without success.
Negotiations for a new first mortgage
loan OF $3,50oOOO in connection, with a
second trust OF $1.5O0.0O0 have progressed
promisingly, although nothing has been
definitely assured
But even II this plan Is put through
to a conclusion it remains a necessity
that 81, 10000 additional be raised be-
fore the success OF the enterprise can
be assured"
Taft Defeat One Cause.
A number Of conditions have brought
about the financial fix Of the Arling-
ton f1Olcl pTOpOslllOH. ITODhDly upln-
ing was more effective than the defeat
OF William Howard Taft for re-elec-
tion: the death of Mr.. Morgan was an
other incident. while the general strin-
gency in the money market, felt all over
the nation, has been a serious handi- |
cap.
Going business concerns. money max |
ing factories, &c, have found II diff |
cult to obtain credits. Many subscribers
would pay up and assist the Arlington |
venture IL they were not pinched by |
this tightness.
President Howard has made a plain. |
straight forward statement OF the facts |
in the case, concealing nothing from the |
shareholders, and putting the success |
or failure OF the enterprise that would |
mean so much TO Washington right up |
to them.
In the interest OF the Capital City |
II is to be hoped that the needful plan |
may be evolved. Failure OF an enter |
prise that has gone SO far would be a |
serious matter.