Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-11-01

scribed, but your directors conf
IDENTIFY expect to secure this addi-
tional amount when needed.
Company Protected
The necessary contract and bond
for the protection OF the company
was prepared by the attorney of the
| company. j, 10. B. Cunningham,
which also protects the company
from loss as result of the accident
to the contractors by which the ad-
Joining building collapsed and fell
into the cellar excavation.
Before the plans and specifica-
tlons were prepared and adopted, ef-
forts were made to secure a lessee for
| the hotel, In order that the building
might be constructed with a view to
economical operation, in accordance
with the views of the operating COM
pany. A satisfactory lease or con-
tract was made with Frank A. Dud-
ley, president of the United Hotels
Company, successfully operating
first-class hotels, among which are
the following;
The Ten Eyck,- Albany. N. Y; the
Utica, Utica, n. Y; the Tutwiler,
Birmingham, Ala. the jefferson,
Peoria, ILL.,; the Robert Treat, New
ark, n. j.; the Seneca. Rochester,
NJ y; the Onondaga, Syracuse, n. Y;
the Lawrence, Erie. Pa; Royal Con-
naught, Ontario; the Nonotuck, Hol-
yoke, Mass; the Devonshire, Toron-
to, Canada; the Bancroft, Worcester,
Mass.
The terms of lease comprehend
tho payment to the stockholders of
the Harrisburg Hotel Company of 6
per cent. per annum for the first five
years, IL earned, with q minimum of
per cent; and seven per cent. def
mite, per annum, after five years. In
addition the hotel company will re-
ceive 40 per cent. of the net earnings
of the operating company. This lease
is considered most favorable and
exceptional one in the interest of the
stockholders Of this company. The
lease also provides that the operating
company shall pay all charges, in
cluding insurance, taxes and main
tenance, 80 that the rental will be
net to the Harrisburg Hotel Com
pany.
ITO carry out the provisions of the
lease an operating company was
formed with u capital of 100000,
hfty-one per cent. OF which will be
owned and held by the United Hotels
Company. and forty-nine per cent,
without cost for same, will be owned
by the Harrisburg Hotel Company
and held in the treasury, the earn
ings Of which will accure to and add
to the earnings from the lease of the
building. The United Hotels Com
pany will furnish $4,000 for work.
ing capital to the operating company
(the Penn-Harris) which will be
represented by preferred stock and
a n nn nf+Tli irNg tNf
the operating company. The furnish
ing of the hotel will be at the ex-
pense of the Harrisburg Hotel Com
pany, not to exceed $4,000 and will
be also a charge as rental against
the operating company.
The estimated cost of the build
ing and site (the latter costing $780,
000) will be about 81, 1,050, 900, which,
with the cost of furnishing will make
a total of about $1,2O0,000. The orig
tnal plan, as later carried out, was
to raise 100000 by the issue of five
per cent. bonds. A very satisfactory
arrangement was made with the
Commonwealth Trust Company, by
which 1t takes the entire issue at par,
less one per cent. for handling the
bonds, thus placing the entire
amount to the credit and at the dis
posal of the company. Due notice
was given the stockholders. who con-
vened and authorized the issue of
the bonds and the performance of
necessary measures IN connection
with the loan. The necessary mort
gage was prepared and approved by
the board of directors, embodying
the terms ofproposal OF the Com
Trust Company. The au-
thorized capital stock of the COM
pany was also increased from $780,
900 to S750,000.
THE depth of excavation and the
rock encountered caused some delay
in the preliminary progress of the
work. after the contract was exc
cuted. Messrs. Nelson & levin,
however, have now well-perfected
and rapid progress is
being made. The second story. which
includes the lobby, Tongue, dining
room and kitchen is being poured"
this week. The contractors plan to
one story each week, and
unless weather conditions are very
severe, expect the building to be un-
der roof early in January. While
the building proper will be reinforced
the outside will be of tapes
try brick, with recessed Joints. The
first three stories will be granite.
The design will be of pleasing effect
and it is to be hoped wall meet the
of the stockholders. The
work of construction of an eleven
story concrete building, the framing
of the floors and columns, and the
of the concrete will prove in
teresting to the stockholders who
make a visit of inspection from time
to time.
ANY information desired will be
4 off nf