The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-06-11
name 3 TRUSTEES
Beck, LuptOn and Arnold to
Hold New Hotel Fund.
Stock Selling Plan Is Summar-
ICED by Directors.

F. C. Beck, of the contracting firm
of johnson & Beck; E. H. Lupton,
president of the Banks Savings Lie
Insurance company. and e. c. Arnold,
of the Arnold Drug company, have
Been, chosen by the directors of the
Topeka Hotel company, newly incor-
porated, to be trustees for the sale Oh
the 100000 of stock in the company,
which is to be sold.
Makes Report to Directors.
Following a consultation with the
Topeka Clearing House association, L.
/. LiIiard, of the board of directors,
has summarized the stock-selling plan
which has been agreed upon by the
directors and the Clearing House as
ISOLATION, in the Following report 10
the directorate:
..The detailed plan for selling stock In
the new hotel company adopted by the
temporary directors with the approval OF
the Topeka Clearing House 10 submitted
herewith In formulating this plan, the
chief purpose was to arrange pracucaI
plan for selling the stock, which would Dy
throwing every safeguard ABOUT the pre-
ferred stock, make it thoroly SOUND IN
yestment so that persons investing IN II
would run the minimum risk OF loss.
"Preferred stock is to have preference
over common stock in that its preferred
dividends of 90 are to be cumulative ana
in that the preferred stock is 70 consLltuCe
a first lien upon the assets or the corpora
ton and therefore amounts virtually 10 d
mortgage on the property. 1t is not taxa
o. BILE in the hands OF residents OF Aansas'
Must Be Sold This Year.
''rThe plan as adopted provides for the
selection of three high class business men
as trustees who have no personal interest
in the project. and whose standlng IN tne
community will be such to inspire con-
fidence in their business judgment and in
tegrity. All subscriptions for stock are
to be paid into the hands of these three
trustees and all stock is to be issued by
them until the complete sale OF common
aud preferred stock to the amount OF $780,
600 has been made. If the Financing is not
amount of cash paid for preferred stock
is TO be refunded by these trustees with
interest at the rate of go to such or the
preferred stockholders as have paid In full
for their stock.
ferred stock and $250,000 of common stock.
The board of directors have reserved the
right to issue more than $250,00O of COM
mon stock If there appears to be favor
more than S25OOO0 of common stock is
sold, the preferred stock will be decreased
proportionately so that the entire amount
Of both classes to be sold will be only
$G0G,000.
Trade Property for Common Stock.
"1hc preferred stock is to be sold fol
cash only but the temporary directors have
deemed 1t entirely impracttcable to sell the
common stock without the right OF accept
ing property in lieu Of cash for that class
ofstock. During the sale of the preferred
mon stock may do so, but the plan Is tC
uush the sale of the preferred stock first
IF real estate is offered in payment fol
common stock in lieu of cash upon such
basis as Is deemed by the board OF di
rrctOrs acceptable, they shall nevertheless:
not close any such deal until they submit
tile offer IN writing to the three trustees
as representatives of the preferred stock
holders who shall have the power to vett
the deal If in their Judgment the price
which the property offered is IN excess O
its actual value These trustees judg
1npnt will be on values alone, and they vii
not consider that stock may be Offered
for the property.
"The original plan was to restrict tn
site of the hotel to Kansas avenue between
Fourth avenue and Tenth avenue. I'M
revised plan widens the field so as to per
init the location of the hotel on Jack
son or Quincy streets between Fourtl
and Tenth avenues. In thus widening tn
area for the POSSIBLE location of the hotel
it is thought that If feasible projects SHOULD
be presented for locations off the avenu
on Quincy or Jackson streets that woul'
ucef with the approval of prospective hote
building companies and lessees, it woul'
be mistake to have the hands of the boar
tied so that no such site would be opel
for consideration Topeka has been up I
date known as one street town but
is thought that If the city ever is to wider
ont its business district, any feasible pro
tect for so locating the hotel as to assis
in the widening out process should at leas
be open for consideration
The plan was finally approved a
the last meeting of the directors Fri
day.