The New York herald., 1921-05-03
$75O,OOO YIELDS
HOLE IN GROUND
BOndhOlders of Interna-
tional Sporting Club Long
to See Building.
LOO IN MEMBERSHIP
w. A. Gavin, Managing
Director, Admits Fund Is
Not Large Enough.
NNyxy ADA DnMENN CNuEME Z,
NEW APARTMENT SCHEME
This Would Place Club House
i'm Centre of a Residen tial
Block.


which intends to build an imposing
structure to house the International
Sporting Club itself have been the sub
ject of much critical comment lately
among some of it's LOO members.
each of whom is the purchaser of a
$500 "6 per cent. gold debenture bond"
These impatient bondholders would
like to know what disposition has been
made of the $500 900 collected or sub
scribed for under the bond issue and
when the new club building is going to
be constructed.
At Forty-ninth street and Lexington
avenue, where the club corporation
holds title to a large plot on the south
east corner, a high board fence sur
rounds a thirty foot excavation,
around which the external foundations
for the proposed clubhouse have been
laid. But no work has been done on
the premises since August and where
the promised magnificent clubhouse
was to be there is nothing but deep
"hole in the ground"
William A. Gavin, managing director
of the club and one of the vice-presidents
of the corporation-the real promoter
and founder of the project and, with
TEX O'Rourke. his assistant. It's prin-
cipal active element now-insists that
the club and the corporation are both
In as good shape financially as can be
expected in these dull days and Is con-
fident that means will be found very
b,,iI
tons This will. he feels sure, set at
rest all the disturbing elements among
the membership and give both to the
club itself and to boxing generally an
impetus and aid much needed.
Amount Actually Received.
AS all Of the bond purchasers do not
pay in full but avail themselves of the
privilege of paying in stalments. the fun
amount OF SS50.000 represented by the
1.700 bonds sold has not yet been real
lied In a recent statement Mr.. Gavin
calculated that up to April last about
$4,000 had been received in cash from
all sources since the organization of the
club corporation in September. 1919.
How much has been received since April
is not yet ascertainable. Haskins &
Sells public accountants will make their
next examination OF the books at the
end of this month.
What amazes some OF the members
is that with all this amount of money
coming in no progress has been made
toward constructing the clubhouse, though
1t had been expected that the building
would be finished and ready for occu-
pancy this spring or summer Mr. Ga
wins reply to this is that the purchase
Of the site absorbed about $e50,000 of
this money, that the cost of excavation
and foundation work has eaten up $105.-
900 more and that of the balance archi-
tccts' and contractors fees, payments on
account OF steel interest, taxes and rent
and salaries have swallowed up S12O,O0O
more, while $4,000 has been spent in
paying off mortgages and S20,o more
Is on deposit with the Columbia. Trust
Company in escrow for the contractors
bill.
There is one item which the inquisi-
tive members would like to know more
about That is the money spent for "or-
ganization, development, advertising. en-
tcrtainments. bond salesmen's salaries,
commissions and expenses"
Up to May 81. 1920. according to the
report OF Haskins & Sells, s126,000 had
been spent in Organization. develop
ment. &C." At that time there were en-
rolled 1869 members. of whom 994 had
paid up in full and 275 had taken bonds
on instruments. 1t should be said par
cnthetically that Mr.. Gavin is very frank
in telling the world that these s per cent.
gold bonds are not to be considered In
the light of an investment, like rail-
road or Government bond They are the
"initiation fee" to the club membership.
Every member must own one and may
own only one. He cannot buy two bonds
for himself.
Considerable sum Due.
Since May 81. 1920. and up to April /
of this year an additional enrolment of
about 430 members has been accom-
plshed. the total standing a month ago
Mt 100 members. Many of these have
purchased their bonds on quarterly In
stalments and therefore considerable
sum Is still due from them. So, as Mr..
Gavin says, "the total sum received
from all sources Cup to April ~ does not
exceed $3.50. 900" And OF this sum
no accounts for S742.00o by the items
enumerated above and by an additional
$4,000 for Organization, development,
&C." since May 81, 1920
This makes a total OF sfSS. 900 for "or-
ganization, development, &c." or about
$1,000 spent for the procuring of each
$500 membership In addition to the sal
aries OF the managing director and his
stan. And the cost is constantly rising,
II would seem. For the 1880 members
enrolled prior to May 81 last the aver
age cost was a trffie under 500 each
s99.30, to be exact.
For the 430 members enrolled during
the ensuing ten months the cost has
risen to sl44.20 a member and as the
enrollmcn slows down the average cost
mounts ever higher Members who are
impatient to see the clubhouse built and
operating, so they can enjoy the benefit
of the $500 Investment" fear that en-
tirely too high percentage of the re-
ceipts Is being lost In the cost of pro-
curing the cash. As the total member
ship II limited under the bylaws OF the
club TO 2.250. these members are fearful
that when the full membership has been
acquired there will not be enough funds
on hand to construct the clubhouse
Mr.. Gavin. however, has no such fears
lie points to the permanent income of
the club from dues, which amount to
800 year per member. This income
now represents $4,000 n year and viii
eventually be s225,000; ample. Mr.
Gavin says, to take care of all the stand
ing expenses and overhead OF the club
II is merely a question now Of getting
the club built
Frankly enough, Mr. Gavin admits
that as matters stand now the club cor-
poration has not the funds with which