The New York herald., 1921-12-17
Investment Bankers Want
to Lend $3,000,000 on
Clubhouse.
100000 BID REJECTED
Organization May Yet Desert
Lexington Avenue and It's
81, 100000 Property.

The International Sporting Club,
Inc, which recently was reported to be
in financial difficulties as a result Of
the alleged mismanagement of William
A. Gavin, is to be reorganized by a
group of influential Wall Street men,
it was announced last night, and will
be made bigger and better club than
the one conceived and started by the
English promoter.
Gutzon Borglum, sculptor. who has
been president since Mr.. Gavin re-
turned to his home in England. said
the men who have come forward in
the last few days, and whose names
he Is Withholding for the present, are
determined to conserve the clubs as
sets and erect on the ruins Of "Gavin's
dream" an institution for furthering
the sport Of boxing that will be a credit
to the city.
Mr.. Borglum headed the majority of
members in an effort to keep the club
alive when It became known that
finances were In such a state that 1t
would take crystal gazer to discover
whether the club was solvent or insol-
vent. 1t was he. according to his state
ment last night. who rounded up the
Wall Street backing. Mr.. Borglum said
any one OF these men stood ready to
underwrite all of the clubs obligations
and that the first move Of the group
would be to pay off the s225.000 second
mortgage, the holder OF which has been
threatening foreclosure.
Thirty Men to Take Charge.
Mr.. Borglum Is arranging for a COM
mittee of thirty to take charge of the
property in Lexington avenue. between
Forty eighth and Forty-ninth streets. Into
which more than s1.000,00O has been
sunk for tho clubhouse. The Wall Street
men, who at present number six. are on
this committee.
The committees duties will be to con-
serve the clubs assets and to arrange
for the erection Of building to house
the club either on the present site or In
some other section IL any one of three
plans now before the committee Is
adopted. The clubhouse, Mr. Borglum
said. is to be completed not later than
October /. 1922.
Mr.. Borglum said an offer of 100000
for the Lexington avenue property had
been rejected and that Straus & Co..
bankers, had offered to lend to the club
between $3.000,0O0 and S4.0O0.000 TO
erect the house II certain changes would
be made in the plan to allow for bache-
lors' quarters in the building. The
scheme of the banking firm Is to make
the clubhouse income property aside
from club dues. They ask that the arena
be made oval instead of round, as the
plans now specify, and ask that the
building be five or six stories taller than
the sixteen story structure planned by
the architects
Want Monument to Pugilism.
But the Wall Street men are not en-
tirely in sympathy with this project. the
president said. They feel that the build
ing would not be strictly clubhouse
and II Is their object to erect struc-
ture that will be monument to the
nstic art. They have suggested. Mr.
Borgum said, that business structure
be erected on the Lexington avenue site
and that the clubhouse be In some other
part Of the city. the earnings OF both
being diverted TO give some tangible
value to the $500 gold debenture bonds
purchased by the 1.700 members. Then.
again, II is proposed to go ahead with
the clubhouse as previously planned and
to let the future take care OF itself.
one thing Is certain, however. Mr.
Borglum said and that Is that the In
ternational Sporting Club. Inc, Is not
going TO die. 1t is to be amalgamated
with .he International Sporting Club
Corporation, which. II has been charged
sucked the life out Of the club" The
Army. Navy and Civilian Board Of Box
ing Control and the National Boxing AS
ISOLATION. two OF the four club subsidia-
ries organized by Gavin are TO mainta In
their identity in the governing board Of
the club. The affairs of the National
Sporting Clubs of America Inc, are to
be terminated.
IL was the firm Of Terry & Tcnch
engineers and contractors, with offices
In the Grand Central Terminal Building.
which offered $500. 900 for the Lexington
avenue plot Mr.. Borglum said the COM
mittee's declining Of the offer reflected
the determination to keep the club alive
This price. he said, would leave the club
an equity of more than $4,000. which
would more than pay other outstanding
obligations and leave n condition Of SOL
vency. provided tho club members did
not demand principle or interest on their
bonds. A sale would release $50. 900 held
in escrow for the first mortgage. Tho
mortga Res on tho property total s425,-
000 The first. for 5000. 900. is held by
the Prudential Insurance Company and
the second by the Centerheld Company
OF so Church street OF which James c.
Mcclure is president.
BorgIum Unhampered.
While Mr. Borgluns special commit
tee was meeting yesterday afternoon Mt
the club offices. 107 West Forty-hrst
street. the special committee appointed
TO look after the interests OF the club
members. which IL headed by Frank A.
X. Boland q lawyer was meeting In
the latter's offices. 3t2 Madison avenue
Mr.. Boland and his committee decided
to do nothing until II could be seen
whether Mr.. Borgum was able 60 save
the club.
The Boland men were not aware that
tho sculptor had obtained the support OF
the Wall street men. but even in their
Ignorance Of this fact the announcement
was made that nothing would be done to
hamper the efforts OF Mr. Borglum. Mr.
Boland declared untrue n declaration
said TO have been made by Mr.. Borglrm
that his committee was unlawful and did
not have the rower TO Interfere In the
affairs of the club. The lawyer added
that II conditions warranted II later on
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