Ashland weekly tidings. [volume] (Ashland, Or.) 1919-1924, 1921-11-09

Ferguson, G. H. McGee, T. H. Simp-
son, w. N. McNair, E. e. Kinney.
The bonus which is to be raised
will be used to attract an individual
or company having a quarter OF a
million dollars to invest in first
class Ashland hotel. 1t will be the
policy OF the committee to consider
only such propositions as may come
from firms or persons having ample
means to finance the enterprise,
since 1t is believed that ore of the
commonest causes of hotel failures
is lack of capital. When heavy in
terest charges on borrowed funds
must be paid, and there is insuffic-
lent surplus available to meet oper-
ating expenses, the hotel Is foror-
dained to failure, according to the
judgment of those present at the
meeting last night,
Holders of the bonus will stipu-
late that construction is to begin
not later than the first of next July
and the building finished not later
than July 1st, 1928. 1t was decided
to make bonus subscriptions payable
in cash or ninety days for the pur
pose of avoiding possible shrinkage
due to people dying, moving away
or similar causes. Chairman Smith,
Of the committee, announced that
leading business firms would be eX-
pected to contribute around $1,000
each. Reference was made to one
OF the Ashland war drives, which
resulted in the raising of $500, 900.
F. E. French, +. L. Watson, L. A.
Whitehead and Irving Finley fay-
Ored the stock subscription methods,
but were open to conviction as to
the superior merits of the bonus plan
and intimated that they would come
through with subscriptions in case
the latter method was adopted
Henry Enders, Sr,, referred to the
Granite City hospital as a somewhat
similar enterprise. When Mr.. End
ers gave $500 stock subscription,
and DR.. F. G. swedenburg followed
with similar or larger amount, the
general opinion was that it would be
impossible to obtain the necessary
funds needed to erect a mondern
hospital. j. p. Dodge and Henry
Enders put in about six months time
on the building committee, but the
result Nwas very desirable and dur
able structure completed at the low
cost of around $4,000. The hos
pital property Is now considered as
worth double this amount, although
those who put up the money to pay
for same did so with no expectation
of reaping direct financial profits.
In support of the hotel bonus plan,
o. II. Barnhill told how for more
than years time Corvallis tried to
raise a quarter OF a million dollars
TO build first-class hotel, employ
ing professional promoter at a
high salary to sell stock. After
salary outlay of some $4,000, only
about $4,000 was subscribed. and
the project was abandoned.
j. w. Mccoy told how for at least
fourteen years Ashland had unsuc-
cessfully been trying to interest cap
ital in building an Ashland hotel by
the formation of stock company or
similar method. The offering of
cash bonus of 100000, Mr.. Mccoy
considered, would serve as an adver-
tisement to attract capital to the de-
sired proposition, with the result |
that hotel would be built, in some
way or another. This appeared to be
the concensus of opinion of those
present.
NJ. C, Reid favored taking full
page ad in the Saturday Evening
Post, or some similar periodical, In
order to show capitalists what Ash
land had to offer in the way of in
ducements to hotel builders, which
would include the 100000 bonus,
mineral waters and other advan-
tages. This speaker cited numerous
cases showing how first class hotels
were proving paying investments.
The $2,000,000 Multnomah hotel at
Portland was for years considered
a white elephant by the people of
that city, but all the enterprise
lacked was a competent manager.
The latter was finally obtained and
now the hotel is paying a net reye-
nue. of IL per cent on its cost. A
S5,OO0,OOO hotel recently erected in
Los Angeles, at a considerable dis
tance from the business district, was
not expected by many to prove prof
table, but has been so from the be-
ginning.
The L. S. Grant hotel at San hi