The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1927-11-04

To Be Operated Under Ownership Manage
ment-The Lease of The Crump Cham
Operators Cancelled by Court Order

The new Virginia Dare Hotel.
pridc of Elizabeth City and
Coastal CarOIina, will he open 10
guests Monday. Nov. 18th and
will be formally opened with
dinner and ball to invited guests
on tile night Of Friday, Nov.
18th, Armistice Day.
And the hotel will open under
community management. The
restraining order granted the
Associated Hotels, Inc. by
Judge Johnson ]. Hayes in. the
u. S. Court on Oct. II, was dis
by Judge Hayes yester-
dav, the lease of the Associat-3
ed Hotels, Inc. declared cancel
led and the owners Of the hotel
permitted to open it under
their own management.
Judge Hayes decree. which has
heen awaited with keen expectancy
all week, came about three o'clock
afternoon after one of rhe
most stubborn fights ever conduct
pd In the Federal Court I'm this city.
The case was tried on the equity
side of the docket, without prejudice
TO the law interests Of the litigants.
Both sides are now permitted to 60
10 law for any damages they may
claim. but the management of the
hotel is settled. J. p. Johnson. the
employed by the tOle direc-
Tors several weeks ago, will open
and manage the hotel for the hotel
rr
Judge Hayes I'm entering his order
strong desire for an inn
and final adjustment of diff
ferences between the hotel owners
and the Associated Hotels At /.
torneys j. c. r. Ehringhaus and =.
W. Mcmillan for the hotel owners
said they wonld consent to call 2ef I
further litigation. But Attorney 7.
Justin Moore for the hotel operators
would make no such consent. He
noted an appeal and indicated that
his clients would continue to fight
TO the last ditch. But it Is public
opinion that little good 1t will do
them. Any sympathizers that the
chain hotel operators may have had
in the town were lost to them by
their own showing In the cause on
trial here this week. On their own
showing they appear as nothing
more than bunch of cheap, tricky,
and inefficient shoe
string operators without important
assets in either cash or character.
"If the Virginia Dare Hotel Is
turned ever to the defendants. the
Associated Hotels. Inc, IL will be
to putting dynamite
under 1t and blowing il TO smith
Green's, II would mean disaster for
the stockholders declared u. w.
attorney for the Eliz-
abeth City Hotel Corporation in
concluding his argument before
Judge Hayes Thursday morning.
It has been difficult to follow the
evidence pro and con in the case
here this week Some things stand
out. And one of the outstanding
things was the bad showing made
by the defendants themselves. On
their own testimony they appear as
sorry bunch of shoe-string hotel
operators. without especial ability,
without especial character and with
out capital.
Back In the summer Of 1926 the
Elizabeth City Hotel Corporation
entered into lease contract with
the VIM. FoOr Hotel Operating
Corp. a chain hotel operating COM
pany. The Officers Of the Operat-
ing company were VIM. Foor, presi-
dent: Geo. NJ. Crump vice prcsi-
dent and o. W. DOnnell. secretary.
treasurer and general manager.
The hotel company were impress
ed with the reputation, ability,
character and personality of Messrs.
Foor and Donnell and Mr.. Crump
hardly entered the picture.
Not A Bad Contract
The contract stipulated that the
hotel company should build, furnish
and equip a first class hotel, plans
for which were to be approved by
the lessees.. The lessees were 70
take over and operate the hotel.
paying to the. owners six per cent
OH their investment after all taxes.
insurance, certain depreciation
charges and the legitimate Operat-
ing expenses Of the hotel had been
met. The net profits of the hotel
were to be divided, after deducting
the specified charges, on a basis OF
60 per cent to the hotel owners and
10 per cent to the operators.
It was stipulated in the contract
(Continued on mage sfx)