The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1927-07-22
SEEK TO CANCEL LEASE
WITH VIM. FOOR CROWD
Elizabeth City Hotel Corporation Starts Action
Charging Breach of Contract, Against
Lessees of Virginia Dare Hotel

An action charging breach
of contract and seeking a can
collation. of the lease and con-
tract for the operation of the
Virginia Dare Hotel was start
ed in the Superior Court of
Pasquotank County this week
by summons served upon w. T.
Bovard, Southern District Man
ager of the Associated Hotels,
Inc. at the instance of the
board of directors of the Eliza
beth City Hotel Corp. =
The Associated Hotels. Inc. sue
ceSsors to the VIM. FoOr Hotel Corp.
were the leSsees of the Virginia
Dare Hotel. In consideration OF
a long time lease given them by
the hotel corporation. the lessees
were to have put mp bond In the
sum of $4,000 as guarantee of
their good faith.
They have never entered into the
bond and have insisted that they
would not give bond until they took
over the hotel completely finished.
In other words, the directors of the
hotel have been rushing construction
on the Virginia Dare with no as
surance that they would have a
mahager when the hotel opened.
The stockholders had to be pro-
tected. The hotel will be completed
on August 25. say the contractors.
The furniture and carpet men and
decorators will go In Immediately
and the hotel will he ready for open
ing Oh or about Sept. 18th. And
the opening Of the hotel is not going
to he delayed, The hotel corpora
tion mas in hand applications from
numerous hotel managers.
The complaint against the AssO-
ciated Hotels. Inc. has not been
filed. attorneys Ehringhaus & Hall
for the hotel corporation asking un-
til August 6 to file their complaint.
The nature of the complaint Is bare
~ indicated in their affidavit ask ]
ing for time.
But there is a lot behind thfs sicAss
tion of the directors Of Elizabeth
Citys proud new hotel. When they
leased the property to VIM. Foor
Hotel Operating Corp. about a year
ago it was upon representations. that
the Foor people were high class and
expert hotel operators. The con-.
Germ had only begun at that time
to operate a chain Of fine hotels in
Pennsylvania. Virginia, North and
South Carolina aird rFlorida.,
But the directors Of the Virginia
Dare Hotel have learned something
about these chain hotel corporations
within the past year. They have
seen hotel after hotel wrecked In
the hands of chain operators. They
have seen break between the VIM.
Foor people and Morehead Villa
Hotel at MOrehead City. They have
seen break between the same
crowd and the Washington Duke
Hotel in Durham.
These chain operators have moth
ing at stake. They take hotels that
communities have built, load them
up with heavy expenses and when
they get thru with them there is
nothing left for the stockholders.
They not only put no money into
the hotel to begin with. but actually
have the nerve to try to eliminate
competition in the matter Of pur.
chasing furniture and equipment,
designating where everything shall
be bought and taking to themselves
handsome commissions on every pur
chase made for the hotel out Of the
stockholders money. The directors
of the Virginia Dare Hotel don't
stand for that sort Of business; they
are determined that Elizabeth City's
new community hotel shall be run
at a profit to its stockholders and
not as il plaything for nonresident
Iessees who have numerous high sal
aried officials to take care of. 1t
is the purpose Of the hotel company
to employ its own manager and run
its own hotel.
The action against the Associated
Hotels. Inc. would have been started
weeks ago but for the inability OF
the directors to catch an Official
of the leasing corporation in town.
Pretending to have entered into a
bona fide lease of the property they
have studiously avoided coming t'
Elizabeth City at time when their
presence was demanded and it ap-
pears that they have taken no steps
whatsoever in the matter OF sub
letting any of the shop and store
spaces on the hotel ground floor.
Something had to be done and done
quick or Elizabeth City was in a
fair way to find itself with an
empty hotel on its hands an the 18th