Orti
t
dsn
OF THE
v
SALEM COMMUNITY HOTEL
CORPORATION"
of Salem, Oregon
EVERY citizen interested in the growth and development of the city of Salem recognizes that a new and modern hotel is the one great out
stapding need of the community. Appreciating our city's requirements in this respect, a committee of local business men has been at work
to ascertain how such a hotel might be secured. -
This committee, after a careful investigation, engaged The Hockenbury System, Inc., of Harrisburg, Penna., to make a thorough and scien
tifiV stndv of the local hotel situation. This organization, which has successfuly developed and financed I 70 hotels throughout the United States
and Cana
conferences, University and State House visitors, and permanent guests to make a modern, fire-proof hotel of approximately 125 rooms, a
safe business man's investment. ','
ida, made a comprehensive and detailed survey of Salem in relation to all phases of the hotel business. The analysis of this survey es
the fact that there is sufficient patronage in Salem from commercial transients, automobile tourists, convention delegates, industrial
The committee has studied the various means of developing such a project and has adopted what they believe to be the most efficient and
the most economical plan which they beg to place before the citizens of Salem as follows:
A corporation known as the Salem Community Hotel Corporation has been organ
ized under the laws of the state of Oregon. It is proposed that the hotel shall be fi
nanced on a community basis.
A temporary Board of Directors has been appointed. A Hotel Campaign Executive
Committee has been organized and a large citizens' organization will be formed. The
work of these committees will be to provide Salem with a modern hotel in keeping
with its needs. k
t
The citizens back of this project are business and professional men who believe
Jn the future of Salem. They are giving their time and their services without com
pensation in this effort. Every citizen will benefit directly and indirectly in the build
ing of this modern fire-proof hotel; therefore, it is a civic privilege on the part of ev
ery citizen to boost and buy stock.
It is estimated that the total cost of building, site land carrying charges during
construction will be approximately $325,000.00. It is proposed to secure approximately
1200,000 of this amount through the sale of preferred and common stock, and a first
mortgage will Je placed upon the property sufficient to complete the financing.
It is proposed to issue 2000 shares of fully paid non-assessable preferred
stock of the Salem Community Hotel Corporation. The preferred stock will be of the
par value of $100.00 per share and will carry dividends cumulative after one year of
operation, and will be preferred as to assets. There will be issued 1000 shares of com
mon stock of nominal Or no par value. This stock will be sold in units of two shares
of preferred stock and one share of common stock for $200.00 per unit. There will be
no promotion or watered stock, no gratuities orj bonuses of any kind. Every citizen
''will purchase his stock on the exact basis of every other citizen.
The terms of payment for this stock will extend over a period of ten months. The
first payment, 10 of the subscription, will be due and payable on or before Decem
ber 1, 1930, and the balance will be payable in installments 10 of the subscription
on the first day of each succeeding calendar month. The date of the last payment will
be September 1, 1931.
The Hotel will be managed and operated by either a national chain hotel operating
company, or an experienced individual hotel operator. The Hotel Corporation will en
deavor to secure the best possible operating contract for the protection of the stock
holders. The Board of Directors have at the present time two definite operating pro
posals: one from a large hotel chain in the northwest who have proposed to operate
the hotel on a profit-sharing basis, the other from an experienced individual hotel
operator who has proposed that he will invest $60,000.00 to completely- furnish the
Hotel and execute a first lien chattel mortgage on the furnishings to guarantee per
formance of the lease. This operator will pay a net rental equal to 7 of the local pre
ferred stock investment, and in addition to this give a share of the operating profits
Both of these operators will agree to pay all expenses of operation, interest and amor
tization of mortgage, taxes, insurance, maintenance, upkeep, and proper sinking fund
for depreciation on both building and furniture. The Hotel Corporation regards itself as
fortunate in having these two operation proposals.
No site has been selected; this matter will be left entirely in the hands of the
Board of Directors selected by the stockholders after the stock has been sold. The
Board of Directors of the Corporation must be trusted to give this matter fair and
impartial consideration. They will no doubt be guided very largely in their decision by
the operating company with whom they make a contract to operate the Hotel.
The Hotel Executive Committee is offering the above information to the public in
the belief that the purchase of the Hotel securities will appeal to the citizens of Sal
em and vicinity, because:
(1) The investment will be represented and protected by substantial assets in the
form of a proper site and a substantial, modern, fire-proof, up-to-date hotel with full
equipment erected thereon.
(2) The Hotel will provide an adequate number of much sought, much needed,
first class, quiet guest rooms.
(3) A modern, attractive, community hotel in Salem will give our capital city
a nation-wide reputation cand will attract to Salem many people who do not stop or re
side here at present. . '
(4) This Hotel will be distinctly a community enterprise, meeting a distinct need
an'd is of the greatest possible importance to the future growth of Salem as well as the
development of busines in our city.
(5) This much needed major development should create & unity of action by the
people of Salem which should bring to Salem many other much needed developments.
(6) This project will supply a much-needed employment program and give work
this winter to many Salem citizens who otherwise may be in great distress.
(7) A new hotel will be equivalent to bringing an industry to Salem employing
approximately 100 people and will have a payroll of approximately $5000.00 per month.
(8) A modern hotel in Salem will bring additional conventions, tourists, and vis
itors who otherwise, as at present, will stop and spend their money in neighboring
cities. .
The Hotel Committee and Board of Directors pledge that all reasonable safeguards
wili protect the expenditure of money subscribed to the enterprise, so that full valu
will be received by the Corporation for every dollar invested.
THE HOTEL EXECUTIVE COMMITTEE
" - ,
I.
T. M. HICKS, President Salem Abstract Co., Chairman
A. W. NORBLAD, Associate Chairman
Governor State of Oregon
JOS. H. ALBERT
Trust Officer, Ladd j Bush
.Trust Co. ,
GEO. I ARBUCKLE
Butter Brourn Shoe Co.
MAX O. BURKN
Buren'e Furniture Store
T. 8. BILLIXG8LEY
Supt Pacific Greyhound Line
W. H. BURGHARDT
Insurance
K. C. BC8HNELL
Building I nspecter
KRIC SUTLER
Manager,' Western Union Telo
groph Co.
LEO JT. CHILD
Loo N. Ckilde Ce.
11. A. CORNOTER '
Durbin mnd Consyor
i ' . , --.
H. 43. DRAGER -Csunty
Treasurer
GEO. H. DUNSFORD
SupL, Stmts Buildings smd
- Grounds. T
DANIEL J. FRY . .
Chairman Board at Dire tors,
First National Bonk
CAR I' P. GABRIEI.SON
Manager, Stats Motor Vehicle
Dir.
Pres., Stat Savings and Loan
Association
GEO. GRABEXHORKT
President, TV. H. Grabcnkorst
and Co.
george! h. graves
Commercial Salesman
i " . 4
r. E. HAL1K
President, HeJLik Electric Co.
C 8. HAMILTON
C. S. Hamilton Fumitur Co.
W. M. HAMILTON
w Manager, Portland General El
ectrical Co.
R. A. HARRIS
Secretary,-Kola Hills, Inc. -
O. A. HARTMAN
Hartman Bros. . y ;.
T. If. HICKS r
President,' Salem Abstract Co
GROVER W. CULLMAN
President, Capitol Dairies v
SO WARD H. HULSET
Manager, Western Dairy Prod
V nets Co. .
C. S. HAMILTON, Treasurer
C. S. Hamilton Furniture Co.
REV. THOS. V. KEEN AN
S. Vincent Ds Paul Catholic
Chttreh
K. H. KENNEDY
City Cleaning Works
C. E. KNOWLAND .
Elliott Printing House, Inc.
HARRY M. LEVY
Manager, Midget Market
r. c. Mcdonald
Vice-Pree. and Manager, Xod
gers Paper Ce.
WM. MeGILCHRIST, JR.
McGilchrist and Pennington
DOUGLAS McKAY
Pres. and Troas., Douglas Mc
Kay Chevrolet Co.
W. T. MALLOY
Manager, Cherry City Baking
' Co.
A. H. MOORE
Bicycles '
FRANK G. MYERS
i The Spa, Confectionery i-
, JAMES NICHOLSON
Manager, First National Bank
"Building -
DOUGLAS McKAY, Secretary
Douglas McKay Chevrolet Co.
A. W. NORBLAD
Governor, State of Oregon
DAVID O'HARA
Division Manager, Secretary of
State
DR. O. A. OLSON
Dentist
V. S. PAGE
Pres Union Abstract Co.
C. L. PARMENTER
Contractor ' '
HAL D. PATTON
Patton Bros.
J. C. PERRY
Perry's Drug Stars
D. W. PU.GQ ,
Civil Engineer
PR. C. H. ROBERTSON m
Physician
H. M. ROGERS
City Engineer
W. W. ROSEBRAUGH
W. W. Rosebraugk Ce.
A. J. RAHN
Bahn-McWhorter' Paper Co.
EDW, SCHCXKE .
Manager, Roth Grocery Co.
IL NY SIMON '
Salem Hardware Co. ,
PR. MARK S. SKIFF
Dentist
RICHARD D. SLATER
Supt Oregon Gravel Co.
BRAZIER O. SMALL
Attorney at Law
M I. STALKY
Owner and Principal, Capital
Business, College
DR. B, L. STEEVES
Physician
W. T. STOLZ
Manager, Gideon Stel Ce.
L. L. THORNTON
Stat Motor, In.
DR. FLOYD L. UTTER
Dentist
PAUL B. WALLACE
Jre, Valley Motor C.
GEO. K. WATERS
Wholesale Cigar
H. O. WHITE ! r
D. Am Whit end Son
E. L. WIEDER :
Salem Laundry C. r" -
N. WTJLUAMS J: ".. " ;
Mgr Oregon Financ Corp.
D. A. .YOUNG - -"' -Attorney
at. Law - B