The Portland Daily Press

The New Hotel--Propositions of Mr. Wood.

As much curiosity has been excited to know precisely the propositions of Hon. J. M. Wood, looking to the completion of the magnificent hotel structure on Middle street, for the accommodation of public travel and that our city may not longer be reproached for its lack of first class hotel accommodations, we have taken pains to procure the copies of letters addressed by Mr. Wood to the President of the Board of Trade upon this subject. It seems a conversation between Mr. Wood and T. C. Hersey, Esq., President of the Board of Trade, sometime last winter, prompted Mr. W. to address to Mr. H. the following:

Boston, February 20, 1864.

T. C. Hersey, Esq., President of Board of Trade, Portland, Maine:

Dear Sir: During the conversation which took place between us in the railroad car, while travelling from Portland to Boston, concerning the progress of the former city, as manifested in its present condition and future prospects, quite a number of projects were suggested whereby the rapid improvement and increased importance of the "Forest City" might be promoted. The "Dry Dock" for the repair of vessels, the "Sugar Refinery" and the "Rolling Mills" for the rolling of railroad iron were all discussed. The subject, however, which appeared more particularly to claim our attention was, the necessity of a first-class hotel, first-class in every respect, in construction, in furnishing, and in keeping when thrown open to the public.

In answer to your numerous inquiries regarding the structure commenced and partially erected by me, I believe I fully informed you of the entire practicability and ease with which it could be completed.

As it may be deemed advisable to go back to the circumstances which led to the building of the hotel in question, I beg to draw your attention to the following brief outlines:

In the year 1855 considerable interest was manifested in the building of a first-class hotel in this city, and some two or three prominent individuals started a subscription paper with the view of raising the amount necessary for that purpose. The effort, however, proved unsuccessful, but a small amount being raised, and consequently the project was abandoned.

Believing not only that such a hotel was wanted, but that it would pay, I at once commenced the erection of the building situated on Middle street, and which in its present condition is so prominent a discredit to the enterprise of Portland.

When that building reached its present stage, I became pecuniarily embarrassed and had to suspend further operations, not, however, before I had made an urgent appeal to the wealthy citizens of Portland to loan me the amount required to complete the structure, viz, $150,000.

A committee of gentlemen was formed to procure the loan but failed to enlist interest to any considerable extent, and were obliged to relinquish the task--"in disgust," as one of the parties informed me. Notwithstanding this, there have been frequent expressions of surprise on the part of citizens of Portland and the thousands who, during the summer travel east, that a city such as ours should still be without a first-class hotel, and that the one in question should be permitted to remain unfinished.

I must, however, in justice to myself, state that you are the first person possessing any considerable amount of pecuniary means and influence, who has evinced a disposition to aid me in completing the hotel. I therefore take great pleasure in giving you the information you desire as to how much I require to produce that result.

There has been already expended on the building not less than $150,000. My original estimate (and I see no reason for altering my conclusions) was, that $300,000 would cover the entire cost, including that of furnishing and everything else necessary to enable me to throw open its doors to the public. From this you will perceive that I require to borrow $150,000, which loan I wish to effect on a mortgage of the property for five years, with the privilege, however, of paying any time after the expiration of two years and before the expiration of the five. Should this loan be made, I will, within sixty days, free the hotel from all present incumbrances, and give a mortgage on the whole of the property as it will stand upon completion, together with its furniture and all other appurtenances connected with it, thus giving an expenditure of $300,000 as security for a loan of $150,000. I may here be permitted to say that there has been no time within the past five years, when I would not have accepted aid under these conditions; but as no such offer has been made, I have refrained from intruding my private affairs upon public notice, feeling satisfied that I could bear as long and as well as others, a discredit which has been so widely reflected on our city. In a pecuniary point of view the matter is, of course, wholly different, as the direct loss falls upon me alone.

I would express the hope that should the building referred to in this communication be deemed unsatisfactory, or the terms upon which I propose to receive aid for its completion objectionable, that you will not abandon your efforts to secure the desired result.-- That there is abundance of wealth in Portland to erect a building in all respects creditable to the place, cannot be a matter of doubt, and should an enterprise of this nature be taken up, I, as a citizen of Portland, will rejoice at its success, whatever may be its effects upon my own expenditure.

I beg to say in conclusion that it is a source of much gratification to me, feeling as I do an interest in the welfare of our beautiful city, to know that the "Board of Trade," with its active and energetic President, have taken up, with a determination to carry through, this important matter of local accommodation.

Yours, respectfully,

(Signed,)

JOHN M. WOOD.

It seems this letter secured an interview between Mr. Wood and the Board of Trade, or a committee from that body, which resulted in calling out from Mr. W. a more specific statement, of which the following is a copy:

Boston, April 26th, 1864.

T. C. Hersey, Esq., Pres't. Board of Trade, Portland, Me.

Dear Sir: During my interview with the Committee of the Board of Trade, in relation to the Hotel in Middle street, I was requested to state in detail the manner in which I proposed to receive and expend the funds accruing from the Board. In compliance with that request I beg to submit the following.-- In my former communication I called for a loan of $150,000, offering as security, a mortgage upon the whole of the property, including furniture, &c. The expenditure will run through a whole year, and my proposition is to have the payments made by those loaning the money, in sums, say from $10,000 to $15,000 at a time, as the work progresses, and upon certificates from the architect that the amount called for has been expended on work, materials, furniture &c.

The subscribers to the loan, should they deem it prudent, can have an agent to act in conjunction with the architect in certifying as to expenditure &c.

The whole matter of the loan is a very simple one, and it seems to me the manner in which the subscription opens, will test and solve the question as to whether the capitalists of Portland are ready to encourage an enterprise, obviously beneficial if not necessary, to the city's progress, by loaning their money at 6 per cent interest, to further the project.

On Tuesday of next week I intend to have the architect in Portland, for the purpose of examining the building preparatory to commencing work upon the same. The committee can have conference with the architect while he is there, should they think proper to do so.

Mortgage notes payable to bearer, drawing interest semi-annually, (coupons attached) may be issued in sums of $500 and $1000 each to represent the loans and as a convenience to those in interest, for purposes of negotiation.

Yours Respectfully.

J. M. Wood.

Time having elapsed, and no definite results having been reached, Mr. Wood invited the citizens to meet him at the City Hall on Wednesday last, at which time he made a Proposition for a Stock Company.

Having read the two foregoing communications, Mr. Wood said No definite result having thus far grown out of these proceedings, and there being no satisfactory evidence that the loan will be taken up, I am now prepared to make another proposition which I trust will be deemed satisfactory.

I propose that a Stock Company be formed with a capital of $300,000, in shares of $50 or $100 each, and that said Company purchase the building in Middle street at its cash cost; or if this be unsatisfactory, that three competent persons be selected to put a valuation upon the building as it now stands, and I will abide by their decision.

I will then take stock in said Company to the amount of $30,000.

As we stated in a brief report of that meeting yesterday, a Committee was chosen to confer with the committee of the Board of Trade, and the result of their conference may soon be looked for. We really hope the enterprise may be entered upon with a will, and that the reproach of our city may soon be wiped off. We will endeavor to keep our people apprised of results whatever they may be.