Meinhard, Salmon, and the Bristol Hotel
In 1902, Louisa Gerry leased the Bristol Hotel in New York City to Walter Salmon for a term of 20 years, beginning in 1902 and ending in 1922. As lessee, Salmon agreed to renovate the hotel building for use as shops and offices at a cost of $200,000. Salmon needed funds to complete his proposed renovations to the building, and he persuaded Morton Meinhard to act as a financial backer. Salmon and Meinhard entered into a joint venture agreement with the following terms: Meinhard agreed to pay Salmon half of the moneys necessary to reconstruct, alter, manage, and operate the property, and Salmon agreed to pay Meinhard 40% of the net profits for the first five years of the lease and 50% for the years thereafter. If there were losses, the parties agreed to bear them equally. Salmon, however, was to have sole power to “manage, lease, underlet and operate” the building.