February 3, 1917





RECORD   AND   GUIDE





127





STATUS    OF   THE   BUILDING   MATERIAL   MARKET

Gradual Advance in Cost of Materials Has Reacted
Upon Building Situation- Labor Strikes Also a Factor





By FRANCIS N. HOWLAND





"T'HE gradual advance in the cost of
•*■ other than masons' materials from
various causes has reacted upon the
building situation, especially as regards
speculative building, that at present is at
a low ebb and, as the cause continues,
is likely to come to a standstill.

Labor strikes, shortage of all kinds of
material entering into the construction ot
Luildings, high wages of workmen, and
scarcity of same, have all tended to cre¬
ate a condition that may well cause busi¬
ness men to pause, and ask, where will it
lead us, provided it continues much
longer? We have also been met with
freight congestion, delayed shipments
and other railroad troubles that have
added to the general discomfort and nat-
urallv added to the cost of all articles
coming by  rail.

No doubt the war in Europe has been
one of the factors responsible for the
present unfavorable conditions, for while
il has resulted in pouring into this coun¬
try millions in money that would in time
be absorbed in real estate and allied in¬
terests, it has upset the labor market,
and caused a shortage in all industries
using unskilled labor, so that brick, lime,
cement and other building material man¬
ufacturers have not been able to meet
the call on them.

.\s to when we may expect lower
prices, it is hard to say. but it does ap¬
pear as though comparatively high prices
will prevail until the cause is removed,
viz., the close of the European conflict;
(hen, with the stoppage of the many mu¬
nition manufactures, workers will natu¬
rally drift back to their old employments







FRANCIS   N.   HOWLAND.

in such numbers as to result in a fall in
wages all along the line.

Considering all that has been written
on the subject, and judging from past
e.xperience, I think it would be to the
advantage of the prospective builder, es¬
pecially the speculative one, to wait un¬
til a more favorable time for operating.

At present writing there is a decided
shortage in building material caused by
conditions mentioned before, and whether
a  shrinkage  in   building  operations  will





help the dealers during the coming win¬
ter IS a problem.

Of course, there is harm to the build¬
ine industry from "jacking up prices"
l)ut from my viewpoint it is a condition
thrust upon ' the manufacturers from
causes they could not foresee and help,
and in consequence dealers and users
must take their medicine and await the
return of normal conditions.

I believe it would be to the future ad¬
vantage of the brick industry if manu¬
facturers would be contented with pres¬
ent prices of their product, and not have
such an advance that would tend to drive
purchasers to old brick, hollow brick,
cement products and other articles that
could take the place of brick.
, For in over fifty years' experience in
the buildmg material line it has been no¬
ticeable that the reaction from too high
or too low prices of a commodity has re¬
sulted in disaster sooner or later ■^nd
It does seem that brick manufacturers
should put a price on their output for at
east SIX months, or, better still, for the
life of the work dealers are asked to give
quotations on, the same as cement lime
and other building material manufac¬
turers do.

If a fair price for brick could be ar¬
ranged for between manufacturers and
dealers for the coming six months I be-
Iieve_ it would 'result in a better feeling,
and in the end more profit to the manu¬
facturer: for it would carry him through
a period in the spring season when work
is slow in starting, and an accumulation
of brick in market would cause very low
prices, especially if abnormally high
prices had been asked during winter
nionths.





SAND AND GRAVEL.





Biggest   Business   in   History   of   Trade
During 1916.
By FRANK F. GALLAGHER.
nPHE  past  year  brought  to  the   sand
*-   and gravel trade of the Metropolitan
district  the  biggest business  in  its  his¬
tory.    Besides  the demands of building
construction, which  during the last half
of the year have been abnormal, and the
requirements  of  the   subway   and   other
public works in the city, there has been
a  large  amount  of  terminal   and   indus¬
trial   construction   in   the   cities   on   the
New Jersey side of the harbor.    The de¬
mand  for  gravel  particularly  has  taken
all   that   could   be   mined   and   shipped,
and   the   product   of   the   Goodwin-Gal¬
lagher Company, for one, has been sold
for   several   months   ahead.     In   fact,   it
has not been possible for several months
nast to buy either gravel or broken stone
in the open market for prompt delivery.
Labor   has   to   some   extent   hindered
production,  but the greatest obstacle  to
free   business   has   been   the   limitations
on transportation facilities.    It has been
impossible   to   get   bottoms   enough   to
distribute the material in required quan¬
tities,  owing  to  the   great  pressure   put
upon  hgrbor transportation  by the con¬
gestion   of   freight,   primarily   caused   bv
the extraordinary foreign commerce en¬
gendered   by   the   war   in   Europe.     We
can neither build, buy nor charter boats
at reasonable prices.    The shipyards are
full of work, the  British Government is
buyine   up   available   tugboats,   and   e.x-
traordinarv   rates   are   asked   for   scows,
barges  and  lighters.    Scows  used  to be
plentiful   for  charter  at  $6  a   dav;   now
$15  a  dav  and  more  is  asked   for  their
use, and  it is impossible  to get a  suffi¬
cient  number  even   at  that   price.     The
hiehest   rate   for   a   covered   barge   was
formerly  SIO  a   dav;   now .fl8  to  $20  is
asked,   while   nrdinarv   lighters   without
power cost $15 to $20 a dav.    Our firm
tried  to  get twentv  scows  built a  year
ago,   but   were   unsuccessful   in   gettin.g





any shipyard  to take the contract for a
reasonable price or delivery.

I fear that the high prices of practi¬
cally all inaterials will have the effect
of reducing the amount of speculative
building construction that is contem¬
plated; but still there will, in my opin¬
ion, be enough work of other kinds in
the coming year to make 1917 one of
the biggest building years in history.
Tliis will be due primarily to the re¬
vival of real estate buying for permanent
investment and the improvements that
will be necessitated thereby.

The large demand for sand and gravel
during the last half of the year has not
produced the nrofit for the wholesalers
that might ordinari'" be expected. Early
in the year the price was very low, and
Ihere was a cut of five cents a cubic
vard from the previous year for sand.
The companies, expecting the second
half of the vear to be no better than the
first half, allowed themselves to be con¬
tracted up heavilv and they have con-
seauentlv not netted more than eisht
per cent, over the old price with which
to meet the higher costs of production
and transportation.





TREND OF HOLLOW TILE.





Prices Steadily Advancing and No Pros¬
pect of a Recession.

By HENRY M. KEASBEY.
Vice-Pres. National Fire Proofing Co.
flOLLOW tile was not so sensitive to
■*■ * the influence of war in Europe as
steel and did not respond so quickly, but
during the past year the price has been
advancing steadilv without any tempo¬
rary recession such as has characterized
the steel market. Although clav is not
a war material, the cost of labor and
coal, which are laree factors in the cost
of manufacturing hollow tile, has ad-
^'anced greatlv and caused several sharp
rises in the price of the finished product.
After    the    first    few    iacreases    sorae





buyers believed that prices would fall
again and decided not to come into the
higher market. They were disappointed.
When they came in later they paid even
higher prices. There are still a few who
see the mirage of lower prices near at
hand. With all the world predicting at
least another year of war, I believe that
it is safe to say that they too will buy at
higher prices.

The owner has found that the intro¬
duction of hollow tile for enclosure walls
has helped to off-set the increase in the
price of buildine materials and labor, be¬
cause it has reduced the cost of curtain
walls and cut down the dead load to' be
carried by the structural steel. The
soecification of this economic material
for large buildings now under way and
to be started within the next few months
indicates the general adoption of the en¬
closure block.

There has been a verv marked in¬
crease in the use of smooth-face hollow
tile for the outside walls of factories.
This tile eliminates the cost of stucco,
and presents a smooth surface which
does not catch the soot and dirt which is
r-ver present in factory districts. The
large amount of factory construction due
lo war prosperity in everv line has in¬
creased the demand for this material.

A considerable percentage of the pro¬
duction of hollow tile is now going to
the farmer for use in various wavs and
there has been a steadilv increasing de¬
mand for tile silos during the past year.
The farmer is learning that permanent,
fireproof construction costs no more
than temporary, flimsy construction, in
the lone run.

The demonstrated economies that can
be effected by the use of segmental tile
for sewers has added very materiallv to
the tonnage of hollow tile products
Ihrouehout the countrv.

Increasing interest in the reduction of
our absurdly large annual fire loss has
been reflected bv increased bookings for
tile for walls and long span combination
floors for residences, hospitals, schools
and various institutional buildings.