January 17, 1914





RECORD AND GUIDE





121





BUILDING MATERIALS AjND SUPPLIES





FIRE INSURANCE EXCHANGE MAKES NEW STANDARD FOR MILL
CONSTRUCTION IN NEW  YORK  CITY—BETTER STEEL MARKET.





Danger of  Brick Shortage Past.
National Building Totals for 1913.





CONFORMING with the general ten¬
dency to bring about better and
safer building practice in New York, the
new standard of mill construction as
promulgated by the New York Fire In¬
surance Exchange this week is signifi¬
cant, in view of the present activity in
factory extension in the metropolitan
district.

While the new standard does not
directly affect building materials, its in¬
fluence in this regard is nevertheless
important. Heretofore certain advan¬
tageous rates were allowed to occupants
of factory buildings that at least met
the requirements of the old standards.
Allowances were made for certain don-
ditions in a building such as, for ex¬
ample, a fireproof floor in a non-fire¬
proof building. Under the new standard,
printed in full elsewhere in this issue
under "Departmental Rulings," all these
so-called allowances are removed, and
one standard is substituted. If the
building conforms to these requirements
the Class A rate is allowed, otherwise
the tenant must pay for the additional
risk.

Quotations on structural steel were
still held at a stiff level on second half
deliveries this week. There was no no¬
ticeable stiffening in quotations on cur¬
rent business covering second quarter
shipments, but there was a little more
activity, especially in small operations
requiring a few hundred tons of steel.

The cold weather early in the week
checked building operations to some
extent, which accounts for the sluggish
movement of materials. There was a
stronger tone to inquiries, however, es¬
pecially in wire and steel products. The
base price for saJid is still fifty cents.

Advices from the West to the effect
that money was easier this week proved
a contributing factor in making the situ¬
ation here in New York better, although
building money lenders are still inclined
to act conservatively, and engagements
are limited to well-located projects and
some specialty buildings. The rebuild¬
ing of the New York surplus reserves
with other influences helped to reassure
the West, and in consequence commer¬
cial paper again assumed the propor¬
tions of a factor in that market, relieving
the drain from this center and permitting
a larger reserve for bond and mortgage
business in this market.

The condition of the brick market here
is not as encouraging as it might be.
The demand is sluggish, and prices are
ragged as compared with those prevail¬
ing last year at this time. The supply
available for immediate riding, count¬
ing, sold and unsold barges around
the city compares with last year, but the
difference lies in the fact that there is
no stacking to speak of this year, and
many new building projects planned late
last year are awaiting actual construc¬
tion work pending the further easing of
the money market following the publica¬
tion of the long-expected anti-trust mes¬
sage of the President. This is being
looked upon by financial interests as the
last straw either to make or break the
revival of good business conditions. The
general feeling of optimism, however,
bids fair to discount to a large extent,
at least, any moderate adverse charac¬
teristic the measure may ccmtain.





BUILDING   SUMMARY   FOR   1013.
Total  (or 145  Cities Reaches f872,7S0,987,

a Decrease ot G.3%.
p UILDIN'Gr construction throughout the country
■'-' last year was slightly below the level
credited to 1912, or 6.3 per cent. New York's
construction cost as compared with 119 cities
tor the last five years follows:

New York City    119 other cities

1913    .............$155,700,817           |650,748,808

1!J12    .............218,309,847             660,784,461

1911    .............188,933,000             635,214,884

1910    .............202,788,000             644,203,622

VMO    .............264,565,000             623,549,741

Analyzing these figures the statistical bureau
of Bradstreet's puts the cause ot this reaction
up to money stringency, closer scrutiny of cred¬
its and past overbuilding, and adds:

"Or the large cities ot the country showing
gains in 1913 over 1912, conspicuous examples
are Chicago, with an increase of 3.3 per cent.;
Cleveland, 30.9 per cent.; Detroit, 16.9 per
cent.; Newark, N. J., 39.1 per cent.; Phila¬
delphia, 4.9 per cent.; Pittsburgh, 40 per cent.;
and San Francisco, 24.8 per cent. In the list
of notable decreases are New York with 29.5
per cent.; Boston, 22.7 per cent.; ^Buffalo, 7.6
per cent.; Kansas City, Mo., 12. Iper cent.; Los
Angeles, one-tenth of 1 per cent.; Milwaukee,
11.4 per cent.; Minneapolis, 9.6 per cent.; Port¬
land, Ore., 10.3 per cent.; and St. Loiiis, 36
per cent.

"The key to the large decrease in all build¬
ing reported in 1913 and 1912 and preceding
years is largely found in the volume of build¬
ing ot New York. In 1913 the total value of the
building expenditure in Greater New York, Rich¬
mond Borough excepted, was $153,700,817, a de¬
crease of 29.5 per cent, from 1912. This total
was 17.5 per cent, of the entire expenditure at
143  cities, and the decrease at New York from

1912    was $63,000,000, whereas the entire de¬
crease at all cities was $74,645,00l>. In other
words, the decrease at New Yorlc accounted for
.s.j per cent, of the total decrease at all cities. "





THE   CEMENT   OUTLOOK.

Price   Increase   Generally   Looked   for

Elarly In the  Season.

FURTHER indications ot the improved temper
of the building material market came this
week from some of the leaders in the Portland
cement industry. An official ot a "Valley" com¬
pany  said :

"I look for a much better demand for Port¬
land cement from now on. The mills are in
good shape tor taking care of the business
that 1014 will bring out, and the fact that
there is no over-supply that must be worked off
at a sacrifice leads me to believe that prices
will move up before they will go down. There
is no money in the business with prices at the
present  mill  basis."

W. P. Corbett. a director of the Alsen's Amer¬
ican  Portland  Ceraffent Works, said:

"Government reports prove that more than
thirty cement companies^—almost one-third of
the total doing business in this country—have
been forced into bankruptcy or shut down
within the last .five or six years because of
the bitter antagonistic and absolutely blind com¬
petition which prevailed. Companies in differ¬
ent districts would endeavor by a bitter war of
low prices to ruin somp riv&l, and it is an
established fact that Portland cement has been
sold  frequently below the cost of manufacture.

"This condition has resulted in preventing an
increase in production at the former foolish
ratio, and promoting schemes have been less
numerous.

"Some of the existine i&ills need expensive
plant overhauling, and it is not likely there
will be any great increase in output this year,
even it labor troubles do not retard manufac¬
ture as they did last year. The consumption, on
the other hand, is almost sure to increase.
' "Prices ot cement seem to he holding about
the same, namely, $1.30 including bags, F. O.
B. valley mills (90 cents, base), and approxi¬
mately ten cents more for the best New York
state mills.' The prices in the west showed a
slight reaction, but are today higher in more
cases than in the east. It is probable, from
all indications, that there will not be much
change, probably a five-cent advance or so as
business becomes active in the spring, depend¬
ing   entirely   upon   conditions."





COAL   AGAIN   MOVING   HERE.
Boatmen's   Strike   Unds—^Fortnight   Accu¬
mulations Freed.

T HE fear that building managers have felt
■^ during the last fortnight regarding their
supplies of coal owing to the strike of the
boatmen have been quelled. The strike was
ended this week and the accumulations have
been freed. Embargoes incidental to the strilce
served to reduce receipts at tidewater up to the
middle of this week and as a result pressure on
the market has been relieved to some extent.
There Is still a quantity pf unasslgned coal at
the docks, however, and as the week closed some
of It was beinp' offered at lower prices.

Some coal of fair quality standing at the
piers under' demuirage has been sacrificed at
considerably below what the same grade is
bringing for mine shipment Some West Vir¬
ginia product is still offering as low as $2.40 to
$2.45   at  Port ReAdtag,   aad   at  South   Amboy-





Pennsylvania coal is bringing from $2.25 up.
Some Pennsylvania operators have been quoting
$1 Sot mine shipment, but those with rea¬
sonably good coal are holding out for at least
$1.10  or $1.15.





BETTER    STEEL    DEMAND.
Plates  and   Sheets   Shovy   More  Activity—
I                     Subivay Order Let.

A MARKED improvement in sheets and plate
business was reported from the steel de¬
partment this week. Incidentally the contract
was signed between Oscar Daniels & Co. and the
American Bridge Company for the 16,100 tons
of steel required for the Jerome avenue ex¬
tension of the subway.

Pittsburgh reported on Thursday that speci¬
fications tor plates and structural material are
increasing in a decisive manner. The larger
plate companies show an increase of fifty per
cent, in new business over that of the last ten
months and mill schedules are about to be in¬
creased to take care of the business. Some ad¬
ditional contracts for plates and structural
shapes are reported and the inquiry for bars
is much better than it was.

It was unofficially stated that the United
States Steel Corporation properties now have
flfty-six per cent, of total capacity employed.
Larger specifications for finished steel have per¬
mitted resumption ot all plants averaging from
5.")  to 60 per cent, of total  capacity.

There has been an end to the bargain sales
of sheets, and prices have recovered to an
absolute minimum of two cents Pittsburgh,
with 2.90 cents for galvanized sheets. When
some smaller mills went below this price they
found no difficulty in getting rid ot all the spare
tonnage they cared to take on. The prediction
is made that sheets will advance to some¬
where near their normal price with the open¬
ing of spring. Tin plate business has been
good. Spme Importations of tin plate have
been reported by large buyers, but these have
been placed because of the delivery require¬
ments being better than American makers could
guarantee.





GOVERNMENT    TIMBER    SALES.

Two   Billion   Board   Feet,   the   Total   of

Sales  In 1913.

■THE annual report of Henry S. Graves, for-
*■ ester, just issued, calls attention to a sub¬
stantial increase in the amount and value of
timber cut from the national forests, and a still
greater increase in the amount and value ot
timber sold, largely for future cutting. The
gain in timber actually cut was 15 per cent,
over the preceding fiscal year ; in sale receipts,
27 per cent.; and in amount of timber sold,
167  per cent.

In 1913 the total sales amounted to more
than two billion board feet with a stumpage
value of nearly $4,.5OO.00O, as against less than
SOO.non.ono board feet with a stumpage value
of $1,600,000 in 1912.

It has been urged that the government should
through low stumpage rates, force timber upon
the market and thus reduce the price of man¬
ufactured lumber. The present policy, however
can not be changed without a change in thei
law. Apparently no such change is called for.
Sacrifice prices, unwarranted by actual market
conditions, would reduce the returns to the pub¬
lic and to tne states, but they would not reduce
the price of manufactured lumber to the con¬
sumer. In the United States 99% per cent, ot
the timber cut comes from private lands. Com¬
petition in production is exceedingly keen. The
mill capacity of the country is considerably
greater than its normal consumption of lum¬
ber. This creates a constant tendency to pro¬
duce more lumber than the market will take.

During a period of depression actual overpro¬
duction appears. Stock on hand mounts up ■
price concessions to attract nurchasers fail to
bring the honed-for acceleration of sales, &nd
as returns fall below the cost of production cur¬
tailment is forced. From 1909 to 1911 many
sawmills operated at an actual loss because car¬
rying charges on their indebtedness would not
permit them to close down. One hundred and
thirty mills in the two leading lumber-produc¬
ing states were altogether idle in 1909.

So long as competitive conditions obtain
among manufacturers the lowering of national
forest stumpage rates would neither benefit the
consumer nor appreciably affect the supply of
lumber on the market. One-half of 1 per cent
Of tlie total cut is too small a fraction to have
any influence on prices ; and although this frac¬
tion might be made several times as great as it
is by offering government timber at a merely
nominal charge, the effect would he simply to
throw money away to procure the cutting ot
public timber in place ot private.

Local demands are invariably given prefer¬
ence in the disposition of timber, and on many
forests the entire yield is reserved for such
needs. Small onerators are preferred and en¬
couraged as far as they are able and equipped
to cut and market the stumpage, the large sales
being restricted to inaccessible areas which
small operators can not exploit.





BRICK   MOVEMENT   LIGHT.
Danger   of   Brtck   Shortage   This   Winter
Sold to Be Passed.

QNE reason advanced for the sluggish condi-
... ''"J" „°J. ^^^ common brick market when
other building materials are showing unmis¬
takable signs of strengthening is the fact that
navigation un the Hudson is again open with
towhoat communication possible as tar north as
Poughkeepsie. This gives the dealers assurance
that there is no danger of the brick supply
getting low nor prices high, and for that reason
they are content to buy brick as they need it.

Even though navigation should close on the
Hudson River between now and spring, there
would- be no danger ot a shortage ot brick in
this market, as the supply here at present is
equal to any prospective demand that could
an'se within the next month and a halt, during
which the Hudson could freeze. Judging by
the volume of. sales on the wholesale market
and the quantity ridden to .iob by the Greater
New York Brick Company this week, there Is
no apparent indication ot a prospective raid on
the. local supply,

(Continued on- page 150.)