490





RECORD  AND GUIDE





September 14, 1912





BUILDING JIATERIALS.

Building Money Tightens as Western Call
Increases.

General Market More Active—Coal Serious Factor in
Building Management—Common Brick Strengthen¬
ing—Steel Stiffness Holding Up Construction—
General Lumber Trade Keen and Prices Advancing
—Hardware and E^juipmenl Active—The General
Market.

THREE factors were prominent in the
building material market this week.
They were steel, coal and lumber. Other
departments were without noteworthy
fluctuation, but prices held uniformly
stiff.

So far as active demand was con¬
cerned, common brick made the greatest
gain, owing to the temporary settlement
of the teamsters' strike. Next in volume
of new business taken was that of Port¬
land cement and following that came
sand and crushed stone requirements.

The steel situation, as shown by the re¬
port of the United States Steel Corpora¬
tion, is- running near record-breaking
level. The unfllled orders at the close of
business of August 31st represented the
splendid figure of 6,163,375 tons or an in¬
crease of 306,296 tons in one month. This
is largely in excess of estimates. Of this
total the steel corporation produces about
1,150,000 tons of finished steei products, in¬
cluding structural material, bringing the
totai tonnage of structural material
manufactured in the last eight months to
8,100,000 tons.

The terrific volume of business taken by
independent concerns must be added to
this total. The independent steel produ¬
cers have to be figured in addition, and
it is probable that when aii the reports
are in it will be shown that the volume of
structural steel used this year is in ex¬
cess of any previous year, if not actually
record breaking.

The fact that all of the steel mills are
operating near capacity and are still com¬
plaining of scarcity of labor is significant.
Despite the fact that prices have ad¬
vanced there is no decrease in speciflca¬
tions. In some cases premiums are ob¬
tained in order to insure prompt ship¬
ments and it is reported that in some
cases it is even impossible to obtain
the quantities on delivery before the flrst
of the year. The demand for semi-flnished
steel is extremely urgent and the flnlsh-
ing mills are also pushing the furnaces
for crude steel. The old adage that "as
goes steel so goes buiiding material sev¬
eral months later" is holding particularly
true at this time.

When the Record and Guide in June
announced that steel not only would ad¬
vance sharply in August, but that other
building materials would follow suit,
and at that time advised buyers to be
prepared for an upward movement, many
consumers took advantage of this inside
information, with the result that they
contracted for materials before the ad¬
vance took place and their operations are
now going forward without any inter¬
ruption. Others who prepared to take a
chance and wait are paying premiums
now to get steei even by the flrst of the
year, while some tile interests, many of
the terra cotta firms, both architectural
and fireproofing, some front brick com¬
panies, and many equipment concerns are
sold up to the first of January, and in
many cases are not able to guarantee de¬
liveries until  the first of March,

Steel May Go HiglieT,

It is extremely likely that steel prices
will continue to move up, since crude
material interests are selling with more
caution in anticipation of greater require¬
ments on the part of steel people later
in the year. If this stiffness materializes
there is sure to be a sharp advance in the
price of common brick, front brick,
Portland cement, many kinds nf equip-
nment, such as furnaces, radiators, and
other appliances; not to mention building
management supplies.

Coal is a very important element not
only in the maintenance of the finished
building but in construction of a build¬
ing for power generating purposes,
whether that power be given from coal
used practically on the oullding or by en¬
ergized coal supplied the contractor in
the form of electricity. Contractors were
heard to complain this week regarding
the prospect of higher prices for coal,
and building managers were also inclined
to feel the extra burden that higher
prices will place upon them.

Chestnut and pea coal have made a
notable advance. Egg coal continues
strong, but other sizes are reported to be
stationary. Bums Bros, are authorityi
for the statement that prices are bound





to go up as the month draws to a close.
One reason for the higher prices is the
tremendous tonnage that is being shipped
to the Northwest, which is customary at
this time of the year.

Owing to the coal strike, however, most
of this supply must go out within the
next three or four weeks and the result is
that New York must wait. Those who
need coal, however, are paying a higher
price to get it.

Building   Managers   Worried.

Much of the trouble is said to be due
to dealers tying up too much coal for
certain customers at this time and rely¬
ing on heavy fall shipments. Building
managers and building contractors -will
do well, however, to engage as heavy
tonnages as possible from their dealers
now so as to cover themselves before the
rush that will occur when late fall ship¬
ments begin. The shortage at the mines
estimated at 5,000.000 tons is of a very
serious nature and consumers of coal in
this market cannot long continue to take
a chance and be unprotected, should the
stimulated mine outputs not come up to
the required standards. During the last
week furnaces have become conservative
with the speculative movement about
starting in which is only another reason
why  buying should  proceed at once.

Premiums in coal buying continue to be
a feature and some retailers are asking
■$7 for stove and nut. Commercial sizes
are higher. The demand for soft coal is
undoubtedly improving and the better¬
ment of the Clearfield and Cambria coun¬
tries situation is particularly noticeable.
This is interesting to the New York
market because of the depreciation here¬
tofore existing in that territory. This
coal, however, is standing still as far as
price level is concerned just now, but it is
entirely probable that an upward move¬
ment will follow in the near future.

Bricic   Buying   Llglit.

The common brick situation is still in a
nervous state. Buying is fitful, though
somewhat stronger than last week. Sales
last week were less than the arrivals,
which under normal conditions would be
a desirable condition of affairs, but in the
present circumstances, there is a possi¬
bility of the market becoming clogged,
especially since buyers are apparently in¬
different regarding the fact that the open
season is rapidly drawing to a close and
that producers will not be inclined to
flood the market in anticipation Qf winter
demands unless purchasers give them
some basis upon which to gauge the re¬
quirements of the closed season.

Of course, unrest among the teamsters
and excavators has something to do with
the nervousness displayed by the buyers,
but it is entirely improbable that arbi¬
tration will continue all winter and that
when they finally do come into the mar¬
ket they will find covering charges on
current prices.

The Raritan River situation is still
strong. There is no nervousness reported
in this department.

Hudson River transactions last week
were:

Left   over  Aug.   31,   31.
1912.

Arrived,     Sold.

Monday   ...................     21               24

Tuesday    ..................       0                 7

Wednesday    ...............       8                 7

Thursday    .................       9                 9

Friday    ....................       9               10

Saturday    .................       6                 8

53               45

Condition of market, nervous. Hud¬
sons, $6.75 to $7 (wholesale, dock. New
Tork; add dealer's profit and cartage for
retail prices).    Left over Sept.  7,  39.

Left   over   Sept.   2,   35.
1911,

Arrived.     Sold.

Monday    ...................      8                 3

Tuesday    ..................       7                 1

Wednesday    ...............       4                 5

Thursday    .................      5                 g

Friday   ....................      9               10

Saturday   ..................       5                 g

^     .,..,             „                          38                  33

Condition     of     market,     dull.       Prices-

Hudsons,   $5.87%   to  $6.25;   Raritans,   $5.50

to  $5.75.    Left over,  40.

Lumber   Marlset   Is   Active.

There is a very active market for lum¬
ber. This is shown by continued heavy
buying and corresponding stiffness in
prices. Logging will soon be possible in
the lumber camps when the snow begins
to fall heavily, but in the mean time
there is a tremendous demand for spruce
and yellow pine used in subway under¬
pinning as well as in underpinning for
building remodelling due to the enforce¬
ment of the encroachment ordinance,
which is giving the yellow-pine situation
a tremendous boom, in consequence of
which prices are stiffening.





During the week there was a slight
falling off in the demand for building
orders, but flooring was in good demand
and the prospects are that h»rd wood
prices will move up within the very near
future.

The wholesale department of the lum¬
ber market is much higher than the retail
end. This fully corroborates the Record
and Guide's statement in July that Itim-
ber dealers would stack in anticipation ot
heavy building requirements this fall.

The limitations in supply are such as
to cause prices to move up higher. How¬
ever, evidences of the strength of build¬
ing lumber is shown in the fact that col¬
lections between retailers and wholesalers
are much better, probably due to the fact
that dealers are more anxious to stack
than they are to obtain credits. Most
of the suburban retailers actually expect
to have to pay premiums before long.

Spruce Prices Climl>iiig Up.

The market for spruce has an upward
tendency; demand is fair and supply mod¬
erate. Eastern spruce is active on Long
Island Sound points, with a good call In
New York. It has been found, however,
that the yards are taking supplies in-an¬
ticipation of heavier call later on in the
season when subway construction work
becomes more extensive. West 'Virginia
spruce is hard to get, and consequently
prices are high. The car shortage will
probably seriously affect this district.

Yellow pine prices are so stiff that there
is some hesitancy on the part of pros¬
pective purchasers to buy. Prices are in¬
clined to move up because of car service
restriction. Quotations for merchantable
yellow pine (1905 f. o. b. New York) fol¬
low:

8  inch   and  under.............$S4.50 to $25.00

JO   inch   .......................26.50 to   27.00

12   inch   .......................20.50 to   30.00

}i   inch   .......................31.50 to   32.00

16   inch    ....................... 34.50 to   35.00

Ship   stock—easy   schedules......37.00 to   38.00

Ship  stock—40  tt.   average...... 39.00 to   41.00

Heart   face   siding,   4-4   in.   and

,0-4    in......................33.00 60   34.00

Kiln dried sap siding, 4^ in___ 27.50 to   28.00

Kiln dried sap siding, 5-4 in___28.00 to   29.50

For dressing add $1.50 per M.

Flooring runs as follows:
A   Heart   Rift,    13-16x2%    face,    counted

1x3,   D,   &   M...........................$54.00

B   Heart   Rift,   13-16x2%   face,   counted

D.   &       M.............................43.00

A Sap  Rift,  13-16x2%  face,  counted  1x3,

D.  &  M...............................41.00

B   Sap  Rift,  13-16x2%  lace,  counted  1x3,

D.   &  M...............................36.50

A Flat Rift,  13-16x2% face,  counted 1x3,

D.   &   M..............................31.00

B   Flat Rift,  13-16x2% face,   counted 1x3,

D.    &   M. •............................29.50

No.  1  Com.  Flat,  13-16x2% face,  counted

1x3,   D.  &  M..........................28.50

The hemlock market ie firm. Current
prices for Pennsylvania stock ranges at
$22.50 and West Virginia at $21.50, repre¬
senting an advance of about 50 cents, with
mill capacity well employed. Concessions
in this line are procurable only In sub¬
stantial orders.

In the hardwood market flrm prices
continue to prevail, but chestnut and
sound wormy show a slight advance. The
fall market is expected to be extremely
firm.

Building  nietals.

The principal price change of the week
in finished products was the establishment
of $3.60 mill as the base on tin plate for
any delivery. This is an advance of $2
a ton over the old price of $3.50, and was
put in effect on Thursday by the principal
independents. The steel corporation did
not participate in this movement, the
American Sheet and Tin Plate Company,
the corporation's subsidiary, continuing
its old quotation, though it is but normal,
as the corporation will not contract into
November and December on this basis, and
will only accept reservations for tonnage
for those months contingent on prices at
that time.

Building   Supplies  .Active.

Building managers are actively in the
market for supplies at this time. Their
chief interest is centered in the coal sit¬
uation, whiclT promises to represent an
outlay of their appropriation of from 8 to
12 per cent, more than last year.

Considerable concern is expressed in re¬
gard to the attitude of the oil market, in
view of the fact that the disposition of
the oil companies is to increase prices.

There is a well defined movement among
the leading building managers to lay in
stocks of varnishes and paints in antici¬
pation of an increase in the price of kauri
gum and linseed oil, affecting principally
varnishes. The stiffening of the white
lead market, affecting paints, also caiises
managers some concern. Managers are
also making heavy inquiries just at this
time for rubber goods, such as hose, mats
and engine room supplies, -which, owing
to the heavy demand upon the rubber
market now being made by automobile
manufacturers, Is expected to restrict
supply for other lines.