EAL  Estate   Reco





AND BUILDERS' GUIDE.





Vol, XXL





NEW YORK, SATLTEDIY, JANU.iEY 19, 187S,





No.  514.





Pid)lished Weekly by

TER3IS,
ONE VEAU, in advance.. ..SllLOO.
Communications should be addressed to

C.  ^V.   S1VEET,

Nos. :J45 .\xn .'147 BR0.\nw.jY.

THE ECONO.Ant'R OP BUILDING.
lU'lLDEUS.

Ill the coiiinion acceptation of the term, any
one of tho iiiaiij-tnidesiiiou (.'oniiected with ojiin-a-
tioiis of building is deemed a builder. It is bareh-
possible tlitit hod-carriers and other iiiferior
workiiien nia.v also be mistaken for liuiiders.
Thesis, however, are erroneous and iiiadei|ii;itc
CDUceptinns. The master builder, like the general
of an army or tbe captain of a ship, fills a distinct
and responsible role, though he may never rjiise
his hand except to rule or his voice except to
command. His function is to marshal the forces
of mechanism and determine the material results
of enterprise^. There are classifications, oi-dcrs
and degrees among master Iniildcrs w-hich no
intelligent view of tho profession can overlook or
ignore. A simple and natural generalization
would be to divide them into three classes—legit¬
imate "ouildens, speculative builders and archi¬
tect builders,

Legiliinale Jinihlers.—As such we wil! desig¬
nate a large majority of the craft who coiilitie
their undertakings to order or contract work,
never accepting any risk, except that involved in
agreeing to execute a certain amount of work for
a given jirice. As ample provision is usually
made in original estimates for fluctuations in
prices of labor and nuiteriuls, the risk in these
instances is reduced to an ab.solute minitnum. Iu
active and prosperous se;isoiis this line of busi-
nefs is usiiiilli' very lucrative and niucli sought
after. Competition not infrequently introduces
au element of ri.sk in cases where, for the sake of
securing a contract, the builder encroaches too
fleeply upon a iirudent and safe margin of prolit.
So long as tiiiy margin is i-eserved, the single risk
incurred is that of being able to collect the con¬
tract price upon completion of the work. The
mechanic's lieu law furnishes a pretty reliable
.security for the coutractor iu addition to the res¬
ponsibility of the contracting owner.

Elite representatives of this class tire veritable
hidalgos of the profession, being noted for their
financial strength, uiechauical skill and commer¬
cial integrity. AVith the foremost of them tho
practice is invariable of undertaking only such
■work as may bo done upon percentage—that is,
where materials and labor are furnished in ac¬
cordance with the architect's requisition at ac¬
tual cost, to which the builder adds his fixed
royalty or commission of ten per .cent. It will
be seen that, with assured x-esponsibility ou the
part of coutractiug ownei-s, this business Avould
take rank with fii-st-class banking or commission
busiue.ss. It is a distinction of these [grandee
buildei-s, of which they are justly proud, that
they often execute theii* works without any
written contract or obUgation   between them¬





selves and owin-rs. It is coiiimonlv understood
that James Brown's residcueo, on Park avenue,
and the banking building of Brown Brothers, in
AA'all street, were erected b\- Mr. Ho.-<s, upon
word of honor, as the saying is, and without a
scratch of the pen between tiie parties. Tho cost
of the two worlvs coiuliinod is known to have aji-
proaclicd the stini of a iiiillion of dollars, an index
to the degree of conlidcnce reposed in this old
and reliable bnildei-. Besides Mr. Ilos-;, tho dis-
tingui-slied chiefs in this ileii.irfcnieut of building
are AAVlIi.s Blacksloiie, William AVebb, John
Downey, Is.-iac Walton, Tlioni.'is Blood.giiod,
H(.>ury Christie, .Vlfred Ho(\ Peter O'Brien,
John Rniffln, and otber.s wbii.se iiuines v.-e do not
now recall.

It is also characteristic of these iiioii, as indeed
it is to their iiecuiiiary and professional interest,
that tliey will undertake none but the best work.
Economy of  construction   is  an   element   that
nirelj' outers into their calciilati'ins.   8tt-engtli,
dut-abilit.v and good worknia!i,s-hi[i arc fliu ipiali-
ties tlie.v most delight in.    The  hi.gliest mecluini-
! eal merit that can be found in the Imildiug.s of
\ Now York, erected prior to 1S().">, may be attrib¬
uted ahuo.st wholly to the efforts of this select
and dignified coterie of builder.^.    However cred-
'■ itable their work may  be from a luechanical
standpoint, it is certiiu that the oxpeusivencss of
their methods places a definite limit upon  the
pro.sectttioii of building ciitei-iu-ise.s.    t)ttt of this
; essentially old  fog\- syatem,'good but costly, has
; sprung   the opportunity and the   incentive for
\ building ventures of a far difTerent kind, on the
. principle thtit e.xtroines often meet  tind beget
I each other.    Tlio more foolish and reprehensible
j .schemes of speculative building are the true  aii-
; tipodesof this class and natural reaction from it.
i     Under the head of contract or order builders
I may be included all tho .sub contractors in geiie-
j ral building operations.   These men undertake
; tasks ,'i.e.sigiied to tlieiii by master builders, wheth-
1 er  legitimate   or   speculative,   and  rely  upon
\ receiving their iiaynieuts promptly at the com¬
pletion of specified portions of their w-orlr.    The}'
are usually enterprising and ambitious jouriiey-
iiien mechanics, w-ho luive accumulated siifllcient
capital to i-aise them to the digiiitj" of bosses in
] small undertakings.   It would be imprudent to
supiio.se that all contract-buildei-s are necessarily
of the highest stamp of responsibilit}- or cliaruc-
, ter.   The smallness of risk to be run and paucity
of capital required in euibarkin.g iu such contracts
attract ii horde of adventurers from nil liranches
of the trade.   Their estimates iu a job that is
closely competed for,  often occasion   no  small
' amount of auno.vance to older and more respon¬
sible nienibers of the craft, Jwho are oliliged to
j surrender a good share of their profits and cou-
' form their figures to those  of less responsible
I competitors.   AA''ith tho assistance of a competent
' architect, however, ownei-s run slight risk in the
' .selection of a master builder, proA'idcd thej' are
\ w-illing to pay the reasonable guarantees demand¬
ed by responsible contTactors, such lus are Avell
' luiown and iu good sttrnding inside and outside of
j architects' oflices.

I     The growth of the citj^ would be slow indeed if
its extension awaited the efforts of contract and





percentage builders, or the tardy motions of em¬
ploying owner.s. The high order of 5vorkraan-
sliip ileniaiuied by tiieso owners, ;iiid as severelj'
exacted by this type of buikler.s, finds its proper
nnd most appropriate field in those grand exhilii-
tions of coqiorato and individual public spirit
which adorn our tho rough fares, aud in special
private mansions v.liich occi-sionall)- servo to
embellish our fashionable re.-idonce quarters.
But, us a speculation, tliu work done b^- these
moritorioiis buildei-s would be far from remuner¬
ative. They fill an important sphere iu the
building world, and especially excd in large and
iiia.ssivc works, where costs are not counted.

Speciilalire linlldcrs.—AA'e use t!ic term specula¬
tive ill no opprobrious or disparaging sense, but
merely to distinguish a deservin.g and enterpris¬
ing body of men who do tissume risks in  tho
prosecution of their trade from those who do not
a.ssuiiio  tliciii.     The oflice tind interest of  the
legitimate builder cea.ses when he receives the
owner's check for the final paj'inent of his con¬
tract   The speculative builder stands related to
bis job more in the i-ategorj-of owner in a private
; job.    At ;i point whore the legitimate builder's
, function ce;ise.s^ the most anxiotisaud vital inter-
; est of the speculative builder realh* begins—that
I is,  at the completion of the task out of which
capital is to be realized bj' sale.   The speculative
I builder undertakes to paj- out of his own resources
; all charges for nniterials nnd labor furni.shed in
j the execution of his works, trusting to getting his
i return iu a single paj-ment from the purchasing
; public as opportunity may lie afforded of effect-
; iug a sale of his products.   It will thus be seen
'' how   plainly   distinguishable the sphere of the
speculative builder is from that of the legitimate
' buildet-.    It   will lilcewise be seen that unques-
1 tioiied courage, siloiig w-ith actual capital, must
j be ingredients in the make-up of the speculative
! builder.   The  physical iirogress  of IS^ew York
I city in the past, as is certain to be the case in the
i future, has been due mainly to the efforts, enter¬
prises and, Ave iii.aj- say, sacrifices of speculative
builders.   They .scan the surface of the island,
estimate  its  capacities  for  improvement,   and
deterniine its need of additional building accom¬
modation.   Upon  such data  speculative  enter¬
prises are based.    However creditable such imder-
takings are, and commendable the spirit that in¬
cites them, candor compels us to saj- that the term
speculative often attaches to this class of builders
with more of fitness than of fiction.   The moving
incentive may bo ino.stmeritorious, and yet, from
no individual fault, the results oftentimes are
as  unfortunate  financially as   of   the   wildest
speculation   ever  undertaken   in   Wall  street.
Kept  within   proper   bounds,   guided    bj'   in¬
telligent   judgment   and   a  reasonable   insight
into the   future,   this  business   of   speculative
building might  be made as safe and lucrative
to    the    builder    as   it   would     be   beneficial
to the city at large.    But the inducements to
embark in it with inadequate capital, insufficient
experience and faulty judgment lead too often to
overwhelming misfortune.   The temptation  to
persons of a fraudulent bias to indulge their pro¬
clivity for  dishone-st  gains, through   improper
building loan schemes, affixes an indelible dis-