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REAL ESTATE
AND
(Copyright. 1917, by The Record and Quids Co.)
NEW YORK, JUNE 9, 1917
THE INDUSTRIAL TERMINAL AND ITS RELATION
TO THE PROPER PLANNING OF CITIES
By A PEARSON HOOVER, Consulting Engineer
IN THE industrial terminal it is pos¬
sible to accommodate, under the most
advantageous working conditions, those
manufacturers whose financial responsi¬
bility does not allow them to obtain for
their employees, or themselves, the bene¬
fits to be derived from a modern individ¬
ual industrial plant. The amount of cap¬
ital required to construct a modern
building, suited in every way to their re¬
quirements, is, in a inajority of cases,
needed to be used as a worlcin.g fund to
increase their manufactured output. The
small amount of money that can be used,
over and above that required to increase
production, is spent in the construction
of an addition here and there wherever
space allows. These additions are of
necessity built as cheaply as possible,
always just keeping within the buildin.y
code requirements. Sucli additions and
methods of construction, laid out as
necessity demands, can have but the fol¬
lowing results: low efficiency, unsightly
appearance, lowering of adjacent prop¬
erty values and the decreasing of the
general health conditions of the em¬
ployees.
The industrial terminal offers to the
small manufacturer a building of modern
construction, modern equipment, with
an efficient la.vout, wherein he may lease
a certain area of floor space, increase
his production, without any additional
capital. The advantage of being able
to lease additional space, under modern
conditions, as his business increases,
without any financial responsibility to
obtain this area, is of the utmost im¬
portance to a small but growing indus¬
trial firm. In the majority of cases, the
annual operating expenses in an indus¬
trial terminal, with the benefits to be
derived from modern manufacturin.g con¬
ditions, are less than the amount carried
fnr relatively the same area in an iso¬
lated plant.
This is apparent from the working
plan of an industrial terminal. The fun¬
damental basis is the co-operative sys¬
tem. This is because of the fact that
there are more benefits to be derived bv
servin.g a larger nuinber of firms with
necessities, such as steain heat, electric
light, and elevator service, from a single
plant, than can be economically secured
bv the individual concern in its own fac¬
tory.
It has been an inherent desire among
practically all manufacturin.g concerns
to own and operate their own plants.
This desire has been the outcome of
their inability to obtain suitable quarters
by renting or leasing ouarters that would
meet their own individual requirements.
An industrial terminal is so designed
and constructed as to be able to meet in
eeneral the requirements of almost any
line of manufacturing, and in conse¬
quence the desire to own and operate an
individual plant is being slowly dis¬
pelled, owing to the fact that there may
now be obtained what had previously
been thought impossible. Concerns are
also able to obtain a building meeting
practically all their own ideas as to de¬
tails, without expense or worry to them¬
selves durin.g construction and opera¬
tion.
Certain large manufacturing firms, re¬
quiring special types of building, should
not be included as possible tenants for
the industrial terminal. Many large and
progressive manufacturin.g firms keep
pace with modern ideas of construction
and equipment, thus enjoying all the
benefits to be derived from an industrial
terminal. As their business grows, the
cost of the acquisition of additional land
within the city limits grows prohibitive,
and in consequence tends to drive them
to location outside of the more con¬
gested section.
The importance given to sanitary con¬
ditions in homes, office buildin.gs. fac¬
tories, etc.. is no better exemplified by
the ratio that the total pages of a build¬
ing code bears to the amount of space
given to the subject of sanitary rules
regulations.
It is not so inuch from the lack of ap¬
preciation of the importance of health
regulations that certain fundamental ob¬
servances in sanitary conveniences are
neglected, but more from the fact that
small manufacturers have not sufficient
capital to "throw awaj'." as they express
it. "on foolish requirements."
In the industrial terminal, health regu¬
lations and precautions are installed of
necessity from the mere desire to in¬
crease the rent values. This in itself
means a saving of cost to a city, where
an industrial terminal is located to ac¬
commodate small manufacturers.
It is believed that a careful study,
coverin.g a considerable period of time,
would disclose the fact that the general
health of the operators in an industrial
terminal is far better than those found
occupying the same relative area in a
small plant.
Railroads usually follow the path of
low grades in their location, and manu-
fjicturers follow the path of shortest
distance to the railways, for shipping.
In consenuence. alon.g the ri.ght of way
cf the railroads into a town are located
a miscellaneous group of buildings, of
various size, style and ornamentation.
In the construction of small manufac¬
turing establishments, capital is in a
ureal many cases only sufficient for the
immediate buildin.g needs and in conse¬
quence features are eliminated that are
not absolutely essential to the utility of
the plant, the resulting structure bein.g
anything but pleasing in its appearance.
Further, money being available for only
the immediate requirements, time is not
ffiven to the study of the layout for
future growth. As growth takes nlace.
buildings are added here and there,
wherever space allows, the resultant be¬
incr a motley group of small structures.
Large manufacturers take pride in the
exterior appearance of their plants, if
for no other reason than that of an ad¬
vertisement of their progressive spirit.
They can take pride in the exterior ap¬
pearance of the plant because the small
pniount nf additional money to make
the building pleasing in appearance is
not so vital to them as to the smaller con-
, cern. The industrial terminal is de-
sianed with the same thou.ght as that of
the larger manufacturer, and the small
tenant can also advertise his buildin.g
with pride.
.Assume that an industrial terminal is
desired for a city of 140,000 people, an
industrial city. Eight units are pro¬
posed, the dimensions of the industrial
building being 75 feet wide hv 300 feet
long and four stories hi.gh. This would
give an approximate net floor area of
86,000 square feet unit. One unit is to
be built at a time. That is, as the
space in the first huilding is rented
another one is constructed.
The average amount of floor space
occupied by the small manufacturer is
from_ 6,000 to 8,000 square feet. If then,
the industrial terminal were accommo-
datin.g all small manufacturers, the num¬
ber occupying each unit would be about
12 firms. If the total eight units were
occupied the result would be a total of
96 small concerns.
It is well to consider exactly what
relation the accommodation of a num¬
ber of small concerns under one roof
bears to the same number, of firms occu-
pyin.g separate establishments.
Property alon.g a railroad is of greater
value to a manufacturin.g concern than
land not so conveniently located be¬
cause of better shipping facilities.
In the valuation of land, it is some¬
times said to have a plottage value.
Plottage value is an expression of the
cost required to bring a large area under
one ownership, if the property had pre¬
viously been held in several pieces.
Land having plottage value is desirable
by lar.ge manufacturers who are looking
for space to develop in the future.
In consequence, the accommodation
of smaller manufacturers in an indus¬
trial terminal increases the value of the
land they had previously occupied, by
giving it plotta.ge value, if the pieces of
land were so grouped as to make it pos¬
sible to collect them into a larger area
under one ownership. This increase in
value brings greater revenue to the city
in the form of taxes.
It may be said that plotta.ge value is
a sort of indeterminate quantity, as the
property would have to be acquired in
larger areas after the smaller firms
inoved into the industrial terminal. This
is in a sense true, but the mere fact that
such property as a whole is available for
large manufacturies gives to the land
in its location some additional value.
The property in an industrial section
could be restricted to the building of
manufacturing plants of a certain size
and class. Tt is iust as feasible to re¬
strict an industrial section to certain
reouirements in order to raise its stand¬
ard, as it is to impose restrictions in
the business and residential zones. When
restricting the industrial zone to the
erection of manufacturing buildings of
a certain size and kind, small manufac¬
turers who inay becoine a large concern
in the future, are not barred from the
community, for in an industrial terminal
a better laid out. better fitted and more
economical place has been provided to
start to develop.
The transportation problem in all its
varied branches is one that requires the
most careful studv and an analvsis of
the various conditions affecting its op¬
eration. In no lens degree is the sub¬
iect of freieht distribution stations of
importance in the lavout of the citv plan.
Their numher. location, accessibility, as
well as their general layout, affect the
industrial district, which in turn affects
the whole community. The relation that
an industrial terminal bears to_ freight
distributing stations is a rather interest-
inP' one. '
Freight distribution stations should be
so located that they will serve the great¬
est area with the smallest number pf