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REAL ESTATE
AND
(Copyright, 1917. by Ths Record and Quids Co.)
NEW YORK, SEPTEMBER 22, 1917
OPINIONS ON THE PRESENT COAL SITUATION
Building Managers Review Conditions and Suggest Remedies—
Price Regulation Should Prevent Unwarranted Charges by Dealers
BUILDING managers throughout the
city are disturbed about the question
of coal supply for the coming winter.
Action has been taken by the Govern¬
ment on the subject of price fixing, but
the matter of-, supply is a serious prob¬
lem. Following are expressions of opin¬
ion from many of the leading building
managers who control a large number
of important structures in New York
City:
W. T. Ropes, of Horace S. Ely &
Company, said: "While conditions are
much better than last winter, there is a
feeling of uncertainty as to the imme¬
diate l"uture and the winter supply. Coal
can be had at the present time if one
is willing to pay the asking price, but
no quotations are given except for im¬
mediate delivery. It seems to be the
general belief that prices are not going
to be lower than at present. Whether
there will be a full supply is also an
open question. Many believe there will
again be a serious shortage before next
spring.
"Many owners who are willing to pay
present prices are unable to store coal
for the winter use, as few buildings,
other than private residences, have
storage space sufficient for more than
a week to a couple of months. This
necessitates that deliveries to the city
come regularly, else that coal dealers
keep their yards filled to the limit. Per¬
sonally, I believe that despite any action
of the Federal authorities, we will have
a serious coal shortage this winter."
M. D. Littlefield, Chairman, Coal
Committee, New York Building Mana¬
gers* Association: "Owners and build¬
ing managers as well as the public in
general are facing a critical coal situ¬
ation at the present time. There is no
evidence in sight to warrant the ex¬
pectation of any improvement. As a
matter of fact conditions are rapidly
growing worse, and the approach of
the cold season, with its increased de¬
mand, is giving us a great deal of food
for serious thought.
^'Notwithstanding the fixing of prices
by the Federal Government, the cost
of coal is steadily increasing. It is be¬
coming more and more dililcult to ob¬
tain an adequate supply. It would seem
that some method other than those al¬
ready attempted immediately should be
adopted, if the citizens of New York
City are to be saved from an actual coal
famine next winter."
William R. Hooper, Secretary and
Trea urer of the Wall Street Exchange
Building Association: "The coal situa-
ation, as applied to office buildings, is
gradually righting itself. I believe that
the situation is improving, because the
public has been aroused by the appar¬
ent unreasonable increase in the price
of coal, and the fact that several civic
organizations, conducted on the lines of
the New York Building Managers' and
Hotel Men's Associations, urged Presi¬
dent Wilson to appoint a Commission to
look into the arbitrary price charged
to office buildings and apartment houses,
and that such a Commission was ap¬
pointed, and that the Government has
now fixed the price of coal."
R. W. Murray, of Douglas L. Elliman
& Company: "The coal situation is
serious, but has not as yet reached the
HECORQ AND GUIDE
desperate stage. Opinions vary. Our
concern filled bunkers, and is storing
coal wherever we can find a vacant
space. In many structures, we have
sufficient coal on hand to last through
the heating season. Cheap coal is prob¬
ably a thing of the past. All we can
hope for is to obtain the product, and
that the Government will see that the
prices charged are fair to all.
'T hope that the situation will impress
upon architects and builders the neces¬
sity of providing adequate storage space
in all buildings, particularly in apart¬
ment houses. Buildings where this
space is limited may suffer. We will all
be glad when the spring arrives."
Carl A. Leasenfeld, of th . United
States Realty & Improvement Com¬
pany: "We hope to obtain a sufficient
amount of coal during the coming win¬
ter to keep us going, but we have a
pessimistic dread that this consumma¬
tion may not be arrived at. There are
so many factors contributing to the real
shortage which undoubtedly exists, and
so many varying opinions expressed by
those whose expert and specialized
knowledge of the subject is such as to
preclude dispute by the laymen, that the
average practical real estate owner,
agent or manager, is left uncomforted
and unrelieved, in an impenetrable haze
of doubt.
"The basic cause of the inadequate
coal supply is due to the shortage of
labor incident to the heavy drain made
upon it by the steel mills and munition
factories throuijhout the country, es¬
pecially the Pittsburgh district. The
eight-hour day now in force makes a
reduction of output. The miner has
more time for leisure and is making
more money than ever before. This is
a cause for the reduction of output, in¬
asmuch as it enables many who are of
Slavish or allied races, to take advan¬
tage of the many holidays peculiar to
their race and creed.
"Preferential shipments of coal to the
Northw-est and the Great Lakes sec¬
tions, in order that these districts may
keep all their important food indus¬
tries operating during the winter, un¬
doubtedly do not help the Eastern
situation. We cannot but recognize the
justice of such action: especially when
w'e take into consideration the fact
that our great inland lakes are closed to
navigation for at least twelve weeks
during the winter. There is a negligible
supply of coal at tidewater, and no re¬
serve to care for the conditions which
arise incident to protracted periods of
storm during the winter months. It
is necessary to provide some sort of a
reserve, but it is probably equally im¬
portant that our Government have
right-of-way over coal for its hurried
shipments of steel for export and other
uses to our great Eastern harbors. The
vital question of prices, serious as it is
to the owner, has been relegated to the
background by the greater problem of
obtaining an adequate supply."
H. L. Eckersen. of Wm. A. White &
Sons: "So far as the buildir.gs under
the management of our company are
concerned, we have enough coal on
hand for our present needs, and have
all our bunkers practically filled to ca¬
pacity. Tlie present state of affairs is
abnormal, and it is difficult to forecast
the future."
W. E. Barton, of Pease & Elliman:
"The coal situation seems to be more
unsettled than ever despite the Govern¬
ment's attempt to regulate prices and to
improve transportation conditions. Coal
dealers tell us that the greater part
of the available supply is being shipped
to the West and over the Great Lakes.
This is a natural condition at this time
of the year, as it is impossible to navi¬
gate the lakes after the real cold
weather has settled in. The law of sup¬
ply and demand naturally enters into
the situation and the coal producers are
not shipping any more coal than is nec¬
essary to supply the immediate needs.
This month has been unusual and fur¬
nace fires have been started in a few
instances, but the ordinary coal con¬
sumption is confined to coal for hot
water heating only.
"The quality of coal coming into New
York is poor—very poor—and it is
rumored in the trade that operators
have purposely depreciated the quality
of their product to offset the curtailed
profits resulting from the Government's
regulation of prices. Broken, egg,
stove, nut and pea coal are all known
as domestic or prepared sizes. The
preparation consists of sifting or
screening and removing impurities, such
as stone, slate and 'bone.' It would be
a very simple matter to use less care in
the preparation, and the quality of coal
which is being delivered to our houses
indicates such a condition and in a way
bears out the report.
"The price at the mines is fixed, and
will undoubtedly remain for the dura¬
tion of the war, unless labor conditions
are so upset that a readjustment is nec¬
essary; freight rates are also fixed and
the cost of bringing coal to the local
delivery points is pretty well estab¬
lished. No retail prices can be fixed
and no contracts will be made until
Dr. Garfield, the Coal Dictator, de¬
termines the cost of local handling; that
is, the screening at the yards, the
transportation to the consumer and the
putting away into the bins. The Com¬
mission is also attempting to establish
a fixed profit for the dealer. Until this
work has been completed prices are
only tentative, and for this season of
the year they are very high. No. 1
buckwheat, which is the smallest size
we use in our buildings, is costing
about tw^ice as much as it did in 1915
and 1916, and pea coal, which we are
given to understand is practically out
of the market, is about two-thirds over
its normal price. The domestic size
coal is about a third over its average
September price, but we anticipate that
it will be higher in the winter, and that
quality will undoubtedly continue to be
poor.
T. Herbert Files, of Cross & Brown
Company: "According to all indica¬
tions, we are going to have as much
difficulty this year, as we probably have
ever had, to obtain a sufficient coal sup¬
ply at proper prices. There seems to be
plenty of coal, but the difficulty will
probabl}'" be a car shortage, and also
keeping the dealers down to reasonable
prices.
"In order to properly protect them¬
selves, it is now up to the real estate
owners and managers to see that they
obtain a sufficient quantity of coal at
fair prices. To do this, the real estate
men, who consume the greater portion
IS IIV ITS FIFTIETH YEAR OF CONTIGUOUS PUBLICATION,