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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.-
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-
