Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 90, no. 2319]: August 24, 1912

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August 24, 1912 RECORD AND GUIDE 357 BUILDING JWATERIALS. Car Shortage Expected to Be Severe This Fall, and Shippers are Sending Warnings. More Amicable Relations in the Brick Trade—Ce¬ ment Interests Elxpect No Great Benefit From the State Barge Canal—Structural Steel Prices As¬ cending Again. Manufacturing interests are convinced that the car shortage for building ma¬ terials will be severe this fall. In some lines, as in lumber and wire, shippers are sending out warnings to the trade and urging that due precautions be taken. Ocean freight rates are still soaring and are higher than many shippers can re¬ member. The demand for materials is steadily increasing. Structural steel quo¬ tations on plain shapes were advanced again by some manufacturers at Pitts¬ burgh points this week, and a notice was received of an advance in Virginia foundry iron, but for most other material prices were fairly steady. The number of new building operations in hand at the present time in the Bor¬ ough of Manhattan alone, according to official report. Is 575, or about 100 more than were in hand last year at this date. The number of alterations is 1375, which is a total of about 375 larger than the number of jilteratlons going on a vear ago in Manhattan. The number of new buildings being erected is much less than in some former years, but the average cost has nearly doubled, and there is more heavy construction than ever be¬ fore at one time. Brick. Brick market quotations are the same as last week, $6.75 to $7 per thousand for Hudson River common hards, to deal¬ ers, In cargo lots, at the wharf. Cargo sales are fewer than when last reported, numbering 49, as compared with 67 in the previous week. The undertone of the market is strong, but with the top price not so easily obtainable as a fort¬ night ago. The relations between manufacturers, dealers and mason builders are reported to be more satisfactory at the present time than they were for more than a year. The manufacturer Is receiving what the dealer considers a good price for his product; the dealer, who stands as a buf¬ fer between manufacturer and the mason builder. Is asking, and in some cases re¬ ceiving more margin between cost and selling price, and the dealer seems to be willing to meet existing conditions and pay a fair price for deliveries. Francis N. Howland, of Candee, Smith & Howland Co., president of the deal¬ ers' association, in answer to a question, estimated the prospects as good for a long-continued era of fair business. "The business public," said Mr. How¬ land, "are gradually coming to under¬ stand the political situation as to differ¬ ence in parties, and are feeling that busi¬ ness must go on regardless of who is elected, and that nothing can stop the wave of prosperity coming to this coun¬ try from the bumper crops of corn, wheat, oats, and other cereals, as spoken of in the news of the day, "The facilities of the port for receiv¬ ing and distributing supplies are not all that we could wish for, but under our very efficient Dock Commissioner they are improving, and if is easier to get to distant points in upper Manhattan and the Bronx than ever before, and the dealers' association is grateful to the municipality for every added facility to¬ ward reducing the cost of delivery of building material to the consumer. "You can readily understand how es¬ sential it is for the building material In¬ terests tb have short hauls to the work, as the longer hauls add to .the cost of delivery very materially." The transactions in the Hudson River brick market last week were as follows: Lett from Aug. 10 for Aug 12, 21. Sold. Arrived August 12............... 1,5 17 Arrived August 13................ 4 8 Arrived August 14................. 7 4 Arrived August 15................ '7 8 Arrived August 16............... 13 8 Arrived August 17................ 7 o'i 4 Total .......................... 74 49 Sold ............................ 49 Lett for Aug. 19................ 25 Cement. The great problem of the cement manu¬ facturers, as of the brick manufacturers, has ever been to regulate production so that it does not considerably exceed the consumption in the markets immediately available to the point of manufacture. With the mills In the Lehigh and Hud¬ son River districts running to about 90 per cent, of full capacity, on the aver¬ age, an immense quantity of material is being produced. Not all the mills that ever made cement of any kind are run¬ ning, because some did not survive the long depression. But it is evident that a turning point has been passed when de¬ mand is able, as it now is, so readily to absorb the current output. The recent ad¬ vance of ten cents per barrel to a base quotation of $1.38 to $1.48, in cargo lots to dealers, alongside dock, within lighter¬ age limits, is being well maintained. EiTect of the Barge Canal, Manufacturers and dealers In the ce¬ ment trade do not believe that the State Barge Canal when completed will either increase the consumption of Portland ce¬ ment or materially reduce the cost of transportation. For this reason the Le¬ high Valley producers do not believe that the Hudson River mills will have any ad¬ vantage over theirs. Albert Moyer, manager of sales for the Vulcanite Portland Cement Company, pointed out this week that a number of mills have been erected in the past with a view of utilizing water transportation, but with a few exceptions such mills have not been a success. The old Hud¬ son plant went out of existence, and the Seaboard plant has never been complet¬ ed. The plant at Norfolk, built entirely with water transportation in view, is bankrupt. "The nearness of raw materials and coal, short distances to large markets, equitable rates for transportation, and the ability to ship in small units, is of far greater Importance than water trans¬ portation," declared Mr. Moyer, The Le¬ high Valley enjoys these natural advan¬ tages and will always be the most promi¬ nent factor in the manufacture of Port¬ land cement in the East and for export. FaciUties for Handling Cement. "We are paying more today," Mr. Moyer added, "for lighterage and more for trucking because the lightermen have to pay the labor more and the fuel and feed is higher, A possible saving might be made in certain localities In and adja¬ cent to New York by providing means for handling cement in bulk, the handling to be done by machinery similar to the manner in which grain is handled. Strange to say this is nothing new, but was actually accomplished seventeen years ago. "The handling of cement in Greater New York is a problem not well understood even by some of the manufacturers them¬ selves. Water transportation has always been a lure and sometimes a snare. In the handling of Portland cement water transportation, from the economical stand¬ point, requires large units, whereas the geography of the City of New York neces¬ sitates the dividing up of these large units into small ones. The congestion of the harbor and docks makes this a consider¬ able problem. Therefore, the larger por¬ tion of cement delivered in New York is handled from the Lehigh Valley and not the Hudson River plants. It probably will always be this way even though the quality might be equal. *he Lehigh Val¬ ley has the advantage of shipping in car¬ load lots into New York, trucking from cars at Jersey City and Hoboken across the ferry or lightering in 250 barrel lots from the Jersey terminals to the various docks in New York, Therefore, small units can be handled economically from the Lehigh Valley, whereas the larger units would have to be handled from the Hudson River plants, "A belt line railway around the water front of Manhattan would certainly assist in the economical Tiandling of all ma¬ terials coming in by rail to Jersey City or Hoboken, as these materials can be handled then in carload lots by means of fioats and float bridges to the belt line railroad, and there distributed in carload lots to points nearest the job. "The small space available for the con¬ tractor In erecting a large building does not enable him to take a large quantity of cement in at any one time. He can handle a carload very easily, but he can¬ not handle 1,000 barrels. The contractor must have the cement promptly as he needs it, he cannot wait for a barge con¬ taining 1,000 barrels to be towed down the river, and the manufacturer cannot afford to store a large quantity of ce¬ ment on a number of barges, distributing it around the immense water front of New York. "It would be difficult to handle cement as brick is handled. Cement is consigned to one dealer and that dealer only can truck from this partlculaj barge. In the matter of brick, all dealers can handle from any one barge, and they select the barge nearest to the job. If cement could be handled the same as brick, by means of a cement exchange, some economies would naturally result," Large Ontgo of Limestone. The stone trades throughout the metro¬ politan district are enjoying a better mar¬ ket than for years. This applies to quar- rymen, dealers, contractors and mechanics in every branch of the Industry. It de¬ pends on individual circumstances and also upon one's point of view if the status of affairs are judged entirely normaL While the work may not be dis¬ tributed throughout the city with the even hand charactlstlc of unalloyed good times, it can be said that whatever con¬ gestion there may be is where it can be most conveniently handled—In Manhat¬ tan. Indiana limestone is in particularly strong demand. We have recently seen a photograph of a train of thirty car¬ loads of buff limestone, all in large blocks and representing sixteen thousand cubic feet, and all from one quarry and con¬ signed to one firm of dealers, Michael Cohen & Co., of this city, who said that from their point of view there was nothing extraordinary in the shipment, under the present flow of business In this oity. Values in the stone trades have, during the last three months, been steadily re¬ covering lost ground. White It cannot be said that quotations for dressed stone have yet reached new territory, it is still true that they have gained nearly twenty- five per cent, over the flgures which pre¬ vailed a year ago. Iron and Steel. Structural work is being freely placed. The minimum price of structural shapes, which for some time has been $1,30 per 100 pounds, Pittsburgh, was advanced this week by most of the leading manu¬ facturers to $1,40, and transactions in plates are being made at prices as high as $1,50, Merchant bars are still nominally quoted at $1,30 per 100 pounds, but sales are reported at $1.35 and $1.40. Some sales for prompt delivery have re¬ cently been effected at $1.60 per 100 pounds. In most lines of finished steel products the mills are being pressed for deliveries. The volume of new business is increasing rather than otherwise. Most of the steel companies are behind in deliveries on contracts. Bids were again asked this week on the steel fer the Eighth Regiment armory. Awards are expected on the Hell Gate Bridge approaches for the New York- Connecticut Railroad, bids for which went in on August 15. A moderate ton¬ nage of concrete bars and a small lot of steel beams is required, as most of the approaches will be of concrete construc¬ tion. The American Bridge Company will supply 14,000 tons for the Biltmore Hotel as well as 10,000 tons for the Western Union building in this city. It is stated that the office building to b% erected at 42 to 50 Broad street will require 2,500 tons of steel. Bids went in on 90,000 tons of structural shapes for the Brooklyn Rapid Transit •Co., which, it is claimed, is for elevated railroad extensions, rather than for sub¬ ways, but no awards are expected until formal contracts have been signed by the B. R, T. Co, with the city. Copper is selling In the local market, by second hands, almost entirely in small lots, at 2 to 4 cents under the prices asked by the largest selling interests, who are holding out for 17% delivered thirty days. Linseed Oil. Because of the prospects of a big crop of flax seed, lower prices continue to be quoted for linseed oil. City brands, raw, American seed, 67 to 70 cents per barrel in 5-barrel lots. Lumber. The wholesale trade In lumber is sea¬ sonably slow. From the retail yards there is a fair outgo, but the dealers are not yet in a position where they will be re¬ quired to stock up heavily. The higher price list is also an argument for post¬ poning this class of ordering, if not now imperative. Some of the Bronx and ^r*l ,^° yards report a very active trade. \Vholesale houses report that spruce cargoes hold all the ground gained ear¬ lier in the season. Schedules calling for custom sawing are placed at flgures rang- '^^,.^'",°^*22-^ t° *27, Sales of standard fo on . ? range in price from $3.70 to $3.80, either by car or vessel. Hemlock is f-l~^I on the base price of $22 estab¬ lished a month ago. White pine Is firm and active in all the cutting-up grades below "fine common," with quotations un¬ changed. For thirty days there has been a very strong requirement for low-grade hard¬ woods. Mahogany is reported by shippers to be a very scarce article.