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January 17, 1914 RECORD AND GUIDE 121 BUILDING MATERIALS AjND SUPPLIES FIRE INSURANCE EXCHANGE MAKES NEW STANDARD FOR MILL CONSTRUCTION IN NEW YORK CITY—BETTER STEEL MARKET. Danger of Brick Shortage Past. National Building Totals for 1913. CONFORMING with the general ten¬ dency to bring about better and safer building practice in New York, the new standard of mill construction as promulgated by the New York Fire In¬ surance Exchange this week is signifi¬ cant, in view of the present activity in factory extension in the metropolitan district. While the new standard does not directly affect building materials, its in¬ fluence in this regard is nevertheless important. Heretofore certain advan¬ tageous rates were allowed to occupants of factory buildings that at least met the requirements of the old standards. Allowances were made for certain don- ditions in a building such as, for ex¬ ample, a fireproof floor in a non-fire¬ proof building. Under the new standard, printed in full elsewhere in this issue under "Departmental Rulings," all these so-called allowances are removed, and one standard is substituted. If the building conforms to these requirements the Class A rate is allowed, otherwise the tenant must pay for the additional risk. Quotations on structural steel were still held at a stiff level on second half deliveries this week. There was no no¬ ticeable stiffening in quotations on cur¬ rent business covering second quarter shipments, but there was a little more activity, especially in small operations requiring a few hundred tons of steel. The cold weather early in the week checked building operations to some extent, which accounts for the sluggish movement of materials. There was a stronger tone to inquiries, however, es¬ pecially in wire and steel products. The base price for saJid is still fifty cents. Advices from the West to the effect that money was easier this week proved a contributing factor in making the situ¬ ation here in New York better, although building money lenders are still inclined to act conservatively, and engagements are limited to well-located projects and some specialty buildings. The rebuild¬ ing of the New York surplus reserves with other influences helped to reassure the West, and in consequence commer¬ cial paper again assumed the propor¬ tions of a factor in that market, relieving the drain from this center and permitting a larger reserve for bond and mortgage business in this market. The condition of the brick market here is not as encouraging as it might be. The demand is sluggish, and prices are ragged as compared with those prevail¬ ing last year at this time. The supply available for immediate riding, count¬ ing, sold and unsold barges around the city compares with last year, but the difference lies in the fact that there is no stacking to speak of this year, and many new building projects planned late last year are awaiting actual construc¬ tion work pending the further easing of the money market following the publica¬ tion of the long-expected anti-trust mes¬ sage of the President. This is being looked upon by financial interests as the last straw either to make or break the revival of good business conditions. The general feeling of optimism, however, bids fair to discount to a large extent, at least, any moderate adverse charac¬ teristic the measure may ccmtain. BUILDING SUMMARY FOR 1013. Total (or 145 Cities Reaches f872,7S0,987, a Decrease ot G.3%. p UILDIN'Gr construction throughout the country ■'-' last year was slightly below the level credited to 1912, or 6.3 per cent. New York's construction cost as compared with 119 cities tor the last five years follows: New York City 119 other cities 1913 .............$155,700,817 |650,748,808 1!J12 .............218,309,847 660,784,461 1911 .............188,933,000 635,214,884 1910 .............202,788,000 644,203,622 VMO .............264,565,000 623,549,741 Analyzing these figures the statistical bureau of Bradstreet's puts the cause ot this reaction up to money stringency, closer scrutiny of cred¬ its and past overbuilding, and adds: "Or the large cities ot the country showing gains in 1913 over 1912, conspicuous examples are Chicago, with an increase of 3.3 per cent.; Cleveland, 30.9 per cent.; Detroit, 16.9 per cent.; Newark, N. J., 39.1 per cent.; Phila¬ delphia, 4.9 per cent.; Pittsburgh, 40 per cent.; and San Francisco, 24.8 per cent. In the list of notable decreases are New York with 29.5 per cent.; Boston, 22.7 per cent.; ^Buffalo, 7.6 per cent.; Kansas City, Mo., 12. Iper cent.; Los Angeles, one-tenth of 1 per cent.; Milwaukee, 11.4 per cent.; Minneapolis, 9.6 per cent.; Port¬ land, Ore., 10.3 per cent.; and St. Loiiis, 36 per cent. "The key to the large decrease in all build¬ ing reported in 1913 and 1912 and preceding years is largely found in the volume of build¬ ing ot New York. In 1913 the total value of the building expenditure in Greater New York, Rich¬ mond Borough excepted, was $153,700,817, a de¬ crease of 29.5 per cent, from 1912. This total was 17.5 per cent, of the entire expenditure at 143 cities, and the decrease at New York from 1912 was $63,000,000, whereas the entire de¬ crease at all cities was $74,645,00l>. In other words, the decrease at New Yorlc accounted for .s.j per cent, of the total decrease at all cities. " THE CEMENT OUTLOOK. Price Increase Generally Looked for Elarly In the Season. FURTHER indications ot the improved temper of the building material market came this week from some of the leaders in the Portland cement industry. An official ot a "Valley" com¬ pany said : "I look for a much better demand for Port¬ land cement from now on. The mills are in good shape tor taking care of the business that 1014 will bring out, and the fact that there is no over-supply that must be worked off at a sacrifice leads me to believe that prices will move up before they will go down. There is no money in the business with prices at the present mill basis." W. P. Corbett. a director of the Alsen's Amer¬ ican Portland Ceraffent Works, said: "Government reports prove that more than thirty cement companies^—almost one-third of the total doing business in this country—have been forced into bankruptcy or shut down within the last .five or six years because of the bitter antagonistic and absolutely blind com¬ petition which prevailed. Companies in differ¬ ent districts would endeavor by a bitter war of low prices to ruin somp riv&l, and it is an established fact that Portland cement has been sold frequently below the cost of manufacture. "This condition has resulted in preventing an increase in production at the former foolish ratio, and promoting schemes have been less numerous. "Some of the existine i&ills need expensive plant overhauling, and it is not likely there will be any great increase in output this year, even it labor troubles do not retard manufac¬ ture as they did last year. The consumption, on the other hand, is almost sure to increase. ' "Prices ot cement seem to he holding about the same, namely, $1.30 including bags, F. O. B. valley mills (90 cents, base), and approxi¬ mately ten cents more for the best New York state mills.' The prices in the west showed a slight reaction, but are today higher in more cases than in the east. It is probable, from all indications, that there will not be much change, probably a five-cent advance or so as business becomes active in the spring, depend¬ ing entirely upon conditions." COAL AGAIN MOVING HERE. Boatmen's Strike Unds—^Fortnight Accu¬ mulations Freed. T HE fear that building managers have felt ■^ during the last fortnight regarding their supplies of coal owing to the strike of the boatmen have been quelled. The strike was ended this week and the accumulations have been freed. Embargoes incidental to the strilce served to reduce receipts at tidewater up to the middle of this week and as a result pressure on the market has been relieved to some extent. There Is still a quantity pf unasslgned coal at the docks, however, and as the week closed some of It was beinp' offered at lower prices. Some coal of fair quality standing at the piers under' demuirage has been sacrificed at considerably below what the same grade is bringing for mine shipment Some West Vir¬ ginia product is still offering as low as $2.40 to $2.45 at Port ReAdtag, aad at South Amboy- Pennsylvania coal is bringing from $2.25 up. Some Pennsylvania operators have been quoting $1 Sot mine shipment, but those with rea¬ sonably good coal are holding out for at least $1.10 or $1.15. BETTER STEEL DEMAND. Plates and Sheets Shovy More Activity— I Subivay Order Let. A MARKED improvement in sheets and plate business was reported from the steel de¬ partment this week. Incidentally the contract was signed between Oscar Daniels & Co. and the American Bridge Company for the 16,100 tons of steel required for the Jerome avenue ex¬ tension of the subway. Pittsburgh reported on Thursday that speci¬ fications tor plates and structural material are increasing in a decisive manner. The larger plate companies show an increase of fifty per cent, in new business over that of the last ten months and mill schedules are about to be in¬ creased to take care of the business. Some ad¬ ditional contracts for plates and structural shapes are reported and the inquiry for bars is much better than it was. It was unofficially stated that the United States Steel Corporation properties now have flfty-six per cent, of total capacity employed. Larger specifications for finished steel have per¬ mitted resumption ot all plants averaging from 5.") to 60 per cent, of total capacity. There has been an end to the bargain sales of sheets, and prices have recovered to an absolute minimum of two cents Pittsburgh, with 2.90 cents for galvanized sheets. When some smaller mills went below this price they found no difficulty in getting rid ot all the spare tonnage they cared to take on. The prediction is made that sheets will advance to some¬ where near their normal price with the open¬ ing of spring. Tin plate business has been good. Spme Importations of tin plate have been reported by large buyers, but these have been placed because of the delivery require¬ ments being better than American makers could guarantee. GOVERNMENT TIMBER SALES. Two Billion Board Feet, the Total of Sales In 1913. ■THE annual report of Henry S. Graves, for- *■ ester, just issued, calls attention to a sub¬ stantial increase in the amount and value of timber cut from the national forests, and a still greater increase in the amount and value ot timber sold, largely for future cutting. The gain in timber actually cut was 15 per cent, over the preceding fiscal year ; in sale receipts, 27 per cent.; and in amount of timber sold, 167 per cent. In 1913 the total sales amounted to more than two billion board feet with a stumpage value of nearly $4,.5OO.00O, as against less than SOO.non.ono board feet with a stumpage value of $1,600,000 in 1912. It has been urged that the government should through low stumpage rates, force timber upon the market and thus reduce the price of man¬ ufactured lumber. The present policy, however can not be changed without a change in thei law. Apparently no such change is called for. Sacrifice prices, unwarranted by actual market conditions, would reduce the returns to the pub¬ lic and to tne states, but they would not reduce the price of manufactured lumber to the con¬ sumer. In the United States 99% per cent, ot the timber cut comes from private lands. Com¬ petition in production is exceedingly keen. The mill capacity of the country is considerably greater than its normal consumption of lum¬ ber. This creates a constant tendency to pro¬ duce more lumber than the market will take. During a period of depression actual overpro¬ duction appears. Stock on hand mounts up ■ price concessions to attract nurchasers fail to bring the honed-for acceleration of sales, &nd as returns fall below the cost of production cur¬ tailment is forced. From 1909 to 1911 many sawmills operated at an actual loss because car¬ rying charges on their indebtedness would not permit them to close down. One hundred and thirty mills in the two leading lumber-produc¬ ing states were altogether idle in 1909. So long as competitive conditions obtain among manufacturers the lowering of national forest stumpage rates would neither benefit the consumer nor appreciably affect the supply of lumber on the market. One-half of 1 per cent Of tlie total cut is too small a fraction to have any influence on prices ; and although this frac¬ tion might be made several times as great as it is by offering government timber at a merely nominal charge, the effect would he simply to throw money away to procure the cutting ot public timber in place ot private. Local demands are invariably given prefer¬ ence in the disposition of timber, and on many forests the entire yield is reserved for such needs. Small onerators are preferred and en¬ couraged as far as they are able and equipped to cut and market the stumpage, the large sales being restricted to inaccessible areas which small operators can not exploit. BRICK MOVEMENT LIGHT. Danger of Brtck Shortage This Winter Sold to Be Passed. QNE reason advanced for the sluggish condi- ... ''"J" „°J. ^^^ common brick market when other building materials are showing unmis¬ takable signs of strengthening is the fact that navigation un the Hudson is again open with towhoat communication possible as tar north as Poughkeepsie. This gives the dealers assurance that there is no danger of the brick supply getting low nor prices high, and for that reason they are content to buy brick as they need it. Even though navigation should close on the Hudson River between now and spring, there would- be no danger ot a shortage ot brick in this market, as the supply here at present is equal to any prospective demand that could an'se within the next month and a halt, during which the Hudson could freeze. Judging by the volume of. sales on the wholesale market and the quantity ridden to .iob by the Greater New York Brick Company this week, there Is no apparent indication ot a prospective raid on the. local supply, (Continued on- page 150.)