Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 98, no. 2540: Articles]: November 18, 1916

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November 18, 1916 RECORD AND GUIDE 707 iiiiiiiiiiiiiiiiiiliiiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii H CURRENT BUILDING OPERATIONS, 1 1 MATERIALS AND SUPPLIES 1 ■iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiw ..........iiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiigifliuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiu "T^HE compelling influences now press- ^ ing most heavily against the build¬ ing material markets are the ascending price of coal, the car shortage and the paucity and high cost of labor, all three being the direct consequence of the war in Europe and its extraordinary demands upon American industry. .A.S these adverse circumstances have not on the whole checked the demand for materials, though they have caused the postponement of speculative opera¬ tions in numerous cases, their present effect is seen in the continued advance in the quotations of nearly all the ma¬ terials entering into the composition of buildings. This has been a week of ris¬ ing prices. The skyrocketing of coal, the latest economic phenomenon, has forced up the cost of various commod¬ ities, especially cement, which through all the excitement hitherto had adhered to a comparatively low valuation. This is the serious aspect for the build¬ ing trades of the coal crisis—the effect it is having upon the cost of those mate¬ rials in the manufacture of which coal is largely required. With soft coal five and si.x times higher than normal for some grades, the manufacturers most af¬ fected have but one recourse, and that is to raise their quotations. Apparently there is no height that the coal market may not scale before midwinter for consumers depending on the open market and not covered by con¬ tracts. Scarcity of cars and boats is re¬ sponsible for part of the insufficient sup¬ ply, but the principal difficulty which the coal companies allege they have to contend with is the shortage of labor at the mines. But the authorities who are investigatin? the market are not convinced that the causes of the panic are entirely natural. Hard coal prices were put back from as high as $13 a ton to as low as $8.75 at the close of last week, but the bituminous grades have since risen in some cases to $7 a ton at the mines. Mills which formerly could buy culm coal at as low as 80 cents, and even 60 cents, a ton, and now have to pay $6.00, have a formidable problem, be¬ fore them. The car shortage which hinders prompt deliveries is the worst the coun¬ try has seen in nine years. Fear of even a more serious situation and a desire to take measures to avert it brought to¬ gether at a conference this week in this city one hundred railroad presidents and other officials. United with the car shorta.ge is the inadequate supply of lightering boats and ocean-going vessels. Both barges and steamers command ex¬ traordinary charter fees, which have added to the cost of all materials com¬ ing to market by water. The labor dif¬ ficulties complained of by manufacturers mostly relate to common labor, biit the skilled mechanical trades are also well employed. Furthermore, they have the promise of good employment during the winter. Secretary Tompkins of the Building Trades Council estimates the percentage of employment in the unions affiliated with that body at 90 per cent. Some contractors are short of mechanics, and other cities are applying to New York for journeymen. Even the steel erectors, who might be expected to lack work, owing to the delayed deliveries of mate¬ rial and postponed operations, are kept well employed by New York contractors, if not on city jobs then on outside work. A noteworthy fact in connection with the current work that is keeping the steel erectors and some other trades very busy, if that it is largely outside the city limits —in the surroundin,g industrial towns and more distant places. Reports to the Record and Guide of contract lettings from week to week are more numerous from the adjacent territory than from the city proper. Still, city work is stead¬ ily growing in importance, numerically and otherwise. Further price advances were announced this week in brick, cen-.ent, plaster, lin¬ seed oil, builders' hardware, pig iron, copper and its products, cast-iron pipe, tin plate and reinforcing bars. Recent¬ ly spurts in prices have rather animated than deterred buyers. But some manu¬ facturers of building materials are ex¬ pressing the fear that the rising costs of production, or else inability to get their raw materials promptly, will cause them to shut down. The situation in New Jersey and Pennsylvania districts, where the cement, brick, tile and other manufacturers have to contend with the high wages paid by munition factories, is said to be a serious one. Already tlie incidents of election week seem to have been forgotten by the buy¬ ers of structural steel, as a larger number of orders than is usual for a weekly quota is reported to have been booked by local fabricators. In the case of many steel and iron products the mills are sold up as far ahead as they care to sell, and prices become less well defined as manufactur¬ ers become more conservative. The American Sheet and Tin Plate Co. has withdrawn from the tin plate market on account of being well sold up. Pig iron is advancing on an average of $1.50 to $2 a ton each week. The steel market is not likely to be any different on ac¬ count of the national election verdict, so long as the war continues in Europe at least. Brick.—With onlv one more trip prob¬ able for up-river brick barges to this city before navigation closes, under av¬ erage weather conditions, city dealers are hastenine to cover their winter re¬ quirements. The present week made the record of 53 cargoes of North River brick sold to dealers, the largest weekly number for the season thus far. The arrivals numbered 56. The shorta.ge of labor at the works limits the number of barges that ran be loaded, and prevents the market from being oversupplied. Hudson River brick is being taken about as fast as it can lie shipped. The Raritan brick manufacturers are out of the market entirely, and the Hudson River works are the onlv source of sup¬ ply. Dealers are thus forced to fill their current and prospective requirements on a rising market. Prices advanced this week from a minimum of $8.25 a thou¬ sand to $8.50, with $8.75 as the top price. SUMMARY.—Transactions in the North River brick market for the week ending November 17, 1916; Condition ot market: Demand good, prices higher. Quotations: Hudson Rivers, $8.50 to $8.75, to dealers in cargo lots alongside dock. Number ot cargoes left over from last week, 3 ; arrived, 5<;; sold, ,53. Distribution: Manhat¬ tan, 19; Brooklyn, 21; Bronx. 1 ; New Jersey points, 8; Astoria, 1 ; Portchester, 1; Bridge¬ port, Ct., 2. Left over Friday, November 17, 6. Cement.—Under the compulsion of the rising costs of manufacturing, and espe¬ cially the extraordinary advance in coal prices, the open market quotations on Portland cement were raised ten cents a barrel more on Monday in the whole¬ sale market. The oresent quotations from manufacturers to dealers and con¬ tractors are $1.87 and $1.92. in SOO-bar- rel lots, alongside the wharf. This is an advance of 20 cents a barrel within the past month. Trade reports state that, as most dealers are now covered by term con¬ tracts, they will not be affected by the higher prices. Some firms are said to have contracted for sufficient supplies to last them well into the coming year. Manufacturers state that the coal and labor situations have reached a serious point, and that the restricted transporta¬ tion facilities are still another problem. Rumors of possible shut-downs cannot be verified. Demand is gradually ex¬ panding, but production is restricted by the labor shortage. The quotations for Rosendale are unchanged at 90 cents a barrel, wholesale, with the usual rebates for bags returned. Pacific Coast cement manufacturers are no\v allowing only 7'/2 cents each for bags returned, in¬ stead of 10 cents, as formerly. The lo¬ cal rebate for bags returned continues! to be 10 cents. Gypsum Products.—Increased manu¬ facturing costs have forced further ad¬ vances in the quotations to dealers for plaster, plaster boards and blocks. Ma¬ sons' finishing plaster is bringing $15 a ton in bags, with the usual rebates for bags returned. Dry mortar in bags is bringing $6.75 to $7.25 a ton, or 25 cents more than the previous quotation. Nearly all the constituent elements entering into the cost of manufacturing gypsum products have been in the ascending scale of late—including labor, coal, ocean transportation for the pri¬ mary material and even the paper used in making plaster boards. Demand has increased to normal proportions, but production is restricted by the insuffi¬ ciency of labor and deliveries hampered by car shortages. Iron and Steel.—The week following election has brought out a larger num¬ ber of contracts for structural steel con¬ struction than any week has seen in a long period. But, while the lettings are more numerous, the new inquiries have been fewer this week. By far the larger share of the new contracts is for indus¬ trial plants in tlie surrounding towns and cities. The fear of still higher prices is evidently bringing out orders from general building contractors obligated to go ahead. A few of the more important local contracts are here indicated. The American Bridge Company has booked an order for 900 tons of steel for a Loew theatre in 125th street. The Hinkle Iron Works has booked a con¬ tract for 850 tons of steel work for the Rodin Studios apartment house at S7th street and Seventh avenue, and 800 tons for the Mayer apartment house at West End avenue and 92d street. George A. Just Co. will fabricate 100 tons of steel for the Pine Hill Crystal Water Com.¬ pany garage at 544 West 3Sth street. The Passaic Structural Steel Coinpany has taken the contract for the McLaugh¬ lin apartment house at Broadway and 105th street, requiring 900 tons of steel shapes. The McClintic-Marshall Com¬ pany has been awarded 1,200 tons for the Joseph Dixon Crucible plant in Jer¬ sey City. The Phoenix Brid.ge Coinpany is to furnish the 1,200 tons for the Jer¬ sey Central station at Newark. Other awards embrace 2,200 tons for the Broad No. 2 telephone exchange t'> Eidlitz & Ross; 600 tons for the Kenyon pier, Brooklyn, to Post & McCord; 400 tons for tlie Kings County Court House to the Guerber Engineering Company. Cast iron pipe makers have advanced tlieir quotations $5 a ton, six, ei.ght and ten-inch pipe being quoted at $36 a ton, foundry, while twelve-inch pipe has been Dut to $35 a ton. Four-inch pipe has been moved up to $39. Gas pipe and Class .\ pipe still command $1 over the prices given for tlie various sizes. Electrical Supplies.—The manufactur¬ ers of electrical equipment are reported to be so over-supplied with orders and deliveries so much delayed that jobbers see little use in soliciting new business until the congestion is reduced. Prices for all kinds of supplies are above nor¬ mal. RECORD AND GTJIDE QUOTATIONS ARB ACCEPTED AS OFFICIAL. BY BUILDING MATBRIAX EXCHANGES.