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Real estate record and builders' guide: [v. 100, no. 2584: Articles]: September 22, 1917

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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,