Evening star., 1917-03-03
BIG ADVANCES SHOWN
IN COST OF MATERIALS
Contractors Quote Prices at Valua.
ton Hearings of Utilities
Commission.

Valuation hearings which have occu-
pied the attention of the public utili
ties commission since last summer have
thrown considerable light on the local
real estate market with respect to ad-
vances in cost of labor and building
material since 1914.
One of the methods the commission
is following in establishing a basis for
consideration OF rate matters is the
cost of reproduction of the physical
properties of the several utility cor
porations. Without exception these
companies have shown that the cost of
reproduction OF their physical holdings
would be much greater today than in
1914, which is the date of the tentative
valuation established by the commits
sion for most Of the companies They
claim that in any reproduction cost
method they must be given credit for
this advance in the cost of labor and
materials.
Contracted for Buildings.
This contention was urged with vigor
by the Potomac Electric Power Com
pany James l.. Marshall and Samuel
J. Prescott. local contractors, who testi-
fed for the company. gave illumnat ting
testimony on the subject. Mr.. Marshall
was the contractor for the building at
18th and u streets. which serves the
general offices of the Potomac company.
He testified that the cement and con-
crete work for the building cost $9,31S.
This was in the spring in 1916. The
increase on this line since. he stated.
has been IS per cent, which would in
crease the amount to $11.s27. if the
building were being constructed today
Continuing. Mr.. Marshall said that
the structural and ornamental iron
work for this building cost $6,S75: that
there has been an increase of 115 per
cent on this line since, which would
make the cost of furnishing the same
materials today $12,O3125. Other in
creases quoted by Mr.. Marshall were as
follows: Brickwork. 20 per cent;
stonework, Is per cent: lumber, is per
cent; millwork, rs per cent; painting,
% per cent: plumbing. 20 per cent; tile.
marble and slate, 80 per cent; glass, 125
per cent; tin and galvanized iron. $50
per cent: Stag roof. 90 per cent; plas-
terfng, so per cent; electric work. SO
per cent; hardware, 100 per cent, heat
ing, SO per cent; labor. 25 per cent:
elevator. 371a per cent: vault doors, 80
per cent: terra Gotta partitions. 40 per
cent: metal weather strips. 80 per cent:
rough hardware, 100 per cent. These
percentages give an increase OF s23.-
87075, so that if the building were
erected today. Mr.. Marshall testified. it
would cost SS3,211.25. instead of $59.-
340.50 which was the cost of its con-
struction in the spring in 1915.
Increase of 25 Per Cent.
Samuel ]. Prescott told the commits
sion that prices during 1he past two
years have increased about rs per cent
generally speaking. The average in
crease on an ordinary budding propo-
sition, he said, would be about 25 per
cent, though some buildings would
show a higher increase and others less
tina n the IS per cent advande. Mr.. Pres
following memorandum OF increases
Excavating, 20 per cent: concrete
foundations and concrete surface work
20 per cent: reinforced concrete. % per
cent: brickwork. Is per cent; stone
work, 10 per cent; structural steel. 100
per cent; miscellaneous iron, 80 per
cent: sheet metal, 100 per cent; slate
roofs, 10 per cent: Stag roofs, 10 per
cent: lumber. is per cent: carpenter
la abor, rs per cent; ordinary labor, 20
per cent; millwork. 10 per cent: ordi-
nary hardwood, SO per cent; plastering
II per cent: painting. rs per cent: glass
55 per cent: plumbing, 30 per cent
heating. 20 per cent: electric work, Ia
per cent
Comparison of the Marshall and Pres
colt tables show variations with re-
spect to a number of items: For ex-
ample, Mr.. Marshall allows 125 per cent
increase for glass, while 55 per cent Is
the estimate of Mr.. Prescott. The form
er's estimates for brickwork, nillwork
and stonework are from to 10 per cent
higher than the Prescott figures. In
fact. the Marshall estimates show IA
higher tendency throughout.
In the course of his cross-exami nation
Mr.. Prescott stated that there had been
a gradual raise in the cost of construct
ing buildings until 1913, when depres-
sion set in that lasted until 1914. He
said that under the present conditions
OF the country he would characterize
nreysiIInR prices as normal, with the
possible exception of steel. He also
declared that he did not expect to see
prices become any lower in the next
few years.