New-York tribune., 1919-06-23
Navv's Order for
Cement at Cut
Prices Ignored
Little Attention Is Given
to Demand for Material
at a Reduction Even
to the Government

Building material price positions had
their most crucial test last week and
have, for the most part, survived,
according to the Dow Service daily
building report.
The test came in the form of cir
cuar issued by one OF the purchasing
bureaus OF the United States Navy De-
psrtment. 1t was addressed to the
cement distributors of this city,
announcing that it wanted bids on
10000 barrels OF Portland cement and.
in substance, demanded a lower price
than the present market level. The
attitude Of most of the companies was
exactly that indicated in this column
earlier in the year-that the strong
companies would sit back and let the
price cutters load up on the unprofit-
able business if they wanted to accept
it, and wait still longer. if necessary
for ordinary building orders that would
at least insure sales above pauper-
izing profit level.
Loaded Up With Orders
When the circular reached the field
it found the habtual price cutter
already loaded up with orders and
not particularly interested in this re-
quirement. Some mills to-day are
actually facing the necessity of appeal
, ing to other cement mills to sell them
cement to meet the business they have
booked. The stronger companies as
sumo the position of merely ignoring
~ Joo So l,,o !
navy bureau, even though intimation
was made in the circular that if the
price submitted did not show a differ
ence from the general market quota
tion the matter would be taken up with
the Department of Justice.
The cement market is too active to
make price cutting attractive, even for
orders of this kind. Inquiry in one
company in the first fourteen days of
June this year totalled 100000 barrels,
as against 250,000 in the whole month
Of June last year; 100000 barrels in all
Of June. 1917; 100000 barrels in June,
1915. and 100000 barrels in June, 1915.
Contracts signed by the same company
in the first fourteen days of June this
year totalled 1875 900 barrels, as against
$4,000 barrels in all of June last year;
$4,000 barrels June. 1917; 10000 bar
rels June. 1916, and 10000 barrels
June, 1915.
These figures are fairly representa-
tive of the movement in the Portland
cement market, in proportion to the
size of the non cutting cement COM
panies. and shows why the cement
price is so firmly established.
Strength of Market Shown
Further reflection of the atrength of
The market is shown in the attitude of
the Eastern group of architectural ter
"a Gotta manufacturers, who report a
sharp increase in demand due to the
recognition by architects and builders
Of the economic advantages of having
the source of supply of this facing ma
;erial IN such close proximity to the
large cities of the East, resulting in
comparatively low cost of raw mate
rials and low cost of production where
repetitive architectural motives are
used. In this department manufact-
urers early in the year offered price
concessions from the 1918 levels, which
stimulated demand. The Dow Service
daily building reports was informed
By leading interests in the trade on
Saturday that architectural terra Gotta
buyers will be assured that the present
price level will not be increased this
year. 1t may be necessary, however,
to somewhat lengthen time of deliver