Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-04-04
CEMENT PRICE
is BOOSTED BY
COST AGENCIES
Head of Indiana Company Re-
views Conditions of Manu-
facture.
STATE LARGE PRODUCER

| Adam L. Beck, president Of the Indi-
ana Portland Cement Company, in a
statement issued today relative to the
| price Of cement, declared that the pres
! ent cost Of the product is due largely to
increased freight rates and to an I'M
| precedented demand. He cited figures to
show that the cost of production has in
creased 641a cents over 1917 and that
the general increase in the last year
| has been only 10 per cent.
There has been, and still is, a great
deal of criticism, both nationally and in
/ the State of Indiana on the cost of Port
| land cement as purchased by consumers"
| said Mr. Beck. I'm view of this point,
| believe certain conditions and facts
should be given public attention, as to
| the increase in manufacturing costs, the
! increase in delivery costs and price OBJ
/ tanned at the mills.
PRODUCTION COST
OF CEMENT GROWS.
AS regards manufacturing costs, the
I present cost Of production is, at con-
/ sentative estimate, 64la cents higher than
in 1917. This is the direct mill cost and
!
| office, executive, sales. financial. tax and
mill overhead expenses. This can cents
may be enumerated as follows for a bar
rel Of cement manufactured but not sold /:
Freight increase on coal to make one
/ barrel cement. cents.
| Freight increase on gypsum to make
| one barrel cement, l cent.
! Freight increase on repairs, replace
/ Il ents and operating supplies, cents.
Total tnCrpA on
/ u cents.
/ Increase on coal at mine, IS cents.
Increase on labor at mill and quarry,
/ p cents
Increase on oil. waste and grease, /
/ cent.
Increase on explosives for quarry, IL
/ cents.
Increase on gypsum at mine, 1 cent
! Total increase supplies and labor, 52h
| cents.
Grand total, 64I5 cents.
In further explanation let It be said
that the coal mentioned above includes
both that used for power and for calci-
mining the raw material.
II also want to add that the present
cost Of production per barrel is prac-
tically 100 per cent higher than It was In
| 1914, and is over IT'S per cent higher
than in 1915. The raise in the prices
received between 1914 and 1918 and today
amounts to about 20 per cent, and be-
tween 1917 and today amounts to be-
tween per cent and 10 per cent
+ FORTUNATE
/ IN LOCATION.
THE Indiana Portland Cement Com
pany Is fortunate in having It's plant
/ at Greencastle, Ind, where shale. lime
stone, clay and coal all used in. the
manufacture OF cement, are found, one
might gay. at its very door. Some Of
the cement plants in the state are not
so fortunately situated, and as con
! Sequence there enters ,lnto their In
creased costs Of production the increase
/ in freight rates on their shale and lime
stone, as well as the increase in coal
freight rates.
1T is possible that the public does
not realize the extent Of the production
Of Portland cement in Indiana. but as
a matter Of fact, Indiana stands second
1 uthe United States in this respect, be-
ing surpassed only by Pennsylvania. The
average daily production in Indiana is
well over 10000 barrels There are five
plants in Indiana, in addition to the
| Indiana Portland Cement Company plant
/ at Greencastle, There are the Universal
| Portland Cement. at Burlington, Ind
the Wabash Portland Cement Company,
at Stroh. Ind; the Lehigh Portland Ce-
ment Company, at Mitchell, Ind; the San
dusky Portland Cement Company, at
Syracuse. Ind, and the Louisville Port
land Cement Company. at Sellersburg,
/ Ind.
''These plants are an equally affected in
! the matter Of freight rate increase, except
/ those rates governing the cost Of In
! bound raw material, such as coal, stone,
+ shale. etc.
Il also wish TO call attention to the
fact that where up 10 1917 cloth bags
were charged for at 10 cents each, or
40 cents per barrel, from 1917 to 1920
they were charged for at Is cents each. or
co cents per barrel. and since January.
1920. have been % cents, or 81 per
barrel During the same period the
charge for paper bags rosc from 10 cents
per barrel to % cents per barrel. and
since cement is sold with the package,
there is considerable increase in this one
item. OF course, a cloth bag is cred
! tied at the same price as sold If returned
in good condition. but the paper bag is
a charge necessarily added, as its use
means its destruction.
FREIGHT RATES
SHOW GAIN.
with regard to the delivery costs
~
from the mill to the destination. wish
to note here, that the increases in the
freight rates in Indiana on cement at
the present time, compared with those
in effect in 1917 are. on an average, 24
cents per barrel higher. This figure is
an average Of the increases from all mills
in the State to all points OF destination
in the State. For instance-the average
increase in freight rates on cement to
indianapolis from the various cement
plants in the State was about 26 cents
Il may here add that including In
creases on inbound freight and outbound
cement there Is a total freight increa Sc
| on a barrel Of cement of, at least, 80
cents, which increases have at various
| times, been allowed the railroads by the
Interstate Commerce Commission.
During the period we have passed
through last year, find one of the most
interesting features of cement transporta-
ton was that done over land in trucks.
and / believe that a conservative estimate
| CT the cement moved by truck from Indi-
ana plants for that year would be $500
/ 600 barrels. The cost of this form of
| transportation, caused by car shorta ge
| and extreme demand, was at least 81 per
barrel higher than it would have been by
railroad, on an average computed
throughout the State. To INDIANAPOLIS
from our mill at Greencastle the cost
would be about $120 per barrel higher
than the railroad freight charges Also.
| while transportation by electric line from