Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1922-03-23
IS OHIO PAYING TOO
MUCH FOR Cement
Director Herrick Issues Statement
Upon Highway Construction
Costs

Facts upon which taxpayers may
find an answer to the question whether
Ohio is paying too much for cement
are presented in a statement issued
to-day by Leon C. Herrick, director of
the Department of Highways and
Public Wroks.
Director Herrick has been under
fire during the past week for going
ahead with a comprehensive state
hignway construction program in the
face of cement costs which appeared
on the surface to be greater IN OHIO
thans in other states, particularly in
Indiana, Illinois, Michigan and Wis
consin.
Mr.. Herrick's statement is as fol-
lows:
IAN effort has been made in public
prints to draw unfair comparisons of
cement prices to the State of Ohio
as against prices made to Illinois,
Indiana, Michigan and Wisconsin.
The frequently mentioned price of
$1.o0 was made by two small manu-
tacturers only, on very limited guam
titles and with conditions requiring
that shipments be made considerably
in advance of the time when the ce-
ment is actually needed, whereas
prices without any restrictions were
10 to 80 cents per barrel higher. The
restrictions referred to entail an ex-
pense for additional handling, storage
space (either rented or constructed)
fire insurance, sack losses, damage on
cement and interest on investment. In
addition to these items Of expense
there must also be added 10 cents per
barrel for cash discount and also
freight to points of use. Furthermore,
where states purchase cement direct
from manufacturers, the highway
partment must provide and maintain
a bureau to place orders according to
contractors needs, expedite shipment,
arrange for placing the cars for un-
loading, and for counting, checking
and payment for return freight on
and loss Of sacks. The operation of
this bureau would necessitate the en-
ployment of an auditing and clerical,
together with field force, all of
which entails an additional expense
of at least ten cents per barrel There
fore, taking the lowest price without
any conditions which is $1.40, and
using the average freight rate of as
cents per barrel, cents discol mt
and ten cents for operation of the bu-
reau, the cost to states buying direct
from manufacturers is $2.05 per bar
rel.
Information was obtained from the
Indiana highway department this
week, to the effect that in purchasing
the maximum amount from the mill
quoting $1.30, that state paid for All
211,0 900 barrels of minimum price Of
5000 and an average price of $2.1e
per barrel, or an actual net average
cost of $2.02 per barrel and this with
conditions requiring deliveries nee.
essitating storage by state and ex.
penses incident thereto,
i, Ohio adheres to the policy of the
contractor furnishing cement anG
other materials. The basis upon which
the departmnet's estimates are made
is $500 per barrel for cement. Nc
contracts are awarded on bids sub
mitted which are in excess of the es
timated costs. Inasmuch as all esti
mates made by the department hav'
been cut by contractors in making
their bids, it is evidnet that Ohio !
receiving the benefit of even lowe
costs than states here referred to.
On this basis Ohio has proceeded
with the award of contracts, thus in
sIring the prosecution of the worl
during the low cost season, and fur
nishing at the earliest possible mo
ment the maximum amount of relic
to the unemployed.
The first duty of the Department o
Highways to the people of Ohio is t.
build roads, and to build upon a basi
that will insure a substantial invest
ment of public funds. To that ent
the department has been directing al
effort. Due care has been taken ant
will continue to be taken to secure tn
maximum value for every dollar in
vested.
In this connection, l wish to sa,
with emphasis on behalf of Gov
Davis and this department, that w
Fave set our hands to a construction
program for 1922 from which we shal
rot deviate. This program is in tn
interests of the people whose hope
f'r statewide and connected syster
Of modern highways have long bee
deferred, and while we shall be read
at all times to explain to the publ
anv point or policy upon which in
formation may be desired, this De
partment is not disposed to enter in
to controversies fomented in the pub
lie prints for political PURPOSES. Roa
huilding rather than political fenc
b'-i1ding is the duty assigned to u:
and to that drtv we shall adhere a
rieidly in the future as we have in tn
past.