tories priced on the 1934 basis. These ratios were obtained by applying proposed annual prices to the various elements of typical buildings, and comparing the total costs so obtained with the costs obtained by using 1934 period prices. Where these annual prices indicated that the 1934 period unit price for a given item was clearly too low, the 1934 unit price was revised and summaries were made to indicate the effect of such revisions on estimated 1934 reproduction costs, and these summaries indicated that the revisions would tend to raise the 1934 price level about 14 percent, on the average, for all carriers for all types of building construction. Following the agreement made in the general committee meeting, the subcommittee first undertook to review these proposed annual prices, in an attempt to reach an agreement on annual unit prices. Due to the fact that, in order to check these prices, it is necessary to examine a large number of building contracts, plans, specifications, and bills of material, it was found impracticable to agree on unit prices, and the subcommittee then decided to try to reach an agreement on price ratios, or indexes. A new set of indexes had been prepared by the Engineering Section for the years 1934 to 1943 for various types of complete buildings and for groups of items in station grounds. Since these indexes very closely followed the trends shown by the indexes for similar types of railroad buildings, as agreed to by the western group of the President's Conference Committee and the Engineering Section, and also were in harmony with various trends on the cost of building construction prepared by the Engineering News-Record and the Aberthaw Construction Co., the subcommittee was able to agree on these indexes as normal trends for the years from 1934 to 1943. The next step was to relate these trends to the Bureau's 1944 period prices. Tests were made of various inventories of property constructed subsequent to 1934, and the result showed that if these indexes were increased by about 20 percent, as an average, for the years from 1935 to 1943, with the 1934 index at 100, that when so adjusted and applied to the cost of such new construction, estimated on the 1934 period basis, they would substantially check the actual costs. Accordingly, an agreement was reached on that basis, and the annual indexes were so prepared. EQUIPMENT The subcommittee reviewed the cost data and concluded that the agreed prices for equipment items for the year 1942 were proper for 1943, except for the following items: For alternating-current motors, 200 horsepower and over, 1,800 to 3,600 revolutions per minute, the cost data indicated that the cost for 1943 varied from the 1942 guide prices in the ratio of 145 to 137. For installing machinery, since this is a labor item, it was agreed to adopt for 1943 the same ratio as that which was adopted for pipeline construction, which was 185. For multistage centrifugal pumps the cost data indicated that the 1943 cost varied from the 1942 guide prices in the ratio of 116 to 110. For large horizontal plunger pumps and triple-expansion steam-driven plunger pumps the 1943 cost varied from the 1942 guide prices in the ratio of 142 to 120. OIL TANKS AND ACCESSORIES It was decided that, due to ceiling prices, the material in tanks would cost substantially the same as in 1942, but that the labor of erection should follow the trend of pipeline construction, which showed a 23-percent increase for 1943 over 1942. Estimating the erection at approximately 35 percent of the cost in place would result in an increase in tanks of about 8 percent over the 1942 guide prices. Applying this increase and rounding out the figures gave an index for 1943 of 160 for steel riveted and welded tanks, 150 for bolted tanks, and 135 for wood tanks. Prices for tank accessories showed practically no changes from the 1942 guide prices; consequently, the 1942 guide prices were adopted for 1943 without change. Grading was increased from the 1942 guide price of $0.60 per cubic yard to $0.70 per cubic yard for 1943, largely as a judgment figure. Clearing and grubbing was made to conform to the previously adopted 1943 prices in the pipeline-construction exhibit. COMMUNICATION SYSTEMS A review of pipeline and Western Union cost data was made, and it was concluded that there was no change from 1942 in the price of materials, except as follows: Western redcedar poles, butt treated_. Increased over 1942 (percent) 17 5 34 The labor of installation, and also the cost of haul, for wire, poles, and pole fixtures were increased in the same ratio as the cost of pipeline construction; namely, 23 percent over 1942. Guide prices for the various items in communication systems for 1943 were computed in the same manner as in previous years, using the above-mentioned changes. As there were no cost data on eastern cedar poles, butt treated, unit prices were obtained by applying the same differentials for treatment as those shown for western redcedar poles. L. H. ALLEN. CARRIERS BY PIPELINE ANNUAL GUIDE PRICES FOR 1943 Agreed to in conferences October 23-25, 1944, by representatives of the Engineering Section, Bureau of Valuation, and the working committee, American Petroleum Institute The guide prices which are included in this volume have not been examined nor passed upon by the Interstate Commerce Commission. Exhibit A. Line pipe TABLE OF CONTENTS Exhibit B. Pipeline construction Exhiibt C. Oil tanks and accessories Exhibit D. Communication systems Exhibit E. Equipment Exhibit F. Pipe fittings Exhibit G. Buildings WASHINGTON, D. C., November 1, 1944. EXHIBIT B.-Pipeline construction—Annual guide prices for 1943—-Price per lineal foot for installing pipe Cost per ton mile of haul for adjusting schedule of prices for haul conditions.— $0.555. Cost of clearing and grubbing, per acre Construction damages.-Same as those shown in the Guide Price Book for the year 1942. Somastic coating.-Price per linear foot of pipe coated, including allowance for field joints, minimum of 75,000 feet. Size: 2 inches_. 3 inches. 4 inches---‒‒‒ 6 inches- 8 inches--- 2 inches.... 3 inches... 4 inches... 5 inches.... 6 inches... 8 inches... 10 inches. 12 inches.. EXHIBIT B.-Price of complete coating, per lineal foot, for 1943 EXHIBIT C.-Oil tanks and accessories—Annual guide prices for 1943 Wood roof supports and decking, lumber, per thousand feet, board measure__. Covering: $115.00 .20 · 09 .52 Shet iron, 22-gage, galvanized, per thousand feet, board measure___ Composition roofing, per thousand feet, board measure___ Johns-Manville, vaporproof roof, per thousand feet, board measure_ Above prices include painting, steel stairs, 2 manholes, 1 screened vent, 1 water draw-off, 1 suction connection, 1 discharge connection, and 1 gage hatch, and for patented roofs all items ordinarily furnished by the manufacturer. TANK ACCESSORIES The 1943 prices for conservation equipment, hatches, swing lines, etc., are the same as those shown in the guide price book for 1942 on pages 2 to 5, inclusive. GRADING AND CLEARING Grading, common excavation, per cubic yard.. STEEL BOLTED TANKS $0.70 92.50 The 1943 prices for all sizes are 7 percent higher than the figures shown for the year 1942 on page 7A of the guide price book. WOOD TANKS-REGULAR The 1943 prices for all sizes are 8 percent higher than the figures shown for the year 1942 on page SA of the guide price book. |