Produced by Don Kostuch




Manufacturing Cost Data
ON Artificial Ice

MADE IN ACCORDANCE WITH


OTTO LUHR
CONSULTING ENGINEER
&
HERMAN FRIEDL
ARCHITECT

ICE MAKING SYSTEM

PATENT APPLIED FOR

154 WEST RANDOLPH STREET
CHICAGO, ILL.



Ice for Commercial Purposes

Ice for commercial purposes is obtained in two ways: either by cutting
during the winter time from our lakes and rivers and storing in large
Ice Storage Houses located alongside, or by freezing pure clean water
by means of artificial refrigeration.

All authorities are agreed that artificial ice is more sanitary than
natural ice and it is only a matter of time when the use of natural
ice will be prohibited except in special cases when the purity of its
source of supply is beyond doubt.

Our improved method of making artificial ice will cut the labor cost
down to the minimum and will enable the manufacturer to profitably
sell artificial ice at the price natural ice can be harvested. The
logical result thereof will be the building of a large number of
modern ice plants all over the country to supply the market with
artificial ice in place of the present natural ice.

We do not claim any wonders for our system but believe that the
following points of advantage will convince any practical ice
manufacturer that the labor cost has been cut in two.

  First. We pull a complete row of the full width of tank at one time.

  Second. Our air supply is permanently connected to the cans and the
  supply to each can can be regulated, if required.

  Third. We have a continuous air supply to the cans during freezing
  as well as during thawing, dumping and filling. Our air supply never
  ceases.

  Fourth. Our air is automatically cooled down to the temperature of
  the brine in the tank thereby eliminating all possibility of
  moisture in the air pipes.

  Fifth. Our cans are held in a solid frame of steel work and are
  connected to the crane from the time the cans are pulled until they
  are put back into the tanks, thereby doubling the life of the cans.

We give herewith data covering the cost of manufacturing ice and will
guarantee that under reasonably fair management the number of men
required will not be exceeded.

Do not fail to carefully analyze the following cost data. They may seem
extremely low but a thorough study of our system will prove them to be
very conservative.

[1]


NUMBER ONE

Manufacturing Costs Per Ton of Ice
Using Electric Power at Present Chicago
Rates for Power and Labor

Capacity of plant, 240 tons of ice per day, using 2692 cans of 400-lb.
capacity.

18000-ton storage house.

Average current requirement for freezing one ton of ice, including
storage cooling and all auxiliaries, 55 K. W. hours.

Average cost per K. W. hour, .9 cent.

Current cost per ton of ice, 55 x .9, equals 49.6 cents.

Assuming one month's shut-down for inspection and repairs, the total
output of 240 tons of ice for 333 days amounts to 79,920 tons, or
roughly speaking 80,000 tons of ice.

Adding 1/2 cent per ton of ice for the required heating, the total
power cost of  making 80,000 tons of ice is (80,000 x .50)

                                              $ 40,000.00

ENGINE ROOM LABOR COST:

1 chief engineer per day      $ 10.00

3 engineers per day            $ 8.00

Total per day                 $ 34.00

365 days at $34.00 equals                     $ 12,410.00


or  12410 / 80000 = 15.62 cents per ton


[2]


ICE PLANT LABOR COST:

3 men pulling ice and setting
  it up in store-room.         per day $ 6.00

3 men in store-room            per day $ 6.00

1 shipping clerk               per day $ 8.00

Total labor                   per day $ 44.00

365 days at $44.00 equals                              16,060.00

For filling the winter
storage house and taking
the ice out of it will
require 3 additional men
for five months,
equals 150 days x $18.00, equals                      $ 2,700.00

           Total Ice Plant Labor Cost Equals          $18,760.00

or  18670 / 80000 = 23.46 cents per ton

240 tons of ice equal 1200---400-lb. cans. As 24 cans are pulled at
one time it requires 1200 / 24 = 50 pulls per day, or one pull every
29 minutes. The ice-puller has therefore ample time to set up all ice
pulled in storage house as directed.

Cost of Ammonia at         2 cent per ton     $ 1,600.00

Cost of Oil and Waste at   2 cent per ton     $ 1,600.00

Cost of Water at           3 cent per ton     $ 2,400.00

Cost of Salt at           72 cent per ton       $ 400.00

Plant Maintenance and Repairs                 $ 3,500.00


or  3500 / 80000 = 4.37 cent per ton


OFFICE EXPENSES:

1 Manager and Salesman, per year   $ 5,000.00

1 Bookkeeper, per year             $ 2,400.00

Stationery, Telephone, etc           $ 600.00

Total Cost                         $ 8,000.00

or  8000  / 80000 = 10 cent per ton


[3]


OVERHEAD CHARGES:

8 per cent interest on
  $350,000.00 investment          $ 28,000.00

8 per cent interest on
  value of land ($20,000.00)       $ 1,600.00

8 per cent interest on
  $10,000.00 working capital         $ 800.00

3 per cent depreciation on
  $350,000.00                     $ 10,500.00

Insurance (estimated)              $ 1,500.00

Taxes (estimated)                  $ 3,500.00

Total                                                    $ 45,900.00

or 45900 / 80000 = 57.375 cent per ton

Total Expense                                            $134,570.00

or 134570 / 80000 = $1.68.215 per ton

Divided as follows:--

  Manufacturing cost including office expense  $ 1.10.840

  Overhead charges                             $ 0.57.375


ICE SALES ASSUMPTIONS:

Month   Ice        Ice sold  Ice stored  Ice Sold      Total Ice
        produced   direct    per day     from storage  stored in 30
        per day    per day               daily         days

January    240       65        175                      5250

February   240       65        175                      5250

March      240      115        125                      3750

April      240      165         75                      2250

May        240      300                      60

June       240      400                     160

July       240      400                     160

August     240      400                     160

September  240      350                     110

October    240      200         40                      1200

November   240      140        100                      3000

December   None      65                      65

                                                 Tons  20700
                                             Less Tons  1950
                                           Total Tons  18750


During the month of December, the Ice Plant will be shut down for
overhauling and repairs, and part of the ice stored during November
will be sold in December, therefore, requiring a total storage
capacity of 18,750 tons, of which 750 tons will be stored in the
ante-room and 18,000 tons will be stored in the big winter storage.


[4]


NUMBER TWO

Manufacturing Costs Per Ton of Ice Using
Electric Power at Present Chicago Rates for Power and Labor

240 TON CAPACITY PER DAY

No Storage House for Surplus Ice

ICE SALES ASSUMPTIONS:
          Tons per day    Total Tons
January        65          1,950
February       65          1,950
March         115          3,450
April         165          4,950
May           240          7,200
June          240          7,200
July          240          7,200
August        240          7,200
September.    240          7,200
October       200          6,000
November      140          4,200
December       65          1,950

  Total output tons       60,450


NOTE--These sales can only be realized if the dealer has at least
18,000 tons of natural ice on hand to enable him to take care of the
family trade during the hot months.

If no large supply of natural ice is on hand hardly 50,000 tons can be
sold, thereby increasing the cost per ton considerably.


POWER COST:

Due to numerous starting and stopping of compressor during the slack
months the maximeter charges will be higher and therefore it must be
assumed that 60 K. W. hours will be required per ton of ice instead of
55 K. W. hours for continuous consumption.

60 K. W. hours per ton of ice at .9 cent per K. W. hour equals 54
cents per ton. Adding 1/2 cent per ton for the required heating the
power cost for making 60,450 tons of ice equals 60,450 x 54.5 cents,
equals  $ 32,945.25


[ 5 ]


ENGINE ROOM LABOR COST:

1 chief engineer per day  $ 10.00

3 engineers per day       $  8.00

Total per day             $ 34.00

365 days at $34.00 equals              $ 12,410.00

or  12410 / 60450 = 20.54 cent per ton of ice


ICE PLANT LABOR COST:

(Using present method of pulling ice)

May, June, July, August, September and October require:

6 ice pullers per day         $ 6.00

3 air men per day             $ 6.00

6 storage house men per day   $ 6.00

Total per day                $ 90.00

184 days at $90.00 equals                 $ 16,560.00


March, April and November require:

6 pullers per day             $ 6.00

4 storage house men per day   $ 6.00

Total per day                $ 60.00

91 days at $60.00 equals                   $ 5,460.00


December, January and February require:

3 pullers per day             $ 6.00

3 storage house men per day   $ 6.00

Total per day                $ 36.00

92 days at $36.00 equals                   $ 3,312.00


1 shipping clerk per day      $ 8.00

330 days x 8 equals                        $ 2,640.00

Total Labor Cost                          $ 27,972.00

or  27972 / 60450 = 46.27 cent per ton


Cost of Ammonia at         2 cent per ton  $ 1,209.00

Cost of Oil and Waste at   2 cent per ton  $ 1,209.00

Cost of Water at           3 cent per ton  $ 1,813.50

Cost of Salt at          1/2 cent per ton    $ 302.25

Plant Maintenance and Repairs              $ 2,800.00

or 2800  / 60450 = 4.63 cent per ton


[6]


OFFICE EXPENSE:

1 Manager and Salesman per year  $ 5,000.00

1 Bookkeeper per year            $ 2,400.00

Stationery, Telephone, etc         $ 600.00

Total Cost                                 $ 8,000.00

or 8000 / 60450 = 13.23 cent per ton


OVERHEAD CHARGES:

8 per cent Interest on
  $280,000.00 investment     $ 22,400.00

8 per cent Interest on
  value of land ($12,000.00)    $ 960.00

8 per cent interest on
  $8,000.00 working capita      $ 640.00

3 per cent depreciation on
  $280,000.00                 $ 8,400.00

Insurance (estimated)         $ 1,200.00

Taxes (estimated)             $ 2,500.00

Total Overhead Charge                                       36,100.00

or 36100  / 60450 = 69.72 cent per ton

Total Expense                                             $124,961.00

or 124961 / 60450 = $2.06.72 per ton


NOTE--If the LUHR & FRIEDL ICE MAKING SYSTEM is used, the Ice Plant
Labor Cost will be as follows:

May, June, July, August, September and October require:

3 ice pullers         per day $ 6.00

3 storage house men   per day $ 6.00

Total                per day $ 36.00

184 days at $ 36.00 equals           $ 6,624.00


March, April and November require:

3 ice pullers         per day $ 6.00

2 storage house men   per day $ 6.00

Total              per day   $ 30.00

91 days at $ 30.00 equals            $ 2,730.00


December, January and February require:

3 ice pullers         per day $ 6.00

1 storage house man   per day $ 6.00

Total              per day   $ 24.00


92 days at $ 24.00 equals            $ 2,208.00

1 shipping clerk     per day $ 8.00

330 days x 8 equals.                 $ 2,640.00

Total Labor Cost.                   $ 14,202.00

or 14202  / 60450 = 23.49 cent per ton

compared to 46.27 cent per ton, A SAVING OF 22.78 CENT PER TON.


[7]


[Illustration: Typical Design of a 160 Ton Steam Driven Ice Plant.
Interior Details.]


[8]


[Illustration: Typical Design of a 160 Ton Steam Driven Ice Plant.]

Exterior Cross Section
In connection with
Otto Luhr
Consulting Engineer
& Herman Fridel
Architect
Ice Making System
Patent Applied For


[9]


NUMBER THREE

Manufacturing Costs Per Ton of Ice Using
Steam Power at Medium-Sized-Town Rates for Labor

160-ton capacity per day.

1,728--400-lb. cans.

333 days continuous full output.

12,000-ton storage house.


COST OF POWER:

A modern, highly efficient and economical steam driven high speed
compressor plant must be installed so as to get the maximum power out
of coal. The boiler room will contain two 250-H. P. water-tube boilers
with automatic stokers and coal bin overhead holding two weeks' supply
of coal. Steam pressure 175 lbs. As the firing of the boilers is
automatic and requires practically no work on the part of the
engineers, no firemen are needed. Ashes will also be removed
automatically. The engine room equipment will consist of two 175-ton
high speed compressors, direct connected to two Simple Condensing
Una-flow Engines; also two generators, two cooling tower water pumps,
two air compressors, switchboard, etc. All to be equipped with the
latest labor and power-saving devices.

Equipped as above, 25 tons of refrigeration can be easily obtained
from one ton of ordinary 12,500 B T U coal. 1.8 ton of refrigeration
is required to produce one ton of ice including the required cooling
of storage house.

Therefore the power cost of making one ton of ice with coal at $5.00
per ton equals $5.00 divided by  25/1.8 = 37 cent. (One cent per ton
of ice is added for heating of dipping tank water.)

Assuming one month's shut-down for inspection and repairs, the total
output of 160 tons of ice for 333 days amounts to 53,280 tons of ice.

The total power cost of making 53,280 tons of ice is therefore,
53,280 x 37 cent = $ 19,713.60


[10]


ENGINE ROOM AND ICE PLANT LABOR COST:

1 chief engineer         per day $ 8.00

3 engineers              per day $ 6.00

1 shipping clerk         per day $ 6.00

3 men in Storage House   per day $ 4.00

Total                   per day $ 44.00

365 days at $44.00 per day equals          $ 16,060.00

Additional labor cost for putting
  12,000 tons into winter storage and
  taking out at $4.00 per day               $ 1,200.00

Total Labor Cost                           $ 17,260.00

or 17260 / 53280 = 32.4 cent per ton

Engineers will do their own firing of boilers and will pull all the
ice. One pull required every 43 minutes.

OFFICE EXPENSE:

1 Office Man (Manager and Bookkeeper)       $ 3,000.00

Stationery, Telephone, etc. (per year)        $ 300.00

Total Office Expense                                   $ 3,300.00


or 3300 / 53280 = 6.2 cent per ton of ice


Cost of Ammonia at 2 cent per ton           $ 1,065.60

Cost of Oil and Waste at 2 cent per ton     $ 1,065.60

Cost of Water at 3 cent per ton             $ 1,598.40

Cost of Salt at 1/2 cent per ton              $ 266.40

Plant Maintenance and Repairs               $ 2,200.00


or 2200 / 53280 = 4.1 cent per ton


[11]


OVERHEAD CHARGES:

8 per cent interest on
  $220,000.00 investment equals  $ 17,600.00

8 per cent interest on
  value of land ($10,000.00)        $ 800.00

8 per cent interest on
  working capital ($7,500.00)       $ 600.00

3 per cent depreciation on
  $220,000.00                     $ 6,600.00

Insurance (estimated)             $ 1,000.00

Taxes (estimated)                 $ 2,000.00

Total overhead charges                          $ 28,600.00

or 28600 / 53280 = 53.7 cent per ton

Total Expense                                   $ 75,069.60

or 75069.60 / 53280 = $ 1.409 per ton

Divided as follows:

  Overhead charges              $ 0.53.7

  Manufacturing Cost (total)    $ 0.87.2


[12]


NUMBER FOUR

Manufacturing Costs Per Ton of Ice Using Steam Power at
Medium-Sized-Town Rates for Labor

100-ton capacity per day.

1,080--400-lb. cans.

333 days continuous full output.

7,600-ton Storage House.


COST OF POWER:

A modern, highly efficient and economical steam driven high speed
compressor plant must be installed so as to get the maximum power out
of coal. The boiler-room will contain two 200-H. P. water-tube boilers
with automatic stokers and coal bin overhead holding two weeks' supply
of coal. Steam pressure 175 lbs. As the firing of the boilers is
automatic and requires practically no work on the part of the
engineers, no firemen will be needed. Ashes will also be automatically
removed. The engine room equipment will consist of two 100-ton high
speed compressors, direct connected to two Simple Condensing Unaflow
Engines; also two generators, two cooling tower pumps, two air
compressors, switchboard, etc. All to be equipped with the latest
labor and power-saving devices.

Equipped as above, 25 tons of refrigeration can be easily obtained
from one ton of ordinary 12500 B T U coal. 1.8 tons of refrigeration
is required to produce one ton of ice, including the cooling of the
storage house.

Therefore, the power cost of making one ton of ice with coal at $5.00
per ton equals $5.00 divided by 25/1.8 = 37 cent. (One cent per ton of
ice is added for heating of dipping-tank water.)

Assuming one month's shut down for inspection and repairs, the total
output of 100 tons of ice for 333 days amounts to 33,300 tons of ice.

The total power cost of making 33,300 tons of ice is therefore,
33,300 x 37 cent, equals  $ 12,321.00


[13]


ENGINE ROOM AND ICE PLANT LABOR COST:

1 Chief Engineer per day      $ 8.00

3 Engineers per day           $ 6.00

2 Storage House Men per day   $ 4.00

Total per day                $ 34.00

Total 365 days at $34.00 per day         $ 12,410.00

Additional labor cost for putting
  7,500 tons into winter storage
  and taking out at $4.00 per day           $ 750.00

Total labor cost                         $ 13,160.00

or 13160 / 33300 = 39.52 cent per ton


Engineer will do his own firing of boilers and will pull all the ice
and set it up in ante room if required. One pull required every 70
minutes.

Chief Engineer will act as shipping clerk.


OFFICE EXPENSE:

1 Office Man (Manager and Bookkeeper)     $ 3,000.00

Stationery, Telephone, etc. (per year)      $ 300.00

Total Office Expense                                  $ 3,300.00

or 3300  / 33300 = 9.9 cent per ton


Cost of Ammonia at   2 cent per ton                     $ 666.00

Cost of Oil and Waste at   2 cent per ton               $ 666.00

Cost of Water at   3 cent per ton                       $ 999.00

Cost of Salt at   1/2 cent per ton                      $ 166.50

Plant Maintenance and Repairs                         $ 1,500.00

or 1500 / 33300 = 4.5 cent per ton


[14]


OVERHEAD CHARGES:

8 per cent interest on
  $150,000.00 investment   $ 12,000.00

8 per cent interest on
  value of land ($7,000.00)   $ 560.00

8 per cent interest on
  $5,000.00 working capital   $ 400.00

3 per cent depreciation on
  $150,000.00               $ 4,500.00

Insurance (estimated)         $ 700.00

Taxes (estimated)           $ 1,360.00

Total overhead charges                      $ 19,520.00

or 19520  / 33300 == 68.7 cent per ton

Total Expense                               $ 52,298.50

or 52298.50 / 33300 = $1.57 per ton

Divided as follows:

  Overhead charges      68.7 cent

  Manufacturing Cost    98.3 cent


[15]


OTTO LUHR
CONSULTING ENGINEER
&
HERMAN FRIEDL
ARCHITECT

ICE MAKING SYSTEM
154 W. RANDOLPH STREET, CHICAGO

[End of Document]


[Transcriber's Note]

I found this document and the attached papers and photographs among my
father's papers. I offer it as an insight into the finances and
structure of business and trades in the early 1900's.

There are no dates included in this document but a Google search of
"Otto Luhr" produced these items:

  Mechanical and Refrigerating Engineer's Handy Book; Otto Luhr; 1913.

  Automatic refrigerating liquid feeder and regulator;
  United States Patent 1725875; 8/27/1929.

  Refrigerator car; United States Patent 1642882; 9/20/1927.

Since the title page states "Patent Applied For", this document was
probably published around 1925.

Note the prices quoted for materials and labor:
Coal, $5.00 a ton.  [In 2009, about $100/ton, down from $300 in 2008.]
Unskilled Labor, $6.00/day; that's DAY, not HOUR.
Skilled Labor, $8 to $10/day
Electricity, $0.009/KWH  [my latest bill (in 2009) was $0.1317/KWH]

Note the job titles in the attached documents: Barnmen, Washers,
Blacksmiths

The word "MAINTAINANCE" is thus spelled in the original.

Finally, the optimistic tone of the document contrasts with the
decline of the ice business in the 1940's, fifteen years later. I
remember the ice deliveries and the weight sign my mother put in the
window before we got our first mechanical refrigerator after
World War II.

[End Transcriber's Note]

[Illustration: Photograph of machinery.]

[Illustration: Photograph of Detroit Creamery building exterior.]


DETROIT CREAMERY COMPANY
ORGANIZATION

1 -- Board of Directors
2 -- Operating Committee

Harry A. McDonald     President
Nelson J. Dessert     Vice president
Carl F. Siclaff       Vice president
Harry J. Weigand      Treasurer & Comptroller
Jerome H. Remick      Ice Cream Sales & Service
J. Harry Brickley     Retail Milk Sales
Oliver G. Spaulding   Legal Department
Richard L. Baire      Advertising
Frank McVeigh         Purchasing Department
Ben F. Taylor         Ice Cream Production
Ben F. Taylor         Ice Cream Delivery
Edward C. Krahl       Henry St. Production
Doc Grayson           Laboratory
John Kostuch          Plant Engineer--Maintenance
John Kostuch          Power & Refrigeration
J. Harry Watson       Transportation
J. Harry Watson       Shops
H. Terry Snowday      Wholesale Milk Sales
Carl O. Tuttle        Butter Department
Tom Wood              Credit & Collections
J. McWilliams         Detroit Creamery Farms



TREASURER & COMPTROLLER
Harry J. Weigand

Accounting             - Detroit Creamery & Subsidiaries
Loans & Contracts      - Detroit Creamery & Subsidiaries
Appropriations         - Detroit Creamery & Subsidiaries
Banks                  - Detroit Creamery & Subsidiaries
Account Dept Personnel - Detroit Creamery & Subsidiaries
Credits & Collections
Corporate Records
Purchasing Department
Legal Department


PLANT ENGINEERING--MAINTAINANCE
POWER and REFRIGERATION

John Kostuch (Chief Engineer)

Paul Culver (Consulting)
Norman Mitehell (Technical) (Advisory) (Dept. Head)

HENRY STREET (MAINTAINANCE)
James Crunnley (In Charge)
(a) Electrical & General (Ray Casson)
(b) Conveyors, Bottle Washers, Fillers, Cappers (Howard Strauss)
(c) All other Machinery (Assign Mechanics)

HENRY STREET (POWER & REFRIGERATION)
Harry Hollenbeck (In Charge)
(a) Engineers
(b) Firemen

MAIN PLANT (MAINTAINANCE) (POWER & REFRIGERATION)
John Kostuch (In Charge)


REC. STATIONS & MFG. PLANTS
John Kostuch (Chief)
Elmer DeWitt(Asst)
Frank Mortimer (Mech)
C. S. McBride (Production Dept.)

SUBSIDIARY COMPANIES
John Kostuch (Chief)
Paul Culver--Norman Mitchell--Dept. Head

MACHINE SHOP (MAIN PLANT)
John Kostuch (In Charge)


TRANSPORTATION & SHOPS
J. Harry Watson

Garages             Detroit Subs. (Advisory)
Auto Shops          Detroit (Met. Area)
  Subs. (Advisory)
Paint Shops         Detroit & Subs.
Electrical Shops    Detroit Subs. (Advisory)

Carpenter Shops     Detroit & Sub. (Advisory)

Stables             Detroit (Advisory)
Barnmen             Sub. (Advisory)
Washers
Blacksmiths

Wagon Shops         Detroit & Subs
Harness Shops       Detroit & Subs.
Plumbing Shops      Detroit
Sign Shop           Detroit & Subs.
Tin Shop            Detroit & Subs.
Special Delivery
and Trucking        Detroit (Main)
Branch Trucking
Special Trucking