| In March 1995, the Executive
Board of the Hawaii Section approved a request by past president C.
S. Papacostas to start a column relating to the History and Heritage
of Civil Engineering in the Wiliki o Hawaii, the monthly engineering
newsletter of the engineering societies in Hawaii. Listed below are (slightly
edited) articles that have appeared in 2004. For other years, click on
the above links.
2004 Articles
February
2004: The Lower Hamakua Ditch
The December, 2003 issue
of the Wiliki o Hawaii announced the 2003 ASCE Hawaii Section Outstanding
Civil Engineering Award winner. It was the Lower Hamakua Ditch By-Pass
Tunnel project on the Big Island of Hawaii by the Design/Build team of
Jas. W. Glover Ltd. and the URS Corporation.
As it is common in Hawaiian
place names, districts by the same name, in this case "Hamakua," are found
on several islands.
In the same vein, we must
not confuse the Hamakua Ditch Company organized by Alexander and Baldwin
in 1876 to complete the Hamakua Ditch on Maui in 1878 with the Hamakua
Ditch Company formed in 1904 to construct and operate irrigation ditches
in the vicinity of the Waipi`o Valley of the Big Island. The former company
eventually became the East Maui Irrigation Company, whereas the latter
became the Hawaii Irrigation Company.
It is interesting to note
that the pre-eminent engineer Michael Maurice O'Shaughnessy worked for
both of these as well as other companies during the first decade of the
20th century!
A 1913 "Drainage Map" of
the Kohala-Hamakua districts of the Big Island is reproduced in the 1996
book by Carol Wilcox entitled "Sugar Water: Hawaii's Plantation Ditches."
The map shows several "ditches" in the area named Upper and Lower Kohala
Ditches, Woods Ditch, Pacific S. M. [i.e., "Sugar Mill"] Co. Ditch, Upper
Hamakua Ditch, and finally the "New" Hamakua Ditch which later maps designate
as the Lower Hamakua Ditch.
The initial nearly 25-mile
length of this ditch was built, in extremely challenging terrain, between
May 1909 and June 1910.
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March
2004: The Kohala Ditch
Volume XVII, No. 22 of “The
Journal of Electricity, Power and Gas with Which is Incorporated The Engineers’
Architects’ and Builders’ News,” was published on December 1, 1906 in San
Francisco. Included in this issue of the journal is what appears to be
one in a series of articles entitled “Irrigation Works in the Hawaiian
Islands,” by M. M. O’Shaughnessy, M. Am. Soc. C. E., San Francisco.
Much of the article describes
the construction of the first 14 or so miles of the Kohala Ditch on the
Big Island of Hawai`i. O’Shaughnessy was both an investor in the Kohala
Ditch Company and the Chief Engineer for the aqueduct. The narrative wanders
a little to topics such as ground water sources on several islands and
also contains a hand-written table of detailed “Statistics of Pumping Plants
in the Hawaiian Islands.” Surprisingly, the article about the first 14-mile
segment of the Kohala Ditch appeared in print only several months after
the segment’s completion in June 1906.
As I reported back in August
1998, the ditch drops about 80 feet in elevation from 1,045 feet at “the
bottom of the intake above sea level at first large stream (Honokane)”
to 956 feet “at the terminus in the plantation fields.” But the grade is
not constant over the entire length. Rather, “the fall in tunnels and flumes
is one foot in 833 feet, and in ditch to Hawi is one foot in 1000 feet.”
Of the 71,000 feet of aqueduct, 46,000 consisted of 45 tunnels, flumes
“of the most substantial kind” traversed 2,000 feet, and the remaining
length was open ditching. The longest of the tunnels “was 2,500 feet, and
was cut through in 10 months, being completed on the 24th of March 1906.”
In his peculiar prose, the author explains that, given the average labor
wages of $1 per day, hand drilling proved to be “more economic than the
use of either air or electric drills. An experiment was made in one case
with a highly advertised gasoline drill, which proved an absolute failure
and had to be consigned to the scrap heap.”
Coarse as well as fine aggregates
for the concrete lining were obtained by crushing blue rock at the site.
It was found that “the beach sand was rather poor in quality and the cost
of packing, hauling and handling to the point where used in the ditch made
it more expensive.” The cement was “A-1 imported Alsen and Germania brands,
averaging $2.60 per barrel in Honolulu. The steamer and other transportation
rates from Honolulu averaged $1.30 per barrel more.” The construction materials
were “trammed through the tunnels in cars pulled by mules ... The type
of track used by me in all this work consisted of band rails 1 1/2 inches
wide and 3-16 of an inch thick, 16 feet long, with holes reamed out for
track spikes about twofoot centers...”
The 600 Japanese laborers
were housed under corrugated iron roofs, with sidewalls of eight-ounce
duck tacked to light scantling frames. The raised floors “nearly always
two feet above the ground and higher if practicable” provided “a place
for drying the men’s clothes in wet weather.” Additionally, “an hospital
and medical department was also provided for the men, who were assessed
50 cents a month apiece for this object.”
Although the author makes
numerous references to the “men” that made up the labor force, two pictures
show very young children of both genders. A particularly spectacular of
these pictures carries the caption “Aqueduct Under Waterfall” and shows
several workers as well as a woman carrying a young girl on a ledge behind
the waterfall. There is no mention of female workers or whether family
members resided at or whether they simply visited the workers’ camp.
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April
2004: Cement Use in Hawai`i
Last
month's article quoted the Chief Engineer of the Kohala Ditch on the Big
Island of Hawai`i who specified "A-1 imported Alsen and Germania brands"
of cement averaging $2.60 per barrel in Honolulu and $3.90 delivered to
Kohala.
In
my even earlier February 1998 article I gave a brief history of non-bituminous
cements from ancient times to a little after 1824, that year being when
Joseph Aspdin blended what is now known as Portland cement. Although natural
hydraulic cements were produced in America as early as 1818, Portland cement
did not become available until 1868 through importation (as ships' ballast)
from England, Germany and other European origins.
It
is safe then to assume that the cement used at the 1906 Kohala Ditch was
of the Portland cement type. But what else is known about the use of natural
and Portland cements in Hawai`i? In order to answer this question, I embarked
on a fascinating quest that will continue to weave an intricate web for
some time to come.
In
the meantime here are some facts that have emerged so far: At about the
same time that the above-quoted prices prevailed in Hawai`i, Rolfe Cobleigh,
Associate Editor of the "American Agriculturist" published a book in New
York entitled "Handy Farm Devices and How to Make Them." In Chapter 9 ("When
We Build"), he extols the virtues of Portland cement concrete. He estimates
that "Portland cement of the most approved brands costs about $1.60 per
barrel..."
Hmm!
Sounds like the high differential cost of building materials in Hawai`i
is not a new phenomenon after all!
Cobleigh
goes on to assert that "experience both in practical work and in the laboratory
has proven beyond a doubt that the best brands of cement, as in all other
goods, are the cheapest in the end, and should be insisted upon by all
prospective purchasers. Atlas, Alpha, Saylor's, Edison and Giant cements
are among the leading brands..."
By
the way, Saylor's Portland cement, produced in Coplay, in the Lehigh County
of Pennsylvania, was the first to be patented in the U.S. by David Oliver
Saylor. In the September 26, 1871 documents for Patent No. 119,413 "for
the improvement of the manufacture of cements," he declares that his hydraulic
cement weighted "from one hundred and ten pounds to one hundred and twenty
pounds per bushel" and was "in every respect equal to the Portland cement,
made in England and imported into this country." In contrast, "the ordinary
cement now in our market such as Rosendale, Coplay, and other American
brands, ... weighs from seventy to ninety pounds per bushel."
Interestingly,
Saylor's Portland cement is available to this day, being marketed by the
Essroc Cement Corp. of the Italcementi Group!
But
to get back to Hawai`i, the brands Alsen and Germania preferred by the
Kohala Ditch Engineer may be of European origin. An Internet article (at
www.keyshistory.org) about building the Florida Keys Railroad around the
time of the construction of the Kohala Ditch, says that "Alsen cement was
a Belgium cement similar to our Portland cement. Tests revealed that Alsen
was better for under salt water use." In a related article by Jerry Wilkinson
("History of the Railroad"), we learn that Alsen cement was used for underwater
work and U.S. cement for above-water arches.
Germania,
the name of a German heroine, appears to have a more complicated story
to be addressed later.
The
earliest Hawaiian reference to cement that I was able to discover so far
was from a July 1856 issue of the Pacific Commercial Advertiser which indicated
that the ship Humboldt's load from San Francisco included "400 casks cement."
(To
be continued)
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May
2004: Early Sources of Cement
Historians
often highlight the time when concrete sidewalks were first constructed
during the development of many American cities and towns. For example,
Robert C. Schmitt ("Firsts and Almost Firsts in Hawaii") says that Honolulu's
(and Hawaii's) first concrete sidewalk was built in 1886. Perhaps, the
press accounts of the time can shed some light on the local uses of this
ubiquitous construction material.
In its March 26, 1886 issue,
the Pacific Commercial Advertiser informs us that the said sidewalk was
built by "Mr. John Bowler, the well-known plasterer," on Queen Street in
Honolulu, in front of the store of J. T. Waterhouse. It was "similar to
those in use in New York, San Francisco, and the Colonies" and could be
made in slabs of any size. No details were given about the type, brand
or source of the cement used or the mix design.
While scanning the microfilm
record, however, I noticed that, at that time, Wm G. Irwin & Co. offered
for sale "lime and cement" among other items; Wilder & Co. were "Importers
and Dealers in Portland Cement," etc.; and the California firm of Davis
and Cowell described itself as "manufacturers of Santa Cruz Lime" and "Importers
of English Cement."
It is clear then that ample
supplies of American and European building materials, including natural
and artificial cements, were available locally. Even earlier, the Reciprocity
Treaty that was ratified in 1875 and took effect in 1876 between the U.
S. and the Kingdom of Hawai`i listed "bricks, lime and cement" in the schedule
of items that could be brought "into all the ports of the Hawaiian Islands
free of duty."
Because Portland cement standards
were unavailable at that time, both military and civil engineers tended
to order by specific brand. This practice lasted even after the adoption
of standards (c. 1904). The engineer's call for imported Alsen and Germania
brands in 1906 for the construction of the Kohala Ditch on the Big Island
is but one example.
The preference of imported
over American cements is also reflected in actions of the U.S. Corps of
Engineers. According to a 1999 San Francisco "Seacoast Fortifications Preservation
Manual" prepared for the U.S. Interior Dept. by Joe C. Freeman et al.,
Utah-produced Red Diamond was the only American Portland cement among those
that the Army tested during the 1890s and "Josson's was still a preferred
Belgian Portland cement sold in San Francisco as late as 1907."
As I indicated last month,
Alsen may have been a Belgian brand as well but since then, I uncovered
some additional possibilities, to wit:
In 1863, Otto Friedrich Alsen
established "Alsen Portland Zement" in Germany. This company was the precursor
of Alsen AG, now known as Holcim Deutschland, a German subsidiary of the
Swiss multinational Holcim.
In 1902, the Alsen American
Portland Cement Corporation was established at Alsen, Greene County, N.Y.
and a 1915 book by F. A. Gallt about this Hudson Valley locale ("Dear Old
Greene County") states that the plant was "a German concern and has been
doing a great business." In 1925, the plant was added to the proliferating
holdings of the Lehigh Cement Company that had been established in 1897
by General Harry C. Trexler and others in the Pennsylvania birthplace of
American Portland cement.
The 1895 annual report of
the U.S. Army Chief of Engineers reports that Alsen brand Portland cement
was used in the construction of Locks on the Cumberland River in Tennessee,
and that Louisville cement (furnished by J. B. Speed & Co.) was also
accepted after rigorous testing prior to shipment because "a knowledge
of the careless methods of manufacturers of Louisville cement makes the
thorough testing of it essential."
Clearly, the chronology given
above precludes the Alsen plant in New York from being the source of the
cement used for the Cumberland River locks but could it be the source of
Kohala Ditch cement? Moreover, was the plant at New York owned by Otto
Alsen's company and was the town of Alsen named after the plant or was
the plant named after the town?
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June
2004: The 1893 Statue of Germania
In antiquity,
"Germania" was a region north of the Roman Empire. Gaius Julius Caesar
mentions the tribe of "Germani" he encountered in 58 B.C.E., and, using
secondary sources, Cornelius Tacitus in his 98 C.E. treatise associates
the name "Germania" with that of the first of several related tribes that
attacked the Gauls across the Rhine. In several languages, "Germania" stands
for Germany.
Jumping to the
21st century, the Portland Cement Association's "Executive Report" of March
14, 2003 carried this notice:
"The Chicago
Sun-Times reports today that crews rebuilding South Lake Shore Drive unearthed
fragments of [a] statue used to promote concrete at the 1893 World's Columbian
Exposition... [T]he helmeted heroine Germania was used to promote a German
company's expertise in portland cement and concrete."
From the historical
description, we know that the statue of "Germania" did not represent a
personage but was the personification of a country. But, could all this
be in any way related to the imported Germania brand of cement used at
the Kohala Ditch on the Big Island in 1905-06?
Thanks to the
Paul V. Calvin Library Digital History Collection (Illinois Institute of
Technology), I was able to access "The Book of the Fair" written by Hubert
Howe Bancroft in 1893. Chapter 16 was about "Mines, Mining, and Metallurgy"
in which domestic and foreign cements played a major role. Here is an example:
"Elsewhere
in Germany's section... [a] Heidelberg firm has erected an elaborate structure
composed of cement and gravel, though seemingly fashioned of limestone
of a bluish tint. At the entrance is an archway with female figures in
classic pose. Of cements there are several exhibits, and in the display
of a Berlin laboratory are machines and apparatus for comparative tests
of this compound, especially of the Portland variety, the experiments conducted
in accordance with regulations framed by the government. By the Lehrte
and Misburg firm of Manske and company was erected, near the live-stock
pavilion, a portal of artificial sandstone, on which is a heroic statue
of Germania..."
Published by
the N. D. Thompson Co. at that time, "The Dream City: A Portfolio of Photographic
Views" includes a view of the Germania statue assembly that, according
to the caption, was
"cast in
Portland cement, a material that came into widespread use when the tall-building
era began, about 1882. It is not understood that the laws governing the
preservation of cement are yet discovered, for there seems to be more fortune
than skill in the laying of the material. Sometimes it drinks water and
gets harder; sometimes dampness disintegrates the formation. It has been
alleged that cement was a disappointment to Chicago builders."
This assessment
was consistent with American (but, perhaps, not German) experience at the
time: Describing the U.S. situation, ASTM's "1898-1998: A Century of Progress"
states that "[a]fter the turn of the century, ASTM formed several new committees...
Committee C-1 on Cement, Lime and Clay Products, for example, founded in
1902, played a key role in standardizing test methods in the cement and
concrete sector."
Prior to 1900,
"the cement industry suffered from a lack of basic standards that defined
the material?s chemical composition and performance, leading to conflicts
between manufacturers and their customers in the construction industry...
As a result, construction companies often received cement that was unsuitable
for a given project because it did not meet performance requirements."
By contrast,
the October 1888 issue of the New York trade publication "Manufacturer
and Builder" marvels at the fact that "[i]n Berlin, and other large cities
in Germany, mortar is manufactured in large quantities and sold to builders
by the barrel." In other words, reliable ready-mix was available as early
as that!
In July 1892,
the same publication takes delight in informing its readers that, for the
first time in the history of world fairs, the upcoming Chicago Exposition
would dedicate an entire building to "Mines and Mining" rather than in
"the manufactures building, or in annexes to other structures..."
Zooming in on
the pedestal of the Germania statue of 1893, we discern the inscription
"Portland CementFabrik Germania" around a carved circular company logo.
Another clue
to aid our quest. Stay tuned!
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July
2004: Cement from East and West
Last month, I explained that
at the 1893 World's Columbian Exposition in Chicago, the Lehrte and Misburg
firm of Manske & Co. displayed a concrete statue of Germania.
With help from Gregor Fischer
of the University of Hawai`i, I obtained a translation of several German
narratives about the history of cement production in the vicinity of Hanover
("Hannover" in German) where the aforementioned towns are located.
A cement-manufacturing expert
by the name of Hermann Manske severed his employment with the first cement
plant in the area to establish a competing enterprise in 1881. Other local
competitors soon sprang up but by 1905, "Germania" was making 5% of the
total cement production in all of Germany. Among its overseas customers
were the Kohala Ditch Company and, also, "The Coal, Cement and Supply Co."
of Wilmington, North Carolina. A 1902 local Chamber of Commerce publication
explains that
"they handle the 'Giant'
brand of Portland Cement, manufactured by the American Cement Company of
Philadelphia, 'Germania' imported cement from Germany, the 'Union' Rosendale
cement, made in Philadelphia, all high grade products..."
About the Kohala Ditch, a
June 3, 1906 article in the Commercial Pacific Advertiser says:
"Mr. Renear, father of
Dan Renear the swimmer, returned from Kohala yesterday on the Kinau, having
finished work on the Kohala ditch. Mr. Renear went to Hawaii last September
to do the cement lining for the ditch. He states that water was to have
been turned into the ditch yesterday for a test."
The test was successfully
run and the ditch, which the Hawaiian Star described as "a great feat of
engineering," was officially opened on June 11, 1906. Undoubtedly, Mr.
Renear handled the "A-1 imported Alsen and Germania brands" of cement specified
by the ditch's engineer, M. M. O'Shaughnessy.
By that time, the global
availability and cost of cement were severely impacted by the April 18,
1906 Great San Francisco Earthquake and the subsequent reconstruction activities
there. Following are some effects on the Territory of Hawai`i:
Several trade publications
tell us that the Davenport cement plant being built in Santa Cruz County
in 1906 "to supply the Panama Canal and satisfy the demand created by the
US Navy's construction of Pearl Harbor" became a major cement supplier
to the Bay Area recovery effort instead.
In response to the local
shortages, cement was also brought into the territory from Asia. For example,
the July 27, 1906 issue of the Hawaiian Star states that
"[a] large consignment
of cement arrived by the S. S. Manchuria yesterday. The consignment came
to H. Hackfeld & Company... from Hongkong. The consignment consisted
of 2500 barrels. The shortage of cement in the islands was the cause of
the shipment. There has been a shortage here for months. Several steamers
ago Hackfeld & Company received a special shipment of cement and by
the Manchuria another shipment arrived. The vessel carried no shipment
of cement for San Francisco, however, although there is a big demand for
cement in the reconstruction of San Francisco."
Incidentally, Hackfeld's
Dry Goods was established in 1849, renamed H. Hackfeld & Co. in 1898,
became Liberty House in 1918 and, under the ownership of the Federated
Department Stores Inc. of Cincinnati since 2001, is now known as Macy's.
As for the so called "oriental
cement" I am all but convinced that it was actually produced in Macau (or
Macao) and transshipped via Hong Kong to Hawai`i. A cement plant was founded
in 1887 on Green Island (Ilha Verde in Portuguese, Tsing Chau or Qingzhou
in Chinese). At the time, Green Island was connected to the Macau peninsula
by a causeway but, due to land reclamation, was absorbed into the peninsula
by the early 1920s.
Next: the first production
of portland cement in Hawai`i.
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August
2004: First Production of Portland Cement in Hawaii
The first volume of "The
Minerals Yearbook" by the U.S. Bureau of Mines bears the dates 1932-33
and was designed to replace various earlier documents including "Mineral
Resources of the United States" which had been issued for 50 years. Providing
information about "all commercially important minerals," it says this about
portland cement:
"Before 1900 prices of
portland cement were relatively high... for the product was new, manufacturing
technique had not yet been perfected, production was small, and demand
was increasing rapidly."
Moreover,
"natural cement competed
sharply with portland cement during the early years of its manufacture,
but since 1900 portland cement has dominated the industry."
At the time, cements of varying
quality and price proliferated worldwide, as a major California distributor,
the F.A. HIHN COMPANY, responding to a complaint about price gouging, reflects
it in a letter:
"As there are so many
different brands of cement it is a difficult matter to tell if we are high
priced or not unless you ascertain the brand of cement the Rancher received..."
My recent chronicles showed
that, since the mid 19th century, Hawai`i was importing this ubiquitous
material from Europe, North America and, later, Asia. Apparently, it was
more economical at the time to import good quality cements rather than
to produce them locally. Shortages due to war, however, altered the picture,
according to the 1959 volume of "The Minerals Yearbook:"
"During World Wars I and
II, cement was produced at lime plants on Maui and Oahu to alleviate shortages
of cement shipped from the Mainland."
Interesting!
According to a July 27, 1951
Honolulu Advertiser story by Ray Coll, Jr.,
"Portland type cement
was manufactured at Paia, Maui, during World War I and again at Waianae,
Oahu during World War II. These plants produced satisfactory cement. Paia
cement, after 30 years of service in the Haiku Ditch is still in excellent
condition. Paia cement was also used to build the Mutual Telephone Building
on Alakea St. 30 years ago... During the last war [read: World War II]
the military required more and more cement for defense purposes and the
old machinery from Paia... was assembled at Waianae, where two rotary kilns
were available to again burn and grind cement..."
According to the Hawaiian
Commercial & Sugar Company's (HC&S) web site, what is now known
as the Old Lime Kiln in Pa`ia, Maui was built in 1907 by the Maui Agricultural
Company next to the modern Baldwin Beach Park and "until mid-1989, manufactured
and supplied dry hydrated lime to sugar factories and others on Maui."
The site verifies that in WWI the plantation "converted its lime kiln to
cement production, continuing this activity until the shortage of cement
eased."
Two years before the Japanese
attack on Pearl Harbor, industrialist and builder Henry J. Kaiser, the
future developer of Hawaii Kai and the Kaiser (now Hilton) Hawaiian Village
Hotel that gave radio station KHVH its call name, established the Permanente
cement plant in the hills above Cupertino, South of San Francisco. Rio
Permanente (Permanente Creek) was so named by the Spanish in the 1770s
because it was a "permanent" source of water even during dry seasons. The
primary purpose of the plant was to supply portland cement for the construction
of Shasta Dam.
With the innovation of monthly
bulk shipments of 58,000 barrels on the "Permanente Silverboat" and a Hawai`i
distribution system, it soon became the chief cement source in the territory.
Shortages during WWII induced
the Hawaiian Gas Products Co. (later Gaspro) to purchase and assemble the
Pa'ia equipment at the site of the Waianae Lime and Cement Company it acquired
in 1938, near "the pure calcium limestone and trachyte deposits" as a Star-Bulletin
story described the site. The Minerals Yearbook reports that cement production
at this site commenced in May 1945 and lasted to the end of 1946.
General limitation orders
during WWII affected everything. For example, the 1943 volume of the Minerals
Yearbook points out that "makers of new cloth and paper bags were limited
by the War Production Board in 1943 to the manufacture of only one size
of bag - 94 pounds net weight - for portland cement."
And this, of course, is the
U.S. standard p.c. bag (or sack) to this day!
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September
2004: Not One, but Two Cement Plants
A 1900
order by the territorial Board of Health to control inter-island commerce
in response to a plague epidemic on O`ahu that, because of carelessness,
resulted in the Great Chinatown fire restricted the shipment of many commodities
but permitted items "not liable to infection" from the port of Honolulu.
Among them were lime, machinery, coal, bricks and portland cement, all
vital to the economic health of the islands.
As
I described last month, with only two minor exceptions prior to 1946, Hawai`i
was totally dependent on imported portland cement. Following the closure
of a temporary plant in Waianae in 1946 by Hawaiian Gas Products (Gaspro),
industrialist Henry Kaiser's Permanente Cement Co. in California remained
the chief supplier of the material to Hawai`i.
Responding
to the effective monopoly, according to local papers, the President of
Hawaiian Gas Products, Allan Renton, announced plans in May, 1951 to construct
a plant at the old site using a $4 million loan from the federal Reconstruction
Finance Corp. obtained on the basis of national defense needs. The location
was selected, the Star-Bulletin (S-B) said, "because of the pure calcium
limestone and trachyte deposits there." Trachyte pumice has a very high
content of silica.
It
is interesting that the officers of the so named Hawaiian Cement Co. were
all residents of Honolulu. In addition to Renton, they included E. I. Parker,
E.E. Black, P.K. McLean, H.W.B White and L.H. Bingham.
In
what appears to be a drawn-out process, this initiative failed to obtain
the necessary rezoning. A 1956 S-B story, for instance, indicates that
the request by Gaspro Limited to rezone land from "rural protective" to
"noxious industrial" was vehemently opposed by Waianae and Nanakuli residents.
In February 1957, the Honolulu Advertiser (HA) ran a story having Reston
promising that the plant would be "almost dust-free," but to no avail.
Amid
statehood celebrations in 1959, a new Hawaiian Cement Corp. consortium
consisting of Alexander & Baldwin, several Dillingham interests, Gaspro,
Cyprus Mines Corp. of Los Angeles, and American Cement Corp., a leading
producer of portland cement, announced plans for the construction, by 1961,
of a cement manufacturing plant at, as the S-B put it, "Campbell Estate's
fast growing industrial area at Barbers Point." According to an April 1959
S-B article, local raw materials were already successfully tested in the
U.S. and in Europe. The president of the new company, Robert Fisher, was
quoted to promise that the company would produce "the five standard types
[of cement] recognized in the trade" as compared to the two (standard and
high-early) imported by Kaiser. In addition, he announced that the company
would provide needed education and training to local engineers, contractors
and architects about the various uses of cement.
As
an aside, I find the involvement of Cyprus Mines Corp., the multinational
mining, timber, oil & gas, and freight company, of particular interest
as I was born on the island of Cyprus where this company owned several
copper mines.
Only
two months later (June, 1959), the HA reported that Kaiser had acquired
a "$1.5 million Lualualei cement site...from Clarence C. T. Loo" and that
he planned quarry operations and also production of cement by August 1,
1961, before Hawaiian Cement's planned opening at the near-by location.
Another story in the same issue of the paper explained that the Honolulu
supervisors (i.e., the city council) "went over the head" of the stalemated
City Planning Commission and approved Kaiser's rezoning application from
"rural" to "noxious."
Ironically,
Hawaiian Cement's contractors (Hawaiian Dredging and Bechtel) used the
competitor's imported cement for construction of their plant! At opening,
the dry-process plant was rated at either 1.0 or 1.4 million barrels/year
(depending on which report one accepts). Initially, the raw materials used
included limestone, basalt and trachyte from Oahu, silica from Vietnam
and gypsum from Mexico.
Kaiser
himself attended the dedication ceremony of the Hawaiian Cement plant in
mid-August 1960, as did Governor Quinn who echoed hopes heard for several
years that the plant would contribute to self-sufficiency for Hawai`i.
Truck driver Gilbert Matua was reported hauling the plant's first load
of cement to another Hawaiian Dredging construction site.
Boasting
cleanliness, good landscaping and dust control by electrostatic precipitators,
the wet-process, 1.7 million barrel/year Permanente Cement plant opened
a few days later (on August 20, 1960), ready to supply "Hawai`i, Guam and
other Pacific areas."
Thus,
market forces resulted in not one, but two major cement factories within
a stone's throw away from each other, one at Barbers Point and the other
in the Waianae district of the island of O'ahu! According to "The Minerals
Yearbook" for 1960, only three other new cement plants opened that year
in the U.S.
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October
2004: Kaiser vs. Cyprus Hawaiian Cement
This month's article represents
a milestone of sorts, being as it is the 100th in the series that I began
way back in March 1995.
The topics covered have ranged
far and wide, but, as a general rule, pivoted around Hawai`i nei.
Lately, the adventure took
us from the construction of certain irrigation "ditches" on the Big Island
at the turn of the 20th century to the intriguing story of importation
and local production of portland cement.
The story led us to a point
in August, 1960 when not one, but two major competing cement plants opened
on the island of O`ahu: the "old" Hawaiian Cement Corporation's dry-process
plant at Barbers Point and the Kaiser Permanente Cement Co. wet-process
plant at nearby Nanakuli. At that time, the rated capacity of each plant
exceeded the total consumption of the material within the newly admitted
50th State of the American Union. Naturally, the competition between the
two plants was fierce.
Whereas "[Henry] Kaiser saluted
the Hawaiian Cement Corp. and the competition that now exists," according
to the Honolulu Advertiser (HA), in competing pronouncements, newspaper
advertisements and other notices, the two companies sought to get the upper
hand. Thus, reflecting on the 20-year or so near-monopoly enjoyed by its
California parent company, one boasted that "Hawaii is built with Kaiser
Permanente Cement" and the other retorted with "Building with Hawaii for
Hawaii" ("Oke kukulu ana me Hawaii, no Hawaii") and with informing readers
that it was "the only island member" of the prestigious national Portland
Cement Association.
Curiously, however, sorting
the copious notes I have amassed on the unfolding story, I came to realize
that, on a broad outline, the two companies seemed to move as if in lockstep
with each other. This, I am all but convinced, was more due to the similarity
of their responses to the prevailing market and technological conditions
and less the result of collusion that, as we shall soon see, on occasion,
they were accused of carrying out.
A common temporary setback
surfaced early on: The U. S. Bureau of Standards had a stringent quality
control rule that required new plants to test each and every batch of cement
intended for use on federal projects. This requirement did not affect many
older mainland plants, including Kaiser's. So, until a "full test program"
was implemented under the auspices of the U. S. Navy around March 1961,
mainland U. S. cement was again imported in bulk.
By 1965 "cement and concrete,"
including many old and new products by old and new companies was recognized,
according to the Star-Bulletin (SB), as the "biggest island manufacturing
industry."
Four years later, in 1969,
both the renamed "Kaiser Cement & Gypsum Corp." and Hawaiian Cement
announced plans to greatly expand their production capacities in response
to rising demands precipitated by a construction boom. A staged expansion
program continued into the mid-1970s.
In 1974, Hawaiian Cement
also got a new name after the Cyprus Mines Corporation increased its ownership
to 90.8%, having bought 45.4% from its partner in the enterprise, the American
Cement Corporation, then known as Amcord, Inc. And this is how the "Cyprus
Hawaiian Cement Company" came into being.
In October of the same year,
the State's Department of Planning and Economic Development (DPED) convened
special hearings at the behest of then Governor George Ryoichi Ariyoshi
to investigate the soaring prices that the two competitors were charging
new customers. The state characterized the two as constituting a "shared
monopoly" and accused them of engaging in "inflationary profiteering."
As expected, the accused
offered alternate explanations.
[back
to top]
November
2004: Cement and Energy in the 1970s
The year was 1974, the month
was August, and the Department of Planning and Economic Development (DPED)
of the State of Hawai`i, now known as the Department of Business, Economic
Development and Tourism (DBEDT), launched a probe into the soaring prices
that the two newly renamed portland cement plants on O`ahu were charging
their new customers.
In public hearings, the State
leveled accusations of collusion and price-fixing against Cyprus Hawaiian
Cement and Kaiser Cement & Gypsum. The two companies defended themselves
by attributing the high prices to shortages driven by the increasing demands
of a construction boom, reduced supplies due to a temporary break-down
of a kiln at Cyprus, and a steep rise in fuel oil costs.
If not then, then now, it
is understood that the 1973 Energy Crisis, precipitated by the oil export
embargo of the Organization of Petroleum Exporting Countries (OPEC), has
had a profound effect on global (and local) economic conditions. Kaiser
also claimed that other production costs, such as those of imported silica,
were on the rise as well, and it was said that long-term contracts limited
the prices that old customers could be charged, but dictated higher prices
for new accounts.
This situation must have
persisted into the next year for, in April 1975, the Honolulu Advertiser
(HA) reported that both companies turned to importing clinker from Japan
in order to meet the demand.
Some relief came in August
when Cyprus inaugurated a significant expansion to its facilities. In what
appears to me to be a conciliatory move, the keynote speaker at the dedication
ceremony was Hideto Kono, director of DPED. Parenthetically, Kono's recent
passing on October 2, 2004 at age 82 was widely reported locally. As the
HA put it, "one of Kono's chief legacies... was his leadership in the drive
to wean Hawai`i from its dependency on fossil oil."
Energy concerns became more
alarming as the 1970s progressed, prompting Fred B. Smales, President of
Cyprus Hawaiian Cement, to strike a cautionary note, in a July 1978 speech
to the Engineering Association of Hawaii, about the competitive advantage
that the U.S. Mainland competitors enjoyed. But, according to the Honolulu
Star-Bulletin (S-B), for three years in a row, in an apparent reversal
of the normal state of affairs, the local cement plants were actually exporting
cement to the U.S. West Coast.
Interestingly, Cyprus' shipments
were "limited only by the local plant's capacity and the four-ply Kraft
paper bags in which cement is shipped." This shortage of paper, by the
way, resulted from labor strikes against paper mills in the Northwest sector
of the United States.
As for prices, the S-B continued,
"a bag of cement that sells for $3.59 here will sell for $5.18 in California
due to packing, shipping and handling costs."
Ultimately, however, Smales'
fear proved to be real, especially when the second energy crisis, which
U. S. President Jimmy Carter characterized as "the moral equivalent of
war," hit the globe in 1979 after the Shah of Iran was deposed.
Again, as if in lockstep
with each other, the two competitors reacted in the same way: First Kaiser
Cement, in July, and then Cyprus Hawaiian, in December 1979, announced
their intention to switch their operations from oil to coal. Both were
to receive the material at Honolulu Harbor, a little more than twenty miles
away. It is my recollection that, naturally, both were in favor of the
then proposed and highly controversial nearby Barbers Point Harbor at Kalaeloa.
Kaiser completed the conversion
in June and Cyprus in October 1980.
And then, on October 6, 1981,
the HA ran the following headline: "Cyprus Hawaiian Cement up for sale."
Stay tuned!
[back
to top]
December
2004: And Then There Was One (Cement Plant)
Last
month's chronicle had the two cement plants on O`ahu, Cyprus Hawaiian and
Kaiser Cement & Gypsum, converting fuel from petroleum to coal. The
"Minerals Yearbook" for 1980 indicated that both plants imported their
coal from the Newcastle District, NSW, Australia.
Coal,
by the way, has had a very long history in Hawai`i. For example, a major
early (1870s) reason for America's coveting of Hawai`i was to use it as
a coaling station for the Navy! And the California Wreck Divers website
(www.cawreckdivers.org) comments that
"In
1898, the 'Star of France' was sold to the Puget Sound Commercial Company
under the managing ownership of J.J. Moore and registered under Hawaii.
Over twenty other ships were similarly registered to Hawaii--all with hopes
of obtaining American registry when the Hawaiian Islands became part of
the United States. In 1900, the 'Star of France' became an American vessel,
having been specifically named in the Organic Act of 1900, which made Hawaii
a US territory. Soon the France was moved to Port Townsend, Washington
regularly carried lumber between Puget Sound and Australia, returning to
Hawaii with a cargo of Newcastle coal."
The
Star-Bulletin (S-B) reported on January 15, 1981 that the conversion to
coal resulted in cost savings to both companies, reducing air pollution
emissions to boot, because "the kiln performs the same function as a scrubber
for an electric utility. The sulfur and ash are absorbed in the cement."
On
October 6, 1981, the Honolulu Advertiser (HA) ran the headline "Cyprus
Hawaiian Cement up for sale."
The
reason for this turn of events was not financial distress, however. It
so happened that in 1979 Standard Oil Co. of Indiana took over Cyprus Mines
Corp. of Los Angeles, the parent of the O`ahu-based cement company that
had already bought out Alexander & Baldwin's 7% ownership in the company.
Having no other interests in the cement business, Standard decided to divest.
By
June 1982, both cement companies faced a severe construction slump but,
revealing optimism toward the future, the now renamed Kaiser Cement Corp.
purchased the barge "Punapau" or "finished coral."
Cyprus
Hawaiian, on the other hand, found a buyer a month later in Lone Star Industries
Inc. of Greenwich, Connecticut, then the largest U. S. cement producer.
Through Hawai`i subsidiaries, Lone Star had been active in construction
material (but not cement) supply since 1969 and real-estate development
thereafter. Cyprus Hawaiian thus became the "Lone Star Hawaii Cement Corp."
The
business slump continued into 1983, adversely affecting not only the cement
producers but also ready-mix concrete and construction materials suppliers
such as Ameron HC&D, Pacific Concrete & Rock Co. (PC&R) and
Lone Star's own Hawaii Rock Products.
Ameron
HC&D's (now known as Ameron Hawaii) initial Hawai`i presence was a
joint venture in 1960 between the American Pipe and Construction Co. of
Los Angeles and a Hawai`i firm, the Honolulu Construction and Draying Co.
that had been established by several Honolulu-based businessmen in 1908
on Queen Street near Fort. The joint venture, originally named the American
Concrete Pipe of Hawaii, sold the pressure pipe used in sewer projects
throughout Honolulu. HC&D started out with horse and mule-drawn drays,
entered the concrete business in 1918 and took lease on the Kapa`a Quarry
in Kailua, O`ahu from Campbell Estate in 1949. It changed its name to HC&D,
Ltd officially in 1963. Its mainland partner was renamed Ameron c.1982,
hence, Ameron HC&D.
Charging
that the two cement companies lacked competition in setting prices, the
new President of Ameron HC&D, Thomas Bastis, announced a "prototype
program" of importing cement from Korea via a West Coast broker. The company,
however, would continue to obtain 30% of its cement locally to meet the
"Buy America" requirements of federally funded projects such as highways
and airports.
The
two cement companies responded that the imported cement would constitute
"dumping" that would violate U.S. trade laws, State Sen. James Aki introduced
a bill to forbid imports, and the state's Attorney General's office characterized
the bill's intent as an unconstitutional restraint of interstate trade.
The then chair of the Senate Economic Development Committee, Benjamin Cayetano,
urged the parties to find an alternate conflict resolution. Nevertheless,
as the "Mineral Yearbook" reported, "although the two plants operated at
less than capacity in 1983, some Hawaiian concrete manufacturing companies
imported cement from the Republic of Korea."
In
May 1985, Lone Star along with an Australian partner, Adelaide Brighton
Cement Holdings, acquired the assets of Kaiser Cement and proceeded to
close that facility. At about the same time, Grace Brothers acquired PC&R
to form Grace Pacific that got out of the ready-mix business, causing the
S-B to declare that
"the
consolidation leaves Hawaii with one cement manufacturer, down from two,
and two major ready-mix concrete suppliers, down from three."
By
October 1985 the "Hawaiian Cement Co." reappeared in Hawai`i, this time
sporting a new logo designed by Momi Cazimero of Graphic House and described
by the HA as being "developed from the letter 'C,' suggesting in its interlocked
shape a familiar concrete block form."
But
the plot thickens. On December 11, 1990 a HA headline proclaimed: "Lone
Star in bankruptcy: firm co-owns Hawaiian Cement."
[back
to top]
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