By WILLIAM G. CONNOLLYDEC. 16, 1973 This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. Occasionally the digitization process introduces transcription errors or other problems. Please send reports of such problems to archive_feedback@nytimes.com. DENVILLE, N.J.Fate, with a small hand from the railroads and the petroleum industry, has dealt Alfred Schneier Jr. a cruel blow.Fourteen years ago, Mr. Schneier decided to relocate his family business, the Advance Pressure Castings Corporation, from Brooklyn to this Morris County town nestled between the Erie Lackawanna Railroad and Interstate 80.There were several reasons for his decision to move. In addition to providing no room for expansion, the old Brooklyn plant lacked a railroad siding, and all of the company's raw materials were shipped by rail.Mr. Schneier rejected some otherwise suitable buildings because they did not have sidings.His business, producing intricate zinc and aluminum parts for all mantier of machinery, also requires a great deal of water to cool heavy equipment that handles molten metal with temperatures ranging up to 1250 degrees Fahrenheit.AdvertisementThe Denville property had a railroad siding, and with a bit of welldrilling and pumping it could produce 80gallons of pure water a minute.AdvertisementMore than anything else, though, Denville had energy electricity to run pumps, blowers and control devices, and natural gas, which Mr. Schneier's casting machines and huge reverberatory furnaces consume at the rate of 50 million cubic feet a year.The gas company and the electric company were just rubbing tnetr hands with glee when we decided to come, Mr. Schneier said the other day as a workman removed half the fluorescent tubes from the ceiling fixtures in his paneled office.The abschtely primary factor in our choice of a site was the availability of unlimited energy.Advance Pressure Castings moved in 1959.On Jan. 1, 1960, Mr. Schneier said with a wry smile, the entire metals industry shifted from rail to truck transportation. We've never had a boxcar on that siding.Worse yet, the executive saidwithout a smileIt has been a number of years since we have had unlimited gas.Mr. Schneier was hardly unique in using energy availability as the basis for his decision on where to locate his business.Since the day when textile manufacturers built their brick mills along the New England rivers that would drive their machines and the steel magnates constructed their vast complexes in the bituminous coal fields that would feed tons of coke to their hungry furnaces, the availability of energyalong with proximity to the market, the labor force and the raw materialshas played an important role in determining where industryAdvertisementNow, when almost all forms of energy are in short supply, leaders of industry may have to think in unac customed terms. With suppliers of fuel oil and natural gas turning away new customers and with the labor force under the threat of gasoline rationing, the pastoral settings and cheaper land of suburbia and exurbia may seem less attractive.Joseph 4ramanda, the president of the J. I. Kislak Realty Corporation, one of New Jersey's largest industrial and commercial real estate operations, sees the beginning of a trend toward moves to existing buildings in the older central cities.He said that his concern, which was involved in 150 industrial moves in the state during the last year, has been receiving a growing number of inquiries about plants in such cities as Newark, Jersey City, Bayonne, New Brunswick and Paterson.Many factorsall in one way or another relating to the energy crisis influence this trend, he said, adding that existing plants may have established sources of oil, electricity and natural gas; are usually close to a concentrated labor pool that would have to drive considerable distances to a suburban plant; are often served by mass transportation systems, and are close to such shipping facilities as truck depots, rail yards and docks.Alfred Schneier, the president of Advance Castings, is not planning to move back to the city or anywhere else. If I move out of the gas company's trunk line, he said, that's it. I think I'd have trouble moving across the street.The energy crisis began for Mr. Schneier when the New Jersey Natural Gas Company informed him about 10 years ago that it would periodically cut off his interruptible service because of peak demands from higherpriority users.After that warning, Advance Castings installed a backup fuel oil system. And it subsequently negotiated a new contract with New Jersey Natural Gas, re placing its agreement for interruptible service, which is commonly used by industrial customers who have alternate sources of energy, with a contract for noninterruptible service.It's about 20 per cent more expensive, Mr. Schneier said, but the gas company warned us that the in terruptible customers would be the first ones cut off. And what's the point of having fourcent gas if there isn't any? We might as well have 11cent gas.AdvertisementEnergy accounts for 2 per cent of the sales dollar, and I can foresee that number's doubling.Even though his service cannot technically be interrupted now, Mr. Schneier switches to oil if the gas company asks him to do so. We can cut our gas usage about 60 per cent, he said, and when they get in trouble we do it. After all, they can just shut you off for the public good if it comes to that.The three oil storage tanks installed by Advance Cast ings hold a total of 14,000 gallons enough, the company president said, to keep the plant running for two or three weeks.What happens if gas service is shut off and Mr. Schneier's two oil suppliers limit him to a percentage of the fuel he bought In 1972, as Federal regulations apparently require they do, beginning late this month?I could probably navigate for six to eight weeks. That's a guess.Thereafter, the 200 employes of Advance Pressure Castings Corporation would begin losing their jobs, and that, says the president of the company, would be just the beginning: Everything we make is used by someone else to make something else, so there would be a domino effect.Among the plant's diverse products are butts for hunting knives, frames for apartment mailboxes, rings for recessed lighting fixtures, housings for photographic enlargers, parts for the transport mechanisms in copying machines, heat sinks, cowls for the change slots in vending machines and parts for microscopes and toy electric trains.Virtually none of Advance Pressure Castings 400 regular customers has an alternate source of supply. Depending upon the size and intricacy of the casting to be produced, one industry offi cial said, the making of a die, or form, for it can cost anywhere from $2,500 to $20,000 or more, so we don't run around making extra ones.Because Advance Castings is the only source of some parts, its customers could continue full operations only as long as their inventories held out if Advance closed down.AdvertisementIn certain areas, said Paul J. Rosenblum, the director of purchases for Lightolier, Inc., of Jersey City, which makes lighting fixtures using parts supplied by Advance Castings, we could not go on beyond a month or a month and a half.Mr. Rosenblum said that as many as a third of Lightolier's 900 employes in Jersey City, Fall River, Mass., and Elgin, Ill., might be thrown out of work by a shutdown at the diecasting plant.And if we can't operate without those parts, he added, we wouldn't need a lot of other parts, so we would be cutting back or stopping orders from our other suppliers. In some cases, the effect on them would be devastating.Jules Prager, a vice president of the Charles Beseler Company of Florham Park, N. J., which buys from Advance Pressure Castings parts for photographic enlargers and projectors, estimated that 120 Beseler employes would be laid off if Mr. Schneier had to close his plant.So far, Mr. Schneier has not had to stop production, and he has been getting sufficient supplies of fuel. In the interest of conservation, he is cutting back the lighting in his office and plant, and the usual Christmas display will not appear this year in front of Advance Pressure Castings.He is consideringand discussing with the United Auto Workers, who represent his production employesa shift to a fourday, 40hour week. It would allow us to run our equipment 20 hours a day instead of 16 and shut it down three days a week instead of two, he said.So far, the main effects of the energy crisis for Mr. Schneier are financial. It has made us look hard at what we will accept as new business, he said.It has also meant higher costs: We spend more than $100,000 a year on energy, and that's up 25 per cent over the last three years and still rising. Energy accounts for 2 per cent of the sales dollar, and I can foresee that number's doubling.AdvertisementBecause he can pass along to his customers his major cost increases, Mr. Schneier is not overly worried. The utility bills are up, he said, but I don't think it's been staggering. It won't be a huge problem if it's universal.Not all businessmen are so sanguine. Peter Heide, the vice president and operations manager for Henry Heide, Inc., a New Brunswick company that manufactures jelly beans and such other childhood delights as Jujubes and Jujyfruits, the gumbased candies, has watched his fuel bills go up 18 per cent over the last year.The candy industry is one of the lowend industries relative 4.o the rate of return, he said. The net after taxes is about 3 per cent for the industry. And it's so competitive that we have not been able to recoup our cost increases, even where that is allowable.Beginning last year, Mr. Heide said, the interruption calls from Public Service Electric and Gas Company came more often and the interruptions were not always prompted by falling temperatures. We were effectively off gas for two solid months, he said.At several points last winter, he added, the Heide plant was within an hour or so of closing down.This year, Mr. Heide said, gas service has been interrupted three or four times for several days. It's just like last year. The interruptions are certainly not predicated on the weather. And this year the oil situation is really critical for us.The company's oil sup plier has reduced its allocation for December by 30 per cent, he added, and there's no guarantee that he might not have to cut it further.The Heide company's oil tank has a capacity of 20,000 gallons, which, the operations manager said, is enough to keep the plant going for no more than a week.A version of this archives appears in print on December 16, 1973, on Page 411 of the New York edition with the headline: . Order Reprints| Today's Paper|Subscribe