The times., 1899-07-13
WASHINGTON BUILDING.
An Advanced Cost of Material FavorS
Existing Structures.


Existing Structures.
In connection with recent interviews with
leading business men whose views have
been encouraging to the idea OF an early
betterment Of the realty market in the
District, it will be interesting to quote
/ the following most eneouragi remarks
on the same subject made by John Jov
Edison. President of the Washington Loan
and Trust Company. to a Times reporter
YESTERDAY: In my Judgment be said.
the real estate market will be active and
prices will adya1ce well in the autumn.
Already there are evidences OF the dsmani
that Is coming More enquiries are being
made than at any time for several years.
mo unusual yo ume Of money in Washing
ton at present IS one OF the factors ii seem.
10 me, that Will certainly start this ac-
tiNity' Money in business is subject 10
the law of supply and demand. and inter
est rates are Governed accordingly. Some
are oil the opinion that as business revfyes
anu prosperity increases money viii be in
demand and interest rates Will be iirmer
! than they have been since the depression
Following 1888 But this should not b.
considered discouragiug in any way Mr..
Edison is OF the opinion that suburban real
estate especially will command better
prices, on account of the extensions of
rapid transit facilities.
The trust companies are so situated With
regard 70 the investment field as TO be
excellent judges Of the situation. They
hold immense amounts of money and
know the difficulty OF lending it and the
cheapness Of interest rates. and ON the
other hand. IScy manage estates invest
ed in real property. and know the lsrgs
increased demand for improved and unim-
proved realty during the past year.
One feature Of the realty situation thar
IS attracting much attention recently is
the advance In prices of building materials
The opinion Of a gentleman who is erect
ing large apartment house in the North
west was quoted yesterday in The Times
on this subject. He stated II as his ex-
perience that careful buying and knowl-
edge of markets make il possible to secure
materials at very little advance In price,
if any. canvas of the builders and the
supply firms shows that IN general such a
situation cannot be said to exist Prices
have advanced on every class OF materials.
But on the other hand the advance has not
been so great as might have been expected
with the revival of business generally and
the much increased demand for goods.
Compared with the prices of six and sew
en- years ago, when general business condi-
tions were good, nearly all building ma
terials are now relatively cheap. Com
pared with prices three years ago. when
there was no demand for goods, and mills
and factories and brick yards were going
bankrupt, ii is not strange or alarming in
any way that a return of activity should
PUT Up the price level.
The different grades of plain building
brick have advanced from 81 to 81 thou
sand, or from 15 to 20 per cent during the
past year. The sash, door, and blind mills
have advanced prices 20 to % per cent
over those of two and three years ago, but
there is no advance compared with the
prices of 1898. Lumber is not more than
Is per cent higher at present than it was
two years ago. The chief difficulty OF the
mills and the builders is that it is almost
impossible to obtain lumber or mill work
at any price, owing to the scarcity of sup
ply. This condition may be even more
acute, it is said. owing to the fact that no
more lumber can be cut until next season.
The lumbermen, like nearly everybody
else underestimated the revival of busi-
ness.
Builders hardware has gone up in price
about 40 per cent and plumbers supplies
100 per cent. The greatest advance has
been in these two classes OF goods. and it
is perhaps pertinent to mention in this
connection that they are almost the only
classes Of builders materials that are
controlled by the trusts Another 10 per
cent advance on builders hardware has
been announced, to take effect within a
few days. Structural iron is so per cent
higher in price than a year ago. The
trusts also control the output of struc-
tural iron.
careful estimate. made from all the
information obtainable. is that the cost
of building materials in an ordinary resi-
dence at the present would not be more
than 10 to % per cent. according to the
character of the structure
Two or three interesting comments are
made by the builders and real estate men
regarding this question of advancing
prices. 1t is believed TO be certain that
the price of improved property will be
directly affected, for the reason that it
is now impossible to duplicate buildings
erected two and three years ago for the
same price. This cannot be regarded as
an evil.
Further advances in prices on materials
will undoubtedly have a tendency 10 re-
strict building operations. 1t cannot be
learned that such a result is likely at
present but it is quite conceivable that
IL the mills and iron people and brick
men become rapaeious they may kill the
golden goose. There is little inclination
on the part Of builders TO fight against
the advances that have come naturally
with returning business activity. and the
demand for modern residences and busi-
ness buildings will be supplied while rea-
scnable prices allow profit in the opera
tions.