Every evening, Wilmington daily commercial., 1906-01-22
Inereased - of snndlnrs.

Increased Cost or Buildings.
A correspondent Of the New York Sun
points out. in the increased cost Of erect
ing buildings in that city. a situation
which is attracting the serious attention
OF builders in other cities. New York
City has been enjoying a great building
boom during recent years, as result of
which there has been large advance in
prices OF real estate, ranging from so TO
100 per cent. Taxes have also advanced.
while the cost Of building has increased
from 20 to 80 per cent, and naturally.
rents are very high. The situation is one
that affects renters as well as builders.
and to greater extent, as the renters
generally are those who have to work for
wages
The increased cost Of construction,
however, is the most serious considera-
ton, and it Is one that will strike the FIRST
blow at business prosperity the instant a
hole is pierced in the bubble of speoua-
tion which has attended our long era of
prosperity. The labor cost is high and is
made higher by reduced hours Of labor.
The cost Of materials is also high, and
these high prices are maintained by tariff
protection, which places building materi-
ais beyond the regulating influence Of
competition.
Whenever the cost of construction
reaches the point where IL threatens re-
munerative returns from real estate in
vestments, the reaction will come. And
when the speculative influence is with
drawn, as it is likely to be at any time
the consequent depression will affect
legitimate transactions.
The warning would seem 10 be TO re-
strict speculation in real estate; to restrict
real estate business to IFS legitimate de-
mands, and to endeavor TO reduce the cost
OF construction, instead of increasing it.
Building operations form such an import
ant item Of a community's prosperity
that conditions which affect il unfavor-
ably are bound 20 affect the community
also.
The truth of this statement is attested
by the situation now prevailing in Will
mington, as told in Saturdays Every
Evening. There is a demand here for
houses, very considerable demand, for
which the supply is inadequate. This
would seem TO offer an inviting field TO
builders, but the latter hesitate about at
tempting to avail themselves of il. They
do not care 20 build houses Tor renting
as current rents, although high, do not
offer sufficient inducements to make the
ventures profitable. Therefore builders
build houses for sale, and they do this
cautiously and only when the prospects
OF speedy sales are promising.
The difficulties in the way of a decided
boom in the building of dwelling accom-
modations for Wilmington's rapidly in
oreasing population are: The high prices
of building materials and the uncertain
ties of the labor situation. Both are
serious, particularly the latter. For
builders might pay the high prices for
materials if they we're assured of settled
labor conditions. But the fact that few
contractors feel an assurance that they
could get through with large building con-
tracts without having vexatious and ex-
pensive labor disturbances on their hands
makes them very cautious about investing
in the building materials and undertaking
the contracts
IL is hoped that the progress Of the new
year viii be attended by betterment Of
the situation, as Wilmington has need Of a
large number Of dwellings and should have
them.