Los Angeles herald., 1908-11-15
CHEAP MATERIAL IS
CAUSE OF ACTIVITY
PRICES ARE 20 PER CENT
LOWER
Greater Efficiency of Labor and Econ
omy in Time Required Oper-
ate to Reduce the
Outlay

Ordinarily light demand and low
prices go hand in hand. Light sales
usually mean not only a smaller profit
but the transaction of business on a
smaller margin. Most merchants are
willing to make concessions in order 20
keep up an appearance of being busy
if conditions are such that they are
not so in reality.
One of the commercial problems has
always been do low prices stimulate
demand?" The answer is that low
prices should stimulate demand but
owing to the pig-headedness of those
who could buy, price concessions are
not followed always by active buying
Those who disregard the one-time fun
damental business maxim not to buy
on low market stand to realize hand
somely on their sagacity. The policy
of buying when others hold back, or Of
selling. when others are waiting for
higher prices yields excellent returns
Notwithstanding artificial expedients,
demand and supply regulate the going
prices. People are beginning to under
stand that price and value are not
synonymous. The value of a commcd-
ity represents the labor involved in
its production plus a reasonable profit
for the manufacturer and the dealer or
dealers. When purchases may be made
at prices below the aggregate of the
items mentioned they are warranted by
business prudence.
In almost every city, town and vii
lage building materials now are to 20
per cent below the schedule of prices
in effect in 1907. In many instances
they are below the 1905 and 1886 prices
In some districts prices have not re-
ceded materially.
Same Prices. Are Asked
In others nominally the same prices
are being asked, particularly for small
lots of stock. However, where the
dealer is asked to figure on a large bill
ordinarily he is willing to make a lump
price materially lower than that for
which the same goods could have been
furnished last year.
In very few cities or sections is there
enough work to keep all busy. Com
petition among workmen results in bet
ter service being given because it is
no longer possible for a carpenter, a
plumber, a mason or a plasterer to
leave one job and go to work on an
other the next day. If he has work he
gives good service in order to avoid
being replaced by someone else.
Present conditions are ideal for the
DullutTs Inc lGSStnEu COSl OF IldIeTl1t,
plus the greater efficiency of labor and
the economy in the time required to
put up a structure operate greatly to
reduce the outlay. Contractors are
aware of the expense involved in de-
layed operations. When it becomes
necessary to lay off crews or to shift
them from one point to another pend
ing the arrival of material necessary
to continue the work the loss is often
great. There is a loss in time and a
loss in efficiency and further damage
by reason of the delay in the compile
tion of the building.
Each step in the construction of a
dwelling. store or office building in
creases the outlay. Contractors usually
are paid in installments, receiving a
certain per cent of the price when the
foundation is in, another when the
walls are up, another when the struc-
ture is rooted over and so on.
Means Loss of Money
A delay of two or three weeks aftcr
the building is rooted over means the
absolute loss of the use of the money
invested for that length of time or
possibly longer. Furthermore. a pros
pective tenant may become tired Of
waiting and secure accommodations
elsewhere. All these are problems
WHICH tue bullueT WHO DuluS uuTlAS
busy times must consider. They are
problems which those who build now
are not required to solve
It Is not possible to determine the
influence of an active building cam
paign upon the commerce of the United
States. Were it possible to provide
work for all the mechanics an increase
in general trade would result. The
sOlvency of the butcher, the grocer or
the baker depends upon the ability Of
his patrons to pay their bills; the SOL
vency OF the jobbing house depends
upon the ability of hundreds of small
retail distributors to pay thier ac-
counts: the solvency of the manufac-
turer hinges upon prompt settlement
with the iobbing trade.
The ability of manufacturers to keep
their mills going depends upon collec- |
tions and the demand for their prod-