New-York tribune., 1919-10-19
Spring Will Find Building
Costs Higher Than Ever
Expected; Trend Is Upward and Will Be in
That DirecieA for Years, According to Builder

us per cent increase IN the cost OF
r,,,.ction is expected by next
LABOR shortage, unrest and
n,tino costs OF labor and material
,hs factors which viii make build
.ro;ects scheduled for next spring
- .;,ser than ever before. This is the
.',;or Of !. p. II. Perry, weep president
,be Turner Construction Company.
" Perry said chat Increased produc-
~ greater labor efficiency in facto-
.ss and or the job would influence the
.aueing Of building costs.
avs have Just completed" said Mr..
,.rrv "a study Of the costs of two
.ars@ @c buildings, built in each of the
,,srs from 1909 to 1919, and find that
ss eosts fuslng 1909 costs as base,
a' a,oS ner cent? have tluctuated as fol-
aus. 1900. 100 per cent; 1910, $50 per
'.mt. 191. s3.3 per cent; 1912, 9o.4 per
smt, nt. iqlS. 92.5 per cent; 1914, 90.4
-or cent. 1915 S7.9 per cent; 1916, 1853
Nv cent; 1911, 1856 per cent, 1918.
sSis per cent; 1919 (arst half), las
There was gradual decline from
,an9 10 1915 Of II per cent. The IN
ease since 1915 has been fairly uni
:orm exeeDt tnat there was consider
,ble drop between November, 19lS, and
Nay, 1879.
Building Always High
.The wear 1915 was the first year
,;nce 1851 that the average costs of
5rildiag materials were below other
.onn,odities. with the exception of
;e,y months in 1897 Between 1867 and
S9l building material costs averaged
,bont 20 uer cent above other commod-
ties. From 1897 to 1915 building ma
.erisls kept we'll above general COM
nodites.
states Department OF Labor on March
/ 1919. genera. commodities, exclusive
II building materials, were relatively
2 per cent higher than building ma
erials. using 1918 as a base. Revising
he foregoing hcUges, and basing on
gl4. we find the following varia
ions: 1914, 100 rcr cent, 1915 81 per
.ent; 1916, Has per cent; 1917, l54 per
,ent; 1918, 100 per cent; 1919 (tlrst
nalf), 1873 per cent.
"These figures have been based upon
he foilowinn items, which are the
major ones enterinr into the average
rdustria building. The percentage in
iicates the proportion OF cost that each
TEN bears to the others;
sand. 3.S per cent; cement, 1875 per
ent; form lumber, 11.6 per cent; floor
crm labor. 1874 per cent; stone, SO
ler cent; steel, 25.4 per cent, concrete
abor, SIS per cent; steel labor, 7.2 per
ent. Total, 100 per cent.
High Prices to Continue
ave are in for q period of high
grices-possibly from three to FIVE
sears-before conditions Influenced by
he war adjust themselves The de-
tructon Of billi rs of dollars worth
II property anG the loss Of millions
f human lives represent an economic
oss the world viii have to pay before
nytiing ike pre-war costs or prices
an return A highly inflated world
aoney market has also mad very I'M
iortanl effect on the present purchas-
ng value of tie do lar. The loss of
.uman life is 70 goonsible for the pres
mt worldwide labor shortage An al
Aost comp etc cessation of immigra
on has made 'abor conditions in the
United States especially bad. The
resent aDnormal demand for buildings
due t. sae pre-war .ightness of the
ioney markrt, a7e lhn curtaiimeat or
nateria and labor during the war
'o-day as nation We are more under
Il Than al any other time III our
iis'ory.
Fol owing the c'ose OF the war the
demand that existed for all materials,
'ccasloned by wor divide underproduc-
ion. created an era OF buying unpre-
ederted in the history Of industry.
urthermore. Z general letdown and
reedom from war anxiety released
aany purse strings. Tne present wage
srning 'evel OF aboring people gen
rally is abnormal ) high. They have
1 their Command more ready money
han at any past period. With moro
money than ,tey ever expected to
sandle' trey are spending it extrava-
fantly; Workers are paying $40 apiece
or SIX shirts, and buying them by
ne half dozen. Wivcs OF laboring
aen are paying 800 for shoes, $50 for
res es and hundreds Of dollars for
.swelry.
In time these conditions will adjust
nemselves. Wages viii slowly 20
Gown as production increases and i'm
"a grafton Is resumed. The law Of sup
Fiy and demand be ng allowed to oper-
@te normally will bring about a stabili-