New-York tribune., 1919-03-24
Drop in Steel
Price Will Have
Moral Effect
Builders Have Been Waiting
for It-Other Materials
To Be Cheaper-Many
Think Prices at Low Level

Steel price cuts last week tapped the
starting gong fof 'cross-country race
against time to catch up with national
underconstruction, according to the
Dow Service Daily Building Reports
Saturday.
1t marked the first step in the lower
ing of the high cost of living, it set q
mark for the stabilization Of building
construction costs, and even estab-
lished minimum that will prevail for
the greater part of the 1919 building
season, and it was the immediate in
spiration for a building material in
quiry for forward buying that had not
been thought possible ten days ago.
These inquiries over the week end
showed some contradictory features,
however, but these were plainly those
of supplemental materials and equip
ments, it being made fully apparent to
inquirers on Saturday that basic ma
terials in the metropolitan district of
New York were at their minimum
levels and were upon the point, more
over, of advancing, possibly to a de-
gree to offset the new steel price re-
ductions, because of most unex-
pected turn of events in the matter of
brick and cement shipments into this
of prices at Washington through the
industrial board of the Department of
market. AS far as lumber adjustments
Commerce are concerned, there are
some buyers who are holding off for q
recommended price reduction, but
strong lumber interests were advising
their trade here on Saturday to get
into the market at once, because, like
brick, the final recommendation of the
board may be for higher price level
when it is explained to Secretary Red
fields committee the effect that war
demands have had upon the forests of
the country with relation to the loca-
tion of sawmills and the higher cost
of getting out this building material
and shipping it to markets, plus an n
creasing export demand that did not
exist prior to the war.
One effect Of the cut in steel prices
is the moral influence it has exertec
upon the building material dealers OF
the metropolitan district doing busi-
ness particularly east of the Hudson.
The harbor strike has shut off all sup
plies Of basic building materials enter
ing this city by boat, and the supplies
in dealers yards have reached the low
est level in point of volume ever known
There were only about 100000 common
brick available at the Wholesale market
at noon Saturday, whereas there should
be several million for sale.
The Dow Service Daily Building Re-
ports, canvassng) the metal trades Of
the city on Saturday to determine the
effect Of the steel cut on various items
in the supplemental list, was advised
that a change downward would be an
nounced in pipe by April 1; that wire
show any price change; that sheet
metal quotations might be expected to
shrink before the first of the month
notably in sheet iron, Dlack and gal
vanized, and allied metals: that some
change is being talked of in expanded
metal lath prices; but that common
brick, Portland cement, lime, linseet
oil, plaster, lumber, building stone
roofing and structural slate were now at
their minimum price levels probably fol
the remainder of the building year.
Basic building material prices are
cheaper in New York and vicinity to-
day than at any other city east of the
Rocky Mountains, largely ON account
Of water transportation facilities, ant
yet New York has so far shown the
least volume of forward building con
struction going to actual work. 1t is
however, far ahead Of any other com
munity in the country in the matter Of
projected building enterprises The
tendency has been to await steel price
adjustments, but structural steel repre-
sents only 16 per cent Of the cost of q
building.
Structural steel and lumber were the
only items in the basic material clas
sification that enjoyed wartime de
mand in excessive proportion, result
ing in price imitation. All other basic
commodities were practically elimi
mated both as to use and manufacture
These commodities are now coming
into their customary markets, with
production costs higher because Of de.
probation during long periods of in
activity. The necessity Of breaking in
new organizations, the higher wag,
levels demanded by "wheelbarrov
labor which will become scarce,
rather than more plentiful as the sea
son advances, and the heavier trans
portatlon charges that are now bein,
forced upon all manufacturers handlini
rough materials down the Hudson I,
this market which will probably reacl
head this week, all combine to fix tn,
present price quotations as positiy
minima.
Farsighted building investors ar
being advised to set the item Of pres
ent building cost to one side in fayo
OF the closer consideration of pettin
contemplated work under way at tn
earliest possible moment so as to NEE
the Forthcoming renting season Will
tne present era Of high rents and Ion
leases exists and the fixing Of tn
minimum steel price removes the las
parrler to a free building marke
/ throughout the entire country.