Perth Amboy evening news., 1919-07-09
WIDESPREAD RESUMPTION SHOWN
BUILDING OPERAHON5|N
REVEWOF S|XMONTHS FOR 1871
co,.,aoto Awarded Indicate increase in Volume of Operations
of 2a Per cent.---Activity in Northern New Jersey ras
Grown to An Enormous Figure--Greater Activity $ Ex-
pected in Short Time.

DCCbVA hi 1stOhs
RuiIding contracts awarded during
the first half of 1918 in that portlo1
of the United States east of the MIS-
| sissippi River and north of the ONO
River. totalIed $3.50, 100000 accord
ing to statistics compiled by the f.
w. Dodge Company. This indicates
an increase in volume of operations
of 23 per cent. over the average vol
ume for similar periods of the five
wears preceding 1919. This notable
increase has taken place in spite OF
the many conditions which at the
opening of the year were looked upon
as deterrents to the resumption OF
building activity.
For of accurate COMPARE
son, figures for years previous to 1871
have been reduced to figures based
on 1919 construction costs. The aV-
erage of the figures for contracts
awarded during the first half of each
of the years 1914 to 1918 depressed
in terms of 1919 ~values) was $802,-
soc, 900. 1t should be noted that this
average includes over $So0'ooo,oo
worth of government work IN the
first half of 1918.
In expressing values for previous
years in 1919 values, figures on the
increase of construction costs as COM
piled by the Division of Public Works
and Construction Development of the
States Department of Labor
have been used. The figures show
that on the average construction
costs in the first part of 1919 were
81 per cent higher than in 1914. In
1918 they were SO per cent. higher
per cent. higher than in 1914; in 1916
they were IT per cent. higher than in
1914. In 1915 construction costs were
practically the same as in 1914.
At the opening of the year the ma
jority of people were either puzzled
or pessimistic about the outlook for
building activity in 1919. Prices and
wages were high in comparison, with
previous years, n almost every one
expected declines. Rents and prop
erty values had not, in general, ad-
vanced sufficiently to give prospective
builders the prospect of an adequate
return on their investments at pre-
vailing costs. In view of the uncer-
tainties inherent in the situation,
bankers were slow in making loans
on building ventures. PesSlmfsm re-
garding the outlook was fairly wide
spread.
In spite of slackness in business,
prices did not drop. Government bur-
eaus and other agencies gave nation
wide publicity to the underlying econ
omic conditions affecting prices and
wages. These factors increased pub
lie confidence in the stability of pre-
vailing costs. In the meantime, rents
and property values advanced con-
siderably, reaching a figure bearing
Ia normal relation to current prices
and wages.
In addition to these things was the
pressure of actual building needs. The
country was several years behind or
it's normal building program. The
shortage of housing facilities and OF
buildings for industrial purposes was
livery great. The public, which had
seen an enormous volume of business
done at high prices during the war
soon learned that the same thing
lcould be done in peace time.
The figures for contracts awarded
flor each of the past six months tel
the story of the growth of public con.
lfidence and the increase of building
activities. Contracts awarded in Jan
uary Gin the territory covered by the
liz. w. Dodge Company t.
Is~5O,731,O0O, which is just 81 e cent
of the average for the same. mont
of the preceding five years. Thu
February figure was 96 per cent o
the average for the same month O
1.-THE preceding five years; March, g
per cent; April 138 per cent; Ma.
les per cent. The total amount o
Icontracts awarded in June vas $299.
LIS, 900. This was 154 per cent. O
the average figure for June of thu
preceding five years. In these com
parisons all figures for the years pre-
Ivious to 1919 have been reduced tt
1919 values.
OF the total value of contract
Awarded in 1919 up to the first o
June, SO per cent. was for Residential
building, and IT pr cent. for indus
trial building. The Middle Atlantis
States show the largest proportion o
residential building of n of the dis
Itricts covered, as well as he larges
total volume of residential construc
ton. 1t was in this section that tn
housing shortage was most acute an
THAT rents and property values hav
lshown the most marked advances. i
It'll Central West, where the amount O
contracts awarded was in excess o
normal as early as February, the Inn
tpetus came in the construction Q
stores, theatres, schools and publ
works, rather than in residential con
struction; in fact residential building
in this district, although very large |
volume, has maintained only a Sigh
EIlGaQ over lUQuSlEtdl COAotA QCtlO
Iduring the entire half year.
1t seems likely that the present vo
hume of activity will continue for thre
Ior four months to come. Toward tn
IcIose of the building season it is DOS
tsible thai the amount of contract
awarded may show a slight declins
However, judging from the amount 0
building needs not yet taken care o
land the enormous increase | n activtt
THAT has been witnessed during tn
lfrst six months of the year, it woul
tappear that 1919 will go down in tn
history of construction activities as
banner year. In view of the uneasi
mess with which the public viewed tn
business situation in. January. the ra
| pidity and the extent of the recover
has been remarkable.
New York and New Jersey
Activity in the New York and Nor
lthern New Jersey district has grow
to an enormous volume. The tots
contracts awarded from January
1919 to July 1, 1919, amounted t
l$194, 5S4, 000. This Is an increase c
so per cent. over the average fo
silimar periods of the preceding fv
years. This average figure was $129
100000 Expressed In terms of 191
values).
OF the total amount of buildin
started from January 1. 1919. to Jun
I, 1919, As per cent. was residential
and IS IL per cent. Industrial. 1
/ Tanr1arv 1910 tho auoropo octinao+o