New-York tribune., 1919-08-04

the issue to point it is more than
likely that considerable impetus will
be given to the Bronx house building
boom, because the organized employers
arc more concerned with the big COM
merclal operations in this and other
cities
Index figures pointing to the high
cost of living show that July costs we're
higher than those of June, but that
general costs were much higher for the
same months last year. Economists
studying the factors entering into the
cost of living and cost Of construction
of buildings concur in the belief that
the high level has been touched or is
almost within touching distance. The
best minds in the building material
producing and distributing markets
admit that the top has been reached
except IN so far as the cost of labor
ascends and, perhaps, also the i'm
pending advances in freight rates,
which is not generally considered an
important factor in its relation to the
actual cost of the construction of a
building at the present time.
Halt in Price Advances
This realization of the limit of elas-
ticlty to construction costs is shown
clearly in current price tables covering
not only delivered prices in this mar
ket, but delivered building material
prices IN the leading cities of the coun-
try. There has been a noticeable halt
IN the needless price advances that
have featured the building material
market in the first six months Of the
year. Producers have reached a pla-
teau at which they are apparently try
ing to hold quotations. at least, until
such time as actual building construc-
tion will so sap building material sup
ply as to force prices upward.
Inc dow Service Daily Building Re-
ports does not believe that the high
price peak of building materials has
been reached, however. Price advances
up to the present time have been at
trlbutable largely to increased cost Of
wages. The element of supply and de-
mand for these finished building ma
terials has not been noticably opera
tive in any line, with the exception of
portland cement, sand. crushed stone,
gravel, lumber and one or two spe-
ciaitles. Once g standard of wage is
tlXed for term sufficiently long to
enable contractors to figure the vast
volume of building work they are asked
to estimate on, there will be such call
Tor building materials from consuming
sources as to force prices much higher.
II labor would wait for that time to
come before asking for wage increases
IN such quick succession, that manu-
iacturers and contractors cannot adjust
their figures before another wage boos.
is demanded both invested capital and
labor would enjoy the fruits of ma
tlon-wide era of building operations
that, without question, will pass beyond
bounds not now easily imagined.
1t is for this reason that employers
are trying to effect a maximum wage
for certain definite period. so that
the true extent of this potential build
ing material demand may be realized.
New Condition in Construction
Building interests sense new con-
dition arising in the construction in
dustry over large part of the coua-
try. 1t concerns building material
supply, labor supply and transportation
facilities.
Something about the magnitude Of
building material demand is already
known. Skilled labor supply is a
settled factor, but unskilled labor sup
ply is one filled with much forebodinc
by manufacturers everywhere. The
transportation problem is hard prob
lem because of the inadequacy of She
railroads to handle an abnormal move
ment of finished building materials or
the raw material now necessary to
be brought from greater distances. In
the meantime people want to proceed
with their building plans. Building ma
terial cannot be produced to any ex-
tent in winter and the summer has not
permitted much of a supply to be laid
in But the more anxious people are
to get their building work started the
less anxious are contractors to make
estimates, while the labor wage situa-
tlon Is so uncertain. The chief re-
quirement Of the construction market,
stablization in the wages of labor as
there has developed in the building
material market