New-York tribune., 1920-10-18
Cement Makers
Oppose Ruling
On Shipments
Vigorous Protests Lodged
Against Order That Pro
hibits the Use of Certain
Cars for Transportation
Expect Less Production
Interstate Commerce Com
mission Decision May In
terfere With Build;no

w Atu ID IL Il n @
cheaper building materials in the
spring of 1921 has been reduced to q
phantom hope by the action last week
OF the Interstate Commerce Commits
slon' according to the current Dow Ser
vice Daily Building Reports.
vigorous protests have been LODGED
with the commission by cement manu-
facturers and other building material
interests against an order that pro-
hlolts the use of certain types of cars
Tor use IN transporting building ma
terials or conveying raw materials to
oulldlng material manufacturing estab
hsnments. The effect upon the cement
plants Is to curtail production seri-
ously, If, indeed, it does net necessitate
a shutdown of many kilns because of
the restricted supply of limestone, an
important component of cement manu-
facture, which this order will entail.
survey of manufacturing conditions
pertaining to all the major commodities
entering into the erection and equip
ment of buildings in this market has
recently been made, and in no case have
conditions been found that indicate
anything but present level prices or
higher quotations in the spring of next
year
The hope for present-level prices
was based upon the supposition that
coal supply would be easier as the next
building season approached its OPEN
tinuation of Improvement in traps-
portation facilities afforded building
material manufacturing plants; that
there would develop circumstances Of
such a character as would encourage
lending institutions to return to the
building investment market, and that
credit conditions insuring against a
return of the 1912 "shoestring builder
days" would be supported, All these
conditions would have insured stability
Of prices at present levels.
Hope for Cheaper Materials Fade
There was fighting chance for such
conditions to obtain up to the close
of the first week in this month. First,
there came the extremely unsettling
Interstate Commerce Commission order,
effective midnight of Sunday, October
10. At once the manufacturing sched-
ules of the country's cement plants be-
came disarranged again, although the
stock of cement in all the United States
IN September was only one-half Of what
IL was year ago and only 40 per cent
OF what it was two years ago. To-day
it is actually half million barrels less
tran it was thirty days ago, and, under
the new service order, it is steadily
declining. No one can now tell how
far the supply will drop, but it is GER
tain to continue its downward course
Just so long as this order remains in
effect. Under such circumstances it
is unwise to expect general lowering
Of prices.
Prior to the receipt of this order pro-
duction of cement in the United
States was on basis that gave some
hope for AT least price stability. Pro-
duction in September was 10 per cent
greater than the corresponding month
year ago and 45 per cent greater than
during 1918, when the war was at its
height. More than 1900 900 barrels cf
cement were produced in nine months
OF 1920 than in the same nine months
Of both 1919 and 1918, and the ship
ments corresponded to the increased
production, making a total of 20 per
cent over 1919 and 25 per cent over
1918; all with the hope of bringing
about a stabilized market as soon as
possible.
AS for the hope that financial inter
ests would return to the building mar
ket again, the State Legislature has cf
fectually killed it for the remainder
of this year at least. The budding con-
struction movement that has been de-
veloping since last August has been
effectually nipped by the Legislature's
action in taking the proprietorship Of
the speculative home builder away
from him as soon as it throws property
open to tenants.
Anxious for Investigation
Co.. +bo ;pvac+;ro+;op into build.
ing loan and building material condi
tions in this market it has merely
created a desire on the part Of many Of
those who contemplated building at
once to wait and see whether the price
of building materials really will be
forced lower
Within a few weeks the regular
winter covering or storage charge will
be applied to common brick. This
extra cost always applies as soon as
navigation closes on the Hudson River.
Lumber prices at retail are still sag
ging lower, not because manufacturing
costs are lower, but because the deal
ers in this vicinity are over-stocked
and desire to unload their heavy sup
plies. There is very little buying
even at the new low price levels.
1t is natural for the customer to de-
sire to wait for still lower prices, but
if he waits until spring he will find
prices much higher than they are to-
day. This is also true of lime, plas-
ter, cement, brick (both face and
common, fire and hollow metals and
concrete ingredients. No basic build
ing material, except Trick and lumber
and linseed oil have dropped in price.
On the other hand more have actually
advanced than have receded. More
rH 40 no OIL
become effective on new purchases.
No one can tell into what condition
of supply the new Interstate Com
merce Commission order will force
manufacturers in relation to demand,