The New York herald., 1920-01-26
MUST STABILIZE
BUILDING COSTS
Outlook Critical Unless Drastic Steps
Are Taken to Check Advance
of Prices

Greater stability OF cost TO the consumer
Of building materials and equipments is
the price being exacted by financial in
terests when considering application for
building loans, Gays the Dow Service Daily
Reports
The situation is becoming serious. Some
interests term the outlook critical and
have already taken forward positions TO
try to stem the price movement in its
needless course upward. II is time for
strong minds and level heads to step in
and save a situation that now begins to
assume threatening aspects toward n
years building programme that has tre-
inendous possibilities. but which may
easily be turned into one of only mediocre
volume. Certain powerful influences have
already deferred decisions on pending ap-
nlicatons for now building projects OF
great importance in New York until the
new freight rates are announced in the
expectations that that event Will mark the
practical close Of the most spectacular
rise in building material and construc-
ton costs that the country has ever
known.
All Protest Against Prices.
and especially the architects are unit
in protesting any further advancing of
building material prices upon the simple
Dlea that il prices go further upward build
ing will he greatly curtailed Those whose
position in the building world is close
enough to the source OF most building
projects to know and understand the con-
trolling influences actuating new building
projects have realized for some time that
the price situation regarding building ma
terials and construction costs has reached
a point beyond which II is actually danger
Gus to 60
IT is even generally known in the build
ing trades that the banks or financial
interests have already set positive dead
line beyond which they will not so. IT
cannot be any longer denied that there Is
a certain hesitation in financial circles re-
gardine the immediate future, and that the
forthcoming Presidential campaign is
good time to apply some counteractng in
fluence against the now worn out theory
that people will pay any price and put up
with any inconvenience in order to get
what they want. The plain facts in the
present building situation as applied TO
building finance is that there is now
we'll defined point beyond which building
finance will not be provided, and that that
point will have been reached when the
new freight rates are announced.
Cost OF steel E1xcd.
Judge Gary set the pace for the building
Industry when he announced that the
United States Steel Corporations price
on steel would remain where 1t was. Since
then the cement industry has accepted the
position that further price advances would
be more harmful than beneficial Hudson
River brick has been whipped TO n S25
market. but at that point this commodity
is being shipped by rail into this city, and
the brisk on barge at dock has been
allowed TO await purchasers. with every
week bringing the opening of navigation
rearer. It is quite likely that there will
be no further price advance in this COM
modify. and the possibility of a slight
recession in price is not remote. The
biggest minds in the Hudson River brick
industry sec the danger OF keeping the
Price of brick at S25 thousand whole
sale. The market for this material Is
already getting extremely narrow.
Upon inquiry in the cement industry
and among experienced dealers it would
seem that some of the leading minds
among the manufacturers and distributors
are making an earnest endeavor to
sta bilize Portland cement prices. This
Industry feels, almost to a man. that all
forms Of building and other construction
work should he encouraged The broad
minded men of the industry are looking
two, three and five years ahead, and are
spending vast sums Of money to educate
the people into the economical use of and
new uses for cement. Provision has al
ready been made for tremendous volumes
OF this material.
December in Portland cement shipments
into this market were greater than any
December in ten years. Shipments were
80 per cent over December OF 1913 and 20
per cent over December of 1917. AS for
production, more than 100000 barrels were
,l..@ att tfaaar
1919 or 1918. The stock on hand at the end
Of the year was a million barrels less than
in 1918. There is today less stock Of cement
on hand for use In this market than there
has been in any year in decade.
Strong Record for Cement.
Here is shown the result Of sterilization
OF price. For the cement industry has
peculiarly strong record for evenness OF
prices covering the recent critical period
that the country has passed through.
There seems TO be n feeling among the
owners, contractors and dealers that there
will be a shortage Of cement during 1920
on some advance In price, or both. The
cement interests are already arranging for
tremendous production, striving 10 reach
the total of 100000 barrels for the two
zones supplying this district whereas
So0o0,0oO is the greatest volume ever pro-
duced for New York consumption. AS
for this coming year there Is actually the
ability and will to over-produce II restrlc-
tons are not placed on the movement of
coal. limestone. empty cars and on the
finished products.
rodays building material list shows still
further advances in some lines. despite
tho attitude of banking interests against
this constantly upward tendency. All
prices on plaster, neat or sanded, were
withdrawn at the weekend and advances
Of 81 and 70 cents in both classfications
were reported. Plate glass prices show
a discount running from S. TO 6s per cent
or official lists, plaster board moved up
= cent and second hand brick costs Sls
n truck load OF 5000 delivered below Forty
second street and s54 above 10th street.