New-York tribune., 1920-02-09
Unite in Fight
Against Higher
Material Costs
Dealers and Manufacture
ers Seek to Prevent a
Further Increase i'm the
Cost of Construction

Cost of Construction
Resumption Seems Near
Late Reports of Work Be-
ginning ON New Buildings
Reveal Unusual Activity
Dealers and manufacturers of build
ing materials and. equipment have be-
come so decided a unit in protest
against further general building ma
terdal price and construction cost in
creases that owners and architects are
rellnqulsnlng construction projects
that In the recent past have been put
aside Indefinitely pending more stable
cost CO... condltlons, according to "The Dow
day.
There are several ways for gauging
this change. One is by the volume Of
materials that have moved out Of
building material dealers yards in this
city and vicinity to go into actual con-
struction work. The difference he
tween January 1919 and January 1920
in the volume of business handled by
dealers in New York is more than $40
per cent in the aggregate. The differ
ence between the totals reported for
last summer and December is nearly
400 per cent. January reports are not
yet compiled, but the percentage is
likely to be record-breaking for this
time of the year.. and February,
although temporarily handicapped in
" e+4
doubtless will head the list for activ-
ity.
Reports Indicate Activity
Current reports of new building work
starting reveal unusual activity. There
has been a tendency to take bids on
projected new work and then defer
the work pending decision on the part
Of the owner regarding the flow of
prices. 1t is dangerous now to defer
projected buildings, because delivery
and manufacturing conditions have
heretofore affected prices. Orders
have been booked for building mate
rials and supplies at almost any price
to, get them placed, in the general be-
lief that the consumer will be willing
to pay. But the day dawned several
months ago when the prospective
builder made it evident that he could
iloI i,ot "oulu not pay price beyond
the bounds of good business policy
merely to proceed with building plans
Hence the heavy withdrawal of new
building and alteration projects in Oc-
toDer, November, December and almost
all OF January.
Against Higher Material Cost
To-day, the condition is wholly diff
1erent. Here is the actual quota tion
OF a certain building material manu-
IactuTer, IN a trade letter sent to all
nus customers, dated January 81, the
hrm being among the largest Of its
KIND, doing national business.
present prices are entirely too high
We advise, for the present, against
purchasing products unless re-
CURED for Immediate use in actual con-
struction work. Don't try to cover you,
future requirements. Prices are sure
to come down if the trade will heec
this note of warning. The time has
arrived to apply the brakes"
Various building material associa
tlons are circularizing their trades re-
garding. the danger line of buildine
material price imitation. The language
OF some of these trade letters says that
with the 1920 building season barely
a month away, the trade is already in
the danger zone, unless price imitation
can be stopped. Other letters point
out the fact that while there is a gen
ercus amount of vitality necessary con-
structlon work in project that will go
ahead regardless Of cost, the record
breaking potential construction market
that would bring prosperity for half q
decade or more, can be narrowed down
to titful construction era for wear
or eighteen months, wherein a few
big contractors and building material
supply firms would flourish, while the
general building material and con-
tracing industries would not be as well
OFT as they are to-day, which is only
slightly removed from the stress OF
war time.
Against Limitation of Market
The broadest sentiment in the East.
nouncedly against any limitation to the
building market of the future, and
or the first time in more than a gen
Grafton there is unanimity of thought
IN the building industry that seeks to
create market for the greatest good
for the greatest number rather than
to foster the sort of a market that
Will pander only to one certain trade
or interest or industry.
The underlying thought in.the East
ern building industry to-day is that
there easily can be sufficient business
for every one for the best part of ten
years if trade tempta tions can be fore
gone during the remaining of the re-
adjustment period, such as cornering
of supply, stampeding prices, boarding
against demand, curtailment Of produc-
ton and Sub" batting. 1t is toward
this point the building industry is
being drawn by dominant leaders, and
it has the Endorsement of financiers,
owners, architects, contractors, sub
contractors and the best balanced man
ufacturers.
There are some price changes cur
rent in the market this week. Window
glass discounts have shrunk another
point. There is an increase in the
price of expanded metal lath, probably
rejecting the dearth of wood lath, and
official listings are made in the cur
rent price bulletin Of the new prices
of hollow tile, which have been in eff
feet nominally in this market for some
time. These new quotations, reported
for the first time officially to-day, will
cover this freproofing material until
April 80, when, if conditions warrant
it, reaction may occur.