The New York herald., 1920-12-06
BUILDING MATERIAL
AT BOTTOM PRICES
Not Likely to Go Much Lower
Say Dow Reports-Latest
Real Estate News.

Building material purchasing on a
spot basis is now in a buyers market.
according to the current Dow Service
Building Reports. The purchaser ofrer-
ing attractive business may expect con-
cessions on price and on delivery II 1t
does not run beyond the first or Feb
ruary or March. depending upon the
commodities desired. If, however. the
inquiry concerns prices or deliveries be-
yond March or April l, sellers market
conditions begin to appear and there is
no great aggressive effort TO heNk large
orders with specified delivery dates.
Building investment interests have ex-
pressed surprise at such condition and
charge It to some sort Of an agreement
TO curtail production in order to keep
prices OF building materials high. II 1t
can be called "collusion" 1t is that sort
OF concert OF opinion that arises from a
feeling of resentment against condi-
ton that places a heavy Federal tax
upon stocks or Inventories In anticipa-
ton of the market requirements of the
immediate future. This applies Just as
clearly and definitely to the dealer car
rying large stocks as 1t does to the
manufacturer of materials carrying re-
serve supplies on a speculative venture
that would make him prepare for any
purchasing eventuality.
The result OF this condition is certain
to put the people Of the country who
want to build homes. factories or institu-
tional building exactly in the same po-
sition that they were in Immediately fol-
lowing the signing of the ar1nistice--
namely, a state where each individual
was forced to bid against his neighbor
as we'll as himself for what little build
ing material supply there was available.
Such a condition Is defined by the
word stampede, and to those who are at
all familiar with the problems confront
ing the manufacturers and distributors
OF building materials in nearly all Sec
tions OF the country it is apparent even
now that outside of some sectional liqui-
dation on the part of holders of large
quantities of building supplies at dis
tributing points the price market is
already at normal spring strength.
The trend of nearly all current manu-
featuring and distributing trade letters
points to the fact that the bottom price
levels in building materials, equipments
and supplies have been reached. Some
few dealers like lumber men, for ex-
ample who are anxious to deplete their
inventories before the first of the year,
when the tax period Closes are making
concessions in certain lines only.
In the lumber market, where price
cuts have been more noticeable than in
some other departments. certain items
have advanced. Spruce and yellow pine
have stood fairly firm. while white pine
has actually advanced. Flooring material
has dropped far, because 1t advanced
far. but there is now practically no diff
ference between cost and selling price Of
oak flooring.
According to one of the recognized
authorities on this subject this COM
modify cannot go lower unless the oak
flooring manufacturer is willing to ac-
cept much greater loss and unless oak
lumber in the grades he uses can be
bought at lower price or his labor cost
drops. In the absence of such factors
many mills have closed rather than cut
their market prices further. Oak floor
ing is not made from waste, but Is made
from lumber. and lumber production is
at probably its lowest production level.
The only department in the building
material market that Is overstocked is
linseed oil. Steel has settled down to
price stability and other pasic materials
are steadying.