New-York tribune., 1920-07-05
Lower Lumber
Cost Cheering
To Builders
Present Material Prices.
However, Expected to Go
Higher Through Tie-Up
i" Making Deliveries
Brick Supply Is Plentiful
But Local Market Is Still
Short of Substance to
Go With the Laying of 1t

frlce shrinkages in certain whole
sale lumber groups put new hope in
many minds last week that lower build
ing costs at last were near at hand.
according to the Dow Service Daily
Building Reports
Fundamentally there is nothing in
the entire basic building material or
supply market that warrants anything
but further price advances. Although
building construction is practically
still to-day awaiting the arrival of long
overdue building materials, there is no
sign of general price slump. On the
contrary. the tie-up of deliveries is
slowly but certainly forcing autumn
and spring building material prices up
ward. even in lumber. which has re
Gently shown some recession on certain
lines.
Reason for Higher Cost
The reason for the higher building
costs between September and at least
May of next year is that just as soon
as the materials al the mills can be
shipped with any degree Of regularity
TO the consuming centers of the coun-
try there viii develop the long ex-
pectcd stampede for building commodi-
ties. Demand always controls price
and wnen supply is limited price goes
up. There is, to be sure. some over
supply at the mill centers to- day when
II IS compared with what was on hand
at this time last year. but let the chan
nels OF outgo permanently reopen and
these stocks will melt almost within a
fortnight or two and bare kilns viii be
the rule once more.
Manufacturers know that the poten-
tlal construction malnet Is far beyono
their present abilities to supply. Con-
tractors know it. also That is WHY
forward ordering, subject to price at
time Of deliver. is so much greater
than manufacturers are willing to ac-
cept under present conditione In
structions TO sales forces in many de
partments. even including lumber.
read Before quoting to new Gus
toners or old. write or wire for GUY
quotations" which is the keynote of a
letter sent to the salesmanagers Of
one OF the largest cement companies
last week
Many Of the asking prices quoted in
the building material market to-day
arc not actual sales levels They are
purposely prohibitivc quotations sim
their agents do not want any mora
business under the conditions Of
transportation. fuel supply, etc. that
now prevail When ordinary domestic
oak flooring. for example is quoted to
the consumer at the same price that
Philippine mahogany is quoted. he be
gins to obtain fair idea of the full
penalty that the prospective home
builder Of 1921 and 1922 will be forced
TO nay rs the price of Indifference Of
authorities TO the fuel and transporta-
ton needs Of the building industry of
1920.
Brick is fairly plentiful. but there is
no material in this market with which
to lay it, and from week TO week there
seems to be less relief in sight Sand
and gravel are also plentiful. but rein
forcement and cement is slack on sup
ply and the market wanes and waits
Artificial Causes for Drop
The price drops in lumber are dis
t.nctly due to artificial causes. They
cannot continue. because the mills have
been forced to close. Probably half
The lumber mills are operating on re-
duced schedules. Maybe third are
closed entirely. Out OF sixty mills rep
resented by one company fifteen are
closed and the remainder are operating
on fifty hour week basis. instead of
nlGnt ana day .hifts seven days a Weel;.
Competent authorities say that lum
Der price peaks were reached three
months ago, that the valley OF price
reductions was reached last week and
that from now on prices will begin to
climb. o. at least remain stable for a
while, or until the actual building
movement again gets under way The
cutting was due to wholesalers being
caught short in the face Of credit cur
railments They have since made some
adjustments. Hard woods have not had
so big a drop, because hardwood sup
plies are becoming exhausted. but soft
woods. now beginning TO come from the
Pacific slope. Will be in supply for cen
turies. but at higher prices.
Price concessions. as far aS they
could be traced las, week. were en-
tirely for spot lumber business, but
takers were scarce. The tendency is
to prefer deliveries TO price shading
Deliveries are still impossible, and
price shading occurs only where in
ferior material is to be cleared. On
the nominal lists now quoted there was
not single price chanrc shown al the
week end. The experienced trade knows
that the price peak for general build
ing materials has not yet been reached
1t only awaits the arrival Of material.
Sugar Embargo in HEeHico