New-York tribune., 1920-08-02
Builders Hold
Back Orders
For Materials
Action Taken, Ii Is Be-
lieved, in Hope That 1t
Will Help Bring Down
the Cost of Supplies
Construction Centers
Below 59th Street
The Little Activity Now
Going On Is in Improve
ments in This Section

Marked slackening in demand for
nearly all the basic building materials
is arousing conflicting thoughts and
expectations in the minds of prosuec-
tive builders, says "The Dow Service
Daily Building Reports"
Taking the source of orders ,o /.
ing received by such building materia,
market harometers as window vlsss
brick, cement, lime, plaster. roosne
materials and structural steel i =
noticeable that as compared with what
may be called normal building con-
structicn markets, such as for =,
stance in 1912, the volume of building
material requirements has sw;tcbea
almost entirely from the territory
above Fifty-ninth Street to points be-
low that dividing line. This factor
alone shows the genuineness of the
present tendency away from apartment
and tenement house construction in
favor Of Office buildings, loft structures
and hotels. both new and alterations.
and extensions, and theaters.
Ai.eAe Is, perhaps, no better guide
10 'ne true character of the pending
oullolng construction movement than
is that of the wholesale or iobhinr
window glass department. Here the
demand has been lessenng almost CON
tlnuously during the last three or four
weeks with practically the preponder-
ance OF estimates being figured for
commercial building construction. most
Of which, by the way, is on work that
has long been projected, often even as
long ago as the early part of the war
years, but which are just now coming
into active operation.
Causes for Holding Back
Under ordinary conditions general
slackening of demand would presage
lowering Of prices, and upon this theory
many prospective builders are defer
ring current projects. Others believe
that IN protest against the increasing
cost Of building materials they will in
definitely postpone building operations
These TWO thoughts are responsible for
tightening the volume of new construc-
tion projects here and elsewhere. But
counterbalancing this policy is the
more insiStent and farsighted one re-
Gently adopted by big building in
terests, mostly for commercial prof.
ects, wherein, after studying produc-
ton conditions at building material
manufacturing centers, they have come
Into the market with premium offer
lngs for all the material they can get
price being a secondary consideration.
Therefore, in the face of lessening
demand, the actual price quotations on
building materials are moving up The
answer to this enigmatic situation is
different according to the department
scrutinlzed. In glass If is because re-
SUMPTION of manufacture will not take
place until the middle of next month.
In cement il is because production has
ceased in many locations because coal
has been advanced in price so that
notices last week were issued to
cement manufacturers in the Lehigh
Valley, which supplies this market,
that heavy advances in rates for power
would become effective with August
accounts. Brick manufacturers are
turning out as much as they can with
the, available labor supply, but they
will not be able to make their market
price for this years production until
they get through buying coal at fancy
premium prices. Prices are now being
quoted on last years brick. Of the
eountry's 10000. 900 900 feet of lumber
annually cut 2SO00.O00 900 feet go into
home building construction, but prices
have advanced 800 per cent over those
Of 1914 and the top has not yet been
reached and will not be until the hous-
ing demand can be accurately meas
ured by actual orders. Buying now is
on speculation, in anticipation of de-