New-York tribune., 1920-03-14
Flivver Gets in Way Of
Country's Home Builders
Automobile Makers Attracting Labor and Capital
From Fields ON Which Home Construction Is De-
pendent; Less Luxury Urged as Aid to Housing

In report just rendered to the ad-
viso1y council Of real estate interests
BY franklin T. Miller, chairman of its
reconstruction committee, there are
several spotlights on the housing stu
alton, which bring into clearer relief
some of the actual causes of this stu
alton, and which also point to one Of
the ways out Of it.
zone of the causes Of the continued
housing shortage in the United States
is that the people are vi Pc to pay
more for labor, material ID capital
when delivered to them ii lie form of
luxuries than when delivered to them
in the form of housing and necessi-
ties" Mr.. Miller says. "The alloca-
through public demand seems to be
quite as effective as the ALLEGATION Of
labor, material and capital by the gov
ernment to the needs Of war.
"The public will naturally turn to
the state to limit the returns from
buildings and thus will limit its own
supply while bidding against itself for
housing and the necessary elements
to create houses and if no financial re-
verse occurs in the meantime to bring
about an understanding of fundamen-
tails, the public is likely to ask the
government to engage directly in the
housing business, for the housing
shortage. now existing is already reach
ing q condition Of famine throughout
the country. Any further industrial
development in the United States will
require about four or five thousand.
dollars spent for housing to each one
thousand for factory construction. We
must have more housing facilities if
we have immigration.
Luxury the Great Drain
I'm Chicago last week there was
forc1bly presented an instance of al
location to the automobile industry.
The building commissioner Of Chicago
reported that agents of the automobile
companies were in touch with plate
glass insurance people and we're getting
broken plate-glass windows and that
they were buying abandoned mirrors
from barrooms and that the automobile
people had also bought two large plate
glass plants. This condition of affairs
has made plate-glass almost unobtain-
able for the building industry.
THE demand for sheet steel by the
automobile industry has been so great
that it has handicapped expanded metal
AotA Ouo1ACcS dAu tuo price OIL WOOQ
lath has gone up from $3.50 to $23.
It Is said that almost the entire years
available supply of six-inch pipe has
already been bought by the automobile
industry. Labor, which formerly worked
IN the cement quarries in Bay City,
Mich, In the summer and in the lumber
camps in the winter, has gone to the
automobile industry in Detroit. One
automobile concern alone. is handling
ten cars "a day of freightfnt Chicago,
while the building industry cannot get
lngs partly constructed. Sand in Chi
cago has gone up from 81 to SIS a yard.
Capital for Unnecessary Undertakings
zone automobile concern alone has
100000, 900 worth of building construc-
tion on hand. and while not deferred
by the cost Of construction has been
obliged to abandon part Of its pro-
gram. because 1t was found that one
Of its projects was drawing labor.
material and capital from the other.
''As has been shown, the composite
Index figure on building materials has
gone up "a points during the last wear.
which Is an Increase equal to the in
crease during the entire five years Of
the war. From basis of 100 at the
beginning OF the war 1t increased to
81 per cent above pre-war levels In No
vember, 1918, remaining at that level
until March, 1919, and it now stands at
1oS per cent above pre-war levels.
"While this Is likely to fall in avn
Pathy with any reaction in general
business and the cessation of the pur-
chase OF Injuries, it is unreasonable to
expect that it will fail below the. level
OF last March, particularly if freight
rates are to be increased. It la re-
ported that In order to paw 6N per
cent on the capitalization Of the rail
roads freight rates will have to be al
most doubled. Freight on building ma
tef1als has already been increased so
per cent, and If it is nows doubled the
construction industry will be comne,iaJ
to pay VS. for freight compared with 81
winch 1T paid In June. 1918, and this
Will be very large factor in keeping
up the price Of building materials
'ohn l.. Parish, secretary of the ad-
visory council, said that "the only cure
for the housing situation is more hous-
ing. This can and will be supplied
only when money can be obtained for
construction, and while the Fed
eral and state income taxes continue
to be enforced such money will not be
supplied.
"As the supply Of housing is
Inevitably rents must continue to
advance under this condition. 1t
ought to be apparent to every man
who pays rent that these tax laws are
operating, SO far as housing is con-
csrnsd, strictly and only In the inter
ssts Of tho prohteer In rents, and this
condition must continue until the, Law
Il amsndsd.
.sxhe aasvsnsnA te ssa tho mortgage