New-York tribune., 1920-10-04
Declare No Time Should Be
Lost in Starting Far
Reaching Inquiry for
Good of the Industry
Ask Probe on Labor
Hearing Should Take In
All Factors Entering Into
Construction, They Say

y
building material interests, supplying
the construction markets of the At
lantlc seaboard, instead of waiting in
tear OF possible investigation of the
industry are actually courtine it by
preparing to demand that if such an in
Vestlgatlon does occur, all factors con-
trloCtlng to construction cost, includ-
ing isoor, be as vigorously probed, ac-
cording to The Dow Service Daily
Building Reports.
lndulgent smiles accompany the re-
plles to queries made in the trade at
the weekend regarding the effect the
threatened inquiry into the causes of
present construction costs will have
upon the price situation of basic COM
modltles during the forthcoming year
Certainly nothing like a market col
lapse is discernible with the supply
situation oversod from two to six
months. Orders for common brick are
beng taken under non-cancelling con-
tracts at prices far beyond the present
open market levels.
Boiler manufacturers, rs rule, can
not accept business for deliveries prior
to the spring Of next year The largest
single purchaser of electrical conduit
in the world is even now millions of
feet behind its present requirements,
cement is only in ten days national
supply with the railroads and highway
building requirements yet to be ac-
counted for. Glass manufacturers
probably will not exceed so per cent of
normal production, and so on down the
entire list of building construction
commodities.
Will Welcome Investigation
"They talk of putting some building
material men in Jail within ninety
days" said one we'll informed man.
Let them have thirty additional days
to make complete the investigation,
and then, if they fail to accomplish
what is promised, let full responsible
ity rest upon those making such q
statement"
Such an investigation will be found
to be generally Welcomed by the en-
tire building material and equipment
industry If the building public has
been led to believe there are combina,
tlons in restraint of trade or the arti
1iclal manipulation of prices, the quick
er the charges are proved or disproved
the better it will be for the industry
as a whole and for the peace of mind
Of the prospective builder.
But as the situation now stands no
manufacturer can proceed with his
production schedule to provide for the
building material and equipment needs
OF this or any other market next year
The general inclination is to play safe,
close down one department after an
other and wait. Credits are too TIGHT
to warrant indiscriminate manufacture
of building materials only to be car
rled as stock for an indefinite period.
prospective wage advances to building
trade artisans is too great factor for
making or breaking the building con-
structlon movement of the Immediate
future to justify the building material
producer in taking such chances.
Difficulty in Selling Money
Recent financial distress of brick
making interests supplying this market
snow how extensive the so-called price
manipulation has been for the benefit
OF the elay products producer. Price
reductions recently reported have had
no more to do with the threatened in
vestigation of the Hudson River CLAW
products industry than it has had in
reducing the price of automobiles. The
price reductlons have come about be-
cause the market has been flooded with
anything but the best product that tba
brick plants have been able to pro
duce, not through choice, but because
lhe Federai government deprived the
INDUSTRY of coal when fuel for burnine
prlck was most needed, during the sum.
mer of 1913. The manufacturers wnre
forced to burn the frost bitten green
brlck IN winter time. an almost unu-
precedented course for the open-vard
plants OF the Hudson River district TO
follow. Costs of manufacture for this
years make of brick are not vet known
neither will they be known until the
end OF this year, which will again be-
marked by wasteful and expensive win
Ter burning. Towing costs advanced
~ per cent on September ID.
The influence of the freight rates
recently advanced is not Yet fully
IN effect in some Of the basic building
material markets. Lime, for instance.
IN barrels advanced from 40 to AZ
cents barrel at the close of the weeks
market, but the dealers. following the
pian that they have been adopting for
long 'lme, are absorbing some of
TINS added cost and are making their
advance only 40 cents a barrel Lin
SEED OIL has droped to S1.23 a gallon. a
decllne OF cents, and turpentine 90
per cent, due entirely to trade causes.
bulidlng material dealers are carrvinc
even now from SIS to $50 car in ex.
ira freight rates, with other items ia
De reported as the year progresses.
Housing Movement Under Way
A slight Improvement in the volume
OF contracts awarded for buildino onor-
atoms ranging from $4,000 to 500 OO0
over the last two weeks, showing a gain
OF approximately 33 per cent for This
type OF construction, may be interpre-
ted to marx the start of housing move
ment.
Price cuts that 10 not emanate from
ovefsupply are sure - have disturb
ing reaction. There is no condition of
oversupply anywhere in any section
Of the building material market. Con
structiSn is eighteen months behind
its schedule even now. without con-
templating the housing movement or
railroad requirements at all Price
cuts because of liquidation, as those
occurring lii the building material in
dustry in spots are clearly traceable
20, fail to echo abnormal profits in the
past. They presage, on the other hand
firmer price levels when the demand
reaches stampede proportions unless
conditions are favorable to manufac-
turers to anticipate the public's needs
which they ;Se not now able to do.
Old Central Market Property