The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-04-04
LABOR is PIVOT IN
BUILDING SITUATION
Strike Menace Still Hampers
Construction Programme:
Late Realty News.

Expectant eyes in the building invest
ment market have turned from capital
to labor for its contribution to the re-
adjustment programme leading to the
solution of the building problem, ac-
cording to the current Dow Service
Daily Building Reports.
Soon after the strangulation Of the
building business by high construction
costs last autumn the demand came for
a lowering OF building material prices.
The official facts as gathered by the
Calder Senate Committee on Reconstruc-
ton and Industry show that building
material prices in the seven months
prior to February dropped rs points
from a peak in May. 1920, of 341, as
against SO points for general commodi-
ties from a peak in May. 1890. OF 272.
There was a further drop in February of
10 points in building materials. accord
ing to the Department of Labor. New
price reductions in Hudson common
brick. plaster boards. fire brick. metals.
flooring lumber and a change from 20
cents to 10 cents in empty cement bag
rebates are announced in the, current
weeks listing.
After building material prices began
to drop inquiring gaze was directed to-
ward the lending institutions and TO the
financial market in general. Slowly but
steadily a change was wrought in that
department. Financial houses began TO
listen more attentively to building con-
struction projects with especial bearing
upon habitation building OF various
kinds. Some OF tho lending institutions
have advertised their intention TO assist
building construction of this kind at at
tractive terms. Some to-day are even
soliciting by telephone building construc-
ton operators with the idea OF placing
loans.
Labor Last Contributing Facter.
When the change came in the finan-
cial market the building investors turned
to legislation to find out what IL would
do and the city passed the tax exenlp-
ton act applying to habitation construc-
ton and the State is flooded with relief
measures ranging from mortgage tax
exemption to the Governors plan to
change the usury laws applying to mort
gage interest rates to make the maxi
mum in stead OF the present per
cent.
Everywhere the prospective builder
has turned for encouragement to enter
the building market to help solve the
space shortage problem he has found
cooperation. Labor represents the last
contributing factor.
Building trades artisans are operat-
fixed by war time and post-bellum ex-
pediency and necessity. This is also
true of some Of the outlying sections.
There are talks of strikes IL any at
tempt is made to open existing agree
ments just as there were talks of strikes
during the period when cost of living
was advancing IL the agreements were
not summarily opened to provide for
| higher wages for artisans. A strike has
been scheduled to start among the tug
boat captains and brick barge crews be-
cause the brick manufacturers of the
Hudson River in an effort to bring the
cost of their product closer to the pros
pective builder announced u reduction
In wages for barge captains from $165
to S125.s On Saturday another strike
was scheduled to start among the brick
| handlers when q reduction of twenty
cents a thousand was taken from the
former wage Of 81. Strikes in these two
trades alone in other times have been
sufficient temporarily 10 cripple the
building industry seriously.
Labor Promises More Efficiency.
Labor's defence is that there is no
4 provision In certain existing agreements
/ for a revision downward of wage scales
\ in accompaniment with lowering cost
i or liV1nE. III contends tnat IL a rush OF
building should develop during the sec
ond half OF the year there would not
be skilled labor enough to go around
and that any adjustment downward
made now would avail the prospective
1 builder nothing II demand should put a
4 premium upon the services OF expert
| enced workmen. II promises. however.
\ greater industry and fuller days work.
\ citing the fact that bricklayers for
i merly laid 1900 TO 500 brick a day.
Y and although the average dropped to
4 around 900 under war conditions. the
1 average, they say. is now around LOO
! to 1900. IT Is contended that the pros
/ pective builder will gain more by this
\ sort OF cooperation on the part OF a well
4 paid workman than by a price reduc-
ton that will start condition OF COM
/ petition among contractors for the most
capable workmen with some sort OF
| premium pay arrangement
Speculative builders, who, in the final
| analysis, are the factors that make a
building market great or small. are
nevertheless holding back for labor to
| take a visible share of the reimbursement
programme. with the result that by June
l. when many Of the present day prob
lens VIII have been ironed out. there
/ VIII be decided rush for building ma
terial and equipment supply. In consc-
quence there has been considerable fu-
ture delivery buying and call purchases
| In some lines. not only from dealers but
from manufacturers Mt distant points.
ART SALES.