The New York herald., 1921-01-02
Secretary. The d

Too many adverse factors stand in the
way Of building construction enterprises
this year to warrant the expectation of
anything like boom times. The year
1890 has had few. If any, counterparts-
It was rioh In promise, but poor In ex-
ecution. 1t closed with new construc-
ton stagnated almost to the point of
complete estoppage. but with wealth
Of alteration and remodelling work un-
der way and in contemplation.
In the commercial department of the
market there were evidences that the
great scarcity of space was waning.
More lofts and offices are placarded Tor
rent now than there were even six
months ago, indicating in part the effect
Of the depression in certain lines OF
mercantile activities.
If there is to be any building activity
worthy of the name in 1921 it is be-
coming quite apparent that it will be
along the line Of housing rather than
in Industrial and commercial develop
ments.
The reason for this conclusion seems
to centre in the hope that out of the in
vestigation into building constructions
here there will develop sound and prac-
ticable laws that will make housing en-
terprises attractive to the investor. Ger
tainly there is no ground for hoping
that the Legislature will be moved to
enact laws to encourage commercial or
Industrial building construction, which
has had the right of way in this COM
munity ever since the rent laws were
placed upon the statute books and,
which by the way, marked the turning
point of building activity in 1920.
Effect of Business Depression.
Neither is there any cause for antici-
pating marked development in CAM
mercial or industrial construction SO
long as the business situation remains
as it is. Commercial and industrial ex-
pansion is to be expected only when
there is rate Of exchange that will
permit the revival of imports and ex-
ports and such turn does not appear
to be approaching at this time with any
degree of encouragement to commerce
or industry to expand either plant,
warehouse or executive offices.
A glance over building records current
In 1918. 1919 and 1920 shows sequence
in character Of building enterprises that
points almost conclusively to a revival
of housing construction. Immediately
preceding and following the signing cf
the Srnistice factory expansion was in
preHonderance. Then came deluge of
public garage enterprises mingled plen-
tifully with theatre developments, car
rying well into the latter part of 1919.
AS these types Of construction lost their
prestige there came a run of banking
house developments, and with them
came forth number of office building
projects which marked the passage of
the months early in 1920. Toward the
middle of that year tremendous num-
Der of alteration projects came to light
when residential structures were va
Gated and turned into showrooms, Of
fices and stores.
Labor difficulties had no small part in
bringing about these various phases in
the building industry. The entire in
dustry. moved possibly by a feeling that
II was vital to all concerned to protect
themselves against various abuses that
had their cultivation for the most part
in the exigencies Of war times, came
into the year 1920 with complete reali-
zation that Il was overorganizcd.
New Laws May Postpone Building.
II the New York State Legislature or
the Congress of the United States at
tempts to assemble the diswrought me-
chanism of the New York or national
building industry by law and expect it
to function Immediately In a perfect
manner there is going to be a continued
postponement of building construction
beyond 1921. That is why there are too
many diverse factors standing in the
way of the building industry to warrant
any expectations of boom times for at
least a year.
One can conjure up memories of the
enactment OF the Sherman Antitrust
law and recall the long wait before the
United States Supreme Court finally
handed down a decision that even TO-
day is subject to many interpretations
by business men and even lawyers Of
national prominence. III. as common
gossip asserts. out of the Lockwood in
vestigation in New York there is created
a State board clothed with authority
similar to that of the Public Service
Commission to wise all trade agreements
between employer and employee, to re-
quire the fling of all private contracts
and their final approval has to be OBJ
tanned before building can proceed, the
law is sure to be subjected to lengthy
test in the courts.
The outstanding thought i'm the mind
Of the investor with relation to building
construction. whether for housing or any
other purpose. Is the course that the
price of building materials will take.
Cost OF construction is sure to drop. This
does not mean that the wage scales OF
laborers will be Immediately lowered. 1t