The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-03-24
WHY BUILDING LAGs.

All efforts to inaugurate a building
program commensurate with the
needs of the country. SO far have
been far short of satisfactory Attic
there have been reductions in the
price of many building materials, high
wage rates and working rules which
make economical employment of Ia
Dor impossible, together with high
freight rates, have prevented mate
rial lowering of construction costs.
AS a result building has been re-
stricted almost entirely to absolutely
necessary work.
The +. w. Dodge Company's re-
view of building and construction ac-
tivity during February estimates new
contracts awarded in tie states north
of the Ohio and east of the Missouri
at $100,789,0 900 as compared with con-
tracts for $216,663,0o0 awarded in
February, 1920. There is a potential
demand which will make itself felt as
soon as ana not until costs of labor
and material are lowered to what the
public regards as reasonable. Mean
while, the disincliuation of labor TO
accept lower wage rates and failure
of the railroad to reduce freight
rates will continue to restrict new
housing, thus directly preventing a
reduction in rent which. next to food,
is the largest single item of the work
ingmen's living expenses.
1t Is estimated that the average cost
OF building has been reduced about
one-third. as compared with last year.
which of course offers some induce
ment for new construction work. 1t
Is not enough, however, to encourage
a real building boom this season.
In the opinion of those who have
made a careful study If the situation.
What is needed, it is claimed. is a
reasonable reduction in the prices Of
other materials. to compare with the
reduction of lumber prices. and a
moderate cut in wages, which repre-
sent from one-third to one-half OF
building costs. In a few isolated in
stances wages have been reduced an
proximately 20 per cent, but workers
are inclined strongly to resist this
movement. altho apparently it would
mean more work for them and moro
pay in the long run.
But what is needed more than any,
thing else is lower freight rates on
building material. 1t is pointed out by
the Iron Trade Review that the total
freight charges on a ton of steel bars,
plates or shapes at primary points of
manufacture today are about $12.5O-
AT New York city, with a freight rate
from Pittsburgh OF 3s cents per 100
pounds, $3.50 would be added, MAX
ing a total of $20.1O a ton. Plain
material now is selling In quantities
at prices equivalent to $40 to SAP a
net ton, I. o. b. Pittsburgh. The total
accumulation of freight charges on
this material. therefore, would con-
stitute 40 to AZ per cent of the total
cost delivered in New York. Else
where percentages would work out as
Follows: Cleveland "a to SO, Buffalo
81 to SO, Boston Al to 43, Chicago 40
to AZ, etc. And even where the steel
Is shipped from mills nearer to desti- |
nation than Pittsburgh these percent
age figures would not be materially
changed. due to the fact that the cost
or assembling raw materials at such
plants is proportionately larger.
In the price of such an important |
building material as lumber the
freight element in lumber cost at |
such points as Utica, N. Y, and Pitts
burgh, easily averages SO per cent. |
At Utica, for instance, Southern pine
cost carries about so per cent freight |
charges. Cement, brick, stone. and |
sand. while carried shorter distances.
show a lower proportion of freight |
cost but. inasmuch as most of these
freight costs are based on local
charges which are much higher per
ton mile than longer hauls. the trans
portation charges average from 80 to
so per cent of the delivered prices on
these commodities at consuming CEN
ters.