The Washington herald., 1921-05-13
HOUSING CRISIS DISCUSSED
AT ARCHITECTS INSTITUTE
Secretary Hoover Says Government Offers
Indirect Aid by Cooperation.
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these matters. Voluntary action
will be far more effective. In mat
ters of readjustment of the eco
nomic levels, local community ac-
tion will have a much larger value
In securing a restoration OF con-
fidence in this industry, and aside
from giving inspiration to such ac-
tion, / do not consider the Federal
government has any place.
such movements. through local
conferences with the different
branches of the construction in
dustry-material. labor, contractors,
together with bankers and other
civic, bodies representing the con-
sumer-have already been started
by the National Federation of Con-
struction Industries. These efforts
should be Initiated and assisted in
every town. They do not only raise
moral standards but also secure
helpful economic action by such
community movements.
Prompt and clear-sighted public
service of this character may con-
tribute materially to relivening the
lhC VI ouCs
and to the amelioration OF suffering
arising from the present condition.
The recent declaration of the repro
sentatives of organized labor in
these trades Of a movement to es-
tablish joint adjustment boards in
various communities Is q ster in
the right direction.
Your association could do much
to bring all these elements to-
gether in constructive solution OF
many problems. am, however,
convinced that such efforts will be
futile IL attempted on other than
purely local basis. Attempts to set
tie wages or conditions of labor on
national basis tend in a direc-
ton disastrous alike to both labor
and industry.
End Price Conspiracies.
The conspiracies to maintain
prices and corrupt bargains with
labor can be eliminated by con-
tinuous vigorous action of the au-
,horities. There will be no restora-
ton of confidence in the industry
until this is accomplished. A great
ma ajority of the manufacturing. dis
tributing. and assembling trades and
workers are not in any manner par
Elephants in wrong-doing and are
indeed suffering from the actions of
4 small minority in the industry.
There are some directions in
which the Federal government can
be of assistance in the problem. The
excess profits tax creates specula-
tion and waste, blockades free deal
ing in property. and the higher
ranges of the income tax drives cap
itial out of building investment be-
cause of our national failure to
secure income taxation OF State, mu-
nicipal, and national securities.
There are certain diversions of
investment capital from building
loan and mortgage purposes. that 1
believe could be mitigated by
amendment to the banking laws.
The national banks should be given
greater freedom to apply their saw
ings accounts to mortgage purposes.
The savings accounts of the coun-
try are its fixed capital. and should
be applied to fixed investment, not
to commercial purposes. There could
also be a larger application of in
surance money to mortgage pur-
poses.
Would Reduce Waste.
The more particular direction in
which 1t is the purpose of the De-
partment of Commerce to exert it.
Self in cooperation with the indus
try and its professional advisers is
in the reduction of waste and the
increase of stability in operations.
II Is only by steady and persistent
drive to the increase of industrial
efficiency in the national sense tina:
We can hope for steady Improvement
in the comfort of our people.
One phase that requires exhaus-
tive study is the intermittent opera
ton Of the industry. In my view. it
Is the definite point where the
greatest waste finds its roots and is
the largest element of high costs
affecting both labor and material.
l believe that any study will show
that the average employment of
labor in these industries is not over
65 per cent of their possible time
One of the reasons for the constant
drive for higher hourly wages is to
maintain an adequate annual in
come and to offset the loss due to
intermittent occupation-and labor
ieSei Hds contributed 10 lntermlt-
tency by its rules.
Our equipment capacity for pro-
duction of building materials is
probably 80 per cent higher than
is necessary for it, IL we could se-
cure nearly an average demand.
For instance. our lumber mills have
capacity of above $4,000, 900 900
to $4,000. 100000 board feet. yet the
annual production is but from 3d.
0oo.oo0,000 to 10000. zoo. 900 board
feet. The annual capacity of our
cement mills is above 10000, 900
barrels, but the annual production
runs from 100000 to 100000. 900
barrels. The annual capacity of
our brick plants is about 5000. 0.0o0.-
900 bricks: the annual production
is from ?,500.000.0o0 to 1000. 100000.
Their are periods when the produc-
tion OF many building materials Is
actually suspended, just as is laoor
suspended on construction work.
IF We examine the intermitten-
cies We find that they fall into three
general classes: First, seasonal and
weather Interruptions; second.
strikes and jurisdictional quarrels;
third, inability of transportation to