The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-23
$5OO,OOO,OOO Loss
IN BUILDING WAGES
Waste Is Blamed in Report
Of Engineering Council
on Years Survey.
UNION RULES SCORED
Unemployment and Re-
duced Output Charged to
Labor Regulations.
EMPLOYERS CRITICISED
EMPLOYERS CRITICISED
Growing Willingness to Coop
crate Is Found-H00ver
Body Offers Suggestions.


Half billion dollars year in wages
is being lost in the building industry
through unemployment. That Is one
of the findings of the report made
public yesterday by the committee on
elimination of waste in industry OF
the American Engineering Council
The inquiry was started by Herbert
Hoover while he was president Of the
council, an Office he resigned to enter
President Harding's Cabinet.
Waste, the report says, is causing
huge losses in building, an industry
ranking second in volume and con-
tributing to the national wealth nor
maIly more than $4,000, 100000 yearly
The chief sources of waste are emu
merated as irregular employment, in
efficient management and wasteful la
Dor reg llations. Customs or condi-
tons prevailing throughout the in
dustry and poorly designed equipment
are named as secondary causes. The
annual economic loss due to accidents
is estimated as high as 100000, 600
Application of safety methods, it Is
stated would save to the industry
100000 days year.
The report reaff1rms the story Of ar
acute shortage of housing with .prohibi-
tive costs alike to householder and
banker. but improvement in production
is noted. Many union rules are con-
demned as absolutely wrong, but both
employers and employees are blamed
for restriction Of output.
Losses Through Union Rules.
Active in conducting the committee's
Investigations, which were country
wide, were J. Parke Claiming of New
York, l.. w. Wallace of Washington and
Sanford e. Thompson of Boston. who
directed large force of field workers.
The building trade workman, asserts
the report, is busy on the average only
about 1870 days in the year. or two
thirds of his time. but few contractors
are attacking this problem with effect
I've results. Apart from seasonal de-
mand, strikes and lockouts are ap.
probable causes of this idleness. "Unior
regulations have produced enormous
losses through direct or indirect restric-
ton of output. Workmen and con-
tractors. however. are beginning to APP
prcciate that reduced output reacts II
tremendous fashion upon themselves
The total shortage of housing In 1921
It is found amounts to SO per cent. OF
the total square footage (called the rea
measure Of value) constructed in 1915
"To this percentage must be added" the
report continues ''if we consider the
footage construction of 1915 equal &c
the requirements of that year, IN pei
cent. which represents the increment
required to cover the increase in popu.
lation. The need for building is most
evident. The costs are so high. however
that the householder cannot afford tc
buy. nor can the banker loan money
because OF the danger OF loss through
the inevitable fall in prices"
After touching upon wartime wages
and excessive demand. the report says:
with the depression in business and
the lessened demand for all kinds OF
labor. the average production in all
Industries is again approaching normal.
Certain contractors are again basing
estimates on the assumption that labor
IL normally efficient. The improve
ment Is due in part to the wedding out
OF the misfits in both labor and man.
agement."
Waste and Ineflciency.
The report bames inefficient man.
agement for failure to furnish con-
tunity of employment; failure to plan
work in sufficient detail: lack OF proper
schedules to allow proper coordination;
lack of standards and adequate cost
methods as a means of checking pro-
duction; high labor turnover; failure
TO use proper amount or type of equip
ment, and waste of material through
careless handling and improper plant
operations.
Wasteful labor regulations, accord
ing TO the report. include requiring
skilled men to do work that could be
performed by unsxilled men, restrict
ing individual incentive through re-
curing uniform wages, limiting the
number of apprentices, excessive re-
duction of working hours. restricting
output by prohibiting the use OF labor
saving devices, and jurisdictional regu-
lations.
General failure OF the building in
dustry as a whole to develop and use
greater amount of mechanical equip
ment is an established fact" the re-
port says. Greater strides have been
made in almost every other industry In
the application OF mechanical means.
Union objection 20 labor saving devices
Is wrong in principle and will be rele-
gated to the past, as will restriction OF
output"
Despite the restrictive force OF many
OF the union regulations. says the re-
port. there is growing evidence OF will
ingness to cooperate. Philadelphia and
San Francisco are cited as cities In
which cooperation Is evidenced. In
Cleveland cooperation I'm tile setting. II
Is said, was hindered by employers. Co
operation in the needle trades in Mon
treal Is suggested as an example Tor the
building trades to follow.
The report. which says that both Fed
cral and State records were found sadly
lacking In quantity. kind and accuracy.
concludes: The most encouraging fea-
ture IN the building industry to-day is
the action OF few OF the builders and
few groups OF building trades work.
men In making intensive studies OF the
causes OF and the remedies for irregular
employment and haphazard conditions
of work. Along with this Is the growing
appreciation on the part OF both labor
and management that to build more
buildings and maintain high wages IL Is
necessary to attain greater and greater
productive capacity per man"
committeeman who signed the report
are ]. Parke Claiming, New York. chair
man: l.. W. Wallace. Washington l..
y. Afford. New York; George d. Bah
cock. Peoria: It. @. Coburn and Morris
u. Cooke both OF Philadelphia Harring-
ton Emerson. New York Ira n. Hollis.
Worcester. Mass. T.. Il. Hunt. New
York; c. 70. Knoeppel. New York; Rob-