Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-02-17
WALTER r. BALllNGER
On the Building Situation

NOV is the time to start building opera
~ tions. in the opinion Of Walter +. Bal
lingcr, president Nof the Ba'lingcr Co.
architects and engineers. Mr.. l'nlIngcr'
who Is Il member Of the Engineers t'no'
the American Society Of Civil Engineers.
American Society Of Mechanical Engineers
and numerous other organizations. is op-
tmistic concerning the future. and declares
contractors arc so eager fOr business that
they will take on work almost at cost.
lie said:
Several of the difficulties which caused
the present building slump no longer exist
"Bulding activity ceased before the pres
ent business depression. The causes were
high prices and scarcity Of materials trans
portatiOn difficulties. ncCCSSitntinG tho use
of motortruckS parallcling railroad lines;
the steel and coal strikes OF year ago.
scarcity Of skilled mechanics and nll'd
unskilcd labor and local strikes causing loss
to contractors and making them unwilling
to give close flat price bids for construc-
tion work.
Contractors refused to take contracts,
cxccpt upon q cost plus basis. Owners
and investors were unwilling to proceed be-
yond their immediate needs without a guar
antccd cost This wns followed by unwill'
ngnNsS on the part of persons Lending
money to advance funds on real cstat"
mortgages, partly because of n fear OF de-
probation of values, but more often because
Of the low Yield Of per cent mortgage
Such Il mortgage. after paying four mills to
the state, and for persons having large in
comes 60 per cent return for income
tax. left net yield Of two and onc-SiXth
per cent to the holder.
Bonds Paid Better
"Invcstors, upon the other hand, could
buy tax free municipal bonds yielding .
ppr cent or taxable bonds Ht such bargain
rates as to yield $ or q per cent gross.
"The buyers strike and the general bust
ness depression which followed lessencd the
demand for building construction.
IAN Of the first named causes have been
eliminated. Steel mills and steel fnbricat-
ing shops are not busy, and orders can be
taken for early delivery at mill prices. Lum.
bcr prices have been reduced to very near
the cost OF production and are not likely
to get much lower.
"Whrrcn2. 4 year ago We paid as high as
$40 ton for steel trNSs"s. Fabricated and
erected in Philadelphia, last week We were
offered similar material. fabricated ana
erected, at SiOO.G0 Il ton, And we were
quoted $Sj per ton for steel erected in
place and painted for an entire steel skeleton
building,
This compares with similar steel at $50
n ton before the war or the lowest price OBJ
tunablc ten years ngO of S42 ton.
'Thc mill price 0f steel beams is now
SIG n ton and the difference il the cost Of
freight fubrirNtng. erecting and painting.
'ContractorS are now willing 90 submit
fat .nrcc bids. Labor schedules have not
as vet brcn rcduccd but the prOhuctvrnPSR
of labor has improved This ie due largely
10 the fact that the contractors can select
thcr men with more car" than formerly,
there being sufficient supply.
Money rates are becoming easier, but
have not yet reached attractive figures and
rnal estate mortgages are not yet attractive,
except to small investors IN small amounts.
n real estate mortgages on new cOnStruc.
tion could be exempt from taxation. build
ing work would begin almost Immediately
and would probably be so extensive az to
"muloy oil the idle freight cars, thus making
thc railroads. busy and giving an impetus to
nIl other business. nS the building bust
nrss is next to agriculture, the largest
husiuca4 in the country when the manufac-
turing. Quarrying and mining processes are
included,
''Of next importance is the 60 operation
of labor. InilderS are putting out pro-
uosaIs to lower wage schedules after NAV
/ This will not be sufficient remedy; in
met IL may havc the effect of driving out
nf thc building trades many Of the best
mechanics and thereby making building worl,
more expensive. The better scheme would
be- TO grade the building mechanics accord
Ing to their skill and productiveness, nay.
jng more than the union rates to compc-
vhat between their wages and those of
Iahorcrs for the second grade mechanics.
There is not Il sufficient number of me-
rhanirs to take care of the building trade
normally. There is urgent need for EN-