The New York herald., 1921-01-16
BUILDING COSTS
DECLINE LITTLE,
DESPITE INQUIRY
Saving for Home Construc-
tion 10 Per Cent. at Out
side From July Figures.
CONTRACTORS PUZZLED
No Credit Is Given to Inter
myer for Such Few Reduc-
tiOns as Have Been Made.
COAL DROP rs HELPFUL
Factories May BE Put Up
Cheaper and Labor Is More
Productive.
CONTRACTORS PUZZLED
COAL DROP rs HELPFUL

A disappointment is In store for
those persons who read with glee the
progress of the Lockwood committees S
investigation and imagined that the
breaking down of systems of improper
practices III the building trades would
bring down the price of materials and
labor to a point where everybody, not
even excepting the man working for
moderate salary, might confidently ex-
pect to build home for himself and
his family at something like what it
cost before the war.
The investigation, however far
reaching may have been it's good eff
fects, has not performed the impos-
sible feat, builders say Of putting
building costs back to what was the
normal level few years ago. There
have been sensational drops in tle
price of brick, steel and lumber-the
three most important basic materials
but the causes of these reductions are
difficult to trace Builders declare that
the chief cause lies in the natural
workings of the law OF supply ana
demand. There are considerable stocks
of brick, steel and lumber on hand,
while building is practically at n
standstill. Therefore, for the sake OF
liquidation. according TO builders, the
prices had to come down.
But even this decrease in costs has not
been sufficient 10 make any startling
.ba IN n
dwelling or an apartment house Other
materials are higher than they were six
months ago, though not quite enough
higher to offset the big decrease in the
basic materials Labor is costing just
as much. but builders are unanimous in
the opinion that labor is doing more for
its money, and this increased efficiency
is. of course reflected in slightly lower
cost Of building.
Saving n Mere Triflc.
To-day 1t costs or 10 per cent. less
to build an apartment house or a dwell
ing than it did last July, when prices
were very near the peak. The house
that six months ago cost $4,000 could
be built now for probably $1,000 less.
The apartment building that would have
cost 100000 last July might be built
now for $4,000, or perhaps little less
than that.
There was n popular impression. heard
in the streets and wherever people talked
about such things that out of Samuel
Unterinyer's relentless Investigation
would come an immediate drop in the
price OF everything that goes into a
house. Translated into figures, il prob
ably was expected that houses would
cost from 25 to so per cent. less than
on last July i. This imaginary drop,
in turn. was expected TO be shown In
lower rents for apartment house dwell
ers But instead of any such immediate
return 10 the old basis dealers arc en-
phatic in their statements that, for a
multitude OF reasons, il costs only a
very little less TO build house now
than II did before the combinations were
cracked open. Moreover. they say that
any noticeable increase IN the amount OF
building being done would 30 stiffen the
demand for materials that prices would
rise again TO "A new high level. Such a
resumption OF building Is expected TO
take place either during the spring OF
summer
Ono OF the results Of the discontinu-
ance OF Association practices among
dealers in materials has been a great
increase i'm speculation. No builder
knows what the other is bidding. The
immediate practical effect. according TO
builders. is that. in spite OF the fact
that new building projects are becoming
fewer. most prices are either holding
firm or stiffening.
Out of forty-two basic items quoted
in the New York building market,
twenty have dropped in price. six have
stood still and sixteen actually have
advanced In price since last July. The
heaviest drops have taken place In lurn-
Der. brick and cement The price of steel.
while lower than few weeks ago. has
fluctuated so much during the last six
months that IL really is not much lower
than last July /.
Cement also is quoted at the identical
price as last July. 1t is selling for $3.50
a barrel delivered. and an empty bag
rebate of 25 cents Is allowed now, the
same az in July. In September, however.
cement sold for as high as $500 .
barrel.
Drop In Coal Price Helps.
A great variance is shown in the way
lumber has reacted 10 the general
change in prices. Yellow pine timber
shows a drop Of only $3.50 since July,
as against a drop of s47.5e In the price
OF sap flooring. or the twenty items that
show reductions in prices since July the
plaster boards were brought down with
in the last week by reason OF the revival
Of the free lightcragc practices by the
railroads entering this harbor In fact.
many builders are inclined 10 stress the
Importance OF the drop In coal prices
and the Improvement OF transportation
conditions. The drop in the price OF
coal. they say. ls Immediately reflected
in the price Of building materials.
- afA -
sociation practices has been seen In a
tightening effect ut sources OF building
material supply. Speculative builders hope
this process will be carried out TO the cx-
tent Of permitting non-union products to
bc employed In building construction In
New York. III this happens manufac-
turers OF certain kinds or building COM
moditics which have been shut out OF
this market almost entirely In recent
wars arc exnect~l 10 mako liberal pri,f.