New-York tribune., 1921-05-09
Freight Rates
Big Obstacles
I'm Building
Help TO Keep Up High Cos,
of Construction, Although
Prices for Materials Are
Still ON Downward Trend

| Persistent crumpling of the building
material and equipment industries. de-
spite price-cutting and the presence of
| the building season that was expected
to bring at least So per cent of nor
mai years construction movement, Is
| bringing into sharp relief the influence
of wartime freight rates upon peace
time construction market, according to
the current Dow Service Daily Building
! Reports.
| In the normal turn of events freight
rate adjustments for general commodi-
ties will eventually be brought about.
but building construction being a sea-
sonable industry and the 1921 season
! toward which the eyes of the nation
had been turned IN the hope of effect
ing marked alleviation of the housing
shortage IS rapidly passing), is actual
ty IN danger of sinking into an acute
situation financially, unless prompt,
special action is taken to give con-
struction commodities, easier rail rates
into the nations construction markets.
Since the beginning of the war the
cost of transportation of building ma
ter1alS has been Increased lao per cent,
the cost OF transporting fuel has been
increased 300 per cent and coatswise
ocean freight rates have been in
creased to levels higher than the all
rail routes.
Freight Rates Climb
In June, 1918, the freight rates on
building materials were increased on
an average Of 80 per cent. while
freight rates on other commodities
were increased on an average of 25
per cent. This order followed that of
October, 2, 1917, when Judge Lovett
issued priority order No, 2 denying
the use of open top cars for the
transportation of building materials.
Secretary McAdoo in the spring of 1918
urged that all but necessary build
ing be stopped The classification ap-
piled to buildings essential for the
eliminated in the order of October 6,
1918, cancelling permits for the move
ment of any building material in or
der to provide for the shipment >of
coal TO the Northwest This order
lasted, however, only about two weeks,
but it marked the maximum of re-
striction upon the building material
industry.
On August 26, 1920, there came an
other freight rate advance. On
August 8 the Dow Service Daily Build
ing. TAGpOELS IN JulS COluTnn naQ warned
that such another burden placed upon
the building industry would eventuate
into condition of stagnation similar
to that artifieially produced in the
building industry by the orders just
referred to which effectually shut the
speculative builder out of the construc-
tion market.
The freight rate increase became eff
fective, however, whereby an addi-
tional increase of 40 per cent was
added to the already excessive freight
ing from mill to consumer. To-day,
true to that prophecy, the speculative
builder, that factor, which, if given a
fair chance would quickest solve the
national housing problem, is effectu-
ally forced out of the building indus
try. He will continue to be an ab-
sentee construction factor until freight
rates are lifted from the wartime
basis and placed upon q peace-time
plane.
Further Cuts for Material
Building material price cuts continue
to be made in many departments. Re-
ductions are reported in this weeks
record in face brick, hollow tile, sec
ond hand brick, sheets and metal lath
There is no base to the last named
ltenl, thar department and the sand
market being in the throes of com
petitors' war, with prices apparently
little or no object. The glass situation
Is apparently coming out of a similar
ENHANCEMENT although the market is
still rather ragged.
Some items show slight turn up
ward in prices, but they are not yet
numerous enough to indicate any gem
eral market tendency in that direction.
Buyers are waiting for some definite
evidence that the still remaining post
war economic adjustments will be soon
accomplished, and the lowering of the
existing freight rates is one of them.