New-York tribune., 1921-09-26

Market More
Conservative
Small Reserve Stocks Cause
Material Manufacturers
10 Be More Careful in
Taking Future Orders

Conditions in certain sections Of tho
Eastern construction industry have so
noticeably improved Of late that dam
gers arising from possible overexten-
sion are beginning to be sensed In
some of tho trades. according to the
current "Dow Service Daily Building
Reports"
Pell-mell order taking, without es-
pecial regard to prices or delivery
conditions, is rapidly giving place to
moro conservative salesmanship, as
some of the idle plant capacity has
been safeguarded by enough new bust
ness to insure at least part time oper-
alton until the building movement de-
mandS more Out-turn Of material and
equipment
There are some basic building COM
modities where plant operation, on the
other hand, is approaching maximum,
as in the case of cement. In the COM
mon brick industry in New England,
New Jersey and New York demand is
SO great that manufacturers are up
to hot brick" an expression meaning
there Is no shed reserve that market
demand is actually calling for brick
right out of the kiln.
using up reserve StOCk
The possible menace of such a con-
dition lies in the fact that with neither
the dealers nor the manufacturers hav-
ing building material stocks in reserve
the conditions of supply here this
winter will be as inelasttic as they we're
early in 1920 when railroad strikes and
overcongcstion on the railroads and
highways brought about such a con-
dition of stressed delivery with prices
commensurate thereto.
Where architects and general con-
tractors have found it difficult to m
duce old established, conservative firms
to compete with more ventures some
competitors on price and delivery
promises, it has been due to the grow
ing consciousness of winter manufac-
turing, contracting and transportation
conditions at time when the current
quotations set mark SO low as to
leave no margin to cover winter emer-
gencles, such as losses incidental to
possible strikes arising from wage ad-
Justments, snow blockades, coal short
age at mill centers, etc.
1t is becoming generally recognized
IN the New York construction industry
that price alone, at the present time,
at least, does not represent the sum
total of benefit to the investing owner
material supply and present and poten-
tial demand. Deliveries, for example,
are just being made on certain build
ing materials brought solely on price
competitive basis before the 1920 win
ter and spring building material STAN
pede started, although the same kind
Of material bought later under the
premium system, when builders were
counter-bidding against each other for
deliveries, have long since been set
into buildings which have been produc-
ing returns on investments as COM
pleted projects for almost a year.
The recent change upward in some
basic building commodity price levels
cloquently proclaims the fact that con-
ditions are not considered right by
both manufacturers and dealers to per-
NIT them selves to be stampeded into
the winter construction era on margins
so near to cost as to allow no factor
of safety in case of protractcd wage
dispute, rail congestion or fuel short
age necessitating extra long carrying
costs for piledup inventory pending
resumption of building operations.
Outlook in Construction
There is reason to believe that as
whole the forthcoming winter is to
be an active one in basic building con-
struction. There Is not as bright an
outlook for some of the finishing trades
between now and the first of the year
owing to the fact that actual construc-
ton work made such late start. The
finishing trades, however, may look for
rush period from December to early
spring, when the tax exemption law
applying to new habitation building
construction, as 1t now exists. expires.
ha &c
their structures completed to avail
selves of the benefits the law will afford
them.
Meantime men with keen business
perspicacity sense the growing tend
ency OF financiers to tighten some of
the readjustment-period burdens neces-
sarily placed upon commerce since the
signing of the armistice and are turn
ing their attention simultaneously to-
ward industrial expansion. Here the
heavy constructors and equipment in
terests have their attention wedged
There is ample evidence deduced from
this source that this type Of construc-
ton is to regain its accustomed place
in the construction field during the
Wane Of the winter.
Price changes in the basic building
material lists this week include So
drop in the price of mastic and acid
proof asphaltum, slight shift upwa,
in blue annealed sheets, and wire lath
prices are quoted at higher level
than formerly. There is some widen
ing of price range on crushed stone.
Common Hudson brick of general
good quality sold in the market at SIS
a thousand, wholesale, last week, to
which price, for delivered quotations,
must be added the cost Of handling,
haulage and 10 per cent. There was
more brick sold on specification at SIG
than in previous weeks. Some of the
lower grade brick sold as low as Sl4.50,
but there was not enough Of either the
higher valued or lower priced brick
sold to shake the general open market
for good quality brick at SIS. This
market is steadily edging for higher
level than SIS. Portland cement at the
new $3.50 level brought no rush of or
ders, although there are some dealers
who have been feeling the market with
a view tc contracting for winter needs,