New-York tribune., 1921-08-15

Outlook Takes
Fiil'l11er Tone
Purchases of Materials by
Railroads Primarily Re
sponsible for the Change :;
Heavy Cement Shipments

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Efforts made to sound the building
industry with respect to what NAV be
expected in the way Of strength OF
prices or activity OF demand this au-
tumn and winter developed these re-
suits as reported in The current Dow
Service Daily Building Reports
Railroad purchases have been pri-
marily responsible for the frmer tone
in building material prices. This prob
ably will be developed to the point of
actual price advances in some equip
ments and building materials during
the next six weeks. Some materials
already have stopped selling at lower
than-Ilst, prices. Some have actually
a. vanced, not only at source, but in
the centers of distribution.
Secondarily the change has been
brought about by improved demand
from the building industry itself. The
month of June for the country as a
whole showed gains over the same
months last year by II per cent in
actual building permits granted. 1t
showed gain over the previous month
this year of 80 per cent, which will.
at this rate, soon wipe out the loss Of
l6.5 per cent in total construction res
ords fer the country as shown between
tie first six months of 1921 compared
with 1920
# this gain continues in building and
railroad purchases even approach the
estimated total OF 50 500 COO, 600 worth
OF supplies, which will be largely rep-
resented by commodities which also
enter. enter more or less generally into
building erection and equipment, there
Will not be the least possibility of
Dulldlng materials remaining at exist
ing levels. The pressure is being felt
at some sources of supply already.
Higher Cost for Pine
There is car shortage already in the
Southern lumber regions The Southern
Pine Sales Corporation, one of the
largest Eastern lulsber distributors, in
announcing new list of prices, all Of
which show advances over previous
lists. said that the cost of production
is now higher than present market
prices. Stocks are approximately at de-
mand levels, in cases where retail
lumber dealers, box makers, Industrial
concerns and railroads arc being
catered to, in all Of which channels
stocks on hand have been cut so low
as to make immediate purchasing
necessary.
Cement shipments for June, 1921,
were over 10,500,O00 barrels. This rec
ord exceeds shipments for June, 1920.
the best previous year. 1t exceeds the
best record for the month of June
prior to 1920 by 1,250,o0o barrels.
Shipments of this commodity even be-
fore the railroads began to appear in
the market were almost 100000 bar
res greater than the average for the
first six months of the last five years.
The common brick industry, the Sec
ond basic building commodity, as
shown by the Common Brick Manu-
facturers' Associations national roll
call, is shown to have reduced stocks
on hand by reason of the fact that this
Industry was hardest hit by the early
year building slump, and that instead
of approximately $500 brick manufac-
turing establishments in the country
there are now only 1000. Further
more, price shrinkage in this industry
has proceeded to such an extent that
the national composite price to-day is
$l4.49 delivered from yard to truck
for haul to job site.
In Ohio certain lime interests re-
Gently decided to start a price war.
1t was felt to some extent here. but
no sooner had it started than the turn
in national building material buying
became SO apparent that the differ
ences were lost sight of in a scramble
to recover some of the price they were
so recently willing to lose. In other
words, $3.50 was clipped OK the price
at wholesale, and hardly had the price
been sent out to the markets than an
other change was announced restoring
81 of the original cut. Although local
70 In
they have not so far made any change
IN the distributed quotations.
Other Prices MAY Go I'm
Hollow tile, selling from two to three
cents below gypsum block in this mar
60 up. Formal quotations were with
drawn in this commodity recentlv.
those appearing in the formal lists
being at present merely nominal.
Gravel price cuts have drawn in the
crushed stone quotations, but the mar
ket in general complains that there is
no margin whatever in selling gravel
or crushed stone at $160 to $1SO a
yard. Some of the dealers have ad-
vanced their minimum prices five cents,
but even this does not offer a living
sustenance over cost.
Common wood lath is becoming both
scarce and high. The current list puts
this commodity at $1,000 a thousand
but there are some dealers entirely out
CT spruce lath and it is quite sure that
turn upward will be reported in this
item. Common brick is steady at S15
but some of the manufacturers have
been talking of asking higher figure
because Of the greater demand and
lower supply than even normal win
ter's requrem ents would warrant.