The New York herald., 1921-07-25
NEW DANGERS LOOM
In PATH OF BUILDER
Over-Competition Threatens to
Drain Shrinking Supply
Of Materials.

Wage reductions. over-competition
among building contractors and ma
terial supply interests and growing
condition of reserve stock shrinkage at
mill centres cast furtive shadows across
the path of the procrasunating building
investors, according to the current Dow
Service Daily Building Reports.
Conferences of building trade en-
ployers from many points contiguous to
New York have been held within the last
few days at the rooms of the Building
Trades Employers Association here.
Wage policies held the chief attention
of the delegates. The discussion CEN
tired particularly on economic problems
that are facing building contractors at
tempting to meet the new cost stand
ards arbitrarily fixed by building In
vestors seeking action upon contem-
plated building operations.
Building material dealers are rushing
into over competition practices that are
bound, sooner or later, If continued. to
bring about a reaction that will be diff
ferent from that which the late conner
in the building construction market
now hopes for. It is possible that this
turn will come in the form OF certain
mergers of existing factors that In
effect may easily tend to nullify some
ton sought to accomplish in the mat
ter of speedily restoring building ma
terial price levels to pre-war planes.
Certain truths stand out clearly be-
fore the impartial annalist viewing the
spring building construction situation
from the valley of present building
despond through the binoculars of wage
readjustment and building material sup
ply.
Risky to Wait for Lower Prices.
Arbitrary cost standards fixed = by
prospective builders cannot be realized
this year with particular reference to
wage scales operative in New York.
Further price reductions in basic build
ing materials cannot be sufficient to
merit the risk involved in waiting for
pre-war levels. Freight rate reductions
in building materials. even IL granted
this year. cannot be sufficiently extern
sive to merit the risk involved in wait
ing for pre-war levels. A sudden turn
in demand would wipe out in q week
all the benefit freight rate reductions
might bring about in the building In
dustry.
With Eastern construction taking
barely nominal quantities of erection
materials. cement mills which last year
broke all production records at 95.000.-
600 barrels, have produced 100000
barrels during the first six months of
this year and have actually shipped
40.075,000 barrels.
The question investors will ask is,
What would happen to our cement or
ders IL building were active all over the
country when shipments in a dull build
ing market approximate the highest rate
of cement production the mills of Amer
lea have ever been known to record?"
The Bridge Builders and Structural
Society through its secretary, George E.
Clifford, shows that 81 per cent. Of the
structural steel shop capacity of the
country had been contracted for in June,
with both railroads and building indus
try only nominally in the market, as
against 2S per cent. for May, 81 per
cent. for April. 90 per cent. for March.
IA per cent for February and 1S per
cent for January. Those who view the
causes of present price reductions con-
template the effect that persistently in
creaslng demand Is bound to have upon
structural steel prices in a later and
stronger market.
Evidences of Over-CompetftiOn.
Lnseed oil has definitely turned to
higher levels. Brick continues to be
firm, with shipment and demand run
ming about even. The result is that
little can be looked for In the way OF
large reserves.
Sand. grit and gravel prices show re-