New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-25
Builders Meet
Here; Discuss
HardP roblen1s
Wage Reductions and Over
competition Cast Heavy
Shadows i'm the Path of
Procrastinating Investors


Wage reductions, over-competition
among building contractors, among
material supply interests, and a grow
ing condition of reserve stock shrinkage
at mill centers. cast furtive shadows
across the path of the procrastinating
building investor, according to the cur
rent Dow Service Daily Building Re-
ports.
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 Associ-
alton here for the discussion Of the re-
lation Of the latter to economic problems
that are facing building contractors IN
their attempts to meet. the new cost
standards arbitrarily fixed by building
investors seeking action upon contcm
plated building operations.
Building material dealers are rushing
into over competition practices that
are bound, sooner or later to bring
about reaction that will be different
from what the late conner into the
building construction market now hopes
for. 1t is possible that this will be
brought about by mergers of certain
existing distributing factors that, in
effect, may easily tend to nullify some
of the results the Lockwood investiga-
ton sought to accomplish in the matter
of speedily restoring building material
price levels to pre-war planes.
Certain truths stand out clearly be-
fore the impartial analyst viewing the
spring building construction situation
from the valley Of building despond
through the binoculars of wage read
justment and building material supply.
Fixed Cost Problem
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 building
materials cannot be sufficient to merit
the risk involved in waiting for pre-
war levels. Freight rate reductions,
even if granted this year for building
quence in lowering building costs.
Even with Eastern building con-
struction taking nominal quantities of
erection materials, cement mills which
last year broke all production records,
at 95000,000 barrels, have produced
42,Ooo,o0o barrels during the first six
months of this year and have actually
shipped 40,075,00O barrels. The ques-
ton investors will ask is: "What would
happen to our cement orders if when
shipments in dull building market
approximate the highest production
the mills have ever known building
were to become active all over the
country"
+ 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. while both the railroad and
building industry we're only nominally
in the market, IS against % per cent
for May, 81 per cent for April, 20
per cent for March, Ia per cent for
February and is per cent in January.
Those who view the causes Of present
price reductions contemplate the eff
feet that an increasing demand will
hare upon structural steel prices in
stronger market.
Linseed oil has definitely turned to
higher price levels. Brick continues to
be firm, with shipment and demand
running about even. The result is that
little can be looked for in the way of
LARGE reserves.
Sand, grit and gravel prices show
reductions in this weeks list, but at
he sacrifice of profits to handlers.
There is very evident case of over
competition in this field and it is be-
ing fought to q ruinous finish. 1t is
in this department that the expedien.
Of possible mergers is seen as the only
way out of grievous possibilities. Such
a situation in the gravel market some
times has disturbing influence on
crushed stone.
Reduction in Plaster Board
Plaster board manufacturers have
announced a reduction of four cents
on their product, but the price change
has not become effective here, as none
of the material at the new price has
so far arrived The dealers may an
nounce an extra cent reduction, max
ing the total cut five cents, merely to
be in line to meet the bear influences
! in the market, brought about largely
through over-competition.
Some building material dealers, es-
pecally lumber firms, will not quite be-
low existing list levels and are pass
ing business by. Their position is
that the famished cutters will soon
load up with proftless business and
when the market demand becomes less
spotty they will be able to do business
on sound basis.
Legislation and the fear Of it,
whether 1T be tariff enactment, state
punitive or curative law making, NUM-
cipal or judicial manipulation of tax
exemption or rent control, overawes
the building investor, who is being in
duced to start construction only when
he can fix his own price standards. Up
to the present time he has sometimes
been met, but with the end of the
building season in sight material
manufacturers are finding other mar
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