New-York tribune., 1921-04-17
Building Costs May Drop
In Fiue Years, Says EsDe,,
Materials at Lowest Now Because Railroad R,,..
Exporting and Commercial CONSTRUCTION 'y'ns Ml
Ceased; Some Prices Are Now Relo,s 'ls'' -
By Allen E. Beals

II you cannot wait comfortably for
at least five years to build, the time to
do SO is now. The habtation builder,
whether he be the prospective owner Of
modest rural dwelling, the investor in
large number Of speculatively built
homes, the owner and operator of
giant hotel or apartment house or the
man who puts up tenements in large
cities, IS the only market that the build
ing material manufacturer finds to-day
1t is because the railroads are out of
the market probably for the greater
part Of the year. The railroads, how
ever, have potential purchasing re-
quiremcnt for building materials and
equipment for the most part identical in
character with that of the prospective
nome builder, approximating $4,000
100000. r''N''
Furthermore, the habitation builder
IS, for the moment, freed from compet-
ing for building material and equip
ment supplies by the almost total ab-
sence OF the export market due to the
great dlsarrangement of the rates of
exchange. Here is another vast part of
the American building material manu-
facturers' market chopped off the hori-
zon, and it will remain isolated until il
is again possible to make foreign bust
ness attractive for American building
commodities.
Another factor that looms large in
the way OF placing the prospective home
builder in a dominant position with re-
latlon to prices and supply of all the
o'oUo items that enter into the erection
and equipment of modern building is
the curtailment of commercial construc-
ton or large order construction bust
ness.
This element is only temporarily out
OF the market. 1t will be the first one
TO come back. When it does come back
1T is certain to make its presence felt in
the entire building market.
Until the large order customer, the
export, commercial and industrial build
ers have clear coast, the building ma
terial manufacturer has to keen h;e
organization together so as to be pre-
pared for whatever increase in volume
OF demand develops during the next six
months, during which time the building
material production season is at its best. t
10 get the movement started he has
oeen forced to make his prices attrac-
tive to this type Of consumer although i
1t has been shown in evidence before
the Calder Senate Committee on Recon !
struction and Industry that building
materials have been reduced in manv
Instances to a point below cost OF pro-
duclng that material
The prospective home builder must
not be tempted to wait for further con-
cesslons and hope that prices will be
even lower. For in his desire to obtain
the best possible price he may find him
self bidding for building material de-
livery instead of for the commodities
*
The prospective home builder. there
tore, has a greater advantage in the
early part of this year to get his build
ng project started that he has reason
able hope to experience in the next half
decade, at least. He has lower prices.
certain supply of material, and labor
leslrous of employment, in probably
greater volume than he will find later.
t the railroads, export business and
commercial and industrial construction
get, under way. Furthermore, he will
ina money easier TO obtain, because the
low is distinctly turning away from the
"Ild orgy of speculative stocks in favor
IT mortgage investment.
Lastly, land is cheaper to-day than II
VII be when the building movement gets
lnder way.