The Washington times., 1921-04-16
COST IS
STUMBLING BLOCK

| W bStvtS3uUvN SeSVut
It is unfortunate for the whole con-
struction industry that the public in
sists upon comparing the cost of q
lcompleted building today with "the
cost in 1914" Some bankers have been
quoted as saying they would not loan
money for construction until ma
terials go back to pre-war levels"
Too much Importance is given to the
cost of building before the war be-
cause there are unavoidable basic
reasons why buildings cannot be built
now. nor for many years to come, at
the same cost as in 1914 or previous
to that date.
One may as well say he never will
eat another beefNeak until 1t goes
back TO 20 cents a pound, or that he will
not hire another days work done until
wages go back to q dollar a day. We
all remember when the best hotels and
restaurants served crackerjack
business mems luncheon" for so or
go cents. We do not stop eating in
the middle Of the day because the
same luncheon costs 81 to $3.50.
Had there been no war the cost of
building today would have been high
er than in 1914 because even at that
time 1t was going up steadily, along
with the general standard of living.
Buildings were growing better and
were worth more.
| City and State building codes re-
quire more fire resistive construction,
safer electric wiring and sanitary
equipment. People outside of code
areas demand wholesome and modern
| construction.
In addition to an advan-c OF rro ba-
bly, 20 per cent in building cos: over
1914 that normally would have tel en-
place without war. we haTn to at@orh
these war costs: Increased fI-iyht
rates (which on brick amoun. to
from 100 per cent to csc per cent?
increased wages; higher .ue! costs
higher taxes. and imitation dre ia
waste of invested capital Br'lding
costs cannot go back to 1914 levels
because freight rates Cannot re re-
duced (the railroads are not making
money even at present high rates
they claim). wages will 60 lower
but not back to 1914 standards. he
cause the. cost Of living is higher duo
to imitation and higher taxes Taxes
| will remain high for many years be-
cause we have an Unprecedented bill
| to pay.
The man who in any way blocks
or discourages construction because
he awaits 1914 prices is rot in tune
with the times.
| Speaking for common brick, re-
duction Of 81 per cent from the r.ak
Is noted in the reports of 1872 COM
panies just compiled. On February I
the average delivered IN the ;ob
| price of the companies reporting was
| $1S.05. This month the average Is
| 317.40. or course, it is unneca ,ssry
to explain that averages 10 not mean
anything under these circumsts nces
except to Indicate a gradual trend
downward.
There is nothing in the report to in.
dicate that lower prices have stirn,,.
lated building. Out of 1872 plants III
were closed during February. On
March 1, twenty-five of these tina:
were closed for repairs or weather
resumed. There is a still further re-
duction of stocks on hand. The ex.
cess of stocks on orders is now abou;
211.O00,000. Only 16.180,000 brick were
produced during February and 27,5Gl,.
600 were shipped from plants. South
ern California, where the new idea'
brick hollow wall is established, con,
tinues to be the brightest spot fro-,
the sales standpoint One company
reports sales OF 500 900 brick for idea
wall construction and 400 per cant
Increase in cash business since the in
PRODUCTION OF this better way to use
brick.
The manufacturers are PRACTICAL,
unanimous in reporting satisfactorS
labor supply. Ten say outlook fCr
future Is good. fifty say fair" forty
three poor" and fifteen bad"
Forty-three concerns find cost OF
production lower, the same numbsf
exactly say there is no difference in
costs. Only two report higher costs
From many authorities outside the
industry come statements that build.
ing costs are well stabilized and toe
public is being urged to begin opera.
tions. II is argued that certain ma
terials are selling below cost and that
a sharp revival would send prices up
On the whole, the person who builds
now, and builds we'll cannot lose. Ia
only the fImsy. makeshift construc-
tion and the portable or ready-~ui
] stun is there danger of rapid losI
from depreciation. The present emsr-
gency does not Justify restoring Ia
such inferior building In any part n,
the United statea