The New York herald., 1921-06-13
FIRM DEMAND FOR
BUILDING MATERIAL
Conditions Indicate Prices
Have Struck Rock Bottom;
Late Realty News.

Current events IL the basic building
material situation carry their own. in
terpretation with respect to buying
policy. says the Dow Service Daily
Building Reports. Sand prices are now
low at s1.s0 instead of $3.50 Common
brick is low at SIS, instead of S14.
wholesale, which makes a price OF $3.50
| delivered within moderate hauling dis
tances. Expanded metal lath purchasers
have been advised OF a notably firmer
character of the market which is inter-
preted by some TO presage a price turn
upward.
Every department OF the building ma
terial market except three reported at
the week end firmer demand, de-
| creasing tendency to bid for business by
shading and reshading quotations and
quickening movement on the part of
the specifiers and contractors to pro-
ceed with deferred work. Letters have
been issued in some instances advising
dilatory inauirers and price counter
| bidders that basic building materials
were at rock bottom prices and that
business would be positively declined
rather than offer lower quotations.
Effect of Railway Report Felt.
1t Is a coincidence that this change
| genuinely manifested itself last Monday
when the first whispered rumors were
heard IN building material circles to the
erect that the Association of Railway
Executives at Washington would bring
III an adverse report upon the appeal
Oh building material shippers for an
immediate reduction in building material
freight rates on the ground that In the
absence Of Improvement in the volume
or building material purchasing, follow
! ing market price reductions, there could
| DC no assurance Of a compensatory in
crease In volume Of building material
tonnage IL the freight rates were re-
duced IS requested. The application ha
been made on behalf of shippers OF sand.
gravel. crushed stone, Stag. ebert (peb.
oles)' asphalt, tar, cement. lumber,
iogs, brick, tile, terra-cotta, tale. lime.
plaster and their products.
| Apparently the prospective builders of
New York and vicinity have been defer
ring their building projects In the hone
that the freight rate reductions. II
granted. would be the last considera BILE
factor in forcing basic building material
| prices still lower because, with another
great inflow Of brick that threatened
to choke the market in view of heavy
absorptions In recent weeks to take up
the slack resulting from the brick
handlers and barge captains strikes. all
the incoming brick cargoes were bought
| up at once.
Brooklyn continued to take the lions
share. or twelve barge loads. Bronx.
which. like Manhattan, has been DOR
mant as far as building activity is con-
cerned, suddenly came in with a call
Tor four barge loads for delivery on
new building sites. Queens borough
took another barge load for Industrial
construction work with an extra barge
load going to Flushing, while New Jer-
sey took up three barge loads, and
Manhattan. which has been the laggard
of the market, came In for five boat
loads with several barge loads at the
week end on the consignment list with
none for open market sale.
9'here VIII he Plenty of Brick.
Danger of a possible brick stringencv
resulting from an unexpected demand
such as the present situation has been
safely passed There will be plenty of
brick for New York's 1921 building con-
struction requirements. Whereas It did
| not seem likely that any 1921 brick
| would be available for purchase here
before the middle Of July because some
OF the yards recently equipped with ar
tificial drying equipment are beginning
to ship. For the most part, however.
the bulk Of the brick coming into this
! market until we'll into August probably
will be that manufactured last year
Cement mills also began TO feel the
change in demand during the latter
half OF the week. Most of the plants in
the Lehigh Valley district which supplies
the bulk OF cement used here are operat-
ing at varying percentages of capacity
and most Of them say they feel the
markets gaining strength. Only four
remain closed down entirely, but in each
case their reserve stocks on hand are
large.
Buying on the part OF Eastern lumber
dealers in anticipation of unexpected
autumn requirements is not the present
general practice. One of the largest dis
tributors In this market is steadily re-
ducing yard stocks without providing
for replenishment. Lumber, so far as
retailers are concerned. has not yet felt
the markets changed pulse. because
this commodity. while Il has been hop
ing for lower rail freight rates TO bring
down prices still further. enjoys the
alternative of water freight rates. In
the absence of lower rail rates consum-
eTs may now assume tnat the DOttOm
price level in this commodity has been
reached. Any further retail price cut
will result from lowering Of operating
costs. which, in view OF the narrow
margins upon which most OF the retail
ers are operating and In further
view of price advances in the wholesale
market elsewhere. probably will not
reach the consumer so as to greatly re-
duce the cost OF his building operation
for some time.
Further evidence OF the changing tone
OF the building market Is the persistent
gain In habitation plan filings. Since
the tax exemption ordinance went into
effect plans for homes TO house 13. 27b
families have been reported. an increase
OF 157 per cent. over the same period a
year ago.
In the Dwelling Market.
Robert Levers sold for J.. !. Phelps
and Criswold A. Thompson. trustees. to