Evening star., 1922-11-18
COST Of BUILDING
JUMPS 3OPER CENT
Wartime Cost Plus Contracts
Being Revived to Meet
Emergencies.
By J. e, ROYLE,

Special Dispatch 10 Tie Star.
NEW YORK, November 1s-The old
wartime cost plus basis Of operation
rs coming back into the building in
dustry OF the United States.
such uncertainty exists as to build
ing costs and probable prices for ma
terials that contractors in many sec
tions are demanding THAI big Jobs be
CONSTRUCTED on basis of actual cost
with guaranteed profit to them
selves. instead of making q firm bid
on the work
The uncertainty OF delivery of ma
terials has been factor In producing
this situation, but the big gamble.
from the contractors viewpoint, is in
the cost of labor. Wilson Compton.
secretary manager of the National
Lumber Manufacturers Association,
declared today that labor costs in the
building trades had advanced 30 per
cent in the last six months Fifteen
dollars day for masons, bricklayers
and plasterers is quite common. Re
declared. In this city AS high as $50
A day has been paid to skilled ar
tisans in the building trades
Labor Supply Uncertain.
Contractors. however. would ROT
object to bidding on construction
work even at those figures IL they
could be sure of labor supply. Sam
uel Donnely. secretary Of the Build
ing Trades Employers Association.
stated today that competition had
Ireached a point where speculative
builders were kidnapping mechanics.
Masons and plasterers are rece,h
ing $40 day in New York under tho
union scale. Donnelly said. and
many established builders will pay
no more. but contractors who have
rushed in on the boom period are Of
fering sl2 a day and overtime in
order to rush contracts TO completion
while the going is good" Some OF
these mechanics are making $50 to
800 week.
Mechanics sometimes change their
jobs two or three times week" Don
nelly added. Contractors motor up tn
buildings. offer the men they want a
higher wage. and the mechanic rolls
up to his new job about noon in Il
Limousine.
What these high-priced mechanics
are doing with their money is a qucs
tion, but clothiers say they are no.
buying silk shirts and gaudy raiment.
The call for high.priced clothing IL
coming from other sources.
Thanksgiving Outlook.
Turkeys are plentiful as Thanks
giving approaches, and in general
prices for the holiday birds are far
under those OF last year. Reindeer
herds in Alaska have outgrown local
consumption. and the surplus is being
shipped to the eastern seaboard. where
a wider market is forecast for this
meat. especially for the holidays.
Steel production is today increas-
ing steadily Buying by the railroads
is proceeding unchecked, although
there are fewer freight cars needing
repairs today than at any time since
March, 1921. The Burlington route
is in the market for seventy new loco
motives. and the American Locomo-
tive Company. the Lima Locomotive
Company and the Baldwin company
ing well toward s10O.O00.060. The
st. Paul road Is expected to place
orders for 100 engines shortly. Many
roads are buying 1S0-pound rails to
accommodate the heavier weight Of
the new freight equipment. Steel
pipe production is practically at ca
pacity.
Not for years has there been suc!,
an apple crop as this year. and grow
ers are finding great dificulty in dis
posing Of their products at prices
which will yield a profit. Similar
conditions confront potato growers.
except that the quality of the latte:
crop is poor
Wool Markets strohs.
Wool markets today are stronGe.
than ever and the demand for manu-
factured goods is increasing. SILK is
steady ard in good demand. Tho
market for bot. cotton and cotton
goods is unsteady. but higher prices
prevail.
Coal is in ample supply in most sec
tions and prices are on a downward
curve for the moment. Lumber
production has fallen off slightly. but
both shipments and new business
have increased. Although the full
rush of Christmas buying has not
set in. and 10 cent stores throuchou,
the country are doing business l.
per cent in excess of last year.
Copyright. laa".l