Evening star., 1923-09-29
Charge Propaganda Confuses
Builder as to Relative Cost
Labor Asserts Materials Most Expensive
Factor, While Lumbern,er Attribute
Burden to Workers.

In recent discussions of building
mas appeared in many publications
throughout the country that DR.. John
NJ, Cries, chief of the division of
building and housing of the Depart
ment of Commerce, after u careful
survey of building conditions all over
the United States" gives 1t as his
opinion that labor charges account
Tor so small a proportion of the con-
strnction cost of the average house
that increases In labor wages have
little bearing on total building costs,
according to a statement issued by
the National Lumber, Manufacturers
Association. The articles in question
then point out that as, according 10
the Survey" labor was only 26 per
cent of the cost of a house, a $4,000
house would cost only $3.50 less II
there were a straight reduction of
SO per cent In the wages of labor
employed on 1t.
That is the answer" says one
newspaper, "of the United States De-
partment of Commerce to charges
circulated freely by those higher up
in building. that exorbitant wages
entering into the cost of construction
are responsible for the high prices
that are making tenants instead of
home owners out of people of mod
crate means"
Some of the publications dealing
with this subject have even gone so
far as to imply that. while the labor
cost of $4,000 house represents only
26 per cent of the whole, the ma
terial cost amounts to "a per cent.
The general effect has been to con-
vey the impression that the United
States Department o. Commerce
sponsors the proposition that high
building trade wages have little to
do with the present cost of housing
and that the producers and puryeycrs
of building materials are chiefly re-
sponsible for the situation.
1t is interesting, therefore. to ascer-
tain exactly what DR.. Cries did say.
the statement continues. 1t appears
that a talk by DR.. Cries before Of
fcials of the bureau of standards was
automatically reported in a depart
ment release. as follows:
Figures were given showing the
relative Importance OF the dinerent
tain house. OF these labor charges
accounted for only 26 per cent; ma
terials cost 1913 per cent; land, 19
per cent; contractor. 1875 per cent:
financing. 81 per cent: architect and
real estate fees. ga per cent. These
figures show that it is not generally
possible to blame one single factor,
such as high labor or material costs.
for high prices of houses. He said
that, while the daily wage of build
ing tradesmen might seem high to
a man employed all the year. they
were not necessarily high when the
seasonal character Of the employment
was considered. He said a substan-
tial saving in labor costs could be
realized if arrangements could be
made for employment during larger
part of the year. He also said SIM
liar savings in costs of equipment
and contractors overhead could be
effected by a more extended building
season"
Cited Certain House.
1t will be observed that DIR. Cries
took his percentages from a certain
house" and made no reference what
ever to "a careful survey of building
conditions all over the United States. y
Neither did he say that this certain
house" was a $4,000 house. AS mat
ter of fact. it was S1o.500 house.
which is a different matter. 1t is
also to be noted that in the 100 per
cent of this house the price of the
land is included, and also cost of