Evening star., 1923-05-14
HIGH PRICES MAY
HALT D. c. BUILDING
Vast Development May Stop
With Material and Labor
Up, Realtors Say.

Complete cessation Of all but es-
sential building operations in Wash
ington may become necessary with
in the next six months or a year un-
less material prices drop and costly
labor difficulties are ended, according
to leading real estate men. Already
several prominent realtors have halt
ed plans for new projects, and there
is a growing sentiment among others
to follow suit.
A substantial increase in the price
Of houses must be made next year
unless the cost Of building opera
tions is cut drasticaIly, experts pre-
dicted
There are grave fears that an
increase of even 10 per cent in the
price of new homes would result in
a serious drop in buying and general
business dislocations would necessarily
follow.
New York Suspends.
In New York building projects worth
500, 100000 have been temporarily sus-
pended. While there is no movement
underway here TO suspend operations
already started. the sentiment of
prominent realtors today was almost
| lead of New York builders and re-
fuse to let contracts for additional
work until costs have been brought
down.
AS a matter of fact building oper-
ations in Washington have been 60
ing forward with such feverish haste
for the past few years that the city
has almost Caught up" with its
needs, in the opinion of Harry Ward
man. He expressed an opinion that
CT hn .,Ia
construction work shortly until the
structures already raised have be-
come tenanted. Mr.. Warlman de-
clared. however. that the price of ma
terials has scared so rapidly in the
past year that a general increase of
about 10 per cent would be added to
the buyers price next year.
II have already started to curtail
! my operation. said Allan E. Walker
of Allan F. Walker & Co. After 1
i have finished work already under
| way l shall begin no new operations
| for the present.
| You have asked me TO express my
views concerning the postponement
prises throughout the country, due
| to excessive cost Of building and the
uncertainties and delays therein. No
one who had at heart the best inter
could but welcome such action. What
we need now is sterilization of the
building industry.
| II. for one. am glad to see high
engaged in building. but no one can
look with favor upon the hectic con-
ditions now existing which are re-
sulting in constant turnover Of
labor, with constantly decreasing
productivity on it's part
II am not at all certain that the
cost of building during the next few
years will not be as high as it is
! today, and possibly even higher. The
high cost of building is one of the
| cost of living. The most important
question entering into this high cost
| is that of immigration. The Ameri-
can people must choose between the
present high-cost levels and the
changing of immigration restrictions
to such an extent as will result in
substantial increase in the num-
ber of immigrants entering the coun-
try"
Wages Problem.
The difficulties builders are expert
encing with labor. according to most
of the realtors interviewed, concern
wages much less than production.
The head of one real estate house
that has large projects under way
asserted he is paying his bricklayers
20 per cent more today than year
ago and getting only so per cent as
much work. Another realtor declared
he was paying some colored laborers
fiat salaries OF $50 a week, which they
receive, rain or shine, work or no
work.
'The salaries of our men are not
too high" said another prominent
builder, who refused to be quoted by
name, but the trouble is that they
are not doing enough work. believe
In equitable distribution of the coun-
try's wealth. The average bricklayer
only actually works about 200 days
year II he received $40 day his
total income would be only $4,000 a
year. That is little enough for any
man to raise family on. But brick
layers who used to lay 500 to 1000
! brick a day are now laying only
5O0."
Another complaint of the builders
was over delay in shipment of ma
terials. The railroads are so con-
gested. it was asserted, that fire.
, quently tremendous operations are
completely halted for as much as a
half day waiting for supplies. Work
men must be kept on the job all of
this time and the huge financial loss
incurred therein must be charged
against the ultimate buyer. |!