Perth Amboy evening news., 1923-06-05
HIGH COST OF BUILDING
TOLD OF BY HASKIN
Daily Letter by Frederic j. Haskin

WASHINGTON, June 4. - TIL
building boom which promised S,
much fo the general prosperity o
the country during the present yea.
is threatened with a collapse, accord
ing to a nationwide survey of thu
situation. New construction Is beini
held up in almost every section ant
the five-billion-dollar building pro
gram that was projected for th'
year bids fair to fall far short o.
realization.
In Chicago $4,000, 900 of new con.
struction has been halted, the esti'
mate for New York City is $50 ,000.'
600, Boston reports sic, 1000 900. AND
other cities return figures that arr
proportionately disquieting.
In New York a conference helt
under the auspices of the American
Construction Council that included
representatives. of banking, realty,
construction, building materials and
labor went so far as to agree unani-
mously that there should oe a geu-
eral suspension until early fall of all
new building except that under way
and of an emergency character. This
conference adopted the following
recommendations:
THAT banking interests curtail
the financing of speculative building
until after the close of summer.
That wide publicity be given TO
the increasing trend of construction
costs, both in labor and materials.
THAT governmental, municipal,
state, county and town construction
departments be urged to delay their
work as much a S possible until
September or October.
THAT the cooperation of news
papers and trade publications be
sought to keep the public informed
Of the monthly increases in construc-
ton costs, and that they be request
ed to exercise their influence in
curbing the demand for construction
until the early months of fall
The American Construction CoUn-
Gil later issued a statement pointing
out that the building program as
projected for the year was larger
than could be properly and success
fully taken a of with our present
resources in manufacturing, trans
p~ortation and labor, and continuing:
Resulted in Initiation
With these resources all overtaxed,
the inevitable outcome is a bidding
or auction process that means a very
wide and exorbitant spread Of prices
between the manufacturer and h
dealer and consumer, with conse-
uuent costs to the manufacturer, to
the dealer and to the contractor,
each Of whom protects himself
against futures the result being in
flatiOn.
similarly there is competitive
bidding for labor, resulting not only
in rising wage scales, which is the
least part Injurious to the public,
but in bonusus.
This accumulative program Of
construction has resulted in making
the cost of construction at the pres
ent time too high. An authoritative
statement Of conditions given to the
public help to a better Understand
ing the peaks of constructiCQ should
eliminate themselves. Particularly
for the small investor ii is unwise TO
do construction during peak times,
such as exist today. and which give
fair promise of being worse tomor-
row. 1t is to the small investors that
authoritative information should be
given in the daily pres OF the trend
Of costs of construction and of the
future demands of labor and mater
ial in construction, so that they
may judge Of the present situation
for themselves"
Figures compiled by the Depart
ment of Commerce as to the increase
Of building costs since 1914 show
that the increase was 8 per cent for
1915; Al per cent for 1916; 103 per
cent for 1917; lis per cent fr 1918;
124 per cent for 1919: 157 per cent
for 1920; III per cent for 1921; so
percent for 1922, and for the present
year It's per cent. The figures foT
the current year show a big jump to-
ward the peak that followed imme-
diately upon the close of the war.
Who or What Is to Blame
There is absolute agreecent that
the threatened collapse of the build
ing boom is due entirely to high
building costs, but when it comes to
determining who or what is to blame
for these high costs a veritable babel
of accusations and denials is aroused,
The old law Of supply and demand
that las had TO shoulder the re-
sponsibility for so many disagree
able things is blamed by some, a~d
as the law is inarticulate it has moth
ing to say in self-defense. But wher
1t is charged that the .outrageously
\ hiHh ansIs ara due to the greed Of