The Washington times., 1924-02-29
1924 BUILDING
PROGRAM
LARGE
No Likelihood of Decline IN
Building Costs, Says
w. ]. Moore.
BY w. S. COUSINS.
(copyright. 1924, by Cosmopolitan
News Hervice.l

News Service.)
NEW YORK, Feb. 29.-''There II
no likelihood OF any decline In build
ing costs in this country during
1924, and every prospect that the
1924 building program will be as
large as its predecessors, William
j.. Moore, president Of the American
Bond and Mortgage Company, said
today.
Mr.. Moore pointed out that while
building material and labor costs
determine the cash outlay for the
completion of commercial. ara resi-.
dence structures, the mortgage
banker dictates the volume OF build
ing that can be completed In any
particular section. Such a large
part Of the construction costs are
represented by long.term borrowed
funds, in the shape of mortgages,
that the mortgage bankers attitude
toward proposed construction must
be taken into consideration.
Mr.. Moore recalled the sudden
hating Of the country's construc.
ton program last year, due entirely
to realization of the fact that in-
come returns from projected build
ings would not warrant their COM
Petition at prevailing costs.
IA material reduction in building
COSTS" Mr.. Moore declared, will
be possible only when five funda-
mental conditions develop: There
must be a substantial decline in
wages of mechanics employed in
the production of building mater
ials and in the construction Of
buildings; the price Of coal must
be reduced; transportation costs
must decline; general living costs
must be stabilized on q lower price
scale, and income taxes and Govern
mental expenses must come down.
All Of these factors vitality affect
the building situation and combine
to keep prices high!
1--WE are feeling the effects Of
rules which the building trades
unions have had in force for a
number Of years, prohibiting or
limiting the number of apprentices
admitted to the organizations.
Through death of its members, the
restriction on taking in new ones
and the withdrawal Of members to
enter other kinds of activity, II has
been estimated that the reduction
of building trades mechanics In the
last five years has been at least
25 per cent; and conditions in this
respect are steadily growing worse. !"
Mr.. Moore concurred in the esti.
mate made by the Architectural
Record. forecasting the national
building program this year at five
and one.half billion dollars in total
value, against five billions in 1929.
He predicted Notable increase In
commercial structures in strategic
spots in the big cities. He finds
the theater buildings particularly
profitable, and least liable to de-
preciate in Narning ability.
There is danger of over-pro.
duction Of the light kind of build
ings. Mr.. Moon said, or Of a de-
preston following the heavy con-
9truction program of the last few
years. Moderate reproduction
Is necessary for the development OF
any desirable business section Of
any CITY," he continued, and office
construction does not always wait
for the need for to be made evi-l
dent. It is the extensive building
of high grade office structures Il
the vicinity of Grand Central Il
New York which really developed
and popularized that district, and
the same is true of the State and,
Lake streets building in Chicago.
which ultimately attracted business
and other builders to that section.
There is still a deficit of over two
years to make up, and building
costs will not be normal until 1897
or 1928. when they will rest at
about So per cent above the pre-.
war level.
Real estate depressions and
panics follow only unhealthy booms,
and certainly there has been no
inflationary building boom in this
country since the war. Moreover,
the financing methods Of mortgage
underwriters, with their periodic
amortization payments are sound
and safe, and will insure investors
against loss in the event Of a SUBJ
sequent decline in income Of struc.
lures now hoinp financed"