Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1924-06-06

Washington. ID. C., May 30.-''ln-
dustry must organize for service, for
constructive effort, for orderly con-
tinuity, for justice 10 all who par
tieipate."
In the spirit of the foregoing ex-
tract from the report Of the ENeeu-
tive Council of the American Fedora
ton of Labor adopted at the Fedora
tons 1923 convention, the American
Construction Council has issued
a warning against irresponsible
groups in the building industry which
are blamed for large percentage OF
inferior construction. Poor con-
struction and inferior materials make
for higher rents, the warning says.
The American Construction Coun-
Gil, which represents all elements in
the building industry, is a conscious
attempt of the industry TO regulate
itself. Believing that the ills of the
building industry should be cured, its
abuses eliminated not by govern
mental and court action but by vol
untary work of the industry itself,
the Council proposes TO wage war on
inferior construction.
Warns of Two Evils.
and unsound financing in the industry
will be a big step forward, the Coun-
Gil believes and with this in mind, its
president, Franklin d. Roosevelt,
warns against these evils in the FOL
lowing statement;
Zone very serious situation con-
fronting the country requires special
attention. A large percentage OF
present-day building construction
throughout the country is distinctly
inferior in quality and unsound In II
nancing. Thousands of such struc-
lures, now under way or recently
eercted, especially in housing, are
subject to such rapid deterioration
that within ten years time, some
times less, they will be practically
valueless.
"This rapid depreciation coupled
with unsound methods of promotion
must entail enormous loss of the
principal investment, besides entail
ing serious expense and heavy add
tional burdens for repairs and main
tenance after a few years. A still fur
Their burden is added by the higher
rates of insurance due to the use Of
inferior materials and poor consttuc-
ton. All these make for higher rents.
"This situation results from the ac-
tiyities of irresponsible groups found
in every element of the industry.
Faulty engineering, unreliable archi-
tects, inexperienced and incompe-
tent contractors, inferior grades of
materials, poor mechanics, inadequate
and poor inspection, and other bad
factors, too frequently enter into
building work. These have serious
effects but no more serious than I'M
sound financing.
Hits unsound Financing.
Mortgage bonds are issued on
speculative buildings. Many such is
sues are based on improper security
and fictitious statements of earnings
at abnormal interest rates. They find
buyers because of the general ignor-
ance existing in many quarters as to
the Requirements for good real estate
securities. Such purchases are usu-
ally those who can least afford to be
vctimized. Every element of the in
dustry must bear its proportionate
share of the blame for the vicious
practices not infrequently found in
building projects today, and for per-
hitting practices within its ranks that
do not measure up to proper stand
ards.
''To further the interests of the
business of building and a general
adoption of the principles Of better
building, the council has appointed