Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-25

N1OntlnuGQ from NolAt6cIlllI d6Osl
reduction In the wages of all me
chanics employed in producing build
of buildings. This is true, because be
tween 60 and 70To of the cost of items
entering into construction materia
and its erection is for labor.
Second.--The price Of coal must be
reduced, for coal is an important
factor in the production of many
building materials and in their trans
portation.
Third-Freight rates must be re
duced, for transportation of building
materials represents large and i'm
portant part in their cost.
Fourth.-General living costs must
be reduced materially before any OF
the three costs named above can be-
gin to move downward in any marked
degree.
Fifth.-Income taxes must be re-
duced. Every penny of income tax
collected from the building industry is
added to building costs.
Outlook Good i'm South.
The South will also continue to be
an important factor in the building
situation during the coming year.
steadily expanding and improving its
facilities for conducting business in
every line, is still in need of modern,
high-class structures, such as hotels,
commercial, industrial and public
buildings.
The aggregate value of Southern
construction contracts for all pur-
poses in 1925 was approximately
$500. 100000. The total for this year
will probably be near that figure, al
though the collapse of the Florida
boom and the business depression in
some parts of the Cotton Belt has
curtailed building to some extent.
With improved business conditions In
sight, it would seem safe to predict
that building operations in the South
will continue at high rate for many
months.
Building wages. which are so inn
portant a constituent of building
costs, depend upon the supply of and
demand for building laborers. on the
strength of labor organizations and,
indirectly. on the workers standard
of living. In this direction there
seems little hope of any substantial
lowering of building costs, although
labor efficiency viii undoubtedly in.
crease and some minor reductions
may take place as the building in
dustry slackens its pace.
Union organization in the building
trades today is highly developed. II
is estimated that more than 100000
craftsmen are members of labor
unions. They are, therefore, able to
offer strenuous opposition to any at.
tempt to seriously debate the i'm.
proved standard of living which they
have recently achieved. The indica.
tons are that there is little likelihood
of any serious effort to bring about
wage reductions in 1927. A number
of crafts in the larger cities have al
ready signed agreements that win ex'
tend for another year carrying pres
ent wage rates.
Besides through increased produc.
tivity on the part of the worker, II
would seem that the greatest hope
for lowering of building costs is t.
be based upon the efforts which are
now being made to increase the eff
cheney of management in the con
struction industry, to improve the
work of layout and design on the part
of the architects, to secure a better
organization of work upon the job,
to eliminate the seasonal ups and
downs" in the industry and, by fore
sight and planning to achieve 6
greater regularity Of the industry
throughout a period of years. Intro