Evening star., 1927-05-14
BUILDING IN j. s.
CONTINUES HEAVY
System of Steel Buying Now
in Use Changing Policy
of Production.
BY j. C. ROYLE.

Special Dispatch to The Star.
NEW YORK, May .14.-Checking
building construction in the United
States is a good deal like plugging
dikes and levees. If the flow OF con-
struction is halted at one point, IL
breaks out at another.
The volume of construction calied
for by the applications for bulidlhs
permits in over 500 cities has fallen
off somewhere near S50,0O0,ooo a
week. On the other hand, actual
contracts let advanced materially ana
the total contracts on big jobs only
so far this year amounts now to over
$1,015,0 900, 900.
Materials are firmer, owing to
active demand. Cleveland, for eX-
ample, received an impetus releasing
$S,000,000 worth of work as a result
of the conclusion of a contract be-
tween employers and common build
ing laborerS at the same scale as last
year, S71a cents an hour. Enough
Of the building trades artisans are
now signed to assure completion OF
Jobs that are started. Similar trends
are reported elsewhere.
Changing Production Policies.
The system Of steel buying now in
vogue is causing q distinct change In
production policies. Instead of main
tanning equipment for peak loads,
machinery is being reduced to meet
the demands Of average production
and outside plants will be called on II
help is needed. The trend in build
ing and automobile manufacture IS
keeping plants pretty well engaged,
with independents operating about lo
per cent under the mills OF the lead
ing interest.
Operations on the Great Lakes have
slackened. The tremendous grain
cargoes shipped via Montreal nave
cut down tonnage going into Amerl-
can bottoms and there has been a
slight decrease in the demand for iron
ore recently.
Strenuous efforts are being made
within the oil industry to stop over
production, but similar efforts have
been made in vain in recent months.
The measures invoked must be proved
legal first and then must have the vol
untary support of the producers be-
fore they can accomplish the results
sought.
The temporary oversupply of copper
seems to have been depleted, since
buying has been brisk around the 13-
cent level. Zinc production, it is felt,
has been cut and this metal is strong
err. Lead is dull. There has been an in
crease In production, but a falling off
in shipments and new business in the
soft wood lumber industry, but this is
expected to be corrected shortly.
Unfavorable weather has impeded
farming operations in some sections
of the country, but this has been COM
pensated for by fine growing weather,
especially in the Northwest. The de-
mand for agricultural implements and
farm equipment is brisk in the South
west.
Railroads are commencing to con-
centrate rolling stock to handle the
fruit and vegetable crops and concen-
tration points will gradually move
northward from now on until the end
Of the grain harvest in the Northwest
next Fall. Car loadings are excel
lent and progress is being made to-
ward elimination of some of the
mergers.
The sugar market improved, owing
to the threat of disaster to the
Louisiana cane fields from the Mis-
sissippi flood. Textiles are looking UP
slightly and have been affected also
by conditions which may grow out of
the flood of cotton lands. Bankers
and business men throughout the
South are already organizing rehabili-
tation corporations which will finance
farmers after the waters subside.