The Washington times., 1927-12-29
BUILDING BACK
To NORMAL
BY RICHARD HATTON

The year 1928 should not differ
greatly from 1927 in building activI.
ties, both locally and throughout the
country, is the opinion expressed
yesterday by 6. M. Ferris, resident
manager for w. Straus and Com.
pany. Continuing, Mr.. Ferris said:
The present year brought about
conditions of greater stability than
have existed at any time since the
war and no factors of Importance
are now apparent to indicate any
special change in this respect.
1T Is to be remembered that the
entire year Of 1928 and more than
half of 1926 constitutes a peak De.
riod in building everywhere in the
country. Beginning late in 1926 and
continuing to the end Of 1927, the
industry has been going through
slowing-down process. which was
merely the return to normal. APP
Earently we have now reached a
place where supply and demand are
well balanced. We find tranquility
in the labor situation and sound
conditions permeating the industry.
The inflated activities and other
abnormalities of the peak period
have passed and we have settled
down to good. solid basis that
should continue for some time.
Decline in 1897
Throughout the country. build
ing activities for the year 1927
were about IS per cent lower than
for 1926 and substantially 20 per
cent lower than in 1925. With
employment in the labor crafts
about ~ per cent less than at
the beginning of 1927, employers
are now able to man their jobs
with more efficient helpers. The
thrifty, Industrious. conscientious
worker is giving more for his
pay envelope than the average
worker gave during the height of
the building activities when "snow.
balling" and bonuses were COM
mon. The actual drop in build
ing material prices for the year
has ranged from z to 10 per cent.
while labor costs have risen a
little less than per cent. But
labor efficiency, managerial econ.
of labor-saving machinery have com.
bined to effect increasing pro-
duction without corresponding in.
crease in costs.
THE building industry through
these processes has been a factor
in helping eliminate the vicious
circle" of higher living costs and
increasing wage scales.
''It is not the opinion of s. w.
Straus and Companr. however. that
these conditions will react toward
a general or permanent reduction
OF rents. Perhaps here and there
there has been a slight overpro-
duction in one type of building
or another. but demand eventually
will overtake supply in such in
stances and. where rents have
slumped. normal conditions will re-
turn. 1t is always to be remem.
bered that property values are de.
pendent on income, and the prog
ress and upbuilding which we ex.
pect to see continue in this city
and territory can be realized only
with sustained values in improved
real estate.
I'm so far as this city and ad-
1acent territory are concerned, con.
cluded Mr.. Ferris, there is no rea.
son why there should not be a
steady amount of building in sub.
stantial volume throughout 1928.
While conditions may have slowed
down during the past year or more
1t is to be remembered that a con.
slant growth in population, particu-
larly in our suburban areas, is TAX.
ing place. Some of our old build
lngs are becoming obsolete and
must be replaced by new struc-
lures. The standard of living in this
community, as we all know. is con-
stantly improving which means q
strong and unceasing demand for
the modern type of building with
its many conveniences, comforts and
advantages. Summing it all up, the
prospects for the new year locally
are very promising although it is
not to be anticipated that activities
Will attain the proportions of the
1925-1926 period"
The board of directors of the Ma.
tional Bank of Washington at its
regular meeting yesterday declared
the annual semiannual dividend of
s per cent and an extra of Is per
cent payable January 8.
The employees were granted addi-
tional compensation in appreciation
Of faithful service throughout the
year.
This. the oldest bank in the Dis
trict Of Columbia. reports a very
prosperous year and begins itS 119th
year with every prospect of con.
tinued success.
Many friends OF the Farmers and
Mechanics National Bank will today