Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-21

So far as business property Is con-
cerned, Office buildings and the like, %
per cent of the cities show a shortage
and 10 per cent overbuilding. High
rents seem to have played some part
here because rents were shown to be up
in 40 per cent Of the cities and down in
only 8 per cent. This, doubtless Is at
tributable to increased taxes, levied by
municipalities. It will be remembered
that President Harding and President
Coolidge both warned the American
public concerning the rising tax bill Of
States and cities and their tremendous
load of bonded indebtedness.
Finances Play Part in Building Check.
Different situations are to be found in
different sections. The fortunes IF cities
rise and fall with events. Many cities
which gained tremendously In wealth
and population during and az result
of the war have either failed to main
tain growth or have actually receded.
But finance facilities seem to be play
ing a large part in the building check.
The survey shows that interest rates
have been maintained steadily despite
the fall in the general level Of prices.
There have been increases in some
places and declines in others. Twenty
one per cent of the cities reported re-
tardaticn because Of inability to get
money.
New York City alone. obviously,
stands out. as its private building OPP
erations are equal in volume to these
Of scores OF other cities combined. Con-
tracts for new construction in June
were 80 per cent below last juneau
astonishing drop in such as era OF
expansion as the last year has been.
Thirty per cent of this loss was in
residential buildings. II in commercial
buildings and IS in industrial buildings.
Further, to show how definite the
slowing up Is. new projects announced
have declined So per cent under
year ago.
The vast Importance to the Nation
Of such a situation is that the amount
of money usually spent in year on
buildings has been IN excess OF $3,0oO,-
100000.
Countrywide national associations
connected with the industry have com.
mented rather diSmally on the situation.
For instance, the Common Brick Manu-
iacturers' Association notes that the
volume Of construction is the lowest In
eight years. Many plants for making
building materials are running on short
time or shut down. II is shown.
Another quite interesting explana-
ton besides that In respect OF nndhce
which has been advanced to explain
the slack situation Is that there has
been a reaction on the part Of the
public from the low quality Of struc-
lures, especially residential property.
constructed since the war. 1t is point
ed out that the postwar rush to
erect buildings resulted In lax enforce
ment Of building codes. Many substi-
tute building materials have been put
into structures some of them still more
or less in an experimental stage. Con-
tractors have rushed work through and
thereby scamped it. Not only have
dangerous structures resulted in many
instances, but scores OF thousands OF
buildings have been put up which, in
a few months, have shown amazing
depreciation.
1t is thought that the public has
concluded that it can not afford TO
buy card houses unable to stand up
in a breeze or endure frost. snow and
rain. In effect there appears TO be q
mild buyers strike, which may last
until there is confident public belief
that sounder structures will BE- erected.