Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-11

will be laid out at that time.
The extension of automatic credit to
contractors has been a distinct dis
service to the building public and to the
responsible elements in the. construc-
ton industry, states Mr.. Walbridge. at
has been largely to blame for the stigma
of RESPONSIBILITY which has surrounded
constructors while the absence Of uni
form system for the interchange OF
credit information has been the chief
obstacle preventing the elimination OF
bad business and ethical practices with
in the industry" the A. G. c. statement
continues.
Responsibility Ignored.
"Under the system which generally
prevailed both construction equipment
and material concerns paid little atten-
ton to the responsibility of the con-
tractors who applied for credit. They
depended on survey bonds indirectly
paid by owners and on lien laws which
held owners responsible for payment.
Under these conditions owners were
frequently required to make dual pay
ments because of the failure of ire
Sponsible contractors to pay their bills.
These conditions were first definitely
improved during the past year when
were launched in some 80 cities in the
first attempt to establish nationally
uniform procedure to enforce the COL
lection of accounts from contractors.
The program followed was worked out
jointly in 1928 by organized general con-
tractors and subcontractors. During the
past year this program received the
additional support of organized building
supply interests and equipment manu-
facturers and distributors.
THE procedure which has been
proved successful consists of setting up
standard credit terms and interchang-
ing information on those contractor
buyers who become delinquent in their
accounts. In this manner irresponsible
contractors are unable to run from one
supply house to another for additional
credit, as all are provided with the
same information. The result is that
the interests of the owner are safe
guarded before final payment is made
to the contractor.
Delinquent Accounts Cut.
wherever established the credit bu-
reau system has succeeded in cutting
delinquent accounts all the way from 40
to 80 per cent of previous totals, the
amount eliminated depending on the
nature OF the terms agreed upon as
standard. This movement is said to
mark the first instance In business his
tory where a group of buyers has con-
sistently advocated a stiffening of the
terms Of sale under which they pur-
chase"
The outlook for construction activity
in 1880 is less definite than at the start
OF any year. according to E. j. Harding,
assistant general manager of the Asso-
ciated General Contractors. Estimates
for next year range from seven and
half to between nine and ten billion
dollars.
According to Mr. Harding the stabi-
hZation of the stock market at mod
crate levels is looked upon generally as
beneficial to the promotion of construc-
ton because of the release of finances
to local banks, industries and building
and loan associations. This release of
funds, coupled with the intention of
governmental and business leaders to
stimulate construction work, makes
computation on the basis of current
statistics exceedingly hazardous.
Increased Activity Seen.
These forecasts that depend on cur
rent statistical data indicate a con-
struction total between $7,500,0O0, 900
forecasts of $500 900 600 in 1928 and
1929. Where the detectives of the Gov
eminent departments and business
leaders influence forecasts these show
an increase and range from So 500 O0O,-
600 to S9,500. 000. 600 and more. AS JUS
LITIGATION for these larger figures the
forecasters point out that the Boulder
Dam project OF the Federal Govern
ment alone will probably usher in
nearly $1,000 100000 in construction
when all the supplementary operations
involved are considered Again the vol
ume Of highway and public works con-
struction, as pledged by most of the
States and other public bodies, is
taken to indicate an increase in the
total amount of such commitments
during 1880. None of this prospective
work. however, has arrived at the
stage where it can be shown in current