Evening star., 1940-06-13
War lntensification
| Fails 10 Constrict
U.S. Building
Construction Contracts
In May Are Highest
Of Any Month in 1910
Special Dispatch to The Star.


NEW YORK, June 13.-Recent in
tensification of the European war
has not yet effected any important
change in the upward trend of con-
struction in the United States, ac-
cording to F. w. Dodge Corp. The
May total of construction contracts
awarded in the 81 Eastern States
amounted to s328,914,0OO, largest
monthly total recorded thus far in
1910. being per cent over the April
figure and nearly per cent over the
total for May of last year
Most significant in last months
record was the contract figure for
residential building. sl45,9l2 900,
largest residential total since August,
1929, and per cent over the resi-
Dental figure for May, 1888. Gains
in contract volume were continuous
through the month, showing no
dininution after the German in
vasion of the Low Countries.
OF possible significance for resi-
Dental building in coming months
are recent mortgageinsurance rec
ords of the Federal Housing Admin
istration. During the five weeks
ended June /, the number o. mort
cages selected for appraisal increased
20 per cent over the corresponding
five weeks of last year, and their
total value increased l8 per cent; the
number Of mortgages accepted for
insurance increased per cent and
their value increased per cent.
There has as yet been in the F.. H. A.
records no indication of falling off
due to the critical war situation.
Three Possible Factors.
Commenting on the situation,
Thomas S. Holden, vice president of
F. w. Dodge Corp, in charge of
statistics and research, stated
Three possible factors might
change the current upward trend
of private building:
l. Panic, causing private investors
to defer or abandon building projects.
2. A rapid rise in building costs.
3. Imposition of Government con-
trolls and restrictions, in order to give
priority to construction essential to
the national preparedness program.
mo one of these three things has
happened yet.
No Sign of Panic.
With regard to the first one, the
May records show that there has
not been the slightest sign of panic
in the private building market. AS
for rising building costs, there seems
to be little danger of trouble at any
early date. Both Government and
private industry are acutely con-
scious of the dangers of price in
f1ation, as they were last autumn
after the beginning of the war.
Since then and up to the present
moment, self-control by industry
and labor without governmental
action has been adequate to hold
material prices and wages at fairly
steady levels.
"The prospect of Government
controls and restrictions on private
building activity seems equally re-
mote. At the time of the first World
War, the priority order, restricting
private projects over SEE, 200 to those
essential to our war participation
did not come until December, 1917
eight months after the United States
declared war, and grew out of neces-
stiles not present in the current sit
uation.
consequently, the facts known to
us up to this present date seem to
indicate continued upswing of
private construction during the re-
mainder of this year; new facts
could, of course, change the picture
in very short order. The national
defense program now being formu-
lated will undoubtedly include, in
addition to Army and Navy and in
dustrial construction. a considerable
amount of emergency housing"