Evening star., 1950-06-25

fently, mas Deen 70 prevent re0uc-
/. this year. very slightly exceeded
the previous all-time peak reached
| in 1948."
According to the Boeckh index,
to build a house in the District
today would cost about 234 per
cent of the cost in 1929. The pre-
vious high point in District con-
Struction costs was reached in
November, 1948, when a house
would have cost about 232 per cent
of the cost in 1929. In 1910, the
same house would have cost about
ITO per cent of the 1929 amount.
From the peak point reached in
November, l948. building costs in
Washington, and in the Nation
as a whole, began to drop back
perceptibly until July. last year.
From that point to January of
this year, they remained fairly
stable. In January costs began to
creep up slightly each month until
April. During that month, it
would have been possible to build
a house at about 224 per cent
above the 1929 cost. During May,
a sharper increase sent the per-
centage up to 234 per cent Of the
1929 level.
Though construction costs i'm
mediately after the war were con-
sidered high, they seem low in
contrast with today's costs. The
Boeckh index shows that in Janu-
ary, 1916, it would have been pos
sible to build house in Washing
ton at approximately 1856 per cent
of the 20 level.
From 1916 on, there was an un-
broken rise until the high point
reached in November. 1948.
Col. Boeckh said lumber prices
today ranged between 300 and
400 per cent above prewar levels,
depending on the species. Struc-
tural lumber. he said, had in
creased by a percentage closer to
400 per cent than to 300 per cent.
Part of this increase is due to ad-
ditional freight rates to bring the
lumber into this market. he said.
Another Contributing Factor
Besides materials price in
creases-with lumber being chief
ly reflected in the building cost
index-wage rate boosts and ben
eft plans throughout the country
have affected a large number of
workmen, Bureau of Labor Sta
tistics records show.
In recent weeks, 10000 union
building trades craftsmen through
out the country received wage in
creases or welfare benefits, boost
ing the total to nearly a half mil
lion thus benefited in 1850.
Wage increases, however, have
not been as great as last year,
though there has been q rise in
the number of welfare plans nego-
tiated for which the employer, and
consumer, must pay. The num-
ber of construction workers af-
fected thus far in 1850 by new
welfare plans, or by increased
benefits in previously established
plans, exceeds the total for the
entire 1949 period, BIS said.
In 1949 almost half the building
trades settlements provided wage
increases in excess of 1914 cents
an hour, with only per cent re-
ceiving an increase of less than
10 cents an hour. So far this
year, however, half the settle
ments provided increases of 10
cents an hour or less. with only
a fourth having boosts of 1917
cents an hour or more, the agency
pointed out.
Adding to the evidence that the
housing boom is having its effect
on costs is an Associated Press
survey Of SO major regions which
recently was completed.
This survey showed that lum-
her prices were ''up sharply" in
all So areas, with shortages OF
different materials being encoun-
tered in particular areas. The
survey indicated that interference
with the normal flow of materials
can be attributed to spectators
in some cases.
No Mystery Involved
The survey also turned up a
considerable number of rumors in
connection with the reasons be-
hind the boost in lumber prices
SupplierS in New Jersey told the
news-gathering agency there was
a shortage owing to tremendous
Government buying on the West
Coast" Oregon producers, how
ever, said there was no Govern
ment stockpiling.
Dealers in Upstate New York
blamed it on Army shipments te
Alaska. But the United States
Engineers procurement chief ir
st. Louis said a lumber buying
(See LEWIS, Page C-2.)
LII 81