It is notorious that the U. S., most precocious child of the Industrial Revolution, is a laggard in Housing—the business of furnishing cheap and comfortable shelter. Less than half the homes in the U. S. measure up to minimum standards of decency. Surveying U. S. housing in five articles (Feb.-July), FORTUNE laid the blame upon: "The inefficiency and disorder of its management, the dependence upon speculative real-estate dealers which hampers it in its purchases of land, the costliness of its methods, the exorbitant rates of its financing, the obstructive tactics of its labor, the complication and stupidity of the building code and taxing laws which beset it." In measuring how far the housing industry has lagged behind the Industrial Revolution, FORTUNE found that whereas the $5,000 automobile of 1911 now sells for $2,000, the $20.000 house of 1911 still sells for $40,000. Pointing out the frontier still to be crossed, FORTUNE concluded that "if the industry could build a good house to sell at $4,800, it would add 60% to its small-house sales in its present market. ... If the industry could build a good house to sell at $3,600. it would double its post-War residential output, which in 'normal' years has amounted to $3,000,000,000, and invade the new market."
The frontier has not been totally neglected. There have been stirrings indicative of the application of science and scientific methods to shelter just as there have been to transportation. In Europe especially architects have been studying the efficiency of the home as a home in addition to cost-saving devices in building it. Many architects in the U. S. have tackled the problem individually. Housing developments such as Sunnyside. L. I., have realized the savings resultant from large-scale building. A special committee of United States Steel Corp. has studied steel houses. American Rolling Mill Co. sees a future when steel will be used for streets as well as houses. McClintic-Marshall has tried a small steel frame house division. In the secret laboratories of A. O. Smith Corp. of Milwaukee (largest maker of automobile frames and a leading manufacturer of welded steel pipes) engineers are known to be at work on housing.
Last week announcement was made of a new company which will provide cheap, efficient, attractive homes at prices which will cross the frontier of the. low-salaried worker. In scope as well as in name, General Houses, Inc., will resemble the highly-articulated automobile company which caters to all classes. First statement about the new company and its purposes was made in the July issue of FORTUNE.
General Houses, Inc. is based upon the belief that good, cheap homes can be furnished better by a group of companies contributing special services than by one large manufacturing concern. Companies furnishing General Houses with supplies will be:
Pullman Car & Manufacturing Corp., a subsidiary of Pullman Inc., with much experience in building steel shelter-units. This company will supply pressed-steel panels.
Concrete Engineering Co., a leading Middle West concern with a famed staff of engineers.
Thomas A. Edison Inc., maker of cement.
Container Corp. of America, which will handle insulation, ceilings, partitions.
Pittsburgh Plate Glass Co., largest in the U. S.