The Daily Alaska empire., 1942-07-06
RETAIL PRICES TO BE BASED ON
 REPLACEMEMTS
0PA Regulations for Ter ritory Received by
 Mrs. Hermann

Photographic information concern ing the expected amendment for the General Maximum Price Reg ulation applicable to Alaska only, has been received in Juneau by Mildred R. Hermann, Alaska Di- rector of the Office of Price Ad- ministration.
 The amendment establishes an entirely new method of computing maximum prices in Alaska, and has been tailored to fit the varying, unique conditions under which merchandising is carried on in All aSka.
 Computing Method
 Briefly, it establishes the fol- lowing method for computing max imum prices for all goods shipped into Alaska to sell, excluding a | limited number of items on the ex- cepted list, and very few which are subject to special regulations, To the wholesale cost of the mer- chandise, minus the regular dis count, the retailer adds the cost of transportation including war risk insurance. This gives him the direct cost of his merchandise. To that amount he may add the high est actual dollar and cents mark-up he added to his cost price for the same, or comparable merchandise in the period between November ' and December 6. 1941, the month immediately preceding the Pearl Harbor attack. This is the maximum price he may fix for the goods, though he may, of course, sell at a lower price.
 The new method gives the re- tailers throughout Alaska, whether living in the "freeze-up stations" of the Interior and Far North where shipping facilities are limited to three and four months out of the year, or in Southeastern Alaska where shipping service is carried on continuously, the advantage of establishing his prices on his re- placement cost rather than fixed March price, By permitting him to add his transportation cost to his direct cost, it allows the absorption of higher freight and handling oh l.fr hn thnI1nh limiting this charge to the exact amount of such service costs. At the same time, however, by fixing the month immediately preceding Pearl Harbor as the base period, the con- sumer is saved the jump in prices that occurred pretty genera y throughout the Territory during January and February, due most merchants claim, to the sudden in- crease of wholesalers prices. Living Costs to Decrease With wholesalers and exporters prices controlled by their highest March level and the Alaska retailer limited to the mark-up of the month preceding the War, Alaskan consumers may confidently expect a noticeable decrease in the cost of living, Mrs. Hermann explained. It should be borne in mind that the amount covers such articles as are shipped into Alaska from out side the Territory, Mrs. Hermann stated, and commodities manufact- ured and distributed within the Territory remain subject to Gen. eral Maximum Price Regulations on all items not excluded from price control.
 The retailer is given until August l to post his ceiling prices and pre- pare his other reports asp rovided in the General Maximum Price Regulation which, except for the matter of computing m kim m prices, remains in effect through out Alaska.
 As soon as copies of the amend ment are received, they will be distributed among the retail mer- chants of the Territory through local rationing boards in their var ious communities. In the meantime, merchants should remember the amendment became effective on July l and govern their pricing accordingly, Mrs. Hermann advised.