The Nome nugget., 1942-07-13
New Method Established For Computation of Maxi mum Prices In Alaska

pected amendment for the Gen. eral Maximum Price Regulation applicable 10 Alaska only, has been received n Juneau by Mil dred R. Hermann, Alaska Direct or of the Office of Price Admin istration.
 The amendment establishes an entirely new method of comput- ing maximum prices m Alaska, and has been tailored to fit the varying, unique conditions un- der which merchandising is car ried on in Alaska.
 Briefly, it establishes the fol- lowing method for computing maximum prices for all goods shipped into Alaska 10 sell ex- cluding a limited number of items on the excepted list, and a very few which are subject to special regulations. To the whole sale cost of the merchandise, minus the regular discount, the retailer adds the cost of trans pOrtatlon including war risk ln- surance This gives him the di- rect 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 mer- chandlSe ln the period between November 2 and December 6, 194l, the month immediately pre- cedine the Pearl Harbor attack. This IS the maximum price he may fix for the goods, though he may. Of course, sell al a lower price
 The new method gives the re- tailers throughout Alaska, whe- ther living n the 'freeze-up sta tions' Of the Interior and the Far North where shipping facilities are limited 10 three and four months out of the year. or in Southeastern Alaska where ship ping service is carried on con tinuously. the advantage of es- tablshing his prices on his re- placement cost rather than fix ed March price By permitting him 10 add his transportation cost to his direct cost, fl allows the absorption of higher freight and handling charges by the con sumer, though limiting tn S charge 10 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 consumer Is saved the jump in prices that occurred pretty generally throughout the Terri tory during January and Febru- ary due most merchants claim, to the sudden increase of WholeSal- CTS prices.
 With wholesalers and export CTS prices controlled by their highest March level and the Al aSka 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 only such articles as are shipped into Alaska from outside the Territory, Mrs Her man stated, and commodities manufactured and distributed within the Territory remain sub ect 10 General Maximum Price Regulation on all items not eX- cluded from price control
 The retailer is given until August ] to post his ceiling pric es and prepare his other reports as provided in the General Maxi mum Price Regulation which, ex cept for the matter of computing maximum prices, remains in ef- ect throughout 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 various communities. In the meantime, merchants should re- member the amendment became effective on July l and govern their pricing accordingly, Mrs. Hermann advised.