Published once a week in Palmer, Alaska for the Mat
anuska Valley Farriers' Co-operat inr; Association for
the purpose of giving news of the Association's work,
problems and accomplishments.
IflFLUTIOn PHD THE CO-OP
One of the most perplexing questions brought on in tho last year
by the v/ar is what to do about inflation. At the beginning of the war
the Administration at Washington evidently felt that it would not be
serious enough to require special attention. So nothing was done for
several months. During the meantine prices went up along with wagep
until it became pretty bad. Then suddenly the Administration announced
that the problem had become so serious it would be necessary to place
curbs on prices and wages and, in many cases, roll back some prices.
This announcment was practically ignored by the persons affected and
very little v/as done except for a lot of talk. Despite the advice of
high government officials on the necessity for working the program ov
er to stop or curb inflation, the movement continued. A ceiling pro
viding no larger wage increases than 10$ v/as made into law; then most
government agencies were the first to break t his law. Wages were al
lowed to go up beyond .the ceiling, most other prices were increased
beyond the lawful ceilings, and curbs y/ere mostly ineffective.
The Military Authorities demanded immense budgets to provide more
anns, men and bases for military operations. Civilian Management was
encouraged to increase production, and usually found that it cost a lot
more to operate because of increased wages and increased costs of ma
terials of all kinds. Then "overnment agencies were formed to control
materials and, in some cases, prices. But about the tine one agency
began to function another one was. formed to take its nlace. It requires
constant attention to learn who is trying to do what and why.
The biggest thing affecting the Co-op during this time was in
creased wages. Fractically every contractor and government agency had
Increased their wages and salaries way beyond the standard sot up earli
er, It became difficult for the Co-op to hold empiloycos when contract
ors, working in this vicinity, offered common labor up to $2.77 P^r
h ’or with lip hours of overtime at time and a half. This means that a
common laborer could earn nearly $700 a month and, in many cases, tho
cost of board and sleeping quarters was on]y about one third what it
would cost any place else.
Naturally, in order to keep employees it became necessary to raise
the wages and salaries of tho people working for the Co-op. The Mana
ger and the Board of Directors tried to make adjustments to satisfy the
cmploycos--which always meant a raise in wages. Tho labor turnover was
staggering, and will continue. An^ one who has had experience will a
gree that this is always costly to the employer.
To give you some figures, it might be interesting to learn that
wages and salaries rose from $209>000 in the fiscal yoar ending Nov
ember 30th I9I4.9 to $290,000 in 1951, or a raise of EIGHTY THOUSAND
DOLLARS in one year; and yet the gross business only raised about ;
$200,000 on $2,350,000 worth of business. Wages increased 38a- and in
creased business amounted to a little over 9a• That this has affected
the business of the Association very greatly goes without saying.
Now, where do the increased wages come from, you ask. Wc11, they
just cop.o right out of the gross sales, and aro a direct expense that
can't very well be taken fr<->m our customers because we have to compete
with other directly competing business houses. If our prices get out
of line we will have customer resistance. That will cut cur gross
business down so low that we will run into lack of volume trouble.
This in turn will increase our indirect overhead, which would reduce
ne t ma rg i ns . C HR