Hugh Johnson Finds Railbelt Food
Costs Stabilized During Summer
In spite of our flat purses, gro
cery prices seem to have leveled
off this summer. That is the re
port this week from Hugh John
son, head of the department of
agricultural economics, Alaska
experiment station, Palmer.
The report is based on retail
prices of 42 items commonly
bought by housewives. The econ
omists, with the assistance of the
Alaska extension service, have
been watching these prices close
ly, taking their samples twice a
month and watching for changes.
The same stores were visited each
time, and the same brand product
or its nearest equivalent was
priced.
If you had bought one each of
these 42 items in Anchorage
stores on May 1, 1951, your total
bill would have been $31.06. By
June 1, a few items were a bit
higher but others were lower so
that these same items cost only
$30.78, or one percent less than
a month before. By July 1, other
minor changes had occurred so
that these items cost $31.14 or
only eight cents more than on
May 1. By August 1, total costs
were back slightly below May 1,
and on September 1, they were
$31.02, or practically on a par
with May 1. The spread between
highest and lowest total “market
basket” costs, i.e. one each of
these common items, during these
five months was 40 cents or 1.3
percent.
In Palmer, the same identical
items cost $31.60 on May 1 as
compared to $31.06 in Anchorage.
Palmer prices have been “up a
nickel and down a nickel” each
month since, with the total fluc
tuation in “market basket” value
60 cents or 1.9 percent of the May
1 figure.
In Fairbanks, these items cost
$32.76 on May 1, dropped to
$32.48 on August 1 and continued
to drop slightly to $32.18 on Sep
tember 1. This was 1.8 percent
below the May 1 average. The
total spread in market basket
prices in Fairbanks was $1.04 or
3.2 percent which occurred be
tween June 1 and September 1.
From a purely statistical stand
point, these fluctuations could
have occurred by chance due to
the small number of stores repre
sented. A sample of hundreds of
stores, obviously impossible in Al
aska, would be needed before
small variations such as these in
the “market basket” or in aver
ages among stores would indicate
“significant” changes. However,
the data collected in three cities
by separate enumerators, shows
the same general trends. The
economists, therefore say: “The
grocery stores in the railbelt, at
least, seem to be holding the line
very well this summer”.
A further note of explanation
in variations of market basket
values among the three cities is
made. Average Palmer prices are
1.7 percent above average An
chorage prices, and Fairbanks
prices are 6 percent higher than
Anchorage. Part of this is ex
plained by freight rates; the
through freight charges from Se
attle are about 12 percent more
on groceries landed in Palmer,
and about 63 percent more landed
in Fairbanks than they are in
Anchorage. Thus, class IV items
such as canned fruits and vege
tables, canned juices and flour,
carry a freight overhead of $2.67
per hundredweight in Anchorage,
$2.98 in Palmer and $4.32 in Fair
banks.
Other variations that might
cause regional price differentials
are: (1) variations in rent, light,
power and overhead costs; (2)
wage standards of clerks, hours
of work, volume of business;
(3) the relationships of unpaid
family labor to overhead costs;
(4) carrying costs due to slower
turnover on shipments moving
greater distances.
Department Manager
Arrives in Palmer
Arriving in Palmer September
22, Victor N. Thompson took up
new duties as manager of Kos
losky’s grocery department this
week.
Mr. and Mrs. Thompson drove
to Palmer over the Alaska high
way, pulling their house trailer
from their former home at Moun
tain Home, Idaho.
Thompson was formerly gen
eral branch manager for Real Silk
Mills at Washington. This is his
second trip to the Territory, hav
ing spent some time at Anchor -
| age in 1942.
I'".~
Girl Seoul Leaders
Attend District Meet
In Anchorage
Mrs. Charles Wilson. Mrs. Fred
Stassel and Mrs. Russell Asay,
local Girl Scout leaders, attended
the all-day meeting Tuesday of
the Susitna Girl Scout council in
i Anchorage.
With them they took essays by
Dorothy Letz and Sally Reed of
troop 26, written on the subject
“Why the Community Should
Support the Girl Scout Program ’.
Girl Scouts from the entire Susit
na council were invited to sun
mit such essays in a contest which
closed Tuesday, Sept. 25. Winners
will be interviewed over an An
chorage radio station on the sub
ject of scouting.
Military personnel and their
families in the Alaskan command
have an opportunity to visit the
air force rest and recreation cen
ter, Mt. McKinley National park
this winter. The center begins
during the early part of October.
The center will have skiing, to
bogganing, hiking and tours into
the park by bus. Indoor features
include badminton, bridge, all
kinds of games and 16 m/m
movies which will be shown with
interesting talks by rangers of
the national park service.
September 29ih is the last day
to register for the school bond
election, October 2nd.
• HATS CLEANED, BLOCKED
• MEN'S, LADIES' Tailoring and Alterations
• Cleaning - Pressing and pressing while
you wait.
ALL WORK CAN BE MAILED TO . . .
DICY’S ALTERATION DEPARTMENT
Rear of E. Pearl Co., 340 4th Are., Anchorage Box 866
Sheet Metal Work
Furnaces Stokers Pre-fab Chimneys
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— Free Estimates —
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Phone: 62J3
Palmer
Tosf's Service Station
We have the New...
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In Down Town Palmer, Alaska
COMMUNITY-WIDE MEETING
CALLED
All community organizations of 1
Palmer. Wasilla. Jonesville and
Chugiak have been invited to
send a representative of their
group to a general discussion
meeting to be held October 9. at
8 p.m. at the Co-Op club room.
The community-wide meeting
r
has been called for a discussion
of ways and means of raising
funds for the Valley hospital
benefit. The meeting will be in
charge of Mrs. John DeVries who
requests any organization not
contacted to feel free to send a
representative to the meeting.
Don’t wait for the cold weather—Get ready
NOW. Estimates gladly given. Cal! us soon.
%
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