Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1920-05-29
PR0FITEERINC IN
WOOL is CHARGED
Materials Sold at More Than
100 Per Cent Above Cost,
ID Counts AlIege.
INDICTED UNDER LEVER ACT.
President Got $515,4a2 Bonus Over
Enormous Salaries in 1910. e.
Hughes Retained as Special
Counsel for Manufacturers.

New York.-The American Wooden
Company of Massachusetts, the Ameri-
can Wooden Company of New York,
and William M. Wood, president of
both companies, were indicted under
the Lever act on charge of profiteer-
ing by Federal Grand Jury.
The indictment contains fourteen
counts, each dealing with the sale of
wooden cloth at price alleged to be
exOrbitant. The cost and sale prices
quoted show transactions that netted
the wooden companies 100 per cent
profit.
Herbert s. Smyth, special assistant
United States attorney general in
charge Of the prosecution, said the gov
ernment's Investigation had revealed
that besides enormous" salaries from
both companies, Mr.. Wood in 1919 re-
ceived $515,482.86 In commissions.
This is charged as part Of the manu-
featuring and selling expense.
TIE further asserted that the COM
panies this year increased prices more
than 800 per cent over those of 1919.
1t was In this class of materials that
the companies are charged with obtain
ing profits of more than 100 per cent.
In the goods manufactured during the
present year Mr.. Smyth said the in
quiry showed prices So per cent above
all costs.
The Indictment in It's fourteen counts
makes the following charges In specific
transactions
1-One piece Of cloth, containing rs
yards, costing to manufacture 1925,
was sold at $3.67h to William Jer-
rem's Sons, January 7.
2-One piece of cloth, containing
75M yards, costing to manufacture
$1.62, was sold at 1925 to Isaac L.
Rosenbaum, January II.
3IOne piece of cloth, containing
85h yards, costing $1.9O. was sold to
Abraham Simon and Peter Goodstein
at $500, January 10.
4Twenty pieces of cloth, contain
ing 1,464% yards, costing $2.28, were
sold at $375 to Samuel N. Brinberg,
January 8.
5-One-half piece of cloth. contain
ing 32h yards, costing $1.97, was sold
at $685. to Abraham and Joseph Fem
sod, January z.
Cone piece Of cloth, 24A yards,
costing $1.98, was sold at $3.92k to
Aaron Flaxman and Max J. Elbaum,
January IT.
7-One piece of cloth, containing
58A yards, costing $3.50, was sold at
SO % tO N GinSberp January 8
8-Seven pieces of cloth, containing
585% yards, costing $272, were sold
at $387h to Fl. B. Rubin, January u.
1.-TWO pieces of cloth, containing
146A yards, costing $1.9S, were sold
at 1892 to Morris Kramer, January 10.
10-One piece of cloth, containing
1874 yards, costing $1.9S, was sold at
$500 to Isaac Appleman, January 5.
11-One piece of cloth, containing
TN yards. costing $1.98, was sold at
81 to L. SLIDER, January 6.
12-One piece of cloth, containing
64A yards, costing $1.9S, was sold at
81 to Henry L. Schaffer and Sigmund
Kimelmann, January 5.
1.-TWO pieces Of cloth, containing
1925 yards, costing $1.73, were sold
at $2.S71a to Louis Schentes, January
II.
14-One piece of cloth, containing
81 yards, costing $1.95, was sold at
$500 to Morris Katz.
Former Justice Charles e. Hughes
has been retained to take charge of the
defense.