The Mena weekly star., 1920-06-03
HEAD OF WOOLEN TRUST INDICTED
William NJ. Wood Stands Accused of Taking Enormous Profits From Those Who Wear Clothes-i5h
 Millions in Five Months.

New York, June 1.-The question that has been agitating the American people since the end of the war, Why are clothing prices so high? may be answered during the coming trial of the American WooIen Company of Massachusetts and the American Woolen Company of New York. com monly known as the woolen trust, and William M. Wood, president of both companies, just indicted by federal grand jury on charges of profiteering
 Herbert c. Smythe, special assistant United States attorney general in charge of the prosecution, said that that besides enormous" salaries of both companies. Mir. Wood in 1919 re- ceived $515. .4S2.S6 in commissions.
 This was charged as a part of the manufacturing and selling expense and further asserted that the con- panies made an increase in cost of more than 300 per cent over the prices for 1919.
 It was in this class of materials that the companies are charged with ob- taining profits of more than 100 per cent. In the goods manufactured dur ing the present year. Mir. Smythe said, the inquiry showed prices 35 per cent above all costs.
 The profits of the companies in 1919, during which there was strike of most of their important mills last ing five months. were $15,513,414 asserted Smythe.
 This information has been supplied from printed statements submitted by the president to the stockholders.
 "The output during this period was only 49,000,00 yards. whereas the nor nal output of the mills was 10000, 900 yards per annum. the company opeTat- ing 46 cloth mills.
 Tn the present year, when appar- ently for the first time the cost-plus system of fixing the price was adopt, ed, the amount of profits being real ized exceeded on an average from 300 to 400 per cent over those of 1919. For instance, on an article known as trico- tine. for women's wear. the profit for 1919 was 49 cents per yard, while for the same goods for 1920 the profit per yard was $1.60.
 "The ratio of profit is much in- creased and worse for the consumer when it comes to the companies deal ing in stock that had been manufac- tured and placed in their warehouses in 1919, where the cost was ascer- tained before the opening of the sea- son, which was not the case with the incidents already cited.
 "In the latter class the percentage of profits, instead of being 35 per cent over cost. is as much as 100 per cent over cost.
 This inventory surplus from the preceding year approximates four and one-half million yards.
 "In view of this increase and not withstandint that the making and selling companies are subjected to an expense, on account of the same man being president of both companies. of nearly a million dollars compensation for commission and salaries, the 1920 esting document If the companies are permitted to carry on this campaign of profiteering, which they so boldly started out to inaugurate at the begin ming of this year.
 "The American Wloolen Company is the largest manufacturer of woolen cloth in the United States, and to 8 large extent dominates tn etrade in that industry.
 The department of justice there- fore feels that it has unearthed one of the most important cases of profiteer- ing known since the amendment to the Lever act went into effect"