The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1920-06-11
.PROF|7EERINC IN
WOOL Is CHARGED
Materials Sold at More Than
100 Per Cent Above Cost,
Ia Counts AIIege.
INDICTED UNDER LEVER ACT.
President Got $515,4s2 Bonus Over
Enormous Salaries in 1910. &,
Hughes Retained as Special
Counsel for Manufacturers.

New York.-The American Wooden
Company of Massachusetts, the Ameri-
can Woolen Company of New York,
and William M. Wood, president of
both companies, were indicted under
the Lever act on charge of profteer-
ing by Federal Grand Jury.
The indictment contains fourteen
counts, each dealing with the sale of
woolen cloth at price alleged to be
exorbitant. The cost and sale prices
quoted show transactions that netted
the woolen 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, ,4S2.S6 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 300 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 35 per cent above
all costs.
The indictment in its fourteen counts
makes the following charges in specific
transactions
1-One piece of cloth, containing rs
yards, costing to manufacture $225,
was sold at $3.67h to William Jer-
rem's Sons, January 7.
2-One piece of cloth, containing
755s yards, costing to manufacture
S1.62, was sold at 1925 to Isaac L.
Rosenbaum, January II.
3-One piece of cloth, containing
S51s yards, costing $1.90, was sold to
Abraham Simon and Peter Goodstein
at $500, January 10.
fTwenty pieces of cloth, contain
ing 1,464as yards, costing $2.2S, were
sold at $3.75 to Samuel N. Brinberg,
January 6.
51One-half piece of cloth, contain
ing 321a yards, costing $1.97, was sold
at 1885 to Abraham and Joseph Fein-
sod, January Z.
Gone piece Of cloth, PAN yards,
costing $198, was sold at $3.92h to
Aaron Flaxman and Max ]. Elbaum,
January II.
7-One piece of cloth, containing
5SA yards, costing $3.50, was sold at
$500 to N. Ginsberg, January 8.
S3Seven pieces of cloth, containing
5655s yards, costing $2.72, were sold
at $3.S7k to Fl. B. Rubin, January II.
9eTwo pieces of cloth, containing
1861 yards, costing $1.9S, were sold
at 1892 to Morris Kramer, January Is.
10-One piece of cloth, containing
73ss yards, costing $1.9S, was sold at
$4.OO to Isaac Appleman, January 8.
11-One piece of cloth, containing
721s yards, costing $1.9S, was sold at
81 to L. Silber, 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.
13-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
$3.9 to Morris Katz.
Former Justice Charles E. Hughes
has been retained to take charge Of the
defense.