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Show NEW YORK, May 26. The Amcrl-can Amcrl-can Woolen company of New York, the American Woolen company of Massachusetts, Massa-chusetts, and William Mt Wood, president pres-ident of both companies, were charged with profiteering in -woolen cloth, in an indictment returned hero today by the federal grand Jury, j The indictment contains fourteen counts, charging fourteen individual violations of the Lever aot in .the sale of cloth at unjust and unreasonable 1 prices. Tho first count in the Indictment charged the company with tho sale on January 7. 1920, of 79 yards of cloth, which cost ?2.25 a yard, for ?3 67 1-2 a yard. Another count alleges tha.c la piece of cloth which cost $1.62 a yard was sold on January 12, 1920, for $3.25 a yard. Other counts charge similar sim-ilar transactions. President's Word Rofutod, It developed Assistant District Attorney At-torney II. A. Smyth said, that the company com-pany was recoivlng thirty-five per cent j profit above cost although Mr. Wood claimed the profit proposed by the company for Its 1920 business was 12 and 1-2 per cent. The amount of profits pro-fits whfch the company was realizing, he said, exceeded "on an avc rage of from 300 to 400 per cent thoso of 1919." Mr. Wood, in a statement made in Boston, April 28, declared: "Thero Is absolutely no ust ground for tho suggestion that this company has charged excessive prices for its 1 cloth or has gained an unreasonable or excessive profit." The count charges that on January 2 tho company sold 74 5-8 yards of material that cost $1,02 a yard for $3.25 and that on January 19, So 1-8 yards that cost $1.90 were sold for $3.90 a yard. The American Woolen company, Mr. Smyth said, Is the largest manufacturer manufac-turer of woolen cloth In the United States and to a large extent dominates the trade. "The department, therefore, feels that it has unearthed one of the most Important caseB of profiteering known since the amendment to the Lover act went Into effect." Astounding State of Affairs. Tho Investigation disclosed "a most astounding condition of affairs with regard to these companies and their president," he added. I The cost-plus system of fixing prices apparently was adopted by the com-ipany com-ipany for the first time this year, ac-I ac-I cording to Mr. Smyth. Profits increased increas-ed on an average of 300 per cent as a result, he asserted. In view of this Increase, Mr. Smyth said, and "notwithstanding "not-withstanding that tho manufacturing and selling companies aro subjected to an expense, on account of the same man being president of both companies, compan-ies, of nearly $1,000,000 compensation j for commissions and salaries the 1920 I statement should prove a most inter estlng document if tho companies are permitted to carry on this campaign of profiteering which they so boldly started out to inaugurate at tho beginning begin-ning of this year." Charles Evans Hughes has been retained re-tained as counsel for the defendants, i |