Twenty-six New York City cloth merchants rubbed their hands joyfully last month when the city ordered $67,092 worth of woolen goods to be made into winter coats for needy women & children by WPA workers. Last week city inspectors rejected half the cloth submitted. Twenty merchants had supplied good goods. Six others, with the bulk of the orders, had tried to palm off material containing moth holes, streaks, bare places, weak spots. Angered, Comptroller Joseph D. McGoldrick gave the six a chance to make good before publishing their names. Still hopeful, one shyster took back his shoddy, resubmitted it as a new delivery.