The Marion daily mirror. (Marion, Ohio) 1892-1912, 1910-10-15
STANDS TO Win
FABULOUS sum
Man Who Discovered Art
Frauds a Second Parr.
LOEB DISCUSSES CASE

Collector at Port OF New York Says
Original Estimate OF 100000 as
Amount Out Of Which Government
Was pefrauded by Duveen Broth.
ers Through Undervaluations Is
Much Too Low-Purchssers I'm.
n,une Unless Collision Is Shown.
New York, Oct. Is. - II Collector
Loeb's guess is correct as to the
amount that Uncle Sam was defraul.
ed through the alleged undervalua-
tion OF art objects and other importa-
tions made by Duveen Brothers, the
Fifth avenue art dealers, when those
Offices were raided. the person who
wrote the letter which started ths
collector Ont the trail may be in a
position to claim larger reward
than Richard Parr received for un.
covering the sugar frauds.
Mr.. Loeb said that while the nves.
tigation is still only In its infancy,
the sum involved will probably ex-
ceed by vast amount the sum in
volved in the recoveries from the
sugar companies. Through PARIS ef.
forts the government recovered $2,-
135, ,4SG32 from the American Sugar
Refining company alone, and Parr
WAS awarded 100000 for his work
II follows that II the collectors guess
Is right, the undervaluations charged
to the Duveens will greatly exceed
the 100000 which was the top fig.
ure mentioned when Benjamin J. Du-
veen and Henry j. Duveen were ar
raigned before Commissioner Shields
after their arrest.
No attempt was made to seize
paintings or other art objects sold to
patrons OF the Duveens and none will
be made unless the examination OF
the books Of the firm, which Is now
being carried on, discloses the fact
that some or any OF those who dealt
with the art Arm acted In collusion
with the firm In importing art oh.
jects. Collector Loeb said that the
books were expected to show IL such
had heen the case, and that If evil
dence was found TO warrant such ac
tion he would proceed against such
persons both criminally and civllly
to the full extent of the law.
Collector Loeb said that when the
anonymous letter was received he al
oncs telephoned to the appraisers
stores TO ask II they had any Duveen
Brothers' imports. lie found that
rugs imported by the Arm were even
then At the stores, and ordered them
held pending the investigation. He
said he had specific information that
these rugs were undervalued The
specific complaint against the Du.
veens Is the differentiation OF three
vases, said to have been invoiced at
81 100 and sold here tor s2S 900. Ac.
countants are now examining Duveep
Brothers books.
The investigation will be Il lengthy
one. since II will include all the oper'
ations OF the firm during the 30 years
II has been In business in this coun-
try.
There will be three actions, one
criminal proceeding alleging conspir.
acy to defraud the government, and
two civil actions, one for the forfeit.
nre Of goods for differentiation AMI
one to recover duties and penalties
on such things as have gone out OF
the firms possession after being I'M
1ervalued when imported. The statute
of limitations does not run against
he civil actions.
A member of the firm OF Corbltt &
Stern, counsel for the Duveens, said
Teens' position could be made just
vet, one thing was certain, and that
vas that II was foolish tC talk about
discrepancies between the invoiced
price of work OF art and the price
'or which II was later sold. He had
oeen asked about vases said to have
been invoiced at sl,100 and sold for
$4,000, aud he said that he was sure
hat II the vases had been purchased |
Tor $1,l00 that was their market |
price, and that II remained such un.
III they were again sold when what |
ever price they fetched, whether |
more or less, became the market |
price. The other remarks OF Duveen |
Brothers counsel We're directed |
against what they termed the spec
acular methods employed by the gov,
srnment. Mr.. Stern suggested that |
'ince all the members of the Duveen |
Brothers are British subjects, the
government might take a hand in
Ease they were shown to have been
injustly treated.