New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-14

gently as possible that the law was IN
exorable and no respecter or persons
He then called up his attorney. Walter
stern. who said he would get bail right
away IL the Commissioners and the
1rnifed States Attorney would walt until
this could be arranged
Mr.. Stern came to the Federal Build
ING within a few minutes and bail was
arranged and the bonds signed so that
his client could be released at 81 80 p. M
Mr. Stern. when he saw the complaint
and learned that Henry J. Duveen would
he arrested on the arrival of the Lusi-
tania. asked whether arrangements
could be made to give bail last night
commissioner Shields agreed to come
over from his home in Brooklyn so that
the founder of the great art firm should
not have to spend the night In custody.
The complaint in the case was made
bv William l.. Wemple, Assistant United
states Attorney. He sets forth, upon In
formation and belief, that "on February
10 1908 the members of che firm named
lnoufngIy and frauduentiy conspired
with each other and with other persons
/ unknown 10 dtbOlACAh W NNAiobh Ni'O
limited States government of customs
duties lawfully accrued and due and to
become due upon merchandise to be i'm
ported into the United States by the
aforesaid conspirators by means of
false and fraudulent invoices, entries
and other practices and devices relating
7 TO said merchandise. and it was part Of
said conspiracy that the said invoices,
af7idayits and statements should among
other particulars falsely and fraudulent
" state the description and foreign cost
nrice of the merchandise purporting to
be covered by such invoices. entries, af
fdavits, statements and entries.
Specific Act Alleged.
I'm pursuance of said conspiracy the
said defendants did on February 10.
! 1908. in the Southern District OF New
York. falsely and fraudulently enter mer-
chandise. to wit, three vases. through
the Collector of Customs, by means of
false and fraudulent consular invoice
and entry paper and by means of false
! statement and affidavit, with the intent
that the same should be used in the
| liquidation of duties on said merchan
disc. by means of which the United
States might be and was deprived and
defrauded of a portion of the lawful
duty, etc.
THE source Of information of the de-
ponent consists of Custom House records
and private invoices and statements
made TO deponent by a person whose
name cannot be disclosed. because such
disclosure at this time would defeat the
ends Of Justice, but who can be produced
upon the hearing
After the arraignment of Benjamin
Duveen Mr.. Wise said: Evidence was
submitted to me yesterday by Collector
Loeb that satisfied me that Duveen
Brothers have been undertaking goods
for entry for years past. was satisfied
that gross frauds had been praetised
upon the Treasury for years and author
ized Mr.. wemple 10 apply for warrants
Of arrest and search warrants, which
were duly issued by Commissioner
Shields and served to-day. Under the
law Collector Loeb specially designated
Acting Deputy Surveyor Norwood to
execute the search warrant. and | am
informed that his cursory examination
of the books Of the firm has already per-
mitted him TO place a judicial seizure
OH many valuable objects of art in the
establishment Of the defendants.
THE goods recognized in the store as
having been brought in at great under
valuations are only the beginning of the
case so far as our information goes, as
we expect to show that the total amount
SO undervalued will run into many MILL
ions Of dollars, and the duties of which
the government was deprived will
amount to over 81 100000"
The system under which it is alleged
the frauds We're perpetrated was the
same as that shown to have existed in
the Musica case tried last November in
the United States Circuit Court. The
shippers, who in this case were members
of the same firm as the consignees,
would present at the office of the United
States Consul an invoice of the goods to
be shipped to New York. This invoice
must be signed in triplicate by the con-
sui. One copy goes to the consignee, one
TO the customs authorities at the port
of entry and the third remains on record
in the consulate Under this system the
invoice containing the real value of the
goods is sent to the consignee. but when
the customs entry is made the falsified
consular invoice is used, and thus duty
is paid on only a portion of the value Of
the goods imported.
Knows Nothing of Vases.
While waiting at Marshal Henkers Of
flee for bail, Benjamin Duveen said he
knew nothing whatever about the entry
of the three vases referred to in the COM
plant. "Oh, yes. l am a member of the
firm he said. The other members are
my three brothers and my uncle Henry,
who arrives tonight or tomorrow on
the Lusitania.
"Oh, yes. our firm does a very large
business in this country. We brought
over the Franz Halls, which brought the
highest price ever paid for a painting in
this country. We brought it over our
selves and sold 1t to Mr.. Kahn. We
also bought many of the best pictures
offered at the sale of the Yerkes collec-
ton. I really do not remember what
pictures we bought there, but I know
we did get some Corots and some other
masters. Our customers and clients in
.I,g-