New-York tribune., 1910-02-19
BIG CUSTOM FRAUD
AUTO UNDERT4LUING
WILL REICH $500, 900.
Hoo HoHander Got A7cay
from Agents in Canada
His Office attached.

$500, GEO in the importation Of automo-
biles and other dutiable articles, an al
tachment was levied yesterday on the Of
flee effects of Alexander Hollander q
Co, at No 50 Wall street for $1,000 as
4 preliminary measure. The original
complaint in this case was made by
Henry Clews, as told exclusively IN Inc
Tribune Of January %
The indictment of Hollander followed
that Of two Of his employees, one Of whom
was connected with the payment Of duty
on an automobile bought abroad by Mr..
Clews The appraisenent was changed
after the full amount Of the duty had
been collected from Mr.. Clews, and the
government received about S400 less than
the assessment should have been.
As soon as the federal grand jury had
acted on the charges against Holiander
a bench warrant was issued for his ar
rest His home was at No rs West
18th street Thfther the government agent
went to apprehend the importing agent
He had, of course, heard OF the proceed
ings against his employees and their ar
rest but the information about his own
indictment had been carefully guarded
Hollander. however, had fed
The government officials were particu-
larly anxious 10 make the arrest The
Investigations by the customs agents had
brought TO light many instances similar
TO the CIews case. Among the aoi-
lander customers were William K. Van
derbilt William Astor Chanler and others
equally well known, all OF whom had paid
the full duties on their automobiles, but
on which the government had only been
paid a fraction by the agents.
It was supposed at once that Hollander
had gone to Canada. The police at
Buffalo and other cities through which
he might have TO pass were informed at
once and a sharp lookout was kept at
all the stations. But the importing agent
evaded arrest successfully, and he was
soon heard of as being the guest Of
prominent citizen OF Montreal.
DODGED AGENTS IN MONTREAL.
The weather at Montreal was particu-
larIy severe when Secret Service men
were detailed to shadow Hoilander. They
found the house where he was staying
and waited for an opportunity 10 make
the arrest Just as all was in readiness
to proceed, after q night spent out OF
doors in a Temperature Tar below zero,
the importing agent again got away.
The house had been left unguarded Tor a
few hours, and it is supposed that he
knew Of their presence ans fed as the
agents left 10 get tlawed out. At all
events, he disappeared and the Secret
Service men returned TO this ,ity yester-
day to report failure
Officials of the customs have been
delving in the HoIlander books ever
since the fraud was first discovered, in
January Transaction after transaction
was found which, when traced to its
payment in the Custom House. was found
to be 9 case similar to that discovered
when the first arrests were made.
Joseph P. McGrath. the Hollander en-
ploye who was first arrested on a charge
of having defrauded the customs. had
handled the automobile of Mr.. CIews.
Collector Loeb, to facilitate the release
of machines which were quickly wanted
by their owners, had permitted the is
suance of certificates Of appraisement
TO be used in lieu of the invoices. II
was the alteration OF one of these GER
tifcates that led to the discovery of the
frauds. The Collector has revoked their
use.
DISCOVERY AN ACCIDENT
Mr. CIews's automobile was valued al
s.. $50 When the certificate was issued
it contained that amount as the vaIua-
was assessed and Mr.. Clews paid it 10
the importing agent. When the certitf-
cate was presented at the cashiers win
dow in the Custom House it showed a
valuation of $3.50, the figure - having
been erased and the letters "een' hav-
ing been treated the same way with a
chemical.
One of the customs Secret Service
agents was engaged on an entirely if
ferent investigation when this altered
certificate came under his observation
The source was quickly traced, as the
payment had been made only recently,
and the law division OF the department
acted quickly. 1t was at first thought
that this was an isolated case, but the
more the agent investigated the more
frauds Of the same kind were found
Then the matter was taken up as one
OF great magnitude. and it was reported
last evening that the frauds would
amount to at least $500. 900. and it was
believed that it would be found the
government had been cheated out OF
even more than that by this peculiar
form, of Ayading dutx-
The search for HolIander will not be
stopped. It was said yesterday that a
he would be able to aid the government
in its Investigations. thus abling it 70
clear up the whole system, a measure OF
leniency would be shown If he should
surrender himself. II was also said that
the Canadian authorities would be asked
10 apprehend HoIlander's friend as an
accessory for having defeated the ends
OF justice.
DUTCH STEAMER MISSING.