Evening journal., 1910-10-14
CHARGE FRAUD
in ART WORKS
Large New York Shop Of
DuVeeh Brothers Raided by
Federal Authorities
HEAD OF CONCERN WAS
ARRESTED ON STEAMER

BY United Press Leased Special Wire
NEW YORK. Oct. 14-special
Deputy United States Marshals to-day
are on guard in the big Fifth avenue
art gallery Of Duveen brothers. while
others are carefully watching the
books and papers of the firm, seized
by federal agents in last evenings
spectacular raid. Two members Of
the firm, Benjamin Duveen, a junior
partner, and Henry J. Duveen, one OF
the founders, are under bonds Of $780,
600 and $4,000 respectively to appear
before Commissioner Shields next
Monday to answer to an allegation Of
Conspiracy to defraud the United
States by means of the undervaluation
Of imported art works, of presenting
fraudulent invoices and Of evading
duties
The case rivals in interest the SEN
sational developments In the cele-
brated sugar frauds. According to
District Attorney Wise. who is in per-
sonal charge of the case. the Duveen
firm has defrauded the government of
enormous sums. He places the figure
about S1,000,000 by systematic under
valuing works of art brought into the
United States during the past decade.
This, the members Of the firm,
Through their attorney. deny, char
acterizing the charges as absurd.
The federal grand jury to-day took
up the allegations against the firm.
Inspectors who have been detailed to
examine all the imports of the firm
during the last two months were
called and IL is understood gave evil
dence to bear out the government s
charge that goods have been under
valued. While these inspectors were
testifying a force Of experts were go
ing over the books and papers Of the
firm which were removed from their
Offices yesterday. These include the
firms private invoices, the letter
books and correspondence between
the managers of the concerns
branches I'm London. Paris and New
York and its customers. District At
torney Wise said that he had secured
| from the papers all the evidence
needed and seemed certain that in
dictments would be returned shortly,
possibly before the hearing Of next
Monday.
Bail Accepted at $50 o'clock.
That Henry ]. Duveen, founder of
the firm was not compelled to spend
the night in cell was due to the con-
sideration Of Commissioner Shields
| who came over from his Brooklyn
home and accepted bail at $50 this
morning. The elder Duveen was ar.
rested on the deck of the steame,
| Lusitania when that liner reache,
Quarantine late last night. He wa
hustled into a revenue cutter an
brought TO the Federal buildin,
where Attorneys Corbit and Ster
we're in waiting The charge wa
read 10 him. and then the district a
torney asked that bail be fixed Z
100000. There was a hot argumen
the attorneys contending that $4,000
was enough and finally Shields con
promised at $4,000.
As the Duveens have been 70
years recognized as the leading al
dealers OF this country and hav
numbered among their patrons ].
Morgan. Otto II. Kahn, George
Gould. James A. Garland and othe
noted collectors, the question raise
to-day. whether il IL is proved tina
= there was undervaluation, the work
of art they have disposed of to col
lectors may be siezed by the govern
! ment
, This is point to be passed on b
: the Department Of Justice. but IN
= general opinion here is that seizure
= cannot be made. Solicitor Mark
Andrews Of the customs house said
when goods have been fraudulent
~ undervalued, conditions are NJ
the same as when smuggling
4 charged. I doubt that they can !
seized because the title passed whe
the goods are bought by innocent pul
chasers from the importer. Under
valued goods have been entered at th
customs house and the governmer
would have TO recover the amount OF
Of which it is defrauded by q civ
action