The Detroit times., 1910-10-14
SAYS FRAUDS WILL
EXCEED 100000
government Official Discusses Raid
Of Duveen Art Stove and Arrest
Of Two Brothers.

NEW YORK, Oct. 14.-Special Dep
ny United states marshals are today
pa guard In the Fifth-ave. art gallery
Pf Duveen Brothers, while others are
carefully watching the books and pa
Pers or the firm, seized by federal
agents In last evenings spectacular
aid. Two members OF the firm, Ben
amin Duveen, junior partner, and
ienry j. Duveen, one OF the founders,
ire under bonds of $4,000 and $4,000.
respectively, TO appear before Com
missioner Shields next Monday to an
wer TO an allegation OF conspiracy
o defraud the United States by means
bf the differentiation OF works OF art
imported; of presenting fraudulent an
voices. and OF evading duties"
The case rivals I'm interest the de-
Eelopments In the celebrated sugar
frauds. According to District Attor-
hey Henry A. Wise, who IL I'm per-
bonal charge OF the case, the Duveen
irm has defrauded the government OF
enormous sums-he places the figure
above $1,000. 000-by systematically
Undertaking. works OF art brought
into the United States during the past
decade. This. the members OF the
frm. through their attorneys. deny,
characterizing the charge as absurd.
The federal grand jury today took
up the allegations. Inspectors who
have been detailed TO examine all OF
the imports OF the firm during the
.past two months were called and IL "
Understood gave evidence to bear out
|the governments charge that goods
have been undervalued. While these
inspectors were testifying force of
experts was going over the books and
papers OF the firm which were re-
moved from their Offices yesterday.
|These include the firms private In
voices, the letter books and cores
|pondence between the managers OF
1.-The concerns branches In London,
Paris and New York, and its custom
|ers. District Attorney Wise said that
Inc had secured from the papers all
the evidence needed and seemed GER
Tain that indictments would be re-
turned shortly. possibly before the
hearing next Monday.
That Henry j. DuUveen, founder OF
the firm, was not compelled to spend
the night in a cell was due to the
consideration of Commissioner Shields
who came over from his Brooklyn
home and accepted bail at 2:30 this
morning. The elder Duveen was ar
rested on the deck OF the steamer
Insitania when that liner reached
quarantine late last. night. He was
hustled into q revenue cutter and
brought to the federal bildings. where
his attorneys, Corbitt and Stern were
ia waiting. The charge was read to
him ana then the district attorney
asked that bail be fixed at 100000.
There was . hot argument. the attorsl
neys contonding that $4,000 was
enough and finally Shields compro-
missed at $4,000. a
AZ the Duveens have been for years
recognized as the leading art dealers
OF this country, and have numbered
among their patrons j. p. Morgan,
OTTO II. Kahn. George J. Gould, James
A. Garland and other noted collectors,
the question was raised today wneth-
er, II II is proved that there was I'M
LIBERALIZATION, the works OF art they
have disposed OF TO collectors, may De
seized by the government.
This Is point to be passed on by
the department of justice. but the
general opinion here is that seizures
cannot be made. Solicitor Mark r.
Andrews of the customs service, said:
when goods have been fraudulent
ly undervalued. conditions are not the
same az when smuggling is charged. |
doubt that they can be seized because
the title passed when the goods are
bought by innocent purchasers from
the importer. UNDERMINED good
have been entered at the customs
house and the government would have
TO recover the amount out OF which
II is defrauded, by civil action"