The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1910-06-06
BANANAS" WILL BE HIGH
Over 100000 Worth Seized as
Struggled Goods

There is every indication OF scar |
city in Panama hats this summer, at /
least so far as the American wearer
is concerned. William Loeb, collec-
tor of the port at New York says that |
already Sl.O00,0O0 worth of Panama
hats have been seized in that city,
and that from now until further notice
every Panama hat that comes into the
port will be looked after The hats
are mostly in bonded warehouses,
where some of the consignments have
been as long as two years and the in
vestigation that is now being made
by special treasury agents will cover
the Panama hat importation business
at least that far back.
Mr. Loeb says that probably twenty
or twenty-five prominent hat dealers
are affected by the seizures already
made but he refuses to make public
their names. The special treasury
agents, he said, had the names and
that when he ordered the seizures he
did so at the request Of the agents.
The investigation is entirely in the
hands Of these agents who are indie
pendent of the New York Custom
House and operate under direct or
ders from the treasury department in
Washington.
Mr.. Loeb says that it should be I'M
derstood that all these hats are not
from the Republic of Panama. The
seizures include thousands of hats
from Peru, Bolivia and Colombia as
well but they are all Of the style that
is known in the United States and
Europe as Panama" hats.
Only one seizure has so far been
referred to the Law Department of
the Custom House to look over. and
that involves, it was said, a batch Of
hats valued in the neighborhood Of
| 100000. In few days, it is believed
many other cases will be ready for
reference to the Law Department. It
could not be learned whether these
cases would be prosecuted criminally
or not.
1t will depend on whether the facts
indicate that the undervauations
were purposely made in order to de-
fraud the government
In some instances il is said that the
valuations are as much as seventy-One
per cent under the foreign purchase
price. It was pointed out that in in
stances like that it would be a hard
problem to figure out that the under
yaluing was not intentional.
The investigation Of the South Am
erican hat trade has now been in pro
gress several months and until re-
Gently few, even in the employ of the
government, knew that the special
agents were in New York and other
cities where the Panama hat trade is
large. There may be some news COM
ing out of New Orleans in the lnyes-
| tigation, II was intimated, for that
city. like New York. is one OF the
great Panama hat importing cities.
The special agents, il is said. went
over the books of a number of prom
inent importers and it Is rumored that
much was found that was hard to ex-
plain. 1t is also said that an investi.
CATION of the government end of the
appraisement led 10 the discovery
that in some cases an antiquatod
method OF taking the figures on the
invoices as the basis for valuations
was still in use. The hats are sent
to America in boxes, each box con,
tanning a dozen or more hats and the
box and contents are given a fat val
uation of say $25, although one Of the
hats may sell over the counter for as
much as $40 and, in many cases
more. Il was this Fat invoice cost SC
much a box that attracted the atten
ton of the Treasury department. In
some boxes that were lnvoiced at 50.
II is said there were found hats thai
when ready for sale would retail fol
$50 apiece Il is also said that IN,
special agents found some very inter
! esting letters which may play a pro
minent part IN what Is TO follow whel
: the government Is ready TO go int,
1 court.
| The iobbers TO whom the hats ar
consigned keep the hats In bondel
| warehouses until the season for Pan
anna hats comes around. and thel
| hey take out what the trade needs
| A few weeks ago the retailers wen
| for the summer allotment and thol
| they found out that the government
| vas holding practically the entr
| upply In the warehouses and that 81
| Far as the trade I'm this parucula
| Kind of hats is concerned. il was Tx,
I'y to be the dullest season eve
nown.
II Wholesalers were hit Just MS har
IS the retailers for they had take
| riders from retailers IN every part q
! be country and now It Is impossible