New-York tribune., 1910-06-03
HAT CASE TO GRAND Jury
Wise Starts Inquiry Looking to
Federal indictments.
TO SUE FOR BACK DUTY
Some of the Importers Plan to
Contest the Government S
s1OoO,O00 Seizure.

-,o,r-, ~ the Custom House II was said
..,s,sr5a,- that United States Attorney
T-isa had begun federal grand jury in
,,ee+fpa-ior II the alleged undervaluation or
Panama hats received Al this port. with a
view 20 criminal prosecution As told eN-
clysivelv in The Tribune. the whole stock
~ this imported headgear has been tied
IN tv the inquiry under way hy Treasury
agents. and II was said yesterday that ms
meant that more than - per cent of the
1910 trade IN hats from Panama and other
South American countries would he killed
as result.
The stock in the bonded warehouses CON
s-sts of frnportations Of over a year fro-
cpedines have been begun 20 seize the STOCK
81 View Orleans and san Francisco but
the government purposes TO 60 beyond 1he
stocks in bond. Expert Accountants a.
AZ work on The records 70 estaniish d pa9.S
Tor a reIiauidation suit. This will enable
e. go,-e~nn,ant n collect duties on a re-
valuation of the imports Of other years as
Sc bacE as II pleases It may mean the
collection Of several hundred thousand ooi-
1.-s from, the importers against whom the
-no-irv Is now being directed.
collector Loeb said last evening that the
,-,,,,r+ involved in the seizure was at least
& na0 n0 The first seizure. before the Wiioie
e--ol, vas tied up. was Of goods valued un-
De- res7,--aisernert. with the duties aodeo
a. s16e.ooo
There Was a clanor for the release OF
Soma of the seized goods YESTERDAY II was
r,oin-ed out by the customs authorizes lna'
none could be released unless bond was re-
oeived for the appraised value, piuS tiie
duty Of s. per cent 10 dealer mas onereu
:, Give a bond for his Panama hats so far
la- 80
YESTERDAY that they had their stock pretty
vel in hand. Others said that their busi-
ness in Panama hats would be crippled Ior
-he ,ea- one dealer who had bought sew
,-.ean cases from one of the importers IN
der i,7zestication had taken out six cases
When h. wanted more ne was met Win
me story OF the seizure This was ho' al
isolated deprivation. one case or hale con
-sins IA dozen so-called hat bodies, mat
q. hats thar have not been shaped. Il was
learned that the invoice value had Deeh
n most instances 81 a dozen, without re-
card 10 quality. A. all grades were II
(--,5ad IN ca IN bale. the government IS de
-eY-7,red that they shall be classIned anu
ar7raised according TO the quality
one If the importers. il was said yesteT-
.-s~ Intended to coutes, the government
-+gr,- 10 seize his stock. He had sold
Panama hats. receiving payment as they
were taken out OF bond. Only com
-a-srivelv few hales had been called for
II Is this importer. Il was said, who was
one of those under investigation by the
United States Attorney.
hatters' publication depl0red the gov
ernmeut action yesterday After calling
attention u what it terms the hardships
entailed by th= trade because Of the inYesu-
cation. il says
All rh.- i-nportations had been passed by
-h- governments own Official II the Gus
ruru House man OF many years eN-
1.=.leDce IN the valuation OF Panama mats
although II IS understood that the gov
.---ro..f7-'s attitude is that he was deceived.
L is possible that IN order 10 overcome tfls
inconsistent. arbitrary unreasonable posi-
ION of the Custom House the importers
lave adopted methods that may not be
strictly legal. but the government has been
Al fault in not Ternedy-ng the CONDITIONS Dy
The adoption OF some fixed standard o.
valuation.
Secretarv MscVeaEh, who viii he in the
ci-r today. VIII confer with Collector Loeo
gnUu- the case.