New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-15
LOEB ON DUVEEN CASE
Continued from first page.

business yesterday, but was without Gus
toners. Benjamin Duveen was in
charge after he came back from the
Federal Building. where he went to have
the security for his 10000 bail changed
from the real estate put up on Thurs
day to the bond of a surety company.
I'VE are open.' he said, but we are
not doing any business. I don't suppose
we will do any business for few days,
but then everything will be cleared up
and this whole affair satisfactorily ex-
planned.
Yes he said In answer to a oues-
ton. II suppose we are at liberty to sell
anything we want to, but l don't know.
There are no customers, anyway"
Acting Deputy Surveyor Edward Nor
wood, who led the raid on the store on
Thursday. was in charge of the build
ing yesterday. and wandered in and out
of the rooms with his men at his heels
Corbitt e. Stern, attorneys for the
Duveens. said they could make no state
ment about the case yet. as they had not
had a copy of the complaint and did not
know what the charge was.
No Market Price, Say Lawyers.
But as far as undervaulation is con-
cerned," they said. there is no market
price for art objects. The only market
price is the price for which they
are sold. If Duveen Brothers paid
81, 100 for those three vases, that was the
market price at that time If they sold
them for $4,000, that was the market
price at that time"
Collector Loeb said that the art dealers
were at liberty to sell anything they had
except what was under government seal,
but when it came to the question of
the market price of art objects he dis
agreed with Corbitt & Stern
we belieye," he said, that the books
of the firm will show that the invoice
that valued those vases at ST 100 was a
false invoice. We believe that the books
will show that Duveen Brothers paid a
much higher price than 81 100 for those
vases
But, at any rate, the price paid is
not essential. 1t is only a guide for the
appraisers. Duveen Brothers might by
peculiar circumstances be able to buy
articles at less than their market value
and the law provides that the duty shall
be assessed on the market value and
that the importer shall declare his i'm
portations at their market value"
Criminal and Civil Actions.
Solicitor Andrews said yesterday that
three actions would be brought against
Duveen Brothers, one a criminal pro-
ceeding alleging a conspiracy to defraud
the government and two civil actions
One of the civil actions would be for the
forfeiture of goods for differentiation
and the other would be to recover duties
and penalties on such things as had gone
out of their possession and might be
found to be undervalued, according to
the entries.
The statute of limitations applies to
differentiation, the solicitor said, and
forfeiture of goods can be had for only
three years preceding the beginning of
the action. But the collection of duties
is unlimited and prosecution may be
started TO cover any number of years.
The government now has the Duveen
Brothers books for six or seven years,
but hopes TO make the investigation
cover the whole thirty years the firm
has been in business here.
James Jarman, secretary of Duveen
Brothers, was witness before the grand
jury yesterday afternoon and was after
ward placed under arrest on the same
warrant as was used for the DuveenS,
but on the application of Assistant
United States Attorney Wemple was dis
charged by Commissioner Shields for
lack of evidence.
It is understood that the person who
gave the information that led to the
arrest of the Duveens is in a fair way to
collect a large reward from the govern
ment. The governments evidence is un
derstood to be documentary and to have
come very direct.
1T may be that our informant will re-
ceive the reward given by the govern
ment to persons who furnish informa-
ton leading to the conviction of per
sons who defraud the government" said
Mr.. Loeb yesterday.
The amount Of the reward Is left to the
Judgment of the Secretary of the Treas
lIry but il may amount TO 30 per cent
of the fines imposed after conviction.
Richard Parr got 100000 for the dis
covery Of the sugar frauds.
jacques NJ Duveen. a cousin OF the
Duveen Brothers, sued Joseph A. Du-
veen. one of the firm, in the English !
courts for SANDER about six months ago |
and collected damages of one farthing. |
S--
- rialt