New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-15
Appraisers Stores May Come
Within Scope of Probe
Well Known Collectors
to Testify.

How many mllnOndIIeS are YOU sums
to subpoena" Mr.. Loeb was asked yes
terday afternoon.
We haven't come to that yet he re-
piled. but we IRE only at the beginning
of this affair The news that has been
published so far is only of minor i'm
portance. The big disclosures are still 70
come. and when the bottom is reached
the sums involved will probably exceed
by a vast amount the Sugar Trust
frauds
There are some big things being
pulled off here" the Collector said earlier
in the day. and we've got the dead
wood on these fellows"
Limits OF Investigation.
When he got to talking about the pos
sibiIities Of the investigation. Mr.. Loeb
quoted from an opinion given TO him
by Mark P. Andrews. solicitor 10 the Col
Iector.
In the case of smuggled goods the
property can be seized in the hands OF
purchasers for value or other innocent
third persons Mr.. Loeb quoted. but in
the case of entered goods, when the gov
eminent has a dual remedy, title passes
to innocent purchasers and other limo
cent third persons with regard TO sucn
entered goods and the government can
only proceed under its election for the
forfeiture of the goods before sucn
transfer to an innocent third person or
for suit for values against the original
importer
But If there is collision, it is differ
emit" Mr. Loeb continued. If we can
show collision between the purchasers
and Duveen Brothers in the undervalua-
ton of importatiOns. we can go into
private houses or galleries or any place
where the goods are and seize them
I'VE believe the books will produce
the evidence we need. and If we find
evidence that will justify US. we will pro-
coed against miIlionaires or others, who
ever is guilty. Criminally and civilly. 70
the full extent of the law. There Is
force of Iiquidators working on the
books now. but it will take several days
for them to make thnir report
These frauds are gigantic" Mr.. Loeb
said emphatically, and have continued
right up to the present time"
Until the Collector said that II had
been understood that the undervalua-
tons had been committed only under
the old Dingley tariff law. which put a
duty of 20 per cent on paintings and
from 40 to 30 per cent on vases, while
furniture carried a 81 per cent duty.
But Mr.. Loeb explained the situation
One Case Last Week, Says Loeb.
The new law admits paintings and
antiques free" he said, but the Duveen
brothers import many things which are
dutfabIe. We have one instance against
them within the last week. When
got the letter on Monday that brought
immediate action in the affair, l called
I'D the Appraisers Stores and asked
them if they had anything there for
Duveen Brothers. They said that they
had some rugs, and I told them to hold
the rugs.
Then investigated and we now have
specific information in our hands that
there was differentiation in the impor-
tation of these rugs. I have so many
cases of differentiation before me that 1
can't recall the exact figure in this case.
but my impression is that the invoice put
the valuation OF the rugs at $4,000 or
$4,000. 1 think il was $4,000"
Then Mr.. Loeb sprung another surprise
by saying that the investigation was
being carried right into the Appraisers
Stores He was asked if the length of
time over which the underv alu1tiOns had
extended did not indicate that there
was collision between the importers and
the government appraisers.
u will tell you that later" he re-
piled The investigation will show
that"
When George w. Wanmaker, the
United States Appraiser, was asked
about this he said: Il have no personal
knowledge OF the case. 1t is now under
investigation. and I can't talk about it."
When he was asked II it would be
necessary for there to be collision in
order for there TO be a long series Of
undervaluations. he said Not at all
While l don't know. don't believe there
has been in this case. I understand that
the undervaluations are not more re-
cent than two years ago. and that was
before my time. But undervaluations
may be made perfectly innocently by an
appraiser. The price of art objects fire.
quently depends in a large measure on
Notwithstanding that I can't I'M
derstand.
Wsnmaker on Sentiment.
AS an illustration. an art object
might be valued by the appraiser at
800. but the importer might put a value
on it of $4,000 on account of sentiment
its having been the property OF a king
or prince-and IL might very we'll be
that 81 would in fact have $4,000 worth
more of sentimental value and the ap-
praiser know nothing about IT,
You can't blame him for that Per
sonally. l can't understand the attitude
OF mind OF man who would pay $4,000
out OF sentiment for a vase that I
wouldn't take home as a gift"
Duveen Brothers store was open for
Continued IN .~.,c4