New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-26
LADY OUFF-CORDON'S
SHOP IN CUSTOMS NET
Lucille, Limited, of Which She Is
President, Raided and
Manager Arrested.
ASTOUNDING CHARGES MADE
Government Alleges Company,
Incorporated a Year Ago,
at Once Began Attempt
to Defraud.
ASTOUNDING CHARGES MADE

which Lady Lucy Duff Gordon is presi-
dent, was raided yesterday afternoon by
customs officials and deputy marshals,
who arrested the manager Of the place
on charge OF conspiracy to defraud the
United States Of customs duties A war
rant is out for Abraham Merritt. secre-
tary and director OF the corporation.
based on similar charges to those pre-
ferred against Thomas ]. Duggan. the
arrested manager
Lady Duff Gordon who lives al the
Ritz-Carlton Hotel. was served with a
subpoena duces tecum to appear to-day
before the federal grand jury TO explain
her knowledge Of the acts OF undervalu-
alton committed by her Arm. as we'll as
To surrender any papers and documents
pertaining to the dressmaking establish
ment that might he in her possession.
No definite statement was made by
the authorities a to the amount involved
In the smuggling operations conducted on
behalf of Lucille. Limited It was said.
however, that the government must have
been deprived Of customs duties amount
ing to thousands Of dollars as the pre-
| liminary Investigation disclosed that at
least 20 per cent Of all the goods i'm
orted by the firm had been undervalued.
The fact that has astounded the in
vcstiga tors above all others was that
| Lucille. Limited was incorporated not
| longer ago that January. 1910, when Col
lector Loeb had spurred all the customs
officials to the most energetic efforts ever
made To suppress customs frauds Of all
practices in the importation OF foreign
merchandise had been brought to court
and punished substantially for months
before and after the beginning of this
dressmaking corporation.
Yet the government charges that the
manager and the secretary Of Lucille,
Limited. entered into a conspiracy prac-
tically at the inception Of the new cor
poration. and that overt acts of under
va lua ton of imports were committed
from January. 1910. 70 the present time.
President Not Incrinnated Yet.
Thus far no evidence has been found
by the authorities 10 show that Lady
Duff Gordon had knowledge Of the
frauds carried on by her esta blishrent.
All papers and documents were seized.
and a particularly diligent investigation
will be made 70 ascertain TO what ex-
tent the manager and the secretary Of
the firm, acted on their own initiative
and responsibility.
Lady Lucy Duff Gordon is a Canadian
by birth, the daughter of Douglas Suth-
erland. Of London. Ontario. She is a
! sister Of Elinor Glyn. the novelist. She
was the widow OF James s Wallace
when. in March. 1900. she married Sir
Cosmo Edmond Duff Gordon. the fifth
| baronet of that name.
Through her second marriage she
gained the privilege of presentation and
admittance at the Court Of St James's,
but since early in 1910 she has been
stricken from the list of those admitted
TO st. Jamess Court because she en-
gagged In business here. The exclusion
came according to the rule established
by the late Queen Victoria that no per
son who engaged In trade could remain
on the list Of those admitted to court.
The corporation and partnership di-
rectory describes the dressmaking firm
as follows: Lucille. Limited. New York
and Paris Lady Duff-Gordon. presi-
dent Abraham Merritt. secretary. Capt
tai. $50 Directors. Lady Duff-Gor-
Crowley No. II West 36th street"
Conscience Started Investigation.
The informat ton which led TO the raid
was received from person whose con-
science was quickened by the argument
made by Mr.. Wise for prison sentence
for Henry J. Duveen. His plea that a
rich Fifth avenue importer be dealt with
like the poor offender against the Gus
toms laws made deep impression or
! the person who knew about the alleged
practices followed by Lucille. Limited.
In view of the fact that all importa-
tions consigned TO dressmakers have
been subjected to the closest examina =
| ton by customs officials during the last
year. Mr.. Wise at first doubted the reve-
lations made to him. But secret invoices
belonging to Lucille, Limited. compared
with the alleged false invoices which had
accompanied consignments and were on
| file I'm the Custom House, quickly dis
| closed. II is said, the truth Of the in
| formation given.
Armed with warrants issued by John
| A. Shields. United States Commissioner
Deputv Surveyor Norwood Customs In
sIector Williams and Deputy Marshal
Reed raided the establishment. They
| found. only Thomas J. Duggan present
and after arresting him they seized all
the papers and other documents that
NAV serve as evidence. There was no
excitement of any kind. and the raid was
made so quickly that passersby did not
become aware of 1t.
The conspiracy complaint charges that
| Thomas j. Duggan and Abraham Merritt
did knowingly and corruptly conspire to
defraud the United States by means
OF importing from foreign countries
vomsns apparel and 10 enter II al
less than its true value by means of
| false and fraudulent invoices. Abraham
Merritt was said to be the author Of ar
ticlcs ape airing under the title Of "I.ady
| Duff -Gordon's Fashion Page"
when Thomas j. Duggan vas ar
raigned before Commissioner Shields. w
l.. Wemple. Assistant United States At
tcrnev. asked that bail be fixed at SO.