LADY DUFF-GORDON EXAMINED

Declared She Merely Lent Her Name to Corporation, Lucile, Limited
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Lady Lucy Duff-Gordon visited the Federal Building yesterday with her counsel, Bainbridge Colby, to have a talk with Assistant United States District Attorney Wemple regarding the alleged undervaluation frauds by the firm of Lucile, Limited, of which she is President. The Government has been investigating these matters for about a week, following the disclosures made to United States District Attorney Wise by persons whose names have not been made public. Two arrests have been made in the case so far.

 

Her visit yesterday was due to the service upon her of a subpoena, but as the Grand Jury was not in session when she called, she was taken into Mr. Wemple's private office. She explained to Mr. Wemple that she had merely loaned her name to the dressmaking corporation here and in London, both of which establishments are operated under the same name. She explained also that she received a salary for designing women's garments. Beyond this employment and the use of her name, Lady Duff-Gordon said she knew nothing about the corporation's business, and declared that if there was any undervaluation irregularities in connection with imported models and gowns, she had nothing whatever to do with them.

On May 25 the establishment of Lucile, Limited, 17 West Thirty-sixth Street, was raided by Marshal Henkel assisted by Customs Inspectors, and Thomas J. Duggan, Manager, and Abraham Merritt, Secretary of the
corporation, were arrested. Both are under bail and the Federal Grand Jury will take up their case today.