SECOND ARREST IS MADE
Abraham Merritt Surrenders to Answer Charge of Undervaluation in Customs Cases
Abraham Merritt, formerly Secretary of Lucile, Limited, Lady Duff-Gordon's dressmaking establishment at 17 West Thirty-sixth Street, surrendered himself at United States Marshal Henkel's office in the Federal Building yesterday afternoon to answer a warrant charging him with conspiracy to defraud the Government by undervaluation of imported dresses, in conjunction with Thomas J. Duggan, the Manager of Lucile, Limited. Meanwhile all day there drove up to the doors of Lucile, Limited, a steady stream of carriages and automobiles whose occupants gathered in the parlors of the establishment, and discussed with much interest and many expressions of sympathy for Lady Duff-Gordon the Government raid. Even the footman at Lucile, Limited, seemed to accept the situation with properly refined glee.
Mr. Merritt, who is a newspaper man and now disclaims all connection with Lucile, Limited, and says he is merely a friend of Lady Duff-Gordon, appeared at the Marshal's office with his attorney. He was taken before United States Commissioner Shields, and after a brief examination released on bail of $1,500, which was furnished by a surety company.
Eugene V. Daly, attorney for Lucile, Limited, was unwilling to discuss the case further than in this statement:
"We think that when the ownership of the London house and of the New York house are shown to be practically identical, the District Attorney will not look seriously upon the charges of undervaluation which have been instigated by a discharged employe. The discrepancies, if any, are merely a matter of bookkeeping. The importations are models, so called, and we shall prove that the valuation placed upon them was ample. Any one familiar with the business knows that models always sell for less than it cost to produce them."
Who the discharged employe is or who are the officers of the London and New York houses of Lucile, Limited, he was unwilling to state.