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BobThere is no such animal as a Davis with blue C on the cap. It is a myth. Much line the Heinie Wagner T206 on ebay recently which PSA graded and labeled "T206 Honus Wagner." Much like the T207 Easterly which which was graded and designated by PSA as "T206 Easterly." There was an E-90-1 on ebay recently which was graded and identified as a T206. Need I go on? The color and pose variation mistakes by PSA are numerous and often comical such as identifying a particular card as a blue background when it has a red background or a portrait pose and the guy is in the stretch throwing the ball.
If you submit a Davis T207 to PSA and list on the submission form that it is "blue C on cap" the chances are very good you'll get it back thusly labeled.
There is no blue C variation. Both Tim Newcomb and I in preparing for separate articles on the T207 set determined it was the dodo bird of tobacco card collecting. There are different shades of "C's" on Davis' hat and collectors have commented on their ranging from a light tan to a brown but no frigging blue ones.