Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-05-25
Brazilian Coffee
Trust in LimeIight,


international magnitude came to the
fore, lateNoday. when the federal gov
eminent proceeded with it's newest
moye under the Sherman act, to break
up the Brazilian coffee trust alleg-
ing that it dictated the price at which
the great breakfast table commodity
shall be sold in the United States.
Prominent counsel elassed with the
governments attorneys, and Judges of
the circuit court of appeals took issue
with some of the proposals made by
the federal prosecutors. The issue
mainly resolved itself into the right
of the United States government to
seize and sell s10,00e.0a9 worth of cof-
fee which is the property Of a foreign
state, because of an alleged Illegal
combine in control of the coffee mar
ket
The coffee in question approximate.
ly $50, 600 bags-4stored in Brooklyn
warehouses, has been held up under
temporary Injunction against the New
York Dock Co. Herman Sielken and
Others as alleged parties TO the con-
spiracy to gain control Of the mar
ket and. today's proceedings were
arguments for and against making
that Injunction permanent. United
States Circuit Court Judges Lacombe,
Coke, Noyes and Ward. reserved de-
cisions after hearing an interesting
exposition of both sides.
Solicitor General Frederick w. Lesh-
mann, who came from Washington to
move for the permanent injunction,
and United States District Attorney
Henry A. Wise led the governments
case, while Joseph II. Choate made
the principal argument on behalf of
the defendants.
The government charged the COM
bine with raising the price of coffee
from 5ia to 10 cents pound and so
controlling the market as to fix prices
as desired. Judge Lacombe, in reply
to a suggestion by Solicitor General
Lehman that appointment of re-
ceiver to .'break up the combine
against lawful trade" was justified,
said that the proper way of proceed
ling be to compel the unlawful COM
bine" to take the coffee back, not 20
take IL and sell it here.
Il disagree with you" answered Mr..
Lehman. The proper method is To
place the coffee in the lawful channels
of trade. 1t makes no difference wheth-
er 1t was bought here or abroad, the
conspiracy may have taken place here
or in another country. but its effect is
taking place here, the wrong has been
committed
E"But if it was not bought here. il
has never been in the cannels ofg law
full trade of this country objected
Judge Lacombe. you do not get jul
risdiction simply by getting hold OF
the property
We are dealing with this coffee as
an instrument carrying out a plot tc
defeat the laws of this country" Mr.
Lehman asserted.
cant it be that by 1t persons re-
naming outsof the country may break
its laws without means of getting al
them 2"
You have Mr.. Sielken here, Is he
not subject to criminal prosecution
asked Judge Laeombc.
Mr.. Lehman answered that he was
I'VE are proceeding against the con
spiracy" said Mr. Lehmann. I'VE are
asking for a. preservation of the statu
quo with other remedies to follow
Since the contract entered into in an
other country has its effect here, ii is
subject to any laws of this country
which ii contravenes here. When the
government OF Sac Paulo Ga Brazilian
state) bought coffee and brought il
here it became a coffee merchant and
subject TO our laws here. The govern
ment, when it divests itself of a gov
eminent character and enters into pri-
waite trade, comes on the level of every
other trades who goes into the mar
ket."
What remedy will you ask if this
temporary Injunction is granted?v ask
ed Judge Coke.
I'VE will then-as for a receiver
replied MIR. Lehman.
Joseph H. Choate took up the argu-
ment on behalf of the defendants.
Il have always thought. said Mr.
Choate. that the property of foreign
state cannot be dealt with by the judi