New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-29
COFFEE TRUST SUIT
MAY Be WITHDRAWN
Secretary Knox Urges Its Drop
ping to Avoid Complications
with Brazil.
Mr.. WICKERSHAM DISAGREES
Attorney General Goes on with
Case While Awaiting the
Decision of Presi-
dent Taft.
From Tho Tribune Bureau

Washington, May 2S-Secretary Of State
Knox has recommended TO President Taft
that the civil suit against the coffee trust
he withdrawn, because of possible compli-
cations With Brazil This disagreement be-
tween the Secretary Of State and Attorney
General Wickersham as 10 the proprietv
~ attacking the Brazilian valorization
scheme in American courts became known
today.
President Taft has not Yet accepted the
suggestion of Mr.. Knox. and the Attorney
General continues his preparations TO pur-
sue the case in the courts
IS the issue centres about a foreign state
secretary Knox regards the problem as
one for settlement by diplomacy and not
for treatment IN the courts of the United
States He represented to the President
that international courtesy should direct
rhe American government to retraCe its
steps and dismiss the court proceedings
The attitude of Mr.. Knox was known to
SeHor IA Cana. the Brazilian Ambassador,
when he criticised tho course Of the De-
partment Of Justice at the Pan-American
banquet in New York last night In all
~ - NdiN llp bllIN ldi NUN W III
10 taken 81 tho Ambassadors remarks
There is a possibility that a compromise
may be reached by tho Brazilian govern
m"nt's Withdrawing its support from the
so-caled trust. thereby destroying the val
orization scheme. which is the foundation
of tho alleged combination. Such step
WOULD no doubt satisfy the Department Of
Justice. which seeks solely 10 force the
coffee IN question on the market.
Neither the attitude Of the State Depart
mort nor the denial to-day by the New
FORK Circuit Court of the government 5
motion for temporary injunction restrain
iuc any disposition of tho coffee stored in
New York is deterriug the Department of
Justice, where. il is declared, the case will
10 pushed 10 conclusion.
n is maintained by the government al
'orncys that the fact that a foreign state IS
a party TO the contracts which are alleged
~ bc illegal offers no protection to those
uho carry them out in this country.
In the South Carolina dispensary cases,
- is pointed out by the Department Of JUS
'ce. the Supreme Court of the United
states held that the state engaged in the
liquor business, was amenable TO the laws
% commerce. South Carolina as a political
entity and South Carolina az a merchant.
d was said, were separate and distinct.
This same principle the attorneys believe.
Is applicable 10 a foreign state.
Attorney General Wickersham expressed
'he belief that the governments interests
would not suffer from the action of the
New York Circuit Court to-day. lie said
The decision merely denies the application
for q temporary injunction to restrain any
disposition of the coffee nov in storage in
New York pending the suit, upon the
ground that the issues in tn" cas-" may
with greater prOpriety be disposed Of when
tho testimony shall have disclosed the exact
facts than on motion Tor "a temporary
irJunction.-As ~ ~ hardly probable that
in the face Of this suit the coffee will be
sold subject 70 such restrictions as the
bin charges have been imposed on pre-
yious sales. the department believes that
the interests OF the government will not
suffer from this decision.
1t was intimat"d at the Department Of
Justice that should IN" coffee be disposed Of
in such manner as the governments petit
ton denounces as being In violation of the
sherman law criminal proceedings might
Il How.