New-York tribune., 1920-09-11
Court Sr1sEoends
Its Verdict i'm
Hartman Case
Justice Mitchell Orders
mo Punishment imposed
OH Three Officials When
They Surrender Freighter
Legal Battle Continues
Kerr Steamship Co. Seeks
to Prolong Injunction
Involving Nine Vessels

PiS9ioelt, ". II. M. ISOUlNSOH, VICE
president, and Ira A. Campbell, cour-
sci of the Kerr Navigation Corporation,
who on Thursday were found guilty of
contempt of court for having violated
an injunction restraining them from
diverting the freight steamer Kerew
into the service of the burg-Amer-
lean Line, yesterday was suspended
by Justice Richard H. Mitchell, of the
Supreme Court, who issued the injunc-
ton.
The court received word that the de-
PENDANTS had restored the vessel to
the Kerr Steamship Company, which
has begun legal battle with the Har-
riman interests over the sale of s4,9OO,-
600 worth of it's stock. The Kerr
Steamship Company, of which H. F.
Kerr, Alfred f. Clegg and Kermit
Roosevelt are officials, contends that
in the sale of stock it did not surren-
der certain contracts which gave it the
right to operate a number of former
Austrian vessels sold through the
United States Shipping Board to the
Kerr interests.
These vessels, Mr.. Clegg charges, the
Hartman firm is trying to put into
the Hamburg-American Line service
The operation of the vessels, it was eX-
planned, would give the Kerr rm about
5 per cent of the gross profits from the
vessels
Libel is Quashed
After Justice Mitchell had intimated
icfv ~
Tor violation of it's Injunction, Mr..
Campbell, appearing for the defend
ants, explained that hasty steps had
been taken for the removal of the
courts objections. He said libel on
the kerlew and it's cargo, which had
been obtained from the United States
marshal and which prevented the Kerr
t!rm from entering the vessel, had been
quashed md the vessel restored as the
court had ordered
discussion cnsued as to how the
order suspcnding judgment against
Mr.. Hartman, Mr.. Campbell and Mr..
Robinson shou Id read. Justice Mitchell
lirst lndorsed an order which read:
"Punlshment for such contempt with
held and suspended.' Mr.. Campbell
asked the court to modify the order.
Gould You not make u appear that
nc proceeding had been ended?' he
asked.
Justice Mitchell said he wanted it
- appear that the offensc had been
committed. He then wrote: Ordered
ihat no punishment for said contempt
De imposed'
Another action brought by the Kerr
firm was argued before Justice Irvine
Lehman in the afternoon. 1t was .
motion for the Hartman finn to show
cause why the injunction against it
should net be continued until October
20. John B. Stanchicld, counsel for
the Kerr firm. said npc vessels were
involved in tn" dispute. Despite the
sale by Mr.. Clegg and Mr.. Kerr. of
S4|'oo'0o worth Of stock Of the Kerr
Navigation Corporation to the Ameri-
can Ship and Commerce Corporation,
owned by the Hartman firm, Mr..
H'anchhcld said, the plaintiffs held Il
contract which was to continue for
r'nety days for the operation of the
tolmcr Austrian vessels
Alleged Contract Breach
For this operation the Kerr firm was
entitled to a share in the profits
amounting to 5 per cent of the gross
receipts, he said. He argued that bv
taking possession Of the kcr,cw in vjo
lation Of an injunction the defendants
had broken their agreement as to the
ninety day clause in their contract, and
that the Kerr firm would fight the case
on the ground that It had the right to
operate the ships for the ncxt five
years.
George A. Ellis, counsel for the de-
tcndant, declared that Mr.. Hartman
and his associates had simply acted to
protect themselves. The plaintiff, he
said, had failed to account at the end
NV,
tract and was some 100000 in ar
rcars.' He asserted there were "indi-
cations Of secret profits and rebates"
1--WE acted as we did simply because
VIC had to-" he said
The court cave both sides until Mon
day to file briefs.
Mr.. Clegg yesterday said that no
steps had been taken by his firm to
recover the $4,900,O00 which was seized
by government internal revenue
agents as it was being handed over
Bank on August % as payment to him
self and Mr.. Kerr for $4,000 shares of
Kerr stock purchased by the Ameri-
can Ship and Commerce Corporation.
Mr.. Clegg said he expected to rest
his case on the mercGHtile marine act
passed at the last session Of Congress,
cess profits taxation for all finds in
vested in Americana built ships.
"Thc building up Of big American
mercantile marine depends upon the
proper enforcement of this act" said
MIR. Clcgg. THE provisions of the
act are preferential rail rates upon
exports carried in American bottoms,
smaller duties upon mportations
carried in American ships and exemp-
tlon from excess profits. For the next
five years the Shipping Board will be
mission"