New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-10
i'm
i'm
shipping eal
Weep President of Conn.
pany and Counsel Also
Accused of Violating I'm.
junction i'm Kerr Case

Controversy over the Kerr Steamship
Company's complaint that freight YES
sells subject to its operation were being
Illegally diverted to the German trade
routes of the Hamburg American Line
resulted yesterday in the holding in
contempt Of court of w. Averell Harri-
man, president; R. H. NJ. Robinson,
vice. president, and Ira A. Campbell,
counsel Of the American Ship and Com
merce Corporation and of the Kerr
Navigation Corporation, owned by the
Hartman interests.
Justice Richard II. Mitchell, of the
Supreme Court, held the defendants
guilty of violating an injunction issued
by the court on Tuesday, and severely
criticized their counsel. The court de-
clared it would like to discover whether
counsel cannot be controlled in using
his astute brain in aiding clients to
evade an order of the court.
Justice Mitchell withheld the i'm
posing of penalty, saying he would
give the defendants until 1880 O'Clock
this morning to comply with the In
junction.
The court proceedings further COM
plicated the fight between the steam
ship corporations, in which the govern
ment has seized S4,90000O paid by the
Hartman interests to the Kerr Steam
ship Company, controlled by Alfred
E. Clegg and II. F. Kerr. Kermit
pany, has charged that the Hartman
in @ rqafc ora fipr with 20
Hamburg Line to restore Ger
man trade on pre-war basis.
Contracts not Surrendered
After the. Hartman firm had paid
over $4,900,0Oo on August 20, when it
was seized as being subject to an ex-
cess profits tax, the Kerr Steamship
Company declared that in selling their
stock in the Kerr Navigation Corpora
ton they did not surrender contracts
covering the operation of three steam
ers. They asserted that the contracts
did not expire until October %.
When the steamer kerIew, one of the
vessels in controversy, arrived from
Hamburg last Tuesday, Mr.. Clegg, Mr..
Kerr and Mr. Roosevelt, officers of the
Kerr Steamship Company, obtained an
Injunction restraining the American
Ship and Commerce Corporation from
taking control of the vessel. Their
contention was that under their con-
ton until October % and that the Har-
riman interests had no right to divert
it to the German trade, as it was al
legged they intended to do.
The next day the Hartman officials
obtained from United States Marshal
Thomas D. Mccarthy libel on the
ship and it's cargo, which prevented
the Kerr Steamship Company officials
from entering the vessel and placed
Federal officials in charge.
Herbert Noble and John B. Stanch-
field, counsel for the Kerr company,
yesterday morning obtained from JUS
man officials to show cause in the
afternoon why they should not be held
in contempt of court. The contentious
were that the Hartman corporation
violated the injunction in three par
ticulars-by taking off United States
mails, by entering the vessel and by
preventing the Kerr company from TAX
ing off the cargo.
Mr.. Campbell argued that the Harri-
man firm had no intention to take the
vessel out of the Jurisdiction Of the
took possession, and that the injunc-
ton should have kept the ship in statu
quo pending a decision.
Court Holds Violation
Justice Mitchell held that the action
Of the Hartman firm in obtaining
libel from the United States Marshal
was a distinct violation of the injunc-
ton. He intimated that money fine
probably would not be sufficient, but on
the plea of Mr.. Campbell agreed not
to sign commitment until to-day.
Meantime Mr.. Campbell hurriedly
visited the Federal Building, where he
induced Marshal Mccarthy to vacate
the libel order. This put the vessel
back into the control of the Kerr COM
pany. :.
The Kerr Steamship Company is dis
tinct from the Kerr Navigation Cor
poration.
Mr.. Hartman yesterday declined to
comment on charges made by Mr.