The New York herald., 1921-08-13
SEIZED WET GOODS
WORRYING CABINET
Huge Stock in New York
Warehouses Grows Into
Heavy Expense.
FAVOR PLAN TO SELL
Suggested That Liquor Be
Turned Into Cash by
Sale to Druggists.
TROUBLE SEEN ABROAD
President Mindful of Protests
Foreign Governments May
Enter About Law.
TROUBLE SEEN ABROAD
Special Despatch to THE New YORK HERALI.
New York Herald Bureau,
Washing ctou, ID. c., Aug. IL.

Special Despatch to THE New YORK HERALI'
New York Herald Bureau.
Washington, ID. c., Aug. IL.
President Harding and his Capinet
to-day discussed ways and means Oh
disposing of seized wet goods
amounting to many millions OIL sal-
Ions stored In New York warehouses
The President received reports show
ing that the stock is rapidly increas-
ing and that the money spent IN
rentals and for guards has grown into
a heavy public expense item.
One plan to dispose of the liquors
IS to make a general distribution TO
the hospitals of the country in proper
ton to their probable future needs
This idea apparently met with some
favor.
Tt also was suggested at the Cabinet
meeting that the Government. after
competent chemical tests Of the seized
liquors, could convert them into cash
for the Treasury by sale to druggists
holding permits to buy liquors for non
beverage purposes.
The sentiment Of the Cabinet favored
the adoption Of some plan for the i'm
mediate transfer or sale tf such liquors
through legal channels in all cases which
have been settled in the courts. 1t was
said, however. that by far the larger pro-
portion of the stored liquors could In
some manner be moved out into the drug
trade for sale on doctors prescriptions
or to hospitals needing whiskey
worry About Seizures.
Another phase of the problem which
the President and his Cabinet are said
t. have viewed with concern is the seiz-
ure of so-called foreign lin transit"
liquor shipments. Under a Department
of Justice ruling interpreting the dry
law ii is held to be unlawful for liquor
shipments from foreign country to an
other foreign destination to move through
the United States.
Unless the United States Supreme
Court overturns this feature of the Vol
stead law the Administration may urge
Congress to legaliZe these in transit
shipments. The President is mindful of
the international difficulties that may
arise through too harsh application OF
provisions of this kind. The Cabinet
discussed the issues involved in a test
case brought by the British owned Gu
nard Line. acting in conjunction with
large distillery interests of Canada.
Attorney General Daugherty informed
the President that the Department of
Justice has decided to expedite the pas
sage OF this case through the courts to
the United States Supreme Court.
The President probably will not seek
legislative relief from the dangers of
disputes with foreign Powers over this
and other features of the Voistead law
until the Supreme Court makes known
its decision.
The Administra tion, It was authorita-
lively stated. also recognizes the pos
sibility of disputes with friendly foreign
Powers over the Volstead law provision
which bars foreign ships with liquors
aboard from entering American ports.
The Attorney General has ruled that
strict construction of the dry law bars
them from American territorial waters
II they carry whiskey cargoes. either
large or small, regardless Of destina-
tion. Present regulations make such
liquors subject to seizure and forfeiture.
Against Drastic Features.
The President is said to have taken
the view as did his Cabinet, that Con-
sress never intended to enact so drastic
a dry law.
The Government met another enforce
ment difficulty to-day by a Treasury
decision prohibiting the transfer Of
liquor in trucks after It is delivered to
buyers at distilleres or bonded ware
houses. Commissioner Haynes reported
that large volume Of whiskey, trans
ported IN trucks, finds its way event
ually into the bootleg trade. A large
number Of "holdups" Of liquor so con-
veyed have occurred in recent months.
The new orders to prohibition direct
ors state that State directors In
authorizing permits To buy liquors must
also indicate transportation OF them
over the most direct route by railroad.
express or steamship This Is to be
done II the liquor Is destined for some
considerable distance. Short haults NAV
be allowed to 20 by trucks under cir
cumstances that directors may find
upon investigation. to be safe