The New York herald., 1922-10-13
Bureau of Internal Rev.
enue Allows Liquor on
Ships Until Oct. Is.
AMERICAN ARE INCLUDED
May Get Stocks Back, but Sales
Are Prohibited-Daugherty
Explains His Stand.
Special Dispatch to THE NEW York HERALD
New York Herald Bureau.
Oct l2

New York Herald Bureau
Washington, ID. c.. Oct. IL.
A further element Of confusion, with
the possibility of wide divergence be-
tween the various departments and
units Of the Government over the ship
liquor ruling, developed to-day. Sec
retary of the Treasury Mellon Is not
inclined to issue regulations that Will
involve this country in international
complications.
Secretary Mellon. it was indicated,
does not believe the dry law as en-
acted contemplates confiscation OF
vessels of foreign Governments haV-
ing liquor on board in American terri
torial waters.
The view of the Secretary OF the
Treasury was indicated in connection
with forms prepared by Prohibition
Commissioner Haynes outlining the
effect of the Daugherty ruling. These
forms were to be sent to enforcement
officials everywhere and copies of
them were to be submitted through
the State Department to foreign Gov
ernments for distribution to foreign
shipping agencies.
Inclined to More Liberal View.
When the forms reached the desk OF
the Secretary of the Treasury to-day.
ready to be signed. he not only postponed
putting his signature TO them. but indi-
Gated that he did not approve OF the
drastic character OF the forms, particu-
larly tho part that served notice OF con-
nscation of both domestic and foreign
vessels" A very strong impression was
given that the Secretary Is inclined TO a
more liberal view of the regulations that
should be issued than is either the Attor-
ney-General or the Prohibition Cominis-
sioner.
Another development of the day In
connection with the ali important ship
ruling came in the form OF an order
from the Bureau Of Internal revenue
The intent of it being that all American
vessels, even those that have handed
over their stocks OF liquor to port au-
;horities, are legally permitted to recover
,hese stocks and carry them until Octo-
Der IA.
n is stipulated in the ruling. however.
thatano liouor can be sold on American
ships anywhere from now on. ana the
"eouitv" with foreign ships provided
merely amounts to permission TO carry
liouor cargoes on all American SHIPS
leaving port prior to october IA.
Text of the order.
Following is the text of the order Oh
the Internal Revenue Bureau
Eoreipn vessels leaving their home
norts on or before October a. ls22.
ma American vessels leaving for
eign norts on or before October IA,
1000 having stocks of liquor aboard
will be permitted to continue with
such stocks without interference INTO
foreign ports even though they touch
the ports OF the United States. How
ever no sales of liquor on American
vessels anywhere or on foreign vessels
,.ithin the territorial waters OF the
United States will be permitted.
on publication Of the opinion OF the
Attorney-G General some American ves-
sells lying in American harbors volun-
tarily surrendered their stocks or
spirits to the Customs officials. In
order to put all shipping upon an
eouality up to and including the 14th
day of october, 1922. such ships Will
he allowed TO recover their stocks OF
spirits and take them into foreign
ports as in like conditions by foreign
ships leaving their ports and Amer
ican ships leaving. foreign ports UP to
and including that date.
After a glance at the forms prepared
by Commissioner Haynes, Secretary
Mellon. expressing surprise. took steps
TO discuss the matter with the State De-
partmcnt. his view apparently being
that the issuance OF such form would
mean serious embarrassments with for
eign governments.
Fears Complications.
without taking direct issue with the
legal correctness of the Daugberty
ruling the Secretary of the Treasury
plainly intimated that the interpreta-
tion of the ruling to the extent of con-
fscation or llbeling of foreign vessels
whose officers or crew violated the Vol
stead act would plunge the Government
into difficulties never contemplated by
Congress.
Not until he has heard and has had
full consultation with Secretary of State
Hughes will Secretary Mellon issue the
notification that Mr.. Haynes desires to
have promulgated 1t Is regarded here
as certainty that before Secretary
Mellon and Secretary Hughes are
through with II the Haynes draft of the
changes effected by the Daugherty rul-
ing will be modified in important re-
spects. An exhaustive study of the slt-
nation from the international standpoint
will be made by the law officers OF the
Treasury In cooperation with officials OF
the state Department and the reaching
OF a conclusion may take several days
In expressing his surprise at the dras-
tic character of the Haynes interpreta-
lion Mr.. Mellon intimated that he felt
that the departure In regard to foreign
ships went much further than, tho intent
of Congress either In adopting the pro-
hibition amendment or the Nolstead act
The important phase OF the situation
-
Continued on Page Two.