New-York tribune., 1922-10-12
Hand Instructs Govern
ment TO Show CauseWhy
Restrain ing Ord e r
Should Not Be Issued
Owners Plan to
See Daugherty
American Owners Rest
Hope in Subsidy and
Keep Out of Court Fight

| The Cunard and Anchor lines,
operating some of the biggest trans
Atlantic passenger carriers afioat,
opened the expected court fight of
foreign shipping against prohibition
on the seas before Judge A. N. Hand
in the United States District Court
last night. Application was made
by attorneys representing these lines
for an injunction restraining the
United States Treasury Department
and all other prohibition enforce
ment powers from seizing either
their ships or their liquor stocks on
the high seas.
Judge Hand refused to grant the
application, but he ordered the Fed
eral authorities to appear next Tues
day at 2:30 p. m. in his court and
show cause why the restraining
order should not be granted.
Major John Holly CLARK, Assistant
United States District Attorney, argued
against the application. Representa-
tiyes of both lines, it was said, would
confer with Attorney General Daugh-
erty in Washington to-day or to-
| morrow
This case starts the real test in the
United States courts of the ruling of
Attorney General Daugherty against
the bringing into or possessing in
United States ports by foreign steam
ships of any intoxicating beverages.
From the United States District Court
| the case can be taken by the prescribed
steps TO the United States Supreme
Court and final ruling obtained.
Fight Will Be to Finish
The protests OF foreign shipping
against what it regards as a ruling
which abridges the rights of ships of
foreign registry to maintain commerce
under the laws of the nations whose
flags they fly, will be carried to a
definite conclusion, the attorneys say
Lord, of 25 Broadway. They had given
were until late last night. They went
into court after most of the clerks had
gone home. The court had evidently
been notified, as Judge Hand remained
to hear the argument of Major Clark
against the preliminary restraining
order.
The injunction applied for would
restrain the government agents from
interfering with ships of the Cunard
and the Anchor lines carrying aico-
holic liquors as sea stores for the use
OF their passengers and crews.
In the twenty page complaint it i.
asserted that "iri eparable injury"
would be done to the investment of
millions of dollars in the ships of the
Cunard and Anchor lines should the
Daugherty ruling be put into execu-
tion. 1t points out that the laws OF
Italy and France require that the crews
of vessels departing from their ports
be served certain amount of wine
daily, and if wine is prohibited, psrticu-
larly on ships calling at Italian ports,
these craft could not leave the harbor.
Act Called Unconstitutional
The Volstead act Is unconstitutional,
the complaint contends, because while
the Eighteenth Amendment declared
transportation of liquor TO be illegal,
it did not so rule on the possession of
intoxicants aboard ship. The ruling
also violated the general commerce
treaty of 1915, the British lines main
tain.
Major Clark pointed out in his ar
gument that the Treasury Department
would not attempt tosproosed with en-
forcement, in SO far as it affected for
eign ships until October ii, and that
in view OF this the stay would be m
necessary.
Attorneys for the companies then
withdrew their motion for the tenn
porary restraining order, but will be
prepared to press their case for an
injunction at the hearing next Tues
day.
Many other steamship companies
may start similar proceedings con-
tingent on the result of the litigation
by the Cunard and Anchor lines.
Foreign ships came in for their first
taste of prohibition yesterday when
officers Of the North-German Lloyd
liner, Hanover, which sailed from Ho-
boken for Bremen. No attempt was
made to remove big stock of liquo-.
from the ship, but seals were placed en-
the bar and the customs men ordered
the officers not to break the seals until.
outside the three-mile limit.
"You are liable to be stopped any
where within the three-mile limit and
the seals on this bar examined" warned
the customs agent who placed the seals.
The ship was not stopped.
One American ship made port yes
terday that had been dried up by radio
but which had been wet by heavy fogs.
Another American ship left port with
out drop Of liquor aboard, and Coli
lector of Customs III. G. Stewart made
public some interesting prohibition cor
respcndence from President Harding.
This was inclosed in circular letter
sent to all shipping lines both foreign
and American. hlclosed in each letter
was copy Of President Harding's mis-
sive Of October Z to Secretary Of the
Treasury Mellon outlining prohibition
enforcement acts as applicable to carr
riers at sea.
President Hsrding's Letter
The letter reads: ..ss
'.,rhe White House, Nashinstnn. b. q.