The New York herald., 1922-10-12

IL was thought tnaC American SHIPS
owners also might decide to try for
an injunction, but the executive COM
mittee, meeting yesterday at II
Broadway, came to this conclusion:
"The association feels that the ques-
tion of meeting the situation pro-
duced by the Attorney-Generaps opin-
ion is one which should be left to the
discretion Of the individual COM
panies."
See Ship Subsidy Argument.
Otherwise the committee found in
the situation. another argument for
the passage of the ship subsidy bill.
Decision Of the Cunard Line to seek
an injunction is looked upon by Of
ticers of the Department OF Justice as
the first step in the fight Of the for
eign ship owners against the recent
liquor ruling, the Associated Press
learned in Washington last night.
Notice that counsel for the Cunard
company were on their way to Wash
ington did not come as a surprise.
Department officers said that they
were ready to meet the issue" both
as regards an injunction and test
case, which, they said, undoubtedly
would be brought whatever the ac-
ton on the application already made.
Issuance of the injunction was
forecast" says the Associated Press.
"both by the Department of Justice
and the Shipping Board. Under the
ordinary judicial procedure. it was
said. an injunction usually issues If
the petitioner can show to the court
that the act complained of will oper--
ate to his injury in the period which
must intervene before he can obtain
other relief.
order Expected Mt Once.
"It was expected that an order to
show cause would be granted at once,
returnable within brief period. and
that the enjoining order might have
effect before the termination of the
time allowed by President Harding for
the foreign lines to put their affairs in
order to conform with the ruling.
This period ends October IA when, ac-
cording to information given in Of
flcial circles to-day, the Treasury De-
partment Is expected to issue Its regu-
lations to customs and prohibition
agents for enforcement Of the new
ban.
Attorney General Daugherty said
to. day 1t was the hope of his depart
merit that those opposing the liquor
ban would carefully select the case
upon which they would make their
real fight In order that clear cut
issue might be presented to the court
Of the first instance and. eventually. to
the United States Supreme Court for
final determination"
The complaint filed here yesterday
by the Cunard and Anchor lines fills
about twenty pages. 1t says that "ir-
reparablc injury" would be done to the
investment of millions of dollars In me
ships of the two companies should the
Daugherty ruling be enforced. 1t
points out that the laws of France and
Italy require the daily serving OF a
certain amount of wine TO crews or
ships making ports OF those countries
points of departure. IT says that if
wine is prohibited. particularly" on
vessels calling at italian ports. ships
could not leave those ports.
Contravenes Treaty.
The complaint contends further that
the ruling of the Attorney-General con-
travenes the general commerce. treaty
of 1916 and that the Volstead act Is
unconstitutional. II says the Eighteenth
Amendment declared transportation OF
liquor to be illegal. but did not decree
the possession OF liquor to be Illegal
aboard ship.
When Judge Hand made the "show
cause" order returnable on Tuesday. tho
attorneys for the two steamship COM
panies, Lord, Day & Lord. asked for
temporary stay restraining the Govern
ment. in the interval. from SELLING liquor
on tho companies ships. This motion
was withdrawn after Mr.. Clark noted
that as the Government would not try
to ENFORCE tne uitH OStoptt ~
the stay would be unnecessary
In its statement the American Steam
ship owners Association said:
'Tn the judgment OF the association
II is a foregone conclusion that X the
Interpretation OF the Attorney-General
is ultimately sustained American ships
will bo placed at such a great dlsad-
vantage with foreign ships that national
aid must Immediately be given II pri-
vately owned American ships now oper-
ating are to be maintained and the
merchant and foreign trade developed.
THE loss in profts to american ships
from the sale OF liquors Will be incon-
sequential and really Is not a substan-
tial factor In the situation. The seri-
Gus loss will come from the driving of
passengers to foreign passenger ships,
not only In the transatlantic trades but
more particularly In tho transpacific
South and Central American and West