New-York tribune., 1922-10-18
Temporary Injunction by
Federal Judge Hand
Halts the Enforcement
of Daugherty Order
Wine Stocks Safe
Pending Appeals
Vessels Not ssTerritory,''
Hence Not Subject to
Volstead Act, Is Plea

Ing the various United States gov
[err,ment prohibition enforcement de-
partments from interfering in any
way with liquor stores en- both for
leign and American ships was grant,
ed yesterday by Federal District
Judge Learned Hand.
The stay was ordered in the suits
brought by. the ten largest ocean
steamship companies in the world to
test the Attorney General Daugh-
erty bone-dry ship ruling. The court
reserved decision on the matter OF a
permanent injunction after an all
I'day argument. Judge Hard granted
counsel until this afternoon to file
additional briefs. He said:
| "The matter of the greatest impor-
tance is the status Of the Attorney
Generals ruling pending appeals Of
this case to the Supreme Court. It
should be arranged that the enforce
rnent officers preserve the same status
as is observed now and that these
ships, carrying liquor as stores, should
be not moiested until ! have filed my
decision and pending. time of appeal"
| THE attitude Of the government Is
| not to work hardship on vessels
pending decision here. There has
been no arbitrary action. said Colonel
William Hayward, United States Dis
trict Attorney. 'There have been no
/ seizures. A restraining order is not
| necessary. No one has swoopad down
on these ships and attempted raids"
Seek Longer Stay
| s'The government has granted a stay
only until October 81" said Attorney
C!etus Keating, representing the In
ternational Mercantile Marine Com
4 pany. "We must have an order as as
4 isgurance that these ships will not be
linterfered with. We have no assur-
ance that the government will not pro-
ceed with endorsements Of the Attorney
Generals ruling after next Saturday"
You may all have stay replied
the courts 'suntil have had time to
arrive at decision and pending an
appeal, should decide against YOU
1 DO you belieya NE can expect
dssissiap by christmas7 7" asked Mr.
4 believe I will have decided this
case by Christmas" smiled the court,
Iif / should fail to reach decision
until aftet October 21.,"
Asked by counsel Jointly If they
would be permitted to file additional
briefs, the court said he xould not
consider any brief filed later than this
afternoon.
Use OF "Saloon" Protested
/ A play of spirit came near the end
Of the argument when Mr.. Hayward,
who had frequently referred to the
steamship line companies as "saloon-
Keepers mentioned the Saloons op-
Grated on boaxd these ships" and said
the ships were after tie liquor profits
for the next two months.
"Oh, ] wouldn't call them saloons"
protested the court.
"Whet would you call them?" asked
Mr.. Hayward. "Barrooms7"
"Why not call them smoking roogns =
asked the court.
The argument offered much that Is
new in discussion of maritime rulingss
the few precedents that have SO Tar
been established anent prohibitioa
laws; the Interpretation of statutes
relative to ships stores and the exs
emption of the Panama Canal zons,
under Congressional prohibition edict.
So great was the interest manifested
in the argument and its outcome that,
| q crowd was drawn to the courtroom
| that was internationally representative.
English. French and Italian steamship
! lines had their ablest counsel in court
and consular representatives OF vari-
GUS countries attended and followed
the argument closely. A particularly
! interested listener was legal repre-
sentative Of the Japanese government
| Competition Issue Stressed
T. II has been held for long by thu
| American sleam shipx lines, and it was
| stated during argument yesterday, shat
| q bone dry ship ruling would make tt
/ impossible for Shipping Board vessels
to- compete with foreign owned ships.
In, this regard Attorney Cietus keat-
/ ing said at the close of his argument:
1 HUnless we can carry reasonable
/ amount Of liquor on the ships the $4,-
[ 600, ,O00. 900 the American people have
spent for merchant marine may rs
/ we'll have been thrown in the gutter.
IL Reid L. Carr, representing the
United American Lines, said:
stTo deprive the American ships Of
/ the right to sell liquor on the high seas
| will irreparabiy damage these lines by
the diversion Of their traffic to foreign
lfnea. There were fifty canoe llations
i by passengers Immediately following
the announcement Of the Attorney Gem
! Gratis ruling. do not believe we can
4 permanently operate under the Ameri-
4 can flag without this privilege. Il
1 might be advisable to have a temporary
i linjunckion continuing for few months
or until final adjudication, q prse-
4 tice which has been continued for three
years under two departments Of the
government.
Canal Zone Exenption Cited
Pressed on the exemption Of ths
i Panama Canal Zone by Congress, In tbs
aTgument of Mr.. Heating, who was tbs
4 principal counsel for the applicants Mr..
i Hayward finally admitted that it was
1i1is opinion that Congress had exceeded
\ ;ts rights BY such exemption Mr..
fKeatinK had said that If the Attorney
i Eeneralss 4 ruling were rigidly enfcseed
i no foreign ship could pass 4hrough
II the Panama Canal.
Il Mr.. Kenting cited deciHicns skowsng
tliSk ship6 were not Hterritcryn Of the
i GOV 5ssneiiG ox their regiatry while on
II shs high saas Of In foreign ports. tIe
y held that the Eighteenth Amendment
Il did NOT apply to ships and had rot been
i Intended TO apply to ships. He IN
( I8tsted that under established fndihEs
i d chips stores were an integral part
4 OF the vessel itself.
= ls aa0tea tas RssisS ststutas. sss'