The New York herald., 1922-10-10
ship LIQUOR RULING IS
DECLARED A MENACE
TO OVERSEAS TRADE
If Strictly Applied ItWould
Complicate Panama
Canal Traffic.
BARS ORDERED CLOSED
Lasker Directs Stoppage of
Drink Sales OH Ameri-
can Vessels.
MANY TANGLEs FEARED
Commerce With Orient and
South America Said to Be 4
Threatened Seriously.
Special Dispatch to THE New York HERALD.
New York Herald Bureau.
Washington, ID. c., Oct. 0.

Washington. ID. c.. Oct. o.
While the Treasury Department was
engaged to-day in the formulation of
regulations that would apply to the
sea liquor decision of Attorney Gen
eral Daugherty on foreign ships
Chairman A. D. Lasker of the Ship
ping Board ordered the following mes
sage sent by cable to operators of all
Shipping Board vessels wherever To-
Gated, in port or on the high seas:
referring to my telegram Of 7th
relative to prohibition of sale, trans
portation or possession of liquor on
ships operated by you for Govern
ment, wanted to make it clear that
1t was intended that sale or service
of liquor should be stopped at once
whether in port or at sea. Want to
make sure this is thoroughly un-
derstood by all concerned. and II
YOU have not already done so
please wireless and cable to this
effect to ships now at sea or for
eign ports and secure acknowl-
edgment of instructions. Advise
me by wire when. you have received
this acknowledgment.
Secretary Mellon of the Treasury gave
orders to the customs division to formu-
late the regulations that are to make
the Attorney Generals decision effective
ir regard to ships flying foreign flags
Until the regulations are issued these
vessels bars will not be affected.
other Departments Get Busy.
While the Treasury. got to work on
it's own part of the ship liquor problem
the state Department and the war De-
partment were compelled to take cogni-
zance of their respective phases OF the
question.
Secretary Hughes had the immediate
problem of finding means OF exemptlns
diplomatic missions in the United states
from the liquor ruling. Officials OF the
Department believe that it Is only a
question of days before the storm OF
foreign indignation breaks at the portals
OF the Department.
One incident of the day illustrated
more than anything else the extent OF
the confusion and embarrassment that
have been created for the various De-
partments of the Government. This In
cident referred to the view of Secretary
weeks that whereas the Volstead act
speciHcally exempts ships passing
through the Panama Canal the new
ruling of the Department of Justice may
prevent the War Department from per-
mitti.g ships with liquor on board from
coming. into Government owned uochs
In the Canal Zone.
n matter OF which Panama might be
expected to take cognizance, indicating
nj the same time that a protest from
panama would be in order. The Secre-
tary took the view that whereas the
yolstead act permitted liquor to be
TRANSPORTED over the Panama Railroad,
the ruling just issued might well be
taken to debar ships with liquor on board
from entering the docks of the Govern
ment.
Panama's Predicament.
As these are the only docks, and as
the only tugs which could serve to re-
lieve the thirsty from beyond the three
nile limit are American. Panama would
be placed In an anomalous II not an en-
barrassing position.
Discussing the effect that the ruling
would have on American commerce in
general officials of the Shipping Board
POINTED out that the statement of Chair
nan Lasker as printed in THE New
YORK HERALD to-day. did not stress GER
tain phases of the problem to a sufficient
extent to enable the people fully to ap-
preciate the extent of the handicap.
The ruling, 1t was stated, will be par
t,cularly disastrous. to the ocean going
business that the United States Gov
ernment has sought to create in recent
years in all regions of the world where
heretofore the carrying trade was a
monopoly of foreign flags.
Two regions particularly affected Il
was said will be the coastwise trade
between China and Japan. Recently
America has taken a very definite posi-
ton in this coastwlse trade. the Hong
kong Yokohama route particularly. The
ruling will have an instantaneous effect
on this American trade in view OF the
keen competition American vessels will
be deserted In favor of foreign ships.
south American Trade.
The same applies, II was asserted. to
the coastwise trade of South America.
Some we'll established lines such as the
United Fruit Company that have been
able to stand up against competition or
a severe character may find the ruling
such a blow as will require more than
a Government subsidy to keep the flag
a1oat.
Operating officials of the board are
also deeply concerned over the effect
that the liquor ruling will have OH the
maintenance of ships on customary
routes in the Pacific, particularly the
route from American and Canadian
shores to the Far East via the Hawaiian
Islands and the Philippines.
For many years one of the favorite
trails OF travel TO the Far East has been
Wa The Canadian Pacific Railroad TO
vancouver or Seattle thence by way OF
Continued on Page Four.
Theatrical and Hotel and Restaurant.
Advertising Will be found on Page 5. ~ dp.