The New York herald., 1922-10-18
Reserves Decision OH Plea for
Permanent Injunction in
Daugherty Order.
RULING BY SATURDAY
Federal Attorney Says Govern
ment's Plan Is Mys-
terry to Him.

Judge Learned Hand in the United
States District Court yesterday re-
served decision on the applications OF
American and foreign owned steam
ship lines for permanent injunctions
restraining Government officials from
Daugherty's ruling that vessels must
carry no liquor inside the three mile
limit, even under seal, when touching
at American ports.
The temporary order issued a week
ago by Judge Hand restraining Fed
eral officers from enforcing provisions
of the Daugherty ruling was extended
until he reaches a decision. The tenn
until the entry of his order on the
motion for a judgment. He limited
that his decision might be handed
down by Saturday. the date set for
the Daugherty ruling to become effec-
tive.
The foreign lines affected by the ex-
tension OF the temporary restraining
order were the Cunari. Anchor. White
Star. French. International Navigation,
Holland-Amcrica. Scandinavian-Amer-
lean and the Royal Mail Steam Packet.
The American lines were the Interna-
,r,l.., lIessaH,sls- Marine Company and
the United American.
Judge Hands reservation came after
he had heard arguments by a brilliant
array OF attorneys for the several com
plainant companies and from William
Hayward. United States Attorney. in
behalf OF the Government officials in
volved. The latter were Secretary of
the Treasury Mellon. Henry c. Stuart,
acting Collector for the Port of New
York. and Ralph A. Day. Federal pro-
hibition enforcement officer for the State
of New York.
Mr.. Hayward. arguing for the Gov
ernment objected to a motion made by
counsel for the foreign lines for the
granting OF a temporary stay. valid
until n decision by the United States
Supreme Court. In denying the con-
tention of his opponents that serious
damage would be caused TO the steam
ship lines by the enforcement OF the
Daugherty ruling before final Supreme
Court decision he said the Government
had been courteous in the matter and
had gone to great lengths to avoid en-
barrassment to ship owners.
He declared also that he did not know
the intentions OF the Treasury Depart
ment which he represented. or of the
Government, and accordingly could do
nothing but object TO the motion for an
indefinite stay.
Mr.. Hayward closed the Governments
case by arguing that the ships consti-
tuted territory of the United States"
in the meaning Of the Federal prohibit
tion act. He quoted British legal
opinion in support.
vechten Van Veeder was the Grst
attorney TO speak for the foreign lines.
He contended they were not within any
Of the express prohibitions Of the pro-
hibition laws. and that because OF their
generality should not be applied in a
special sphere not covered by the Eigh-
teenth Amendment. Liquor carried as
ship stores. he said. does not come
within the term transportation within
the United States.
Lucius H. Beers. appearing for the
Cunard-Anchor lines. argued that intoxi-
eating liquor lawfully acquired and kept
sealed at sea stores is legal within the
territorial waters OF tho United states.
An act OF commerce, he asserted. should
not apply to the internal affairs OF a
foreign vessel touching these ports.
Possession alone" said Mr.. Beers.
lis not a violation OF the prohibition act
and any attempt Of Congress 10 penalize
possession is beyond its powers under
the Eighteenth Amendment"
He pointed out that the Alaska prohi-
bition law. which went into effect two
years before the Eighteenth Amendment.
said Il applied to domestic and foreign
ships alike.
"fn the Alaska law" continued Mr.
Beers, tho Congress made an explicit
declaration in the act that IL was to
apply 10 both class of ships. III Congress.
in the act affecting prohibition In tho
United States. had expressly applied II
TO sea stores that settled It.