The New York herald., 1922-10-24
COURT UPHOLDS BAN
ON ships CARRYING
LIQUOR INTO PORTS
Judge Learned Hand Will
Rule Later on American
Rights at Sea.
EXCEPTS CREWS VINE
Foreign Lines Lose Every
Other Point -dinst
Harding Order.
WILL APPEAL AT ONCE
Question Of Our Ships Getting
Supplies i'll Canada
Stays Open.

Judge Learned Hand in United
States District Court yesterday upheld
the ruling of Attorney General Daugh-
erty prohibiting the bringing of alco-
holic liquors into American territorial
waters and dismissed the applications
of ten foreign and two American
steamship lines for injunctions TO re-
strain the enforcement of that ruling.
The decision vacates temporary stays
and the ruling becomes effective at
once.
Judge Hand decides however. that
foreign ships will be allowed 10 enter
port with liquor for their crews if the
supply is sufficient only for rstions az
required by laws of certain foreign
nations. Ship owners must give bonds
of $4,000 each to insure compliance
with this provision. The case will be
taken to the United States Supreme
Court.
The question cided were raised
when the Cunard I'd Anchor Line filed
a bill in equity asserting that the
Daugherty ruling was in contravention
of its rights. Similar bills were fled
by other British and French and Sean
dinavian lines. They contended that the
Daugherty ruling violated treaty rights
and that the Volstead act and the
Eighteenth Amendment were unconsti-
tutionai outside Of territory actually
within the United States
William Hayward. United States At
torney. and John Holley Clark. Jr.. his
assistant, argued against the inJunc
tions.
Ships bound for the United States
with liquor aboard will not be rnoiested
upon arrival if they cleared for this
country prior 10 October 81. the day the
became effective.
Sen Ruling 10 Come.
While Judge Hand disposes OF the
cases of the American companies, he
does mot find it necessary to consider
the legality of any sales OF liquor under
the American flag on the high seas, as
suming that no liquor is brought within
our territorial limits"
Judge Hand is 10 decide later whether
American vessels have a right TO sell
liquor at sea provided they do not bring
il into American waters. 4 ruling on
this has been requested by the Govern
nient and BY Cletus Heating attorney
for the international Mercantile Marine
Company.
The Daugherty ruling cannot pro-
hibit foreign vessels from picking up
and discharging liquor cargoes at nearby
foreign ports" said Mr.. Heating. III
erA f0
do the same It is obvious that they viii
sustain irreparable losses In passenger
traffic Judge Hand has agreed 10 de-
fine the Daugherty ruling as 1t applies
TO the question Of American vessels
selling liquor on the high seas provided
they do not bring 1t into American ter
ritorial waters We expect his decision
within a few days. If he decides agains.
us we will Immediately appeal our case
to the United States Supreme Court"
II this decision Is in favor OF the COM
pany American ships could stop a.
Canadian ports for liquor supplies.
Judge Hands decision is that Of a.
aIl-American court" said John n. An
pieby. zone dry chief for New York and
New Jersey. ''It contends that an
american law Is an American law and
es such must be obeyed and respected.
Mr. Appleby doubted whether custom
and prohibition enforcement Officials
will attempt immediate seizures OF ship
carrying liquor within the three mile
limit For the time being. he said. onlt
the liquor aboard vessels coming into
ports viii be seized. Repeated viola
lions OF the Daugherty ruling. however
Mr.. Appleby declared, will end IN libel
proceedings against vessels that show
disregard for the Law
Thirty thousand cases of whisky ar
on their way from tho Bahamas .
bootleg waters near New York Nj
Appieby said. Many vessels laden wit
liquor arc cruising several miles Off the
coast awaiting the arrival of sma'le
craft to transport the cargo 20 port.
"Bootleggers arc increasing Their
operations since the recent ruling deny
ing enforcement officials from operat
ing outside the three mile limit" he
added. Liquor Is flowing freely frori
the Bahamas and rum running vessel
now are able TO bring their Illicit car
goes nearer shore.
The British yacht Onward. formerly
owned by Henry Ford. which sever 4 ,
weeks ago defied customs officials an
escaped. has had It's name changed w.
Thelma Phoebe and Is being over
hauled st Miami Fla. said M
Vessels reported hy Nr Appleby -
running rum between New Yori. ans
tho Bahamas are the sChooners Are
thusa, Pocomoke. Tomoka. Gardne
Beauma. irene and May, all flying the
British flag.
''fn order 10 camouflage their identity
40 far as possible" he eaid many
American vessels row engaged IN liu
nor transporta ton. have changed the.
registration 10 British Most OF the
present fleet OF vessels engaged In rum
running are owned by Americans"
Text of the Decision.
The text OF Judge Hands decision
follows:
United States District Court Southern
District OF New York
The cunard Steamship Company.
Ltd, and Anchor Line Henderson
Brothers). Ltd.
against
Andrew W. Mellon, Secretary OF the