Evening star., 1923-03-30
j. S. HAS ROW OVER
SHIP SALES BANS
Canada Refuses Entry to Two
Restricted to Laws of
This Country.
ASK STATE DEPARTMENT
Secretary Hoover and Attorney
General Daugherty Aiding Eff
fort to Solve Status.
ASK STATE DEPARTMENT

A conditional clause in the con
tracts under which the Shipping
Board Is selling its merchant yes
sells has led to a controversy which
already has reached into three gov
ernment departments
The form of contract under which
the sales are made provides that the
ships shall not be operated in any
manner which will constitute a viola
tion OF the laws of the United States
"a provision understood to have
been inserted originally as a barrier
against use of the vessels as rum
runners. Recently two of the ships
purchased on that basis applied for
Canadian registry. with the result
that the Canadian government noti-
f1ed the State Department that 1t
would not admit to registry any yes
sci purchased with such a condition
attached.
AS a result. the State Department
has asked Attorney General Daugh-
erty and Secretary Hoover for their
opinion, and meantime the reply TO
Canada is being held up.
Question OF Restriction.
Secretary Hoover was asked wheth-
er the United States would recognize
similar restrictions to those contain
ed in the Shipping Board contracts
in the case of vessels bought b.
American citizens from a foreign
government. 1t was pointed out that
the Commerce Department would
necessarily have to pass on that
point, since it controls admission OF
ships to American registry.
Other questions Of law involved
and with which Secretary Hughes must
deal in his reply to Canada must be
passed on by the Department of JUS
tice In the opinion which Mr.. Hughes
has requested from the Attorney
General.
1t developed today, however. that
the contract stipulation under dis
cussion was suggested and drafted
originally at the Department of Jus
tice itself. AS move against rum
runners the department last year pro-
posed the limitation on sales, and the
Shipping Board promulgated it Al
the time there was no protest from
any quarter, and department officials
predicted today that the Attorney
General would sustain and defend the
policy.
Commerce Department officials de-
clined to. discuss their end OF the
n
tion. The request for An opinion was
referred by Secretary Hoover to Com
missioner Carson OF the bureau OF
navigation. which controls issuance
OF registry permits, and which Is ex-
pected to advise Mr.. Hoover fully on
the subject within a few days.
No Real Impediment.
Among Shipping Board officials the
attitude was taken that the sale con-
tract carries no real impedinent to
the customary service of a ship.
Shipping men were said to hold
the view that a much more sweeping
inhibition is contained in the Ship
ping Boards declaration that no sale
TO foreigners will be approved unless
the facts show that such transfer
will not be detrimental to the United
States Of America or its merchant
marine"
The contract binds the purchaser
not to use the vessel for the importa-
ton into or the expectation from the
United States Of any cargo 'in viola
tion of the laws of the United States"
Foreign purchasers are left free to use
the ships between foreign ports in
any traffic they see fit, subject only
to the limitation of laws there obtain
ing.
For this reason, the point raised by
the Canadian government is not ex-
pected by the Shipping Board to have
any effect on the proposed sale of
surplus tonnage 70 foreigners unless.
as a member Of the board remarked
today. "a mass movement of rum run
ners to the Atlantic seaboard is being
planned"