AMERICAN ITEMS.

Hokitika Guardian, 26 October 1922, Page 2

AMERICAN ITEMS.

IUSTKU.IAN AND N.Z. CABLE ASSOCIATION. U.S. LIQUOR LAW. NEW YORK, Oct. 25 judge Hand’s decision in favour of the Daugherty order for the searching of ships coming to U.S.A. for liquor, has caused serious disquietude among the foreign and American shipping concerns here. It has aroused a great deal of public interest, and has left President Harding’s administration indecisively in mid-air. Legal experts point out tbqt .Judge Hand could not do otherwise than upheld the Daugherty ruling. Yet a further interpretation of Judge Hand’s decision shows it contains inconsistencies. He permits the foreign vessels, whose national laws order grog rations among the crews to continue such it they deposit, each, a $25,000 bond to assure that liquor will not be used for other purposes, and he permits American vessels bound for the United States to load liquor if they consume the same before reaching the United States territorial waters.

It is pointed out that American vessels are American territory, and therefore the Daugherty ruling regarding the prohibition of liquor on American territory allows American vessels m mid-sea to carry liquor. White House’ first authorised the announcement, immediately after Judge Hand’s decision was published that the Daugherty ruling would he immediately enforced. This was later altered it is believed, upon the unofficial representations of a Foreign Chancellor. It was pointed out insular possessions, which depended on foreign vessels for the maintenance of tlieir trade, would seriously suffer because foreign ships would refuse to call there as the result of the liquor ruling: It was furthermore pointed out that American shipping, for which the administration is anxious to secure a subsidy, in order to enable it to complete with foreign lines, would receive a grave set-hack, even if it obtained subsidy, as it could not supply liquor to its passengers. A special meeting of the Cabinet was called for to-day, to discuss these various points, after which it was intimated that the Daugherty ruling would not he enforced until the Supreme Court gave a final decision, which is expected in six or eight weeks. In the meantime, the foreign and American lines are pooling their ro< sources, and have sent a formidable legal staff to Washington to defend their interests.

The whole subject is being heatedly discussed in the press. Concern is felt for the outcome.