Show federals hip controversy closed washington Tas hington the controversy between the united states and panama regarding the seizure ot of the federal ship off the pacific coast as a liquor smuggling suspect apparently was closed by a note from the state department acknowledging the latest communication muni cation from the pan american government the department tailed failed to answer the legal points raised in the last pan american note but expressed pleasure that proceedings kad had been instituted in panama to deprive the Federal ship ot of its pan american registry and asked that it be informed as to the final outcome the federal ship which was taken into san francisco harbor recently was released from custody |