« PreviousContinue »
said funds or property shall be released for the payment or satisfaction of such
* Receipt of notice froin the President to the effect that he has reasonable ground to believe that any person is an enemy or ally of enemy shall be prima facie defense to any one receiving the same, in any suit or action at law or in equity brought or maintained, or to any right or set-off or recoupment asserted by, such person and based on failure to complete or perform since the beginning of the war any contract or other obligation. In any prosecution under section sixteen heredi, proof of receipt of notice from the President to the effect that he has reasonible cause to believe that any person is an enemy or ally of enemy shall be prima facie evidence that the person receiving such notice has reasonable cause to believe such other person to be an enemy or ally of enemy within the meaning of section three hereof. Sec. 27 (1), act of Oct. 6, 1917 (10 Stat. 417).
Sec. 16, mentioned above, provides for the punishment of persons convicted of wilfully violating any of the provisions of this act or of any license, rule, or regulation issued thereunder, or of violating, neglecting, or refusing to comply with any order of the President issued in compliance with the provisions of this act.
2887. Trading with the enemy without license. That it shall be unlawful
(a) For any person in the United States, except with the license of the President, granted to such person, or to the enemy, or ally of enemy, as provided in this Act, to trade, or attempt to trade, either directly or indirectly, with, to, or from, or for, or on account of, or on behalf of, or for the benefit of. any other person, with knowledge or reasonable cause to believe that such other person is an enerny or ally of enemy, or is conducting or taking part in such trade, directly or indirectly, for, or on account of, or on behalf of, or for the benefit of, an enemy or ally of enemy. Sec. 3 (a), act of Oct. 6, 1917 (10 Stat. 412). See 2833, ante.
Notes of Decisions.
Legality.-The Government clearly has power to permit limited commercial intercourse with an enemy in time of war, and to impose such conditions thereon as it sees fit; the power is incident to the power to declare war and to carry it to a successful
conclusion. There is no doubt that with
2888. Forwarding letters, etc., for enemies.-That it shall be unlawful- *
(c) For any person (other than a person in the service of the United States Government or of the Government of any nation, except that of an enemy or ally of enemy nation, and other than such persons or classes of persons as may be exempted hereunder by the President or by such person as he may direct), to send, or take out of, or bring into, or attempt to send, or take out of, or bring into the United States, any letter or other writing or tangible form of communication, except in the regular course of the mail; and it shall be unlawful for any person to send, take, or transmit, or attempt to send, take, or transmit out of the United States, any letter or other writing, book, map, plan, or other paper, picture, or any telegram, cablegram, or wireless message, or other form of communication intended for or to be delivered, directly or indirectly, to an enemy or ally of enemy:
Sec. 3 (c), act of Oct. 6, 1917 (40 Stat. 412).
Notes of Decisions.
Construction. The clause of this section inhibiting the bringing into or sending out of the United States communieations, other than in the regular course of the mails, is not restricted to communications intended for enemies. U. S. 0. Welsh (D. C. 1918), 250 Yed. 309.
While it is not a violation of this section to bring into the United States a coupon gold bond issued by an American corporation, which bore to communication
other than its proper printed contents, it is a violation to bring into the United States coupons for interest due on the bond of a friendly nation, where on the back of the coupon was stamped “C. L." and below it }}kewise “ Lille," with certain figures, for the purpose of such writings not being diselosed. They might well contain a communication which it was the purpose of the act to exclude. U. S. 1'. Van Werkhoven (D. C. 1918), 250 Fed. 311.
2889. Authorized exportation.-- * Provided, however, That any person may send, take, or transmit out of the United States anything herein forbidden if he shall first submit the same to the President, or to such officer as the Presi. dent may direct, and shall obtain the license or consent of the President, under such rules and regulations, and with such exemptions, as shall be prescribed by the President. Sec. 3(c), act of Oct. 6, 1917 (40 Stat. 413).
2890. Restriction of importations during the World War.- IVhenever during the present war the President shall find that the public safety so requires and shall make proclamation thereof it shall be unlawful to import into the United States from any country named in such proclamation any article or articles mentioned in such proclamation except at such time or times, and under such regulations or orders, and subject to such limitations and exceptions as the President shall prescribe, until otherwise ordered by the President or by Congress : Provided, however, That no preference shall be given to the ports of one State over those of another. Sec. 11, act of Oct. 6, 1917 (40 stat. 122).
For joint resolution providing that certain statutes, the operation of which is contingent upon the existence of a state of war, shall be construed as if the World War had ended on Mar. 3, 1921, see 2835, ante. 2891. Unlicensed trading with the enemy without remedy.
* No conveyance, transfer, delivery, payment, or loan of money or other property, in violation of section three hereof, made after the passage of this Act, and noi under license as herein provided shall confer or create any right or remedy in respeet thereof; and no person shall by virtue of any assignment, indorsement, or delivery to him of any debt, bill, note, or other obligation or chose in action by, from, or on behalf of, or on account of, or for the benefit of an enemy or ally of enemy have any right or remedy against the debtor, obligor, or other person liable to pay, fulfill, or perform the same mless said assignment, indorsement, or delivery was made prior to the beginning of the war or shall be made under license as herein providel, or unless, if nade after the beginning of the war and prior to the date of passage of this Act, the person to whom the same was made shall prove lack of knowledge and of reasonable cause to believe on his part that the same was made by, from or on behalf of, or on account of, or for the benefit of an enemy or ally of enemy; and any person who knowingly pays, discharges, or satisfies any sueh debt, note, bill, or other obligation or chose in action shall, on conviction thereof, be deemed to violate section three hereor:
See. TM (0), act of Oct. 6, 1917 (10 Stat. 417). 2892. Suspension of restriction and prescription of regulations as to trading with the enemy.-That the President, if he shall find it compatible with the safety of the United States and with the successful prosecution of the war, may, by proclamation, suspend the provisions of this Act so far as they apply
to an ally of enemy, and he may revoke or renew such suspension from time to time; and the President may grant licenses, special or general, temporary or otherwise, and for such period of time and containing such provisions and conditions as he shall prescribe, to any person or class of persons to do business as provided in subsection (a) of section four hereof, and to perform any act made unlawful without such license in section three hereof, and to file and prosecute applications under subsection (b) of section ten hereof; and lie may revoke or renew such licenses from time to time, if he shall be of opinion .that such grant or revocation or renewal shall be compatible with the safety of the United States and with the successful prosecution of the war; and he may make such rules and regulations, not inconsistent with law, as may be necessary and proper to carry out the provisions of this Act; and the President may exercise any power or authority conferred by this Act through such officer or officers as he shall direct.
Scc. 5(a), act of Oct. 6, 1917 (:40 Stat. 415).
Subsection (a) of sec. 4, referred to above, relates to enemy insurance companies doing business within the United States, and for the temporary continuance of other enemy business under Presidential license; sec. 3, referred to alove, is found in 2887, 2867, 2888, 2889, ante, and 3018, post.
2893. Postponement of travel and commerce pending investigation.- * If the President shall have reasonable cause to beliere that any act is about to be performed in violation of section three hereof he shall have authority to order the postponement of the performance of such act for a period not exceeding ninety days, pending investigation of the facts by him. Sec. 5(a), act of Oct. 6, 1917 (40 stat. 415).
For sec. 3, mentioned above, see 2887, 2867, 2888, ante, and 3018, post.
2894. Transactions in foreign exchange, transfer of credits, etc. That the President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange and the export, hoarding, melting, or earmarkings of gold or silver coin or bullion or currency, transfers of credit in any form (other than credits relating solely to transactions to be executed wholly within the United States), and transiers of evidences of indebtedness or of the ownership of property between the United States and any foreign country, whether enemy, ally of enemy, or otherwise, or between residents of one or more foreign countries, by any person within the United States; and, for the purpose of strengthening, sustaining and broadening the market for bonds and certificates of indebtedness of the United States, of preventing frauds upon the holders thereof, and of protecting such holders, he may investigate and regulate, by means of licenses or otherwise (until the expiration of two years after the date of the termination of the present war with the Imperial German Government, as fixed by his proclamation), any transactions in such bonds or certificates by or between any person or persons: Provided, That nothing contained in this subdivision (b) shall be construed to confer any power to prohibit the purchase or sale for cash, or for notes eligible for discount at any Federal Reserve Bank, of bonds or certificates of indebtedness of the United States; and he may require any person engaged in any transaction referred to in this subdivision to furnish, under oath, complete information relative thereto, including the production of auy books of account, contracts, letters or other papers, in connection therewith in the custody or control of such person, either before or after such transaction is completed. Sec. 5(b), act of Oct. 6, 1917 (40 Stat. 415), as amended by ser, 5, act of Sept. 24, 1918 (40 Stat, 966).
2895. Contracts made prior to the beginning of war.-- * Provided, That nothing in this Act contained shall prevent the carrying out, completion, or performance of any contract, agreement, or obligation originally made with or entered into by an enemy or ally of enemy where, prior to the beginning of the war and not in contemplation thereof, the interest of such enemy or ally of enemy devolved by assignment or otherwise upon a person not an enemy or ally of enemy, and no enemy or ally of enemy will be benefited by such carrying out, completion, or performance otherwise than by release from obligation thereunder,
Sec. T (b), act of Oct. 6, 1917 (40 Stat. 117).
Notes of Decisions.
A judgment for an alien enemy is objectionable only so far as it may give aid and comfort to the other side in the war.
A judgment recovered in the district court by an alien enemy before he became such, the satisfaction of which was dela yed by the other party's appeal until the intervention of war, and affirmed with directions that the money be paid to the clerk of the trial court to be turned over to the Alien Property Custodian; and motion to dismiss or suspend the action is correctly denied. Birge-Forbes Co. Heye (1919), 251 U. S. 317.
Since the right to consiate enemy property on land was not generally recognized by the law, but exists solely by virtue of this section, which devies to any person any rights acquired by assignment of a chose in action by an alien enemy, unless such assignment was made prior to the beginning of the war, an assignment of corporate stock which, though not technically a chose in action, is property of a similar nature, made before the declaration
even with intent to avoid confiscation, was valid as against the Alien Property Custodian. Stohr ?'. Wallace (D. C. 1920), 269 Fed. 827.
2996. Property of aliens conveyed to the alien property custodian.-If the President shall so require any noney or other property including (but not thereby limiting the generality of the above) patents, copyrights, applications therefor, and rights to apply for the same, trade marks, choses in action, and rights and claims of every character and description owing or belonging to or held for, by, on account of, or on behalf of, or for the benefit of, an enemy or ally of enemy not holding a license granted by the President hereunder, which the President after investigation shall determine is so owing or so belongs or is so held, shall be conveyed, transferred, assigned, delivered, or paid over to the Alien Property Custodian, or the same may be seized by the Alien Property Custodian; and all property thus acquired shall be held, administered and disposed of as elsewhere provided in this Act.
Any requirement made pursuant to this Act, or a duly certified copy thereof, may be filed, registered, or recorded in any office for the filing, registering, or recording of conveyances, transfers, or assignments of any such property or rights as may be covered by such requirement (including the proper office for filing, registering, or recording conveyances, transfers, or assignments of patents, copyrights, trade-marks, or any rights therein or any other rights); and if so filed, registered, or recorded shall impart the same notice and have the same force and effect as a duly executed conveyance, transfer, or assignment to the Alien Property Custodian so filed, registered, or recorded.
Whenever any such property shall consist of shares of stock or other beneficial interest in any corporation, association, or company or trust, it shall be the duty of the corporation, association, or company or trustee or trustees issuing such shares or any certificates or other instruments representing the same or any other beneficial interest to cancel upon its, his, or their books all shares of stock or other beneficial interest standing upon its, his, or their books in the name of any person or persons, or held for, on account of, or on behalf of, or for the benefit of any person or persons who shall have been determined by the President, after investigation, to be an enemy or ally of enemy, and which shall have been required to be conveyed, transferred, assigned, or delivered to the Alien Property Custodian or seized by him, and in lieu thereof to issue certificates or other instruments for such shares or other beneficial interest to the Alien Property Custodian or otherwise, as the Alien Property Custodian shall require.
The sole relief and remedy of any person having any claim to any money or other property heretofore or hereafter conveyed, transferred, assigned, de livered, or paid over to the Alien Property Custodian, or required so to be, or seized by him shall be that provided by the terms of this Act, and in the event of sale or other disposition of such property by the Alien Property Custodiad, shall be limited to and enforced against the net proceeds received therefrom and held by the Alien Property Custodian or by the Treasurer of the United States. Sec. 7 (c), act of Oct. 6, 1917 (10 Stat. 418), as amended by the act of Nov. 4, 1918 (40 Stat. 1020).
As originally enacted, this subsection was as follows:
* If the President shall so require, any money or other property owing or belonging to or held for, by, on account of, or on behalf of, or for the benefit of an enemy or ally of enemy not holding a license granted by the President hereunder, which the Presi. dent after investigation shall determine is so owing or so belongs or is so beld, shall be conveyed, transferred, assigned, delivered, or paid over to the alien property custodian."
Notes of Decisions.
Constitutionality. That the trading with Salamandra Ins. Co. v. New York Life Ins. the enemy act is constitutional, see Sala- & Trust Co. (D, C. 1918), 254 Fed. 852. mandia Ins. Co. v. N. Y. Life Ins. & Trust Securities deposited by German insurance Co. (D. C. 1918), 254 Fed. 852; Fischer ». companies with trustees, as required by Palmer (D. C. 1919), 259 Fed. 355 ; Kahn State laws, may be taken possession of by V. Garvan (D. C. 1920), 263 Fed. 909, the Alien Property Custodian. Garvan 1.
Construction.--The language" any money, $20,000 Bonds (C. C. A. 1920), 265 Fed. or other property owing
by, on 477. account of, or on behalf or, or for the In an action involving the recovery of a benefit of an enemy,
does not death benefit, the constitutionality of the cover an ordinary bank deposit. Where
trading with the enemy act" (40 Stat. a deposit is claimed both by an 411) was challenged. It was claimed that American citizen and the Alien Property the taking by the custodian is without due Custodian, the latter claiming it as the
process of law, and violative of the Fifth property of an alien enemy, the bank may Amendment of the Federal Constitution. interplead the depositor and the custodian Said act provides, inter alia, that the Presi. in a district court. American Exch. Nat. dent may require money or other property Bank v. Palmer (D. C. 1918), 256 Fed. 680. belonging to the enemy to be passed over to
The word " property," as here used, re- the Alien Property Custodian, and that any fers to a tangible res, or some evidence of
person, not an enemy, claiming any interest debt, or share in property, and not to a
therein, may file a claim and bring suit in mere chose in action.
Id. (distinguishing the district court against the custodian to Salamandra Ins. Co. v. N. Y. Life Ins, &
establish his rights. The trading with the Trust ('o, (D. C. 1918), 234 Fed. 852.
enemy act is a war mensure. Its purpose Money owing
an is to confer upon the Chief Executive the enemy ” certainly includes a debt. Kohn v.
power to seize the property of an enemy. Jacob and Joseph Kohn, Inc. (D. C. 1920),
The mere declaration of war did not couter 264 Fed, 253.
Brown v. United States, 8 Power of Alion Property Custodian.
Crunch, U. S. 110, 3 L. Ed. 504. Under this act, the determination of the
Constitution, art. 1, sec. 8, cl. II, gives Alien Property Custodian, made in good
Congress the power not only to declare faith, entitles him to the possession of al
war but also to "make rules concerning leged enemy property, and such possession
captures on land and water." And the will not be interfered with by injunction. scope of this provision is not confined to