Joseph McKenna

“ Their basic proposition seems to be that the certificates and war stamps were lawfully purchased from the Secretary of the Treasury and became the property of the purchaser and that, therefore, in the absence of an express statutory enactment, the right of the purchaser to alienate or sell them and of the defendants in error to acquire them was absolute and could not be made unlawful by a mere executive regulation. ”

“ The second count, with about the same detail of circumstances as contained in the first count, charges that the defendants at a particuar time conspired to commit an offense against the United States in that they conspired to alter with intent to defraud, obligations of the United States; that is, the war savings certificates of the United States issued under the Act of September 24, 1917, with war savings certificate stamps affixed thereto.
It is difficult to succinctly represent the contentions of defendants. ”

“ They write, it is asserted, 'an entirely new law-a law which would hinder and obstruct persons from the exercise of the valuable property right which such persons have exercised in the full belief of its propriety for some years past.'
These contentions prevailed with Judge Hough in the District Court. He said:
'When Congress authorized the issuance of 'stamps to evidence payments for or on account of such certificates' and did not deny to the stamp holders the right of transfer, such right existed. The Treasury has sought to take it away by making the certificates nontransferable. ”