Stanley Forman Reed

“ The Trading with the Enemy Act is national in range. The effect of a federal freezing order should be the same on subsequent transfers of title in all states. State law determines the effect of the appointment of a receiver on title to the property administered, but federal law determines whether the event of appointment can free the property from the prior control. ”

“ We assume that the Court of Appeals of New York held in Singer v. Yokohama Specie Bank that title to blocked assets could pass without license from a statutory receiver to a creditor. [18] As the Trading with the Enemy Act is federal legislation founded on federal constitutional provisions, however, the United States has authority to make all laws necessary and proper for carrying the power into execution. The power to enact carries with it final authority to declare the meaning of the legislation. ”

“ A suggestion appears in petitioner's briefs, but not in the questions presented by the petition for certiorari, that the judgments below should be vacated and the case remanded to the District Court to be held until the parties can secure from the courts of New York a decision as to whether the temporary receiver took title to the claim against ASCAP. Waiving the failure to raise the issue by the petition for certiorari, [22] we consider the contention in deference to the earnestness with which the point is pressed in the dissent. ”

“ Through the Trading with the Enemy Act, in its various forms, the nation sought to deprive enemies, actual or potential Of the opportunity to secure advantages to themselves or to perpetrate wrongs against the United States or its citizens through the use of assets that happened to be in this country. ”

“ It is petitioner's contention that a mere freezing order does not prohibit a subsequent judicial order transferring title to blocked assets covered by the previous freezing order. We will deal subsequently in this opinion with the question of whether the title to the claim passed to the temporary receiver, under New York law, on his appointment. ”

“ The Act of March 9 was grafted on to the Trading with the Enemy Act of 1917 and when that Act was again extended to meet the foreign assets problem the President's wide power to define banking institution was a ready instrument to cope with the myriad circumstances arising in the control of shifts of foreign assets. The power in peace and in war must be given generous scope to accomplish its purpose. ”

“ Order No. 8785 declared 'the existence of a period of unlimited national emergency.'
The same resolution authorized the President to issue rules and regulations and specifically to define 'banking institutions.' The President had on April 10, 1940, issued a similar order prohibiting similar transfers applicable to nationals of Norway and Denmark to guard against such transfers brought about by the German invasion of those countries. Executive Order No. 8389, 5 F.R. 1400. It contained to all intents and purposes the same definition of 'banking institutions.' See § 11C thereof. ”

“ Provided, however, That no attachment, judgment, decree, lien, execution, garnishment, or other judicial process shall confer or create a greater right, power, or privilege with respect to, or interest in, any property in a blocked account than the owner of such property could create or confer by voluntary act prior to the issuance of an appropriate license.'↑ E.g., Decker v. ”

“ Petitioner contends also that the administrative interpretation of the Executive Order of June 14, 1941, has been to permit litigation as to rights in the frozen assets. That is borne out by General Ruling No. 12 of April 21, 1942, 7 F.R. 2991, promulgated after petitioner had begun his suit against ASCAP and referring to Executive Order No. ”

“ Home Insurance Co., 71 N.Y. 396, 401, 27 Am.Rep. 60.↑ E.g., Mutual Brewing Co. v. New York & C.P.F. Co., 16 App.Div. 149, 45 N.Y.S. 101; Metropolitan Life Ins. Co. v. Sanborn, 34 Misc. 531, 69 N.Y.S. 1009; see N.Y. General Corporation Law, McKinney's Consol.Laws, c. ”