William Howard Taft

“ The intent to conserve and utilize enemy property upon a basis of practical justice and to prevent the owners from receiving benefits therefrom until after the war, but without ultimate confiscation, is clear. ”

“ That the construction asked by appellees is neither natural nor necessary and would lead to the unfortunate conclusion that seized property of a neutral corporation must be retained because a German owns one share out of many thousand. Without doing violence to any part of the act and by giving effect to every word therein, citizens of neutrals may secure just relief and the United States escape the serious charge, of oppressive and unfriendly action. ”

“ In order to supply some reason or occasion for clause 6, if clause 1 is to be held to include corporations as citizens or subjects, it is suggested for appellants that the clause was intended to cover German and Austrian corporations entirely owned by citizens of the United States or of other countries than Germany or Austria. ”

“ The practice of organizing local companies to do the business of foreign owners has become very general. Certain important German corporations were wholly owned by individuals or corporations of the United States. British subjects had large investments in German concerns, and probably the same is true of subjects of Sweden, Norway, Holland, Denmark, Switzerland, and Italy. There were obvious reasons for releasing property of a corporation when wholly owned by our own people, by nationals of associated powers, or by neutrals, and paragraph (6) effects this. ”

“ It is not extravagant to affirm that the effective organization of these resources is more likely to determine the result of the present conflict than armies and navies. Therefore, everything reasonably possible should be done to prevent our enemy from reaping the advantages of commercial transactions with the people of the United States. ”

“ This government has recognized the government of Czechoslovakia. Congress made an appropriation for a minister to that country and we have accredited a minister there. This government has recognized the existence of that country through the executive, and yet we continue to hold the property of its citizens, which we cannot release at this time without an amendment of the act, because they were enemies at the time the property was taken over. The Czechoslovakian government has pressed us a good deal for the return of that property. ”

“ Clause 11 of the second amendment was in fact a legislative construction of clause 1 of paragraph (b) of section 9 in the amendment of 1920 as we construe it, because otherwise and according to the contention of the defendants, a non-German or non-Austrian corporation though doing business in Germany or Austria could, under clause 1 and without clause 11, recover its property whatever its stock ownership. ”

“ Corporations of neutral countries, although controlled by enemy stockholders, were never declared to be 'enemy' unless they did business within hostile territory; the statute gave no regard to residence or nationality of stockholders. Such business also made enemies of neutral individuals; and they can recover under paragraph (1) . Hostilities having ended, neutral nations could properly demand the same right for their corporations. Confiscation is everywhere disavowed; neutral property may not be used for adjusting claims against belligerents ”

“ When the entire number of trusts reported shall have been finally opened on the books and the readjustment of values consequent upon appraisal shall have been completed, it is safe to say that the total value of the enemy property in the hands of the Alien Property Custodian will reach $700,000,000. ”

“ He also felt that the amendment should cover the cases of residents of territory which may be allotted, under treaties yet to become effective, to an allied or associated power (as, for example, Trieste) , as well as territory which, under plebiscites to be held in accordance with treaty provisions, may be allotted to a neutral country (as, for example, that portion of Schleswig which may be allotted to Denmark) . ”

“ The spirit of the act is to permit such business intercourse as may be beneficial to citizens of this country, under rules and regulations of the President, which will prevent our enemies and their allies from receiving any benefits therefrom until after the war closes, leaving to the courts and to future action of Congress the adjustment of rights and claims arising from such transactions. ”

“ Under the old rule warring nations did not respect the property rights of their enemies, but a more enlightened opinion prevails at the present time, and it is now thought to be entirely proper to use the property of enemies without confiscating it ”

“ Reporting June 21, 1917 (H. R. 85, 65th Cong. 1st Sess.) , the House committee on interstate and foreign commerce recommended passage of the original Trading with the Enemy Act, and said:
'The chief objects of this bill are (1) to recognize and apply concretely, subject to definite modifications, the principle and practice of international law interdicting trade in time of war, and (2) to conserve and utilize upon a basis of practical justice enemy property found within the jurisdiction of the United States. ”

“ Second, it is argued that, as the war ended by joint resolution of July 2, 1921 (42 Stat. 105) , the plaintiff thereby ceased to be an enemy and was entitled to a return of its property without express legislation giving such a right. It is clear from section 12 of the Trading with the Enemy Act, 40 Stat. 411, 424 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, § 3115 1/2 ff) , that Congress did not intend that such a right should exist. ”

“ That although appellant had been permitted to do business within the United States during the whole period of actual hostilities its property was seized after the Armistice when such property could not be utilized for hostile purposes. ”

“ Miller, 266 U.S. 457, 45 S.C.t. 165, 69 L. Ed. -- (decided January 5) , considers section 9, and declares:
'Subsection (a) of section 9 gives now, as the same words gave from the first, the right of recovery to any person never 'an enemy or ally of enemy,' within the statutory definitions. * * * Subsection (b) adds to those allowed to recover from the first a considerable number always within the definition of 'enemy' and affords to them the measure of relief which Congress deemed proper long after peace had been actually restored. ”

“ The fact that he falls within more than one is not material.
That paragraph (6) describes a class of owners not within the words of paragraph (1) and affords possible relief, obviously desirable, for our own citizens, associates and neutrals.
That a liberal construction should be given the amendment with a view to carrying out its benevolent purposes, and not a narrow, strained one which would reflect discredit upon the government. ”

“ That any person not an enemy or ally of enemy claiming any interest, right, or title in any money or other property which may have been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of the United States, or to whom↑ [Added to section 9 by amendment of 1919.] ”

“ Such practice is contrary to the spirit of international law throughout the world. The reasons for the enactment of the pending measure are clearly set forth in the accompanying communications received from the Attorney General and the Secretary of State. ”

“ Paragraphs (2) and (3) add certain women who married enemy nationals; (4) and (5) add diplomatic and consular officers and interned persons; (7) and (8) make further definite additions.
Paragraph (6) adds to those already described, 'a partnership, association, or other unincorporated body of individuals outside the United States' (Germany and Austria-Hungary are outside) ”