Reparations Commission

“ The [Pg 209] only disinterested power has retired from the commission. The American proposal is very moderate. It implies the restoration of the treaty by reintroducing America to the body that settles reparations. If France objects to the appointment of a separate commission why should it not be agreed between the Allies that their representatives on the body of experts to be set up shall be the men who now constitute the reparations commission? To these the American government could add their nominee. Germany has a right under the treaty to present her case. ”

“ Could France or Italy, by any kind of sacrifice, have paid any indemnities after ending the War? Germany has not only to live and make reparation, but to maintain an inter-allied army of occupation and the heavy machinery of the Reparations Commission, and must prepare to pay an indemnity for thirty years. ”

“ Thus the representative of the freight forwarders, whose status under the Act is the same as that of motor carriers, referring to the Bell case said 'It is the law today,' and then added 'If the Commission finds that the rates have been unreasonable in the past, damages may be obtained under the law as it stands today.' [18] He opposed the proposed change because he felt that it would make it easier for shippers to obtain reparations where no damages were actually suffered. [19] When the bills were reported by the Committees the provisions for reparations before the Commission were excluded. ”

“ The scheme as a whole ought not to be dislocated to meet the exigencies of a particular situation.
First. Judicial review of an order by the Commission dismissing a complaint for reparations has heretofore been urged exclusively on the basis of the Urgent Deficiencies Act. The jurisdiction of the district court in this case was invoked under that Act. This is the sole basis of jurisdiction urged by the Government here in its comprehensive brief and argument, and the Court rejects it. It rightly rejects it. ”

“ The Government urges, however, that there is nothing actually inconsistent with the Commission's primary jurisdiction in recognizing the survival of a common-law right, because the demands of primary jurisdiction can be satisfied by referral of the question of the reasonableness of the assailed rate to the I.C.C., and that although the Commission concededly has no independent authority to entertain and adjudicate a claim for reparations, it nevertheless should be permitted in effect to exercise such an authority as an adjunct to a judicial proceeding. ”

“ We are told that the Government can protect itself, when it believes it has been charged an unreasonable rate, by filing an affirmative claim for reparations with the Commission within the two-year period provided by § 16 (3) . But Congress has relieved the Government from filing such anticipatory suits by expressly authorizing the General Accounting Office to deduct overpayments from subsequent bills of the carrier if, on post-audit, it finds that the United States has been overcharged. ”

“ And it is doubtful if the shipper in the Ashland Coal & Ice Co. case could have sought reparations in a district court under the primary jurisdiction doctrine. In affirming without argument the judgment of a three-judge court in the Ashland Coal & Ice Co. case, this Court's per curiam opinion cited two pages of the Standard Oil Opinion that support the interpretation of § 9 urged here by the Commission and railroads. It is a fair inference that the pages were cited for that interpretation although other grounds for the Court's decision also appear there. ”

“ And, as shown, the court there first satisfied itself that the Commission order was not the product of an unlawful exercise of power by the Commission. Furthermore, the negative order philosophy, then at its peak, clearly barred review of all orders denying reparations. Consequently, the Standard Oil § 9 interpretation barred judicial review of no class of Commission orders except orders already immune from such review under the 'negative order' doctrine. The Standard Oil holding was thus clearly supported by and rooted in the now rejected 'negative order' doctrine. ”

“ Austrian questions are to be handled by a special section of the reparation commission, but the section will have no powers except such as the main commission may delegate.↑ Bulgaria is to pay an indemnity of £390 million by half-yearly instalments, beginning 1 July 1920. These sums will be collected, on behalf of the reparation commission, by an inter-Ally commission of control, with its seat at Sofia. ”

“ Nor is there force in the suggestion that a like dilemma arises from the recognition of power in the Commission to award reparation in favor of an individual because of a finding by that body that a rate in an established schedule was unreasonable. ”

“ After such additional proceedings, the Commission found Thomson was entitled to reparations of $8,889.76 with interest, and an order was entered authorizing and directing respondents to pay such sum by a specified date, later amended to August 28, 1961. 311 I.C.C. 315. Respondents refused to comply with the order and brought suit in the United States District Court for the Middle District of Florida under § 17 (9) of the Interstate Commerce Act, 24 Stat. 385, as amended, 49 U.S.C. § 17 (9) , and 28 U.S.C. §§ 1336 and 1398 (1964 ed.) to enjoin, set aside, and annul the orders of the Commission. ”

“ Injuria sine damno. The plaintiff is wronged, but not harmed; it may sue, but may not recover.
If the rate differential is not a proper element of damages in actions brought in the courts, I suppose it will not be proper for the Commission to adhere to it. Yet the sheer impossibility of adopting any other measure of damages, in the multitude of reparation cases that the Commission has to deal with, is perfectly obvious. ”

“ If it is found that the said objects or manuscripts were carried off in violation of the rights of the Italian provinces the Reparation Commission, on the report of the Committee referred to, shall order their restitution. ”

“ Although the commissions, and the captures made under them, were valid as between the parties at war, they were not so as to the United States. For the violation of their rights, they had a claim to reparation, and might reasonably demand, as the reparation to which they were entitled, restitution of the property taken, with or without an apology for the infringement of their sovereignty. This they had a right to demand as a species of reparation consonant with the nature of the injury, and enabling them to do justice to the party in injuring whom they had been made instrumental. ”

“ The United States War Damage Commission, after a necessarily slow start, is now getting into a position where it can begin to make some payments to private individuals and to make allocations to the National Government for repair and reconstruction of public facilities.
It may be necessary for the Congress to consider the imposition of controls on the allocation of building materials, and on the prices which can be charged for construction services, once money becomes available for reconstruction work. ”

“ In cases where the right to require physical restoration as above provided is exercised, the Commission shall ensure that the amount to be credited against the reparation obligations of Austria shall be fair value for work done or material supplied by Austria, and that the claim made by the interested Power in respect of the damage so repaired by physical restoration shall be discharged to the extent of the proportion which the damage thus repaired bears to the whole of the damage thus claimed for. ”

“ Our inability to make a bigger contribution does not derive from any lack of will but from a lack of means. To augment the limited government resources available for these projects, we have recommended to Congress the amendment of the Reparations Law in order to allow greater utilization of reparations goods, services and funds for public works development. ”

“ Everybody says there must be reform, so that the Government in all its branches shall be above suspicion. The cry for reform is everywhere,—from New York to New [Pg 7] Orleans. Within a few days we hear of a great meeting, amounting to ten thousand, in the latter city, without distinction of party, calling for reform; and the demand is echoed from place to place. Reform is becoming a universal watchword.
In harmony with this cry is the appointment of a Civil-Service Commission, which has proposed mild measures looking to purity and independence in office-holders. ”

“ The Commission having no jurisdiction, the further contention is that the railroad company can restrain its order because it will subject the company to the trouble and expense of the hearing, the probability of an order of reparation against it, and a multiplicity of suits, in which suits it will be confronted by the order of reparation as evidence, without opportunity for judicial review of the strength and competency of the evidence. ”

“ But the right to take cognizance of a claim based upon an award of reparation made by the Commission is not confined solely to an appropriate circuit court of the United States, but is equally possessed by state courts having general jurisdiction. ”

“ As soon as conditions permit, a Commission, on which the local inhabitants will be represented, will be appointed in each district of the Transvaal and Orange River Colony, under the presidency of a Magistrate or other official, for the purpose of assisting the restoration of the people to their homes, and supplying those who, owing to war losses, are unable to provide for themselves, with food, shelter, and the necessary amount of seed, stock, implements, etc., indispensable to the resumption of their normal occupations. ”

“ The bill attacked the statute and the action of the commission, as violative of the rights secured to the complainant by the Federal Constitution. Objections were also made under the Constitution and statutes of the state. Demurrers were filed, but upon these no decision was made. The motion for preliminary injunction was heard upon bill and affidavits. In denying the motion, the court did not pass upon the validity of the second order, as it was of the opinion that those in whose favor the award of reparation had been made were 'necessary parties in interest;' these had not been brought in. ”

“ There are, to be sure, difficulties, not present where ordinary assets are involved, in applying this principle to compensation for the loss of something which has no basis and which is not ordinarily thought of as a capital asset, such as health or life or affection or reputation. With those difficulties we have no concern. The relevant question is whether the Commissioner has, or reasonably could have, applied a principle of reparation to deal with these cases, and the reasons given by him in Numbers 3, 4, 6, 7, 12, 14, 16, and 20 show that he has. ”

“ Satisfied that corruption by high officials has been reasonably arrested, we have pursued our moral regeneration program to lower levels of government. Whereas the Civil Service Commission saw to it that only qualified men were assigned and retained in the service, the Presidential Anti-Graft Committee was assigned the task of checking, preventing and investigating government personnel and offices against charges of inefficiency and corruption. ”

“ We hold only that United has abandoned facilities and service without the consent of the Commission and that it must reactivate those facilities and restore the service until and unless the statutory consent is obtained. If United now resorts to the Commission, it will have every opportunity to present its economic and constitutional grounds for abandonment. ”

“ It should be clothed with broad preventive powers to forestall the commission of graft and corruption and should be endowed with sufficient per­sonnel to watch government corporations, banks, financial institutions, tax collecting offices and agencies, offices dis­pensing privileges, franchises, permits, licenses, quota alloca­tions and the like; and with such other offices as may be determined by the Commission.
Nothing will satisfy our people less than a total war against corruption. I have full faith that Congress will rise equal to the task demanded by the situation. ”

“ Large paving and building contracts are let simply because the police commissioner wanted to oust some unfaithful political dependent. In this way each commissioner gains great favor with the voters and at the same time can escape personal responsibility for technical mistakes by shouldering the blame onto the whole commission where his identity is lost. ”

“ If a citizen had a grievance, and complained to his councilman, he was perhaps truthfully told that he was not to blame. He was sent from one member of the city government to the other, and unable to obtain relief, in sheer desperation, he gave up hope and abandoned his effort for justice. But under the commission form of government, none of the officials can shirk responsibility. Each is in charge of a department, and if there is inefficiency, it is easy to place the blame where it properly belongs. ”

“ The completion of the report, owing to the extent of the labor involved in its preparation and the omission of Congress to make any provision either for the compensation or the expenses of the Commission, has been postponed until the present time. It is herewith transmitted to Congress.
While the reform measures of another government are of no authority for us, they are entitled to influence to the extent to which their intrinsic wisdom and their adaptation to our institutions and social life may commend them to our consideration. ”