Document: 337 U.S. 472 69 S.Ct. 1333 93 L.Ed. 1480 PROPPERv.CLARK, Attorney General. No. 390. Argued March 28, 29, 1949. Decided June 20, Rehearing Denied Oct. 10, See 70 33. [Syllabus from pages 472-474 intentionally omitted] Messrs. A. Walter Socolow and Joseph M. Cohen, New York City, for petitioner. Mr. David Schwartz, respondent. Louis D. Frohlich, A.S.C.A.P. Justice REED delivered the opinion of Court. 1 The Alien Property Custodian1 on April 22, 1946, began this action under § 17 Trading with Enemy Act, 50 U.S.C.A.Appendix, 17, in United States District Court Southern to obtain payment, a declaration title him as against petitioner receiver, certain royalties owed by American Society Composers, Authors Publishers (ASCAP) Staatlich Genehmigte Gesellschaft der Autoren, Komponisten Musikverleger (AKM), an Austrian association, pursuant provisions vesting order 2097, Office Custodian, September 4, 1943, 8 F.R. 16463, whereby Custodian had vested himself property AKM, specifically claims copyrights performance musical compositions. By contract ASCAP been authorized AKM license royalty use country belonging AKM. petitioner, who is state-appointed receiver involved, were made defendants. Court, motions summary judgment or pleadings, entered declaring that no right, interest claim question, Markham v. Taylor, F.Supp. 202, later, second directing pay debt Custodian. Appeals Second Circuit, appeal petitioner,2 affirmed. Clark Propper, 169 F.2d 324. 2 pertinent facts underlying controversy are follows: On 12, 1941, ex parte application creditor Supreme appointed temporary 977-b Civil Practice which provides liquidation local assets foreign corporation when it has ceased do business one reason ther not here important. Proceedings Act enable claimants secure payment their equitable apportionment available assets. appointment directed 'to take, receive, reduce his possession any all * tangible intangible, within State defendant hold same until further Court.' 14, 5(b) 1917, 40 Stat. 411, 415, amended,3 President promulgated Executive Order 8785,4 so-called freezing order, prohibited transactions involving except they licensed Secretary Treasury. July courts recover AKM.5 Its disposition awaiting outcome case. upon default was permanent association's Thereafter followed suit, 1946. 3 Upon limited grant petition certiorari, 355 902, 405, issues argued now be decided whether relation back, passed 1941. Furthermore, since, will subsequently appear, we conclude these must consider barred subsequent unlicensed judicial transfer appointing receiver.6 4 First. concededly would have its if intervened after petitioner's Accepting position, question related back date receivership, so place itself notwithstanding prior depend alike determination invalid action. 5 Vesting executed receiver. So far parties litigation concerned, specific terms only.7 Nothing presented case calls our attention effort vest might perm nent benefit creditors ultimately those entitled distribution,8 nor adjudicate right so. pertinent, 'All (of to) receive monies way royalty, share profits other emolument,' together 'all causes respect to' aforesaid copyrights. This defined regulations 1940, 1401(c), 6 2905. latter citation refers regulation defining property, effective at time order.9 Prior later President, prescribed 8785, 2897, behalf associations such unless licensed. No asked obtained. 7 8785 issued authority granted October 6, amended, particularly Joint Resolution May 7, 1940.10 forbade, 1(A), transfers credit between banking institutions States; *.' Authority during war period national emergency prohibit given Resolution. declared 'the existence unlimited emergency.' resolution issue rules define 'banking institutions.' similar prohibiting applicable nationals Norway Denmark guard brought about German invasion countries. 8389, 1400. It contained intents purposes definition 11C thereof. thereunder therefor approved Resolution.11 national, set out below.12 We accept 9 transferred From ASCAP's point view debt; AKM's claim. shift obligation contemplated transaction involved 'property which' there 'interest nature whatsoever, direct indirect' aliens designated countries, including Austria.13 But did without Austrian-owned property. specified transactions, however, categories all-inclusive make clear purpose require countries carried Government provided General Ruling 21, 1942, 2991. forbids credit. As 'credit' regulation, we, considering credits subject give ordinary meaning due accounting transactions. credit, effect There is, think, doubt voluntary bank transferring account known another institution violate institutions. 10 remains, then, determine character prohibition 1A 'transfers A reading President's definition, note 12 supra, shows fall words 'any person holding others incidental part true departure conception institution.' Petitioner says construe 'utter fantasy.' pointed out, congressional ratification. obvious intention Congress allow flexibility term institution' leaving sheds light purpose. phrase used Bank Holiday Proclamation 1933, 48 1689, 1690, adopted Emergency Banking Relief 9, 1, delegation power definition. Evidently permit bring atypical forms financial reach act. grafted 1917 again extended meet problem wide ready instrument cope myriad circumstances arising control shifts peace generous scope accomplish Through various forms, nation sought deprive enemies, actual potential Of opportunity advantages themselves perpetrate wrongs citizens through happened country.14 To necessitated some inconvenience who, here, actions adverse nation's interest. That fact, cannot lead us narrow broad coverage Order. Our decisions clear.15 each 'incidental (their) business,' therefore held receivership turn 11 liability violates examination federal 'freezing order' state court recognition fact development take 1943. 13 contention mere does blocked covered previous order. deal law, appointment. At point, assume happen examine only Petitioner's argument construction immobilize frozen suits Custodian's convenience vest, contrary need protection funds. These needs, says, served provision payments funds license. E.O. 1(B).16 He argues empower proceeding 977-b, covering receivers liquidate defunct corporations. 14 owners could proceed rights claimant passing into hands detriment welfare nation, long eo nomine courts. plan comprehends blocking thereunder. If blocked, may follow. When vests passes questioned Act.17 immobilized them needed prosecution threatened compensate ourselves damages done governments affected. Chemical Foundation, 272 11, 47 71 131; Silesian-American Corp. Clark, 332 469, 476, 68 179, 182, 92 81. 15 Singer Yokohama Specie pass statutory creditor.18 legislation founded constitutional provisions, laws necessary proper carrying execution. enact carries final declare legislation. Prudence Realization Geist, 316 89, 95, 62 978, 982, 86 1293. Federal case, 324, 327, Bernstein N. V. Nederlandsche Amerikaansche etc., Cir., 173 71, 73. range. should states. law determines administered, but event can free control. Cf. Lyeth Hoey, 305 188, 191, et seq., 59 155, 157, 83 119, 119 A.L.R. 410. 16 contends also administrative interpretation borne 2991, begun suit referring amended section margin.19 observed, proviso d limits litigant owner confer came started treated decisive useful statement conclusion put valid change undertake say every concerning voidable. base prevent this. language prohibits more than payment. think rulings contrary. 18 Second. advances contention, Therefore, argues, nothing immobilization taken 19 precise i.e., virtue appointment, Both faced answered negative. In dealing enter judgments courts, hesitant overrule skilled particular states conclusions shown unreasonable. Estate Spiegel Commissioner, 335 701, 707—708, 301, 303, 304; Helvering Stuart, 317 154, 63 140, 87 154; MacGregor Mutual Co., 315 280, 607, 864. shall view. 20 Having statute before it, turned cases receiverships equity pr ceedings analogous statutes. seem neither equity20 statutory21 class title, but, contrary, merely possession. below found evidenced intent result otherwise. Admittedly express intent. 21 easily susceptible varying interpretations. subsections 19. sections handling debtors. concluded, where subsection said powers duties possessed conferred trustees York,' 'that takes usual York.' 326, 327. otherwise restricted purposeless. 22 first essential prerequisite exercise jurisdiction rem over nonresident association publication. affirmance render proceedings attack grounds doctrine Pennoyer Neff, 95 714, 24 565. merit. Neff holds personal obtained service recognizes 733 U.S., sufficient state, form reasonably calculated notice whose interests affected judgment. Milliken Meyer, 311 457, 463, 61 339, 342, 85 278, 132 1357. requirement met ways seizure e.g., injunction Pennington Fourth National Bank, 243 269, 37 282, 713, L.R.A.1917F, 1159; attachment Herbert Bicknell, 233 70, 34 562, 58 854; party Security Savings California, 263 44 108, 31 391. comes court, fair substituted service. Anderson Nat. Luckett, 321 233, 240, 64 S.C . 599, 603, 88 692, 151 824; see McDonald Mabee, 90, 243, 608, 458. 23 Since unreasonable, correct suggestion appears briefs, questions vacated remanded decision took ASCAP. Waiving failure raise certiorari,22 deference earnestness pressed dissent.23 assumption opinion, Such ruling unnecessary consideration issue. 25 suggested procedure avoid issue—Spector Motor Co. McLaughlin, 323 101, 65 152, 89 101; Chicago Fieldcrest Dairies, 168, 986, 1355; Railroad Comm'n Pullman 312 496, 643, 971; cf. Public Utilities Fuel Gas 456, 462, 369, 373, 396—and although based Bankruptcy U.S.C.A. seq. Thompson Magnolia Petroleum 309 478, 60 628, 84 876. refused diversity citizenship difficulty deter exercising discretion Meredith Winter Haven, 320 228, 9.24 refrain deciding said, enervate jurisdiction. 26 Where involves nonconstitutional issue, necessity depends practice been, necessary, decide both issues. course Allen, 326 490, 495—496, 66 296, 298, 299, 90 256, statute. difficult unsettled; admittedly controlled since finding possibility reverter Illinois finally determined decided. And yet, method existed obtaining adjudication 632, 673—674, 337, 348, p ocedure adopt depending Appeals. 304. doing Stewart, 161, 144, 154. Erie R. Tompkins, 304 64, 817, 82 1188, 114 1487, common-law precedent general properly submitted decision. Tompkins 98 49. 27 mentioned above required submission single issues, exercised controversy, equity. remedies rule Constitution relied justify normal procedure. trustee file plenary necessarily complete itself. complaint count seeks recovery vis-a -vis Assuming quieting chattel can, cutting refusing obeyed, compel whatever provide litigate remain threats contempt action, keep raising above. perhaps compelled stay protect own 28 U.S.C. 2283, 2283. Otherwise sending fragment find res judicata entire ousted placed Congress. supra. special device administration Magnolia, Spector, cases, absence circumstances, page 236, 237, pages, impede controversy. 29 reject delayed settled law. 30 Third. makes determining he beyond competence district because receivership. Even pass, he, promulgation Reliance like Kline Burke Construction 260 226, 229, 231, 43 79, 81, 67 1077; Princess Lida Thompson, 466, 275, 285; Farmers' Loan, co. Lake St. 177 51, 61, 564, 568, 667. res, disabled res. present interference situation closely resembling determinations participate courts.25 What had, most, debtor, enabled collect Although giving scheme contemplates determinations. 17; 495, 256. unified policy strongly Comity abnegation extent involved. Affirmed. 32 Chief VINSON 33 JACKSON dissents ground 8785. FRANKFURTER, dissenting part. 35 central orders 13, observes 'The courts.' concedes relevant statutes 'is interpretations.' Yet puts though displaced tomorrow authoritative law—the York. 36 come depended seriously doubtful question. 876; Texas Inc., Spector Service, Inc. A.F. L. Watson, 327 582, 761, 873. practicably retained ultimate while permitting procedures capable providing prompt decision, already consumed unconscionable amount recourse inexpedient. 396. meets conditions, N.Y.Civ.Prac.Act 473, disposition. avoiding what proved fundamental, importance maintaining harmonious relations parallel systems where, controlled, last word best informed guess. dominant mind plainly opinions. following passages illustrative: 38 1. Article 6445 Statutes, Commission belongs supreme Texas. making tentative answer adjudication. reign hardly promoted thus supplanted controlling court. 39 'Few public higher chancellor avoidance needless friction policies, relates enforcement criminal Fenner Boykin, 271 46 492, 927; Spielman (Sales) Dodge, 295 55 678, 79 1322; specialized liquidating embarrassed enterprises, Pennsylvania Williams, 294 176, 380, 841, 96 1166; interpret regulatory Gilchrist Interborough 279 159, 49 73 652; Hawks Hamill, 288 52, 53 77 610. reflect abstention appropriate system 'exercising wise discretion,' restrain 'scrupulous regard rightful independence governments' smooth working judiciary. Cavanaugh Looney, 248 453, 142, 143, 354; Di Giovanni Camden Ins. Ass'n, 296 73, 56 5, 80 47.' 499—501, 644, 645, 971. 2. 'We here. ordinance alleged conflict Act. Circuit anything forecast—a prediction Illinois. resources equal adjustment waste decision' 'needless fiction policies.' 'sound discretion, guides equity.' Beal Missouri Pacific (45), 50, (418), 421, 577. remission alone definitive major posed. Plainly constitute forum trial 54 Harv.L.Rev. 1379. Considerations delay, inconvenience, cost parties, urged us, call different result. For concerned much larger relationship authorities functioning whole.' 171—173, 986—988, 1355. 41 3. '* if, C urt thought, Florida self-executing, seeking process premature supplied sanctions enforcement. today merits might, therefore, advisory opinion. inadequate selective go forward orderly expeditious questions.' 598—599, 769, 42 present, respective orbits tribunals reasons, matter administration, requiring rather basis guess justification submit separable occasion expressly them. Power & 307 156, 160, 766, 768, 1180. remand instructions retain pending Tom C. General, Successor duly latter. ASCAP, having stipulated entry appeal. filed motion party. permitted argue motion. denied. 179. 95a note. opinions relating Propper Buck, N.Y. Law Journal, p. 1268, col. 5; 1st Dept., App.Div. 807, N.Y.S.2d 103; Sup.Ct.N.Y.Co., 178 Misc. 76, affirmed 948, 134; 186 829, 270 890, 602; 72, 831, modified, 601. Question Presented 3, discussion brief bar formally requested entered. U.S.C.App. §§ 7(c) 616, 7(c), 616: 616. thereof when, as, terms, agency conditions prescribe held, used, liquidated, sold, dealt States, perform acts incident accomplishment furtherance purposes; Uebersee Finanz-Korp., 480, 174, 88. Compare Great Northern Sutherland, 273 315, 596, shares stock appearing corporation's books name alien enemy. vesting. First War Powers 838, 839, Title III(1)(B). Bishop, Judicial 721, 723. 840, 617, 617. 179: 'During may, designate, otherwise, investigate, regulate, prohibit, prescribe, means licenses exchange, 'Sec. Numbered 8389 Treasury hereby confirmed.' 2898, 5: 'F. include engaged primarily incidentally banking, granting credits, purchasing selling exchange procuring purchasers sellers thereof, principal agent, business, brokers; and, principal, home office, branch correspondent regarded separate institution." Department, Administration Wartime Financial Controls (1942), pp. 1—4. Central Trust Garvan, 254 554, 214, 403; 596; 256; not, Tenth Amendment, constitutionally abrogate peacetime, chief reliance Williard, 211, 356, 865, 347, states, tate location distribution liquidation. doubted danger sufficiently grave respecting 474—477, 181, 9(a), 9(a). 487, 177, 88; 567—568, 215, 194, 319, Becker Steel Cummings, 74, 15, 18, 54; Josephberg Markham, 152 649. 293 542, 550, N.E.2d 726, 728: governing Standard procured conditional Agency pay. (See 12(4) amended; Feuchtwanger Hanover 434.)' Id., 299 113, 894. Polish Banca Rumaniei, 332, 345. '(d) Any and/or in, of, shall, ruling, enforceable liabilities therein litigated; Provided, attachment, judgment, decree, lien, execution, garnishment, create greater power, privilege to, act issuance license.' Circular 31, August 2, 8351. E.g., Decker Gardner, 124 334, N.E. 814, L.R.A. 480; Keeney Home Insurance 396, 401, Am.Rep. 60. Brewing C.P.F. 149, 45 N.Y.S. Metropolitan Life Sanborn, 531, 1009; Corporation Law, McKinney's Consol.Laws, c. 23, 162, 163, annotations thereto. Nealis Tube Iron 150 42, 45, 944, cited represents fully dissolution.' Page N.Y., 945 sue deals distinction title. re Warren E. Smith 39, 52 877, 884. Connecticut Palmer, 493, 316, 309. West Edward Rutledge Timber 244 100, 587, 591, 1010. send Wichita Royalty City 306 103, 420, 515; A.T. T. 223, 139, 956; Fidelity Field, 169, 109; Six Companies Highway Dist., 180, 186, 114; Stoner 464, 336, 284; Palmer Hoffman, 318 109, 117, 477, 482, 144 719. Commonwealth Bradford, 297 613, 600, 920; Tibbetts, 167 397, 401.

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