New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-29
Judge Awards Decision to
Old Concern i'm Action
Brought by Purchasers
From Alien Custodian
Tried to Keep
Them From Trade
Conveyance of Property
Did Not Carry Voluntary
Good Will of Company

Judge Augustus N. Hand filed an
opinion in the United States District
Court yesterday in. which he upheld
the right of German company, whose
American property had been seized and
sold by the Alien Property Custodian,
to resume business in this country and
solicit trade from its former custom
ers.
The case was an action in equity
brought by the Koppel Industrial Car
Equipment Company against the Oren-
stein-Koppel A. G., Of Berlin, formerly
known as the Orenstein Arthur-K op-
pei Company, in an effort to prevent
the German corporation from again
doing business in this country. The
Koppel Industrial Car Equipment
Company was the purchaser Of the
good will and property of the German
concern, including its plant at Kop,
pei, Pa, near Pittsburgh. After the
war the German corporation establish
ed an office a. 80 Church Street in
the name of l.. E. Hellmann. Eric
Joseph, named as defendant in the
York office. Before the war he was
in charge of the entire American bust
ness.
Custodian Gave Deed
The Alien Property Custodian made
a deed to the Koppel Industrial Car
Equipment Company of the prop
erty and good will Of the foreign cor
poration, and it is the contention of
the American company that this trans
fer prevents the German company from
now doing business in this country
Judge Hand, in his opinion, said:
II cannot discover any legal prin-
ciple which leads to such conclusion.
If the German corporation had made
voluntary conveyance of its property
and good will to the complainant, the
follow an implied covenant on the part
Of the grantor to abstain from bust
ness here, including solicitation of for
mer customers, and to do nothing in
derogation of the grant. But the sale
Of the American good will in vitium is
quite different matter and cannot
terminate or affect the right of the
German corporation to do business in
the United States. 1t is like the case
of the sale of a bankrupt's estate,
which does not prevent him from re-
suHllH& business Win MS OlQ GUS
toners.
Should Eliminate Catalogue
ut is not necessary to hold that the
sale of the good will Of corporation
by receiver under decree of court
having jurisdiction of all of the assets
will not pass title to the good will of
such corporation good as against the
whole world. Such proceeding is as
inclusive as the property on which the
jurisdiction of the court is based. But
how can it reach the property of a
foreign corporation over which the
court has no jurisdiction, and how can
a seizure by the Alien Property Gus
todian reach the right of a foreign
corporation to do business in this
country in it's own name after the war
power is exhausted? The real ques-
tion is: What could the Alien Prop
erty Custodian convey?'
"The most the complainant can ask
is that the German corporation shall
not pretend to be doing business or
manufacturing equipment at the Kop-
pei plant or to be the complainant cor
poration. l cannot see that it has done
SO, excepting by the use of the cata-
logue, which contains a picture of the
plant. The elimination of this cata-
logue seems to be necessary. The pre-
liminary injunction must be limited to
this elimination"
Hays, St. John & Moore are attor-
neys for the German corporation.