Evening star., 1951-10-04

The decision was far from end
ing the litigation but, according to
attorneys. has greatly narrowed
the issues that eventually may be
decided by the Supreme Court.
The Dollar case, regarded by
legal authorities as one of the
most complicated in many years,
seemed to have been settled in
1850, when the Court Of Appeals
here held that the 1888 transac-
ton was pledge and not sur
render. The Supreme Court re-
fused to review that finding and,
in effect. upheld the Appeals
Court.
Meanwhile, however. the Mari
time Commission had been abol-
lshed. The Secretary OF Com
merce, who thereupon succeeded
to possession of the stock sharesI
appealed, as did the Government,s
on the ground of not being subject
to jurisdiction of the court.
They also contended that the
Supreme Court has not yet ruled
directly on the basic issue of
ownership of the stock.
The Appeal Court, nevertheless,
directed the Government officials
to indorse the stock certificates
and transfer them to the books
of the Dollar group. Secretary
Sawyer complied to the extent of
delivering the certificates to the
Dollars, but he refused to indorse
them.
The Court of Appeals last April
directed Mr.. Sawyer and the Others
| to show cause why they should not
be held in contempt. The court
Ialso issued a restraining order di-
lrecting him and the others to
take no steps Inconsistent" with
its earlier orders in favor Of the
Dollar interests, and in particular
not to take advantage of the in
junction issued by Federal Judge
Harris in San Francisco.
At a dramatic session attende
by Attorney General McGrath
the 10 defendants last April II.
appeals court delivered a tongus
lashing that rebuked the Govern
ment for attempting to "thwart
and defeat" the courts judgments.
McGrath Pleads Good Faith.
Attorney General McGrath then
asked Chief Justice Vinson to
stay the contempt proceedings
because the Government officials
acted in utmost good faith" to
protect the interests of the United
States. Chief Justice Vinson, on
the eve Of the day the Govern
ment officials were to have COM
piled with the appeals court or
gone to Jail, stayed the appeals
court restraining order.
'The United States" he said
has not previously been a party
to an action concerning those
shares and can act only through
its agents and attorneys. The
attorneys for the United States
have reasonable cause to fear
that the restraining order ISSUED
by the Court of Appeals here
prevents them from defending an
appeal to the Court of Appeals in
San Francisco, =. :"
The Government asked the
Supreme Court. a few days later.
to review the Court of Appeals
restraining order here. which pre-
vented the Government from TAX
ing advantage of the injunction
granted by Judge Harris in San
Francisco.
The Supreme Court, on the last
day OF the 1950-51 term. June 4,
agreed to review the appeals court
order, preventing the Government
from taking advantage of the San
Francisco Federal District Court
order barring the Dollars from OBJ
tanning transfer Of the stock. At
the same time, the full bench of
the Supreme Court refused to set
aside Chief Justice Wilson's stay
to the contempt Judgment against
Secretary Sawyer and the others,
pending outcome of the litjpa tion