Source: https://www.legalcrystal.com/case/93546/central-union-trust-co-vs-garvan
Timestamp: 2019-04-21 04:43:42+00:00

Document:
Appellant Central Union Trust Co.
1. Decrees of the circuit court of appeals affirming decree of the district court placing the Alien Property Custodian in possession of property in libel proceedings brought by him under the Trading with the Enemy Act held reviewable in this Court by writ of error. P. 254 U. S. 566 .
2. Congress has power in war time to provide for immediate seizure, in pais or through a court, of property supposed to belong to the enemy, leaving the question of enemy ownership vel non to be settled later at the suit of the claimant. P. 254 U. S. 566 .
which confers on the district court jurisdiction to make all such orders and decrees as may be necessary and proper to enforce the provisions of the act, those courts have jurisdiction to enforce the demands of the Alien Property Custodian for the delivery of property to the possession of which the act entitles him. P. 254 U. S. 566 .
"which the President after investigation shall determine . . . is so held, shall be conveyed, transferred, assigned, delivered, or paid over to the alien property custodian."
Held that, upon a determination after investigation by the Custodian, exercising the President's power by delegation under § 5 of the act, that certain securities were held by trustees for the benefit of enemy insurance companies, followed by demand, the duty arose to deliver them to the Custodian; that the question of enemy property vel non could not be inquired into in his suit to compel delivery, but rights in that regard could be asserted and protected by claim, and, if necessary, suit, for return of the property, under § 9, as amended. P. 254 U. S. 567 .
5. Proceedings of this character are alternative to direct seizure by the Custodian under § 7(c) of the act as amended by the Act of November 4, 1918, and involve only the right to possession. P. 254 U. S. 568 . Clinkenbeard v. United States, 21 Wall. 65, distinguished.
6. Insofar as concerns claimants who proceed as allowed by amended § 9, a proceeding like the present gives a mere preliminary custody, although in other respects the Custodian may get a conveyance under the act, with broad powers of management and disposition under § 12, as amended. P. 254 U. S. 569 .
265 F. 477, id. 481, affirmed.
them as required by the laws of Massachusetts or Connecticut for the security of American policyholders and creditors, with reasons for their right to retain the funds alleged in detail. The libellant moved for decrees for possession upon the pleadings which were granted by the district court. The decrees were affirmed by the circuit court of appeals, Garvan v. $20,000 Bonds, 265 F. 477; ibid., 481. As the decision of the latter Court is not made final by the statute, the cases have been brought on writ of error to this Court.
As is obvious from the statement of the pleadings, the libels are brought upon the theory that these are purely possessory actions and that, for the purposes of immediate possession, the determination of the Enemy Property Custodian is conclusive, whether right or wrong. The claimants, on the other hand, set up substantive rights and seek to have it decided in these suits whether the funds are enemy property in fact and whether they have not the right to detain them. Strictly possessory actions still survive in the laws of some states, and have been upheld, leaving the party claiming title to a subsequent suit. Grant Timber & Manufacturing Co. v. Gray, 236 U. S. 133 . There can be no doubt that Congress has power to provide for an immediate seizure in war times of property supposed to belong to the enemy, as it could provide for an attachment or distraint if adequate provision is made for a return in case of mistake. As it can authorize a seizure in pais, it can authorize one through the help of a court. The only questions are whether it has done so as supposed by the libellant, and, if so, whether the conditions imposed by the act have been performed.
"If the President shall so require, any money or other property owing or belonging to or held for, by, on account of, or on behalf of or for the benefit of an enemy or ally of enemy not holding a license granted by the President hereunder, which the President after investigation shall determine is so owing or so belongs or is so held, shall be conveyed, transferred, assigned, delivered, or paid over to the Alien Property Custodian."
We are to take it, therefore, that the President has "so required," and that a case is made out under § 17 unless we are to consider the defenses interposed.
of the President may obtain a return, and, if he does not obtain it in sixty days after filing his application, or forthwith if he has given the required notice but filed no application to the President, may bring a suit to establish his rights in the district court, in which case the property is to be retained by the Custodian until final decree. These provisions explain the initial words of § 7(c) as saving the ultimate rights of the claimant while the determination of the President still may be given effect to carry out an immediate seizure for the security of the government until the final decision upon the right. The reservation implies that mistakes may be made, and assumes that the transfer will take place whether right or wrong.
to the courts instead of to force opens to the person who has declined to obey the order of the statute or who has prevented a seizure a right by implication to delay what the statute evidently means to accomplish at once.
"shall be vested with all of the powers of a common law trustee in respect of all property, other than money, which has been or shall be, or which has been or shall be required to be, conveyed,"
etc., to him, and is given the power to sell and manage the same as though he were absolute owner. All this may be conceded if no claim is filed. But this act did not repeal § 9, which is amended by the later Acts of July 11, 1919, c. 6, 41 Stat. 35, and of June 5, 1920, c. 241, 41 Stat. 977, and, as we have said, provides for immediate claim and suit and requires the property in cases of suit to be retained in the custody of the Alien Property Custodian or in the Treasury of the United States to abide the result. The present proceeding gives nothing but the preliminary custody such as would have been gained by seizure. It attaches the property to make sure that it is forthcoming if finally condemned, and does no more.
THE CHIEF JUSTICE took no part in the consideration or decision of these causes.

References: § 5
 § 9
 § 7
 v. 
 § 9
 § 12
 v. 
 v. 
 § 17
 § 7
 § 9