Document: 332 U.S. 480 68 S.Ct. 174 92 L.Ed. 88 CLARKv.UEBERSEE FINANZ-KORPORATION, A.G. No. 35. Reargued Nov. 12, 1947. Decided Dec. 8, Mr. M. S. Isenbergh, of Washington, D.C., for petitioner. Richard J. Connor, respondent. William Harvey Reeves, New York City, National Foreign Trade Council, Inc., amicus curiae. [Argument Counsel from page 481 intentionally omitted] Justice DOUGLAS delivered the opinion Court. 1 Respondent brought this suit to reclaim property which Alien Property Custodian,1 acting under § 5(b) Trading With Enemy Act, 40 Stat. 411, 50 U.S.C.App. et seq., U.S.C.A.Appendix, as amended by First War Powers Act 1941, 301, 55 839, Supp. V, 5(b), had vested in himself. is a corporation organized laws Switzerland and having its principal place business that country. The seized consisted shares stock corporations various States nation an interest contract between two such corporations. 2 complaint alleges respondent not enemy or ally at no time since vesting has question been owned controlled, directly indirectly, whole part, enemy, national designated It also none owing belonging held on account benefit any person interest. We construe these allegations mean free all taint particularly whose have seized, interest, itself, are companies nor either kind whatsoever, done territory enemy. Those allegations, so construed, indeed taken true purposes present ruling petitioner's motion dismiss based solely fact foreign 3 District Court granted dismiss. Appeals reversed, one justice dissenting. Uebersee Finanz-Korporation, v. Markham, 81 U.S.App.D.C. 284, 158 F.2d 313. case here petition writ certiorari we because importance administration Act. 330 813, 67 772. 4 Under it read prior 1941 amendment would able maintain showing, without more, was friendly doing allies. That result be reached follows: Sec. 7(c) permitted seizure Custodian only 9(a) 'any enemy' claiming sue it. And Behn, Meyer & Co. Miller, 266 457, 45 165, 69 374, allies.2 could even though controlled. , scheme then drawn 'to seize when rather than take over corporate property.' Hamburg-American Line Terminal Navigation United States, 277 138, 140, 48 470, 471, 72 822. 5 least respect 'rigidity inflexibility' sought cured 1941. See H.R. Rep. 1507, 77th Cong., 1st Sess., p. 3. notorious Germany her allies developed numerous techniques concealing ownership control ostensibly neutral. They through devices, including corporation, acquired indirect industries country economic warfare.3 heels declaration war cope with problem. Congress President power vest agency him thereof.'4 interests placed within reach appropriate neutral assets but masqueraded those innocent fronts. 6 Thus new 'flexible powers' (H.R. supra, 3) deal effectively open concealed taint. 7 While scope President's broadened, there restricting 9(a). As noted, e emy,' nterest right So provision reads today. Yet, petitioner suggests, if applied despite amendment, will undo much good designed accomplish. All claimant need do recover show some allies.5 controlled might sap strength warfare immaterial. agree construction destructive objectives must rejected. 8 Petitioner therefore suggests once shown permissible remedy return said provide ultimate judicial determination whether defined Central Union Trust Garvan, 254 554, 567, 568, 41 214, 215, 65 403. argument accordingly allows thereof,' defeated mere showing another nation. 9 make run terms provides country.' wipe out suits matter how friendly. stated Markham Cabeil, 326 404, 410, 66 193, 196, 90 'The sue, explicitly 9(a), should law unless clear what later did withdrew earlier permission.' Such drastic contraction, complete sterilization, made other alternative open. 10 There several reasons us hesitate course. In first place, suggested, phase problem presently concerned wrestling started ended find slightest suggestion powers way utilized Axis. were waging against us. Secondly, dealing affirmatively compel use application manner consistent States.'6 Sen. 911, 2. hard assume adopted course fireign investments our economy infected control. Our hesitation is, moreover, increased note makes claimant. easy treated nonenemy nations, recent allies, harsh manner, leaving them they Fifth Amendment. 11 difficulties whichever turn. But think adhere more closely policy both carry into consequences supra. 12 observed, meyer Miller decided form, reflected reversal policy. extended appearing device become Trojan horse. not, however, alter definitions contained remain same decided.7 13 Yet presented confine statutory narrow categories indicated Miller. To counter disrupive purpose. hasty legislation stop perfect integrated whole. task give it—1917 most harmonious, comprehensive meaning possible. Cabell, 28 harmonized underlying say merely illustrative, exclusionary. otherwise impute purpose paralyze hand promote other. 14 perhaps logic basis saying consequence amend revised 5(b). change effected stands unamended meant before answer cannot alone. conflict confusion statute. Though neither differently after event. believe consonant functions served apply previously restrictively. harmonious reading 2, concept given helps fulfill mission does history contrary normal connotation stand barrier recovery possible connection 15 approach may produce results absurd uncertain. entire jeopardized negligible single share, indirectly pointed securities used are, extent holdings necessary constitute taint, part alien corporation's retained where fractional appears, left undecided. Since definition problems now recognize their importance; await legislative9 clarification. 16 Affirmed. 17 CHIEF JUSTICE took consideration decision case. subsequently transferred Attorney General. Executive Order 9788, note, Fed.Reg.11981, Oct. 14, 1946. provides: 'That word 'enemy,' herein, shall deemed mean, trading Act— '(a) Any individual, partnership, body individuals, nationality, resident (including occupied military naval forces) war, outside territory, incorporated territory. '(b) government political municipal subdivision thereof, officer, official, agent, thereof. '(c) class natives, citizens, subjects citizens wherever business, President, he safety successful prosecution require, may, proclamation, include term 'enemy.' words, 'ally enemy,' mean— nation, resident, enemy." Some uses promotion subversive projects summarized Administration Wartime Financial Controls Government, Treasury Dept. (1942), pp. 29—30. technical legal title dangerous Axis-influenced enterprises Swiss, Dutch, Swedish American.' 'Actual frequently runs tangled mazes holding companies. These normally countries themselves represented bearer shares, making extremely difficult negate claim coincident state incorporation.' 5(b)(1), amended, 'investigate, regulate, direct compel, nullify, void, prevent prohibit, acquisition holding, withholding, use, transfer, withdrawal, transportation, importation exportation of, in, exercising right, power, privilege to, transactions involving, thereof person, property, subject jurisdiction * *.' further provided respects 'upon conditions prescribe held, used, administered, liquidated, sold, dealt custodian see supra 4, 12. Pub.L. 322, 79th 2d adding 32(a)(2)(E)

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