Document: 337 U.S. 325 69 S.Ct. 1086 93 L.Ed. 1392 UNITED STATESv.CORS. No. 132. Argued Feb. 3, 4, 1949. Decided June 13, Mr. Oscar H. Davis, Washington, D.C., for petitioner. John Lord O'Brian, respondent. Justice DOUGLAS delivered the opinion of Court. 1 This is suit in Court Claims under § 902 Merchant Marine act 1936, as amended, 49 Stat. 2015, 53 1255, 46 U.S.C. 1242, U.S.C.A. to recover balance 'just compensation' alleged be due respondent from United States requisition his steam tug, MacArthur, October, 1942. The tug was a Coast Guard boat built 1895 and used by it harbor duties at Baltimore until 1939. It then transferred base Portland, Maine. In September, 1941, advertised sale highest bidder. Respondent bidder, purchasing Maine on March 19, 1942, $2,875. Thereafter he expended $5,699.78 labor materials repairing improving vessel, an amount which would have been substantially greater had not performed part work himself. April, received Department Commerce certificate designating vessel towing authorizing him employ coasting trade one year. brought Staten Island, New York, where remained requisitioned War Shipping Administration October 15, A survey Navy indicated suitable steam-heating plant heating pumping fuel oil barges into naval combat vessels. Its condition said 'fair good'; its original cost estimated $45,000; replacement cost, $56,000; present value $9,000. heat use ships. 2 determined that $9,000 offered accepted 75 per cent award, permitted do 902(d) Act, $20,000 entitled, plus interest. 3 Section 902(a) Act,1 after providing owner any Commission shall paid compensation property taken or such property,' goes state 'but no case deemed enhanced causes necessitating taking use.' around this latter clause controversy turns. 4 found fair market time $15,500 entitled receive amount, less sum already paid, F.Supp. 235, 110 Ct.Cl. 66. importance tha decision settlement claims arising result requisitioning program during period recent hostilities led us grant petition certiorari. 5 admitted liability only $10,500, claiming $5,000 enhancement about need vessels necessitated their taking. there existed Port York 'a rising strong demand tugs all types' least government's program. (1) great increase shipping traffic because war (2) prosecution war.2 But held government than could others, $15,500. 6 Comptroller General has ruled prohibits payment extent may based values excess those existing date President's proclamation limited national emergency (September 8, 1939),3 provided economic conditions directly caused emergency.4 7 Advisory Board Just Compensation5 formulated various rules guidance program, including following: 8 'From taking, should deducted due, Government's previous similar type, prospective reasonably probable, whether need, prospect, occurred before declaration May 27, 1941. Enhancement general rise prices earnings, whenever occurring, deducted. application rule neither September 1939, nor facts time, are themselves significance. does determine other enumerated above deductible, excluded; since advised oceangoing higher types, deductible foregoing, attributable therefore deducted.' 9 agrees with both excluded accruing 19416 contends construction eliminate war. argues Act so construed, though different hitherto announced judicial within meaning Fifth Amendment, nevertheless constitutional. 10 Respondent, relying largely Monongahela Navigation Co. v. States, 148 312, 13 622, 37 463, if adopted makes unconstitutional conflicts beyond competence Congress prescribe. 11 First. We reach question measure wrote applications identical standard. satisfied two coterminous. 12 constitutional provision careful reduce concept formula. political ethics reflected Amendment reject confiscation justice. contain definite standards fairness determined. ex rel. Use Tennessee Valley Authority Powelson, 319 266, 279—280, 63 1047, 1054—1055, 87 1390; Petty Motor Co., 327 327, 377, 66 596, 599, 90 729. endeavor find working will substantial justice practical standards, value. Miller, 317 369, 374, 276, 280, 336, 147 A.L.R. 55. refused make fetish even value, best some cases. At times elements included criterion excluded, example special adaptability needs taker peculiar fitness taker's project. See supra, 375, 280 cases cited. Moreover, lays out project involving lands, increment virtue fact particular tract clearly probably added. Id., 376-379, 281-282 Any reflect speculation what compelled pay hence determination just. 281. recognized these rules. concluded they represented exceptions requirement were inapplicable here, making award believe, however, merely illustrations principle excludes resulting extraordinary property. 14 condemner distinguished others who possess power condemn long element Chandler-Dunbar Water Power 229 53, 76, 33 667, 677, 57 1063. article commodity often unfair indication create outruns supply. market, sensitive bullish pressure, responds spiraling prices. normal price becomes inflated. And it. 15 That seems situation case. For we seen shortage 16 required alone created. reflects created urgency article. willing buyer cash seller,' 55, market. represents can exacted whose demands sellers' situation, land proposed government, pay. hold-up itself 17 Second. What accord our reading Report Board. must (a) 'to taking,' (b) type,' (c) probable. * *' 18 precise ship taken, type class ships perform same related functions. cargo affect indirectly level many commodities. may, rowboats. takes rowboat, results activities 'causes use' situation.7 19 also agree arises well limiting factor far concerned. cannot say record includes found, sure, reasonable prospect condemnation reason. Yet seen, source deductible. There findings effect either any, construed relevant factors 'nearly York' between 1939 1941 'the followed outbreak Europe'; particularly December 7, vessels, traffic' war.8 These findings, sufficiently discriminating. They show ship, tell need. left dark how much be. 20 sufficient particularity Nor know increases up when sold price. If were, resulted date. 21 Finally, actual basis 1942 (the owned it) He points total monetary expenditure amounted $8,574.78, materials. himself labor. plainly factor. repaired reconditioned certificated new tug. alone, increase, account Claims. 22 start sheer offsets against render abstract question. Cf. Ashwander Authority, 297 288, 324, 56 466, 472, 80 688. inadequacies erroneous 23 Reversed. 24 Chief VINSON dissents. 25 FRANKFURTER, whom JACKSON BURTON join, dissenting. 26 here certiorari 28 1255(1), seemed issues important Government 1936.1 27 following claim scope validity section call adjudication. Guthrie operated continuously 1895, she built, year Survey appointed her boiler extensive repairs. view vessels,' recommended necessary reconditioning undertaken. Guard, directed Respondent's bid received, proceeded carry repairs survey, doing most aid crew four; rest done shipyard Portland. His but experienced work. 29 On April 21, licensed 'towing vessel' navigate 'bays, sounds, rivers harbors' authorized trade. own rechristened MacArthur inactive surveyed later her. figure upon Compensation clarify payable nder Act.2 protested and, 75% it, difference just compensation. 30 235. dispute insists representing 'by taking' terms 902(a). bases contention first 'At requisition, MacArthur. greatly increased war, tugs.' pages 75-76. second President proclaimed emergency, requisitioned, $5,000, which, 'was *.' Id. page 77. 'it possible allocate (Government's need) so, think defendant deduction account.' 78. 31 arguments support computing ultimately two. speculative probability clear made traceable take sought. impossible face Claims' explicit finding 'prior prospect.' arguable, rationale Miller extended unique character land—property member fulfill more equally well. As dual expectation members forced pay, comes compensation, something occurred. McGovern City 363, 372, 876, 877, 1228, L.R.A.,N.S., 391. might true probable class—in taken.3 32 pass now because, addition contains evidence conclusive kind improbable: got rid seven months complete awareness capable being adequately reconditioned. Among dealings established therefore, whatever tendency bring generally, unlikely reverse back hardly expense suggested, prompted reversal anticipated shrewd enough foresee growing accurately responsible decisions matters. conceivably operations persons, possibility measurement futile extreme remand point, especially remembered plant. reject, purchasers contributing requisitioned. way suggested presumably seizures when, 'increase traffic.' indirect way, regarded 'cause' MacArthur's Because foreseen determining alternative, urges proportion allocable intervention 34 Whether founded principles contentions, my judgment, rejected. When took commercial operation thus employed, them uninfluenced subsequent precipitated earlier direct operators' remaining tugs, taken. Leaving account, obliges do, still settled. Unlike buyers awards exceed likely operators use, purchaser enhance further requisitions none made. Exactly induced expanded business operator requisition. simply true, opposed operators, 35 moreover, additional turn complex high costs, wages, shortages, inflation. speak, referring interacting forces period, 'inflationary spiral,' although midst dynamic process undoubtedly accelerating loses ascertainable significance merged countless factors. Whatever proper 'be use,' wartime economy cause. Even assuming circumstances gambling o connection traced, asking insist attempt trace one. advanced undertaking; justify suggests offered. Under circumstances, require embark murky sea speculation. International Harvester America Commonwealth Kentucky, 234 216, 223, 224, 853, 855-856, 58 1284. 36 I appeals common sense, interaction supply rejected applicable competition Government, point exercise tracing ultimate causes, theoretically contributed increase. affirm selection standard offers observance put forward. speculation, form Since duty avoid adjudication, see concurring Brandeis 341, 346 et seq., 480, 482, 688, Rescue Army Municipal Court, 331 549, 568 67 1409, 1419, 91 1666, below affirmed without reaching raised provides: 'Whenever proclaim security defense advisable declared President, lawful purchase watercraft citizens charter termination President. thereof property, use. authority section, ownership restored good ordinary wear tear, place condition. consequential damages section.' (Italics added.) follows: tugs. Tugs day night effort handle conditions, owners reluctant sell. However, August February 1943, six tugboats open near York. None sales involved closely comparable design, power, equipment. 'Beginning existence continuing plaintiff's nearly Europe. After Japanese attack Pearl Harbor, combined result, $5,000.00 'Prior C.F.R.Cum.Supp. 114; C.F.R., Supp. 59. Comp.Gen. 497, 608. Exec.Order 9387, Oct. Fed.Reg. 14105, C.F.R.1943 48—49. Executive Order part: 'The Board, accordance provisions Constitution laws establish e uitable formulae applicability purchased, chartered insured Administration. prescribe rules, regulations procedures deems carrying 'In each guided Board.' composed Learned Hand, J. Parker, Joseph C. Hutcheson, Jr. 234. situations reach. note 2, supra. 2011, 1242. Compensation, consisting Judge Jr., Board: 'Rule 4. From House Committee Fisheries Doc. 47, 78th Cong., 1st Sess. core problem emerged colloquy hearing Compensation: 'Judge Hand: this, society foresees shortage, consequent supply, proceed once seize, subject large disadvantage shortage. comes, 'So far, farther. leave your hands helpless prevent exploitation interest.' 'Is position? 'Mr. McInnis: think, Honor, logical implication argument. seem me, perfectly known advance, rather position small group control vital commodity. You imagine support. destruction food community immediate relief, understand argument, now, convenient submit however given 'This marks end profit—scarcity profit.' correct, Judge. agree— Hand (interposing): protects profit. won't now.' Proceedings 134—135 (United Maritime Commission, Administration, mimeographed, 1943).

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