Document: 342 U.S. 330 72 S.Ct. 334 96 L.Ed. 359 CITIES SERVICE CO. et al.v.McGRATH, Attorney General. No. 305. Argued Jan. 2, 3, 1952. Decided 28, Mr. Timothy N. Pfeiffer, New York City, for petitioners. George B. Searls, Washington, D.C., respondent. Justice CLARK delivered the opinion of Court. 1 In this suit General United States as successor to Alien Property Custodian1 seeks payment by petitioners two 5% gold debentures face value $1,000 each and payable bearer. Petitioner Cities Service Company is obligor on petitioner Chase National Bank indenture trustee. The obligations represented these had previously been vested, under provisions Trading with Enemy Act,2 upon a finding that were owned resident national Germany.3 Neither or ever has in possession One debentures, although not maturing until 1969, was presented redemption at Chase's offices City January 5, 1950, subsequent date vesting order. A legend then typed debenture reciting issuance order claims respondent thereunder. This present brokerage house City.4 other matured 1950 but never payment. Its whereabouts are unknown it last reported be Berlin hands Russians.5 2 District Court granted summary judgment ground General, issuing question, exceeded his authority vest property 'within States'.6 93 F.Supp. 408. felt inseparable from certificates themselves, which, insofar known, outside country time vesting. Appeals reversed directed respondent, holding Act authorized seizure enforcement evidenced so long within States. Cir., 189 F.2d 744, 747. reaching result, indicated would have 'claim against Treasury recoupment' event recovery them foreign court bona fide holder debentures. Otherwise, felt, take petitioners' violation Fifth Amendment. pages 747—749. We certiorari, 865, 109, L.Ed.—. 3 believe grants necessary domestic negotiable bearer even though themselves By § 7(c) Act, enacted during World War I, President given seize all enemy property, 'including * choses action, rights every character description owing belonging an *.' At beginning II, Congress made broader grant Executive through amendment 5(b), providing 'any interest any thereof shall vest, when, as, terms, See Markham v. Cabell, 1945, 326 404, 411, 66 193, 196, 90 165; Silesian-American Corp. Clark, 1947, 332 469, 479, 68 179, 183, 92 81; Clark Uebersee Finanz-Korp., 480, 485—486, 174, 176, 880. That come broad terms beyond question. 4 Petitioners urge, however, constitute debt, since located vesting, debts did situs therefore proper subjects seizure. To apply fiction here only provide sanctuary investments defeat American securities looted conquering forces; also restrict exercise war powers intend. Custodian's reach bonded indebtedness without instrument itself explicitly recognized 9(n) which provides '(i)n case consisting *, bonds where right, title, (but actual bond certificate indebtedness) conveyed, transferred, assigned, delivered, paid Custodian, seized him *,' may, cases, return 80% property.7 Moreover, giving Custodian power cond instrument, transgressed no constitutional limitations its jurisdiction. As pointed out, obligor, Company, obligation evidence can effectively dealt jurisdiction over petitioner. Standard Oil Co. Jersey, 1951, 341 428, 438—439, 71 822, 828, 95 1078. 5 more serious question whether application will their Amendment, unless they remedy holds liable due course While concede discharges liability States,8 contend extensive properties world subject suits affords certain protection. readily admit brought may laws recognize prior complete defense; holder, if qualified, might file claim Act. Nevertheless, insist, there remains least possibility exposed court. defense such litigation seems adequate final improbable, we agree suffer effect double them. event, right recoup States, 'taking' meaning 'just compensation' extent liability.9 Such cause action accrue foreces forces assurance fairly said unconstitutional taking property. 6 Affirmed. 7 REED, whom MINTON joins, concurring. 8 concur result except declaration able just compensation should effecting second 9 our view Service, money bondholder maturity obligation. It later required pay claimant than satisfaction expenditure. Determination owes await development circumstances judgment. Direction Der Disconto-Gesellschaft Steel Corp., 300 F. 741, 743; Id., 267 22, 29, 45 207, 208, 69 495. functions transferred Exec. Order 9788, Oct. 14, 1946, 11 Fed.Reg. 11981, 50 U.S.C.A.Appendix, note. 'Custodian' 'Attorney General' used interchangeably opinion. 40 Stat. amended, U.S.C.App. seq., seq. Vesting 12960, March 11, 1949, 14 1405. recited 'owned controlled by, deliverable to, held behalf account of, (were) ownership control by,' specified Germany. With respect debenture, proceeds plus accrued interest; or, alternative, new same series value, number unpaid coupons attached. interest. 2(c) 9095, 1942, 1971, amended 9193, July 6, 5205, 9567, June 8, 10 6917, note, President, acting pursuant delegated States' designated thereof, exceptions relevant here. Assuming, deciding, language narrower §§ 5(b) need decide controlling. For, below, vested thus presumably Order. Section added 1928 Settlement Claims 254, provided general purpose authorize he stock seizing itself, make current instrument. H.R.Rep. 17, 70th Cong., 1st Sess. 21; S.Rep. 273, 30. 5(b)(2) 7(e). prevented subsection part: 'The sole relief person having heretofore hereafter be, Petitioners, claiming Rather Amendment Therefore provision quoted above

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