Document: 332 U.S. 469 68 S.Ct. 179 92 L.Ed. 81 SILESIAN AMERICAN CORPORATION et al.v.CLARK, Atty. Gen. No. 6. Reargued Nov. 12, 1947. Decided Dec. 8, [Syllabus from pages 469-471 intentionally omitted] Mr. Leonard P. Moore, of New York City, for petitioners. James L. Morrisson, Washington, D.C., respondent. Justice REED delivered the opinion Court. 1 The Alien Property Custodian on November 17, 1942, executed Vesting Order 370. This order was issued under authority Trading with Enemy Act, 40 Stat. 411, as amended, 50 U.S.C.A.Appendix, § seq., and Executive 9095, 6 note, in terms vested property therein described interest benefit United States. found to belong a national Germany. covered by two blocks stock—one common, one preferred—in Silesian American Corporation, Delaware corporation, hereinafter called Silesian. stock, prior August 31, 1939, stood stock book name Non Ferrum Gesellschaft zur Finanzierung von Unternehmungen des Bergbaues der Industrie Nichteisenmetalle, Zurich, Switzerland, Swiss referred Company. Ferrum, it determined Custodian's order, held Bergwerksgesellschaft Georg Giesche's Erben, German corporation. certificates, is asserted, had been deposited security loans group banks, all which apparently were chartered Switzerland are Banks.1 2 To carry out purpose his vesting directed cancel its books outstanding above to, issue lieu thereof new certificates Custodian. controversy revolves around objection so act because did not have physical possession pledged be able surrender them cancellation, corporation's by-laws required. feared liability holders issuing other such circumstances. 3 debtor Chapter X Bankruptcy 11 U.S.C.A. 501 since July 30, 1941. It therefore asked Court instructions compliance direction. petitioner here, Holding Company, corporation also, appeared throughout has remained party this litigation. majority stockholder but claims no different or than For case, may will treated having more has. Banks Reorganization give Debtor that shares until between could 'fully, firmly finally adjudicated.' prayer based verified answer Silesian's request instruction, alleged 'Swiss owners 'Non Ferrum' stock.' notified any representing without court direction, would at risk. Affidavits supporting filed District These affidavits declared pledged, 1938, groups banks. clear whether they same institutions named Debtor's instructions. we assume identical. 4 instructed said: 'The an enemy. statutory discharge liability, 5(b) 7(e), (Trading §§ 5(b), 7(e)) protects relieves doubt premises.' 5 added: 'Whatever interests rights cannot considered here. , hearsay statements, unsupported documents, allege these banks pledgees stock. statements create our consideration. parties herein only extent recognized reorganization proceeding possible claimed never upon prove. They here action taken against recognition given even reason established No appeal Circuit Appeals Banks. do appear writ certiorari otherwise. We express effect decision See Silesian-American Corporation v. Markham, 156 F.2d 793, 795. 7 An That affirmed first denied petition then granted case might relation issues, thereafter presented connection administration Act. 329 730, 67 87 330 852, 769; Clark Uebersee Finanz-Korporation, 813, 772. 8 'standing vicariously' assert shareholders. agree. legal ownership follows standing represent shares, if present position those shares. Anderson Nat. Bank Luckett, 321 233, 242, 64 599, 604, 88 692, 151 A.L.R. 824. reduces petitioners' directing favor claim sections Act acted invalid applied If provisions authorize Silesian, over own objections, compelled obey. 9 himself virtue amended First War Powers 1941, including, course, 5(b)(1),2 C.F.R. Cum.Supp. p. 1121, 1174. during war. There war power,3 heretofore interpreted Court, States, acting statute, vest itself enemy nation. Unquestionably wage successfully, States confiscate property. Chemical Foundation, 272 1, 11, 47 4, 71 131. Nor can there, think, country alien summarily reduced furtherance effort. Every resource within ambit sovereign power subject use defense. section cover taking limited emergency period. While natural hesitancy exists i terpreting clause expand scope incidents intimately connected war, think reasonable preparation storm proper exercise power. seizure property, time emergency, character. need consider general welfare source congressional property.4 done means avoiding draw earnings wealth territory where likely used assist remains hands government. Or commandeered friendly prosecute problems compensation await judicial process. Central Union Trust Co. Garvan, 254 554, 567, 568, 41 214, 215, 65 403. brooks delay. Constitution imposes none. 10 5[b][1], authorized him foreign national. description fact come into immaterial. evidences right Great Northern R. Sutherland, 273 182, 315, 596. Section 5(b)(1) specifically states, 'and designated agency person perform acts incident accomplishment purposes.' note above. Since sell 5, require incidental authority. As nationals domestic corporations sold, participate management transfer frustrated customary required demand plain. correlative duty obey equally so, obedience does violence valid requirements statute make liable bona fide old specific protected infirmity direction applicable language 7(e) 418, 5(b)(2), 55 839, 840, set margin.5 But argues protection follow contrary said unauthorized allows pledgees, Banks, 8(a).6 8(a) limitation seize 'any ally enemy.' suggested 5(b)(2) though 8(a), way 'coerce interested (Silesian) (the Custodian's) unlawful actions.' contention made Appeals. makes unnecessary discussion afforded pledge exempted seizure. page 797. When enacted amendment broadening include aliens includes pledges. said, 797 F.2d: 'Any interpretation pledges wholly irrational exception seizure.' 12 Therefore, hold rendered inapplicable aliens, disappears. 13 Finally there argument who succeed recovering just taking. Russian Volunteer Fleet 282 481, 489, 51 229, 231, 75 473.7 guarantees requisitioning their supra. must meet obligations Constitution. Consequently, compensated exculpatory clauses stockholders. 14 Judgment affirmed. 15 Chief took part consideration case. LaRoche & Company Banque Cantonale de Berne, Aktiengesellschaft Leu 5(b)(1): 'During period President, President may, through he designate, otherwise, rules regulations prescribe, instructions, licenses, otherwise—* * '(B) investigate, regulate, direct compel, nullify, void, prevent prohibit, acquisition holding, withholding, use, transfer, withdrawal, transportation, importation exportation of, dealing in, exercising right, power, privilege respect transactions involving, interest, person, jurisdiction States; shall vest, when, as, terms, conditions prescribe held, used, administered, liquidated, otherwise dealt purposes; *.' Art. cl. 11. Compare statement below: Congress rests Clause Stoehr Wallace, supra, 255 (239), 293, 404; Inc., (4), Whether international law doubted; nobody contends aliens. rest some Congress, reason, expressly (although passed flagrante bello) go 'national declared.' 1: i.e. 'to provide common Defence Welfare'; indeed, far see, challenge itself, exercise. complains delegates unrestricted discretion 'just compensation' seizures.' 796. 7(e): 'No anything omitted pursuance rule, regulation Act.' 5(b)(2): payment, conveyance, assignment, delivery therein, account directed, pursuant subdivision regulation, hereunder full acquitance purposes obligation making same; good faith reliance on, subdivision, hereunder.' 419, 8(a): 'That holding lawful mortgage, pledge, lien, nature which, instrument creating disposed notice presentation continue and, after default, dispose *. Provided further, if, disposition surplus remain satisfaction security, further order.' 'Thus argued much force that, unless provision secure compensation, unconstitutional; best doubtful subsection (2) valid.'

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