Campbell v. Chase Nat. Bank of City of New York

• Decision Date: 16 November 1933
• Citation: 5 F. Supp. 156
• Parties: CAMPBELL v. CHASE NAT. BANK OF CITY OF NEW YORK. UNITED STATES v. CAMPBELL. CAMPBELL v. MEDALIE, U. S. Atty.
• Court: U.S. District Court — Southern District of New York

5 F. Supp. 156

CAMPBELL v. CHASE NAT. BANK OF CITY OF NEW YORK.

UNITED STATES v. CAMPBELL.

CAMPBELL v. MEDALIE, U. S. Atty.

District Court, S. D. New York.

November 16, 1933.

COPYRIGHT MATERIAL OMITTED

Frederick Barber Campbell, of New York City, pro se, in support of motion above mentioned and of demurrers.

Rushmore, Bisbee & Stern, of New York City (James F. Sandefur, of New York City, of counsel), for Chase Nat. Bank submitting to any order which the court might make in Equity No. 76 — 307.

George Z. Medalie, U. S. Atty., of New York City (Thomas E. Dewey, Samuel C. Coleman, and Ira Koenig, Asst. U. S. Attys., all of New York City, on the brief), amici curiæ in Equity No. 76 — 307, and in opposition to motions above mentioned in Campbell v. Medalie, Equity No. 76 — 337, and in opposition to demurrers in United States v. Campbell, Criminal No. 95 — 764 and No. 95 — 807.

WOOLSEY, District Judge.

In Campbell v. Chase National Bank of the City of New York, Equity No. 76 — 307, a decree will be made dismissing the complaint therein without costs, on the ground that this court has not jurisdiction of the cause, and, consequently, of course, the plaintiff's motions therein are in all respects denied.

In Campbell v. Medalie, Equity No. 76 — 337, the defendant's motion to dismiss is granted, and a decree will be made dismissing the complaint therein, with costs, on the ground that there is an adequate remedy at law in the criminal proceeding, and that the cause, therefore, is wanting in equity; in consequence whereof the plaintiff's motion for an injunction pendente lite must fail and is hereby denied.

In United States v. Campbell, Criminal No. 95 — 764, and the superseding indictment, Criminal 95 — 801, I grant an order overruling the demurrer to the original indictment and the demurrer to the first count of the superseding indictment with the provision as to suspension of the operation of my orders hereinafter indicated.

I sustain the demurrer to the second count of the superseding indictment and grant an order dismissing that count.

I. The facts involved in these cases are simple.

1. On or about October 11, 1932, the complainant, Frederick Barber Campbell, a citizen of New York State and a resident of this city, having purchased thirteen bars of gold bullion, duly marked and numbered, deposited them for safe-keeping with the Chase National Bank of the City of New York as bailee.

On or about January 25, 1933, having purchased fourteen more bars of gold bullion, duly marked and numbered, Campbell deposited them also for safe-keeping with the Chase National Bank of the City of New York as bailee.

In respect of both these deposits, the Chase National Bank agreed in writing, in consideration of a reasonable fee, to take and maintain custody, as bailee, of the said bars of gold bullion and to return them to Campbell on demand.

The fee for these bailments was paid before Campbell made the demand hereinafter mentioned for the delivery of the twenty-seven bars of gold bullion to him.

2. On March 9, 1933, the President approved an "Act to provide relief in the existing national emergency in banking, and for other purposes" which Congress had passed (48 Stat. 1).

This act, so far as here relevant, reads as follows:

"That the Congress hereby declares that a serious emergency exists and that it is imperatively necessary speedily to put into effect remedies of uniform national application.

"Title I

"Section 1. The actions, regulations, rules, licenses, orders and proclamations heretofore or hereafter taken, promulgated, made, or issued by the President of the United States or the Secretary of the Treasury since March 4, 1933, pursuant to the authority conferred by subdivision (b) of section 5 of the Act of October 6, 1917, as amended, are hereby approved and confirmed.

"Sec. 2. Subdivision (b) of section 5 of the Act of October 6, 1917 (40 Stat. L. 411), as amended, is hereby amended to read as follows:

"`(b) During time of war or during any other period of national emergency declared by the President, the President may, through any agency that he may designate, or otherwise, investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange, transfers of credit between or payments by banking institutions as defined by the President, and export, hoarding, melting, or earmarking of gold or silver coin or bullion or currency, by any person within the United States or any place subject to the jurisdiction thereof; and the President may require any person engaged in any transaction referred to in this subdivision to furnish under oath, complete information relative thereto, including the production of any books of account, contracts, letters or other papers, in connection therewith in the custody or control of such person, either before or after such transaction is completed. Whoever willfully violates any of the provisions of this subdivision or of any license, order, rule or regulation issued thereunder, shall, upon conviction, be fined not more than $10,000, or, if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished by a like fine, imprisonment, or both. As used in this subdivision the term "person" means an individual, partnership, association, or corporation.'

"Sec. 3. Section 11 of the Federal Reserve Act is amended by adding at the end thereof the following new subsection:

"`(n) Whenever in the judgment of the Secretary of the Treasury such action is necessary to protect the currency system of the United States, the Secretary of the Treasury, in his discretion, may require any or all individuals, partnerships, associations and corporations to pay and deliver to the Treasurer of the United States any or all gold coin, gold bullion, and gold certificates owned by such individuals, partnerships, associations and corporations. Upon receipt of such gold coin, gold bullion or gold certificates, the Secretary of the Treasury shall pay therefor an equivalent amount of any other form of coin or currency coined or issued under the laws of the United States. The Secretary of the Treasury shall pay all costs of the transportation of such gold bullion, gold certificates, coin, or currency, including the cost of insurance, protection, and such other incidental costs as may be reasonably necessary. Any individual, partnership, association, or corporation failing to comply with any requirement of the Secretary of the Treasury made under this subsection shall be subject to a penalty equal to twice the value of the gold or gold certificates in respect of which such failure occurred, and such penalty may be collected by the Secretary of the Treasury by suit or otherwise.'" 12 USCA § 248 (n); 50 USCA Appendix §§ 5, 5a.

3. The President has issued four executive orders, purporting to have been made under authority of section 2 of the Act of March 9, 1933, just quoted. Of these only two are here in any way relevant, namely, the Executive Orders of April 5, 1933, and of August 28, 1933.

On April 5, 1933, the President issued his first executive order under the said Act of March 9, 1933. This order was a requisition order on gold, and read as follows:

"Executive Order

"Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates.

"By virtue of the authority vested in me by Section 5 (b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled `An Act to provide relief in the existing national emergency in banking, and for other purposes', in which amendatory Act Congress declared that a serious emergency exists, I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section do hereby prohibit the hoarding of gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of this order:

"Section 1. For the purposes of this regulation, the term `hoarding' means the withdrawal and withholding of gold coin, gold bullion or gold certificates from the recognized and customary channels of trade. The term `person' means any individual, partnership, association or corporation.

"Section 2. All persons are hereby required to deliver on or before May 1, 1933, to a Federal reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, except the following:

"(a) Such amount of gold as may be required for legitimate and customary use in industry, profession or art within a reasonable time, including gold prior to refining and stocks of gold in reasonable amounts for the usual trade requirements of owners mining and refining such gold.

"(b) Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having a recognized special value to collectors of rare and unusual coins.

"(c) Gold coin and bullion earmarked or held in trust for a recognized foreign government or foreign central bank or the Bank for International Settlements.

"(d) Gold coin and bullion licensed for other proper transactions (not involving hoarding) including gold coin and bullion imported for reexport or held pending action on applications for export licenses.

"Section 3. Until otherwise ordered any person becoming the owner of any gold coin, gold bullion, or gold certificates after April 28, 1933, shall, within three days after receipt thereof, deliver the same in the manner prescribed in Section 2;...