Line Terminal Navigation Co v. United States Atlas Line Co v. Same

Decision Date14 May 1928
Docket NumberHAMBURG-AMERICAN,Nos. 3-5,s. 3-5
Citation277 U.S. 138,48 S.Ct. 470,72 L.Ed. 822
PartiesLINE TERMINAL & NAVIGATION CO. v. UNITED STATES (two cases). ATLAS LINE S. S. CO. v. SAME
CourtU.S. Supreme Court

Under Trading with the Enemy Act, § 2(a), 50 USCA Appendix, § 2(a), Comp. St. § 3115 1/2 aa, property of domestic corporations, seized during war with Germany cannot be treated as owned by enemy, so as to preclude recovery of compensation from United States for use thereof, because their entire capital stock belonged to German corporation.

Congress, having power to direct forfeiture of all property beneficially owned by enemy subjects during war, could provide for seizure thereof, followed by such compensation as President might determine, as was done by Trading with the Enemy Act (50 USCA Appendix; Comp. St. § 3115 1/2 a et seq.).

In action for value of tug boats, launch, etc., taken by United States from enemy owned domestic corporations under Trading with the Enemy Act (50 USCA Appendix; Comp. St. § 3115 1/2 a et seq.), petition alleging that property was taken and used disclosed adequate ground for recovery to that extent, though not clearly showing what action was taken by United States.

United States is liable for value of barges belonging to enemy owned domestic corporations, if title thereto was actually taken under Trading with the Enemy Act (50 USCA Appendix; Comp. St. § 3115 1/2 a et seq.), and should pay for any use thereof before acquisition of title.

Messrs. Charles H. Le Fevre and Daniel Dunning, both of Washington, D. C., for appellants.

The Attorney General and Mr. W. D. Mitchell, Sol. Gen., of Washington, D. C., for the United States.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

These appeals were taken June 16, 1924, from judgments of the Court of Claims which sustained demurrers to the petitions. 59 Ct. Cl. 461. For the views of that court, see Deutsch-Australische Dampfschiffs-Gesellschaft, Appellant v United States, 59 Ct. Cl. 450. Appellants are incorporated under the laws of New Jersey and their entire capital stock has long been owned by the Hamburg-American Line, a German corporation.

In cause No. 3, the appellant seeks to recover (1) compensation for the use of certain docks and piers, New York harbor, seized by the United States April 6, 1917, and used by them until June 28, 1918; and (2) interest on the sum awarded by the President (December 3, 1918) as compensation for the same property, from June 28, 1918, when title was taken thereto until January 5, 1919, the date of actual payment. In cause No. 4 the claim is for the value of two tugboats, launch, barge, and coal hoister requisitioned and taken by the United States April 6, 1917, at the port of New York; and in No. 5 judgment is asked because of three barges, likewise taken on the same day.

The court below evidently proceeded upon the view that the property of appellant corporations should be treated as owned by an enemy because their entire capital stock belonged to a German corporation. And as the property was seized during the war with Germany it held there could be no recovery. Without doubt Congress might have accepted and acted upon that theory. It was adopted in the St. Tudno, Lloyd's Reports of Prize Cases, vol. V, p. 198, and the Michigan, Lloyd's Reports of Prize Cases, vol. V, p. 421. But Congress did not do so; it definitely adopted the policy of disregarding stock ownership as a test of enemy character and permitted property of domestic corporations to be dealt with as nonenemy. The prescribed plan was to seize the shares of stock when enemy owned rather than to take over the corporate property.

The Trading with the Enemy Act, approved October 6, 1917 (chapter 106, 40 Stat. 411 (50 USCA Appendix, § 2(a), Comp. St. § 3115 1/2 aa)), provides:

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8 cases
  • Schering Corporation v. Gilbert
    • United States
    • U.S. Court of Appeals — Second Circuit
    • January 18, 1946
    ...cent of its preferred. He got only the rights of such a stockholder and no title to its property. Hamburg-American Line T. & N. Co. v. United States, 277 U. S. 138, 48 S.Ct. 470, 72 L.Ed. 822; Sutherland, Alien Property Custodian v. Selling, 9 Cir., 16 F.2d 865, certiorari denied, 273 U.S. ......
  • Bonnar v. United States
    • United States
    • U.S. Claims Court
    • February 19, 1971
    ...See, Behn, Meyer & Co. v. Miller, 266 U.S. 457, 45 S.Ct. 165, 69 L.Ed. 374 (1925); and Hamburg-American Line Terminal & Navigation Co. v. United States, 277 U.S. 138, 48 S.Ct. 470, 72 L.Ed. 822 (1928). Metz, in return for his expenses, after recovering his shares of stock "placed them again......
  • United States v. Mayor and Council of City of Hoboken, NJ
    • United States
    • U.S. District Court — District of New Jersey
    • August 10, 1928
    ...— page 142), certiorari denied 270 U. S. 645, 46 S. Ct. 347, 70 L. Ed. 778, and the Hamburg-American in 59 Ct. Cl. 461, and 48 S. Ct. 470, 72 L. Ed. 822. In the last case Mr. Justice McReynolds said: "As Congress might have directed forfeiture of all property beneficially owned by enemy sub......
  • Brownell v. Schering Corporation
    • United States
    • U.S. District Court — District of New Jersey
    • March 21, 1955
    ..."to seize the shares of stock when enemy owned rather than to take over the corporate property." Hamburg-American Co. v. United States, 1928, 277 U.S. 138, 140, 48 S.Ct. 470, 471, 72 L.Ed. 822. But "the 1941 amendment to Section 5(b) reflected a complete reversal in that policy." Clark v. U......
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