United States v. 3.65 A. OF LAND IN CITY OF ST. LOUIS, MO., 2496.

• Court: U.S. District Court — Eastern District of Missouri
• Writing for the Court: Harry C. Blanton, of Sikeston, Mo., for plaintiff
• Citation: United States v. 3.65 A. OF LAND IN CITY OF ST. LOUIS, MO., 53 F.Supp. 319 (E.D. Mo. 1944)
• Decision Date: 13 January 1944
• Docket Number: No. 2496.,2496.
• Parties: UNITED STATES v. 3.65 ACRES OF LAND IN CITY OF ST. LOUIS, MO., et al.

53 F. Supp. 319

UNITED STATES v. 3.65 ACRES OF LAND IN CITY OF ST. LOUIS, MO., et al.

No. 2496.

District Court, E. D. Missouri, E. D.

January 13, 1944.

Harry C. Blanton, of Sikeston, Mo., for plaintiff.

Clarence T. Case and David W. Voyles, both of St. Louis, Mo., for defendant.

HULEN, District Judge.

This case is before the Court on a motion of defendant land owner to vacate the order of immediate possession heretofore made in this cause.

On the 27th day of December, 1943, plaintiff filed a verified petition, seeking condemnation and immediate possession of certain land owned by the defendant. Other relief sought by the petition is not material to the present issue. Paragraph "Fifth" of the petition reads as follows: "Fifth: That the project herein referred to and the matters to be performed, being an acquisition of land in connection with the expansion of facilities for the manufacture and production of magnesium sand castings for war purposes (National Magnesium Casting Company — Plancor 1990), such facilities to be constructed by Defense Plant Corporation, a corporation created pursuant to Section 5 (d) of the Reconstruction Finance Corporation Act, as amended, are within the purview of the sovereign plaintiff and of the Congress of the United States and the said lands and territory to be acquired are located within the jurisdiction of this Court; that said lands are necessary to the successful prosecution of the war and have been selected by the Reconstruction Finance Corporation for acquisition by the United States for use in connection with the expansion of facilities for the manufacture and production of magnesium sand castings for war purposes (National Magnesium Casting Company — Plancor 1990), and for such other uses as may be authorized by Congress or by Executive Order, and are required for immediate use." (Emphasis added)

On filing of the petition an order of immediate possession was entered, which contains the following findings:

"It appearing to the Court from the petition filed by the plaintiff in this cause, that the lands mentioned and described in the said petition, and sought to be condemned in this cause are needed for use in connection with the expansion of facilities for the manufacture and production of magnesium sand castings for war purposes (National Magnesium Casting Company — Plancor 1990) such facilities to be constructed by Defense Plant Corporation, a corporation created pursuant to Section 5 (d) of the Reconstruction Finance Corporation Act, as amended, and it is necessary for war purposes to acquire the land herein and in the petition set out. * * *

"It further appearing to the Court that considerable time may elapse before a final hearing can be had on the petition filed herein." (Emphasis added)

On January 6, 1944, defendant filed its motion to set aside the order of immediate possession. Defendant's motion alleges that the National Magnesium Casting Company, named in the petition for condemnation, has obtained a contract to manufacture magnesium castings and has effected an arrangement with the Reconstruction Finance Corporation for a loan to finance the enterprise and is seeking the property described in the petition in condemnation as physical facilities to engage in said business, and alleges that numerous other properties are available.

Defendant, by its motion, further avers that persons interested in the National Magnesium Castings Company have made false representations to the Reconstruction Finance Corporation to the effect that the property of the defendant has been idle and is not engaged in war work and that defendant's plant and equipment is the only property available for the manufacturing purposes contemplated by the National Magnesium Casting Company. It is alleged that the defendant is now engaged, under sub-contracts, in manufacturing certain products in aid of war production and has under consideration further contracts for materials —" entitled to priority either equal to or higher than the manufacture of magnesium castings". The motion concludes: "That by reason of its unwillingness or neglect to make due inquiry and investigation of the Bradbury Marble Company's war activities, the Reconstruction Finance Corporation has failed to exercise sound discretion required of it under the law. That it has misused and abused its discretionary powers and has permitted itself to become an instrumentality of force to deprive and defraud the Bradbury Marble Company of its property for the sake of enhancing the business scheme and promotion of this new venture known as the National Magnesium Casting Company".

Plaintiff is proceeding under the Second War Powers Act, 1942, 50 U.S.C.A. Appendix § 632, and Executive Order 9217 issued by the President of the United States on August 7, 1942, 50 U.S.C.A. Appendix § 632 note by virtue of and pursuant to authority vested in him by Title II of the Second War Powers Act, 1942, approved March 27, 1942, Public Law 507, 77th Congress. Executive Order No. 9217 authorizes the Reconstruction Finance Corporation to exercise the authority conferred by said Title II of the Second War Powers Act, to acquire, use, and dispose of property, "that the Corporation shall deem necessary for military, naval or other war purposes."

At the hearing on this motion a letter from the Department of Justice was introduced in evidence by the plaintiff, the first paragraph of which reads as follows: "Enclosed is a certified copy of a letter from the Assistant Secretary of Reconstruction Finance Corporation requesting that condemnation proceedings be instituted to acquire the fee simple title to 4.65 acres of land, more or less, in the City of St. Louis, Missouri, in connection with the expansion of facilities for the manufacture and production of magnesium sand castings for war purposes (National Magnesium Casting Company — Plancor 1990) by Defense Plant Corporation, under the provisions of the Act of Congress approved March 27, 1942 (Public Law 507, 77th Congress)." (Emphasis added)

The letter of the Reconstruction Finance Corporation, referred to in the letter of the Attorney General, contains the following paragraphs:

"In connection with the expansion of facilities for the manufacture and production of magnesium sand castings for war purposes (National Magnesium Casting Company — Plancor 1990), such facilities to be constructed by Defense Plant Corporation, a corporation, created pursuant to Section 5 (d) of the Reconstruction Finance Corporation Act, as amended, this Corporation has determined that it is necessary for war purposes to acquire certain lands located at St. Louis, Missouri.

"Therefore, pursuant to the provisions contained in the Act of Congress, 47 Stat., Chapter 8, pages 5-12 approved January 22, 1932 (15 U.S.C. 601-617 15 U.S.C.A. §§ 601-617), as amended, and Public Law 507, 77th Congress, approved March 27, 1942, and Executive Order 9217, issued by the President of the United States on August 7, 1942, by virtue of and pursuant to authority vested in him by Title II of the Second War Powers Act, 1942, approved March 27, 1942 (Public Law 507, 77th Congress), authorizing Reconstruction Finance Corporation to acquire and dispose of property deemed necessary for military, naval or other war purposes, it is requested that you cause the necessary proceedings to be instituted for the condemnation of the fee simple title to the lands described in Exhibit "A" and defined on the enclosed map entitled Exhibit "B".

"You are advised that it is vital to the successful prosecution of the war that this project be expedited with the utmost haste and that the United States be given the immediate right to occupy, use and improve the lands described in Exhibit "A". Consequently, it is requested that you cause the necessary action to be taken to procure an Order from the Court granting the immediate right to occupy, use and improve the lands described in Exhibit "A", pursuant to the provisions of the Act of Congress approved March 27, 1942, Public Law 507, 77th Congress, and Executive Order 9217 issued by the President of the United States on August 7, 1942, by virtue of and pursuant to authority vested in him pursuant to said Public Law 507, 77th Congress, supra." (Emphasis added)

Assuming that the motion charges an abuse of discretion on the part of plaintiff, the issue presented is whether this Court can go behind the findings of the Reconstruction Finance Corporation, inquire into its intention and substitute its judgment for the judgment of the Reconstruction Finance Corporation.

The petition filed in this case alleged the property described and sought to be condemned had been found necessary "for war purposes"; the order of taking found the property sought to be condemned was "necessary for war purposes"; evidence was offered at the hearing on the motion that the property sought to be condemned was "for war purposes", evidenced by the communication of the Attorney General of the United States and the Reconstruction Finance Corporation. The letter of the Reconstruction Finance Corporation offered in evidence alleges that the property sought to be condemned "is vital to the successful prosecution of the war * * *".

The defendant does not challenge the fact that the Reconstruction Finance Corporation has made a finding that the property involved is necessary for war purposes, but by its motion seeks a hearing on the question, whether such a finding should have been made by the Reconstruction Finance Corporation.

We believe the decision of the Reconstruction Finance Corporation to condemn and take the property described...