U.S. Supreme Court CUMMINGS V. DEUTSCHE BANK UND DISCONTO-GESELLSCHAFT , 300 U.S. 115 (1937)

300 U.S. 115

CUMMINGS, Atty. Gen. of the United States, et al.v. DEUTSCHE BANK UND DISCONTO-GESELLSCHAFT.No. 254.

Argued Jan. 4, 5, 1937.Decided Feb. 1, 1937.

[ Cummings v. Deutsche Bank und Disconto-Gesellschaft 300 U.S. 115 (1937) ]

[Page 300 U.S. 115 , 121]

result of the seizure of their property. [Footnote 9] But that intention detracted nothing from title acquired by the United States or its power to retain or dispose of the property upon such terms and conditions as from time to time Congress might direct. As the taking left in enemy owners no beneficial right to, or interest in, the property, the United States did not take or hold as trustee for their benefit.

Respondent maintains that section 11 of the Settlement of War Claims Act of 1928 (50 U.S.C.A. Appendix 9(b) amending section 9(b) of the Trading with the Enemy Act of 1917 as amended, vested in former owners an immediate right to the return of their property and that, having complied with the provisions of the act, they cannot be deprived of that right. It argues that its interest in the property taken was not 'completely and irrevocably destroyed' and that the Settlement of War Claims Act was an act under which it 'could and did obtain a vested interest in its property.' To the extent that the argument rests upon the assumption that the taking did not divest enemy owners of every right or that the United States did not acquire absolute title, it is fallacious and need not be noticed.

The Settlement of War Claims Act was not a conveyance and did not grant former owners any right or title to, or interest in, the money or property taken by the Custodian. As amended by it, pertinent provisions of the Trading with the Enemy Act are indicated in the margin. [Footnote 10]

[Page 300 U.S. 115 , 124]

war.' We think it clear that the grant by the Settlement of War Claims Act was made as a matter of grace and so was subject to withdrawal by Congress. United States v. Teller, 107 U.S. 64, 68; Frisbie v. United States, 157 U.S. 160, 166; Lynch v. United States, , supra, 577, 842. The resolution does not infringe the Fifth Amendment.

Reversed.

Mr. Justice ROBERTS took no part in the consideration or decision of this case. Footnotes

Footnote 1 Now the 'district court of the United States for the District of Columbia.' Act of June 25, 1936, 49 Stat. 1921.

Footnote 2 Act of October 6, 1917, 9, 40 Stat. 419, as amended by Acts: July 11, 1919, 1, 41 Stat. 35; June 5, 1920, 41 Stat. 977; February 27, 1921, c. 76, 41 Stat. 1147; December 21, 1921, c. 13, 42 Stat. 351; December 27, 1922, c. 13, 42 Stat. 1065; March 4, 1923, 1, 42 Stat. 1511; May 7, 1926, c. 252, 44 Stat. 406.

Footnote 3 Act March 10, 1928, 45 Stat. 270. See 50 U.S.C.A. Appendix 9(aÄc).

Footnote 4 42 Stat. 105.

Footnote 5 42 Stat. 1939.

Footnote 6 Sen.Doc. No. 348, 67th Cong., 4th Sess., p. 3329.

Footnote 7 42 Stat. 2200.

Footnote 8 Report of the Secretary of the Treasury, 1930, p. 341.

Footnote 9 Sen.Rep. No. 113, 65th Cong., 1st Sess. Trading with the Enemy Act of October 6, 1917, 12, 40 Stat. 423 (as amended, 50 U.S.C.A. Appendix 12). Public Resolution No. 8, July 2, 1921, 5, 42 Stat. 106. Cong.Rec., Vol. 61, Part 4, p. 3249. Winslow Act of March 4, 1923, 2, 42 Stat. 1516, adding section 23 to Trading with the Enemy Act. Sen.Rep. No. 273, 70th Cong., 1st Sess., pp. 12Ä13. Settlement of War Claims Act of March 10, 1928, 45 Stat. 254 (see 50 U.S.C.A. Appendix 23).

Footnote 10 Section 9(b) of the Trading with the Enemy Act, as amended by section 11 of the Settlement of War Claims Act, 45 Stat. 270Äin substance so far as pertinent hereÄdeclares that if the President shall determine that the owner at the time of the taking was a German corporation and that written consent (provided for in subsection (m) of section 9 as amended) to postponement of return of 20 per cent. of the money or property has been filed, then the President without any application being made therefor 'may order the payment, conveyance, transfer, assignment, or delivery of such money or other property held by the Alien Property Custodian or by the Treasurer of the United States' to the owner from whom taken.

Section 9(c) declares that any person whose property the President is authorized to return under the provisions of subsection (b) (and plaintiff's predecessor is such a person) may serve notice of claim for the return of the money or property taken from him as provided in subsection (a) (which relates to claims by others than enemies for property taken from them by the Custodian) and thereafter 'may make application to the President for allowance of such claim and/or may institute suit in equity to recover such money or other property, as provided in said subsection, and with like effect. The President or the court, as the case may be, may make the same determinations with respect to citizenship and other relevant facts that the President is authorized to make under the provisions of subsection (b) hereof.'

And section 9(a) provides that any person not an enemy or ally of an enemy claiming money or property taken by the Custodian may file with him a notice of claim under oath and in form and substance as required; and the President, if application is made by claimant, may order the payment or delivery to claimant of the money or property so held by the Custodian or Treasurer. If the President shall not so order within 60 days or if the claimant shall have filed the required notice and made no application, then claimant may institute a suit in equity 'to establish the interest, right, title * * * so claimed, and if so established the court shall order the payment, conveyance, transfer, assignment, or delivery to said claimant of the money or other property so held by the Alien Property Custodian or by the Treasurer of the United States or the interest therein to which the court shall determine said claimant is entitled. If suit shall be so instituted, then such money or property shall be retained in the custody of the Alien Property Custodian, or in the Treasury of the United States, as provided in this Act, and until any final judgment or decree which shall be entered in favor of the claimant shall be fully satisfied by payment or conveyance, transfer, assignment, or delivery by the defendant, or by the Alien Property Custodian, or Treasurer of the United States on order of the court, or until final judgment or decree shall be entered against the claimant or suit otherwise terminated.'