Chapter 285. To amend the Trading with the Enemy Act
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CHAP. 285.— An Act To amend the Trading with the Enemy Act. March 4, 1923.[[H. R. 14222](/us/bill/67/hr/14222).][[Public, No. 536](/us/67/pl/536).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That section 9 ofTrading with the Enemy.Vol. 41, p. 977, amended. the “Trading with the Enemy Act,” as amended, is amended to read as follows: " “Sec. 9.
(a)That any person not an enemy or ally of enemyClaims against property held by Alien Property Custodian, etc., owned by other than an enemy. claiming any interest, right, or title in any money or other property which may have been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer ofNotice of, to filed, etc. the United States, or to whom any debt may be owing from an enemy or ally of enemy whose property or any part thereof shall have been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of the United States may file with the said custodian a notice of his claim under oath and in such form and containing such particulars as the said custodian shall require; and the President, if applicationPayment, etc., may be ordered by the President. is made therefor by the claimant, may 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 of the interest therein to which the President shall determine said claimant is entitled: *Provided*,*Proviso*.Rights, etc., against claims not barred. That no such order by the President shall bar any person from the prosecution of any suit at law or in equity against the claimant to establish any right, title, or interest which he may have in such money or other property. If the President shall not so order withinSuit allowed to establish interest, etc. sixty days after the filing of such application or if the claimant shall have filed the notice as above required and shall have made no application to the President, said claimant may institute a suit in equity in the Supreme Court of the District of Columbia or in the district courtJurisdiction of courts. of the United States for the district in which such claimant resides, or, if a corporation, where it has its principal place of business (to which suit the Alien Property Custodian or the Treasurer of the United States, as the case may be, shall be made a party defendant), to establish the interest, right, title, or debt so claimed, and if so established the court shall order the payment, conveyance,Payment, etc., on order of court. 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 Retention of property until judgment entered, etc.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. 1512 “(b) Disposition of property of designated ownership. In respect of all money or other property conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of the United States, if the President shall determine that the owner thereof at the time such money or other property was required to be so conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or at the time when it was voluntarily delivered to him or was seized by him was— “(1) Other than nationals of Germany, etc. A citizen or subject of any nation or State or free city other than Germany or Austria or Hungary or Austria-Hungary, and is at the time of the return of such money or other property hereunder a citizen or subject of any such nation or State or free city; or “(2) Woman of neutral nation married to German, etc.Vol. 41, p. 1147. A woman who, at the time of her marriage, was a subject or citizen of a nation which has remained neutral in the war, or of a nation which was associated with the United States in the prosecution of said war, and who, prior to April 6, 1917, intermarried Property not acquired from German, etc., after January, 1, 1917.with a subject or citizen of Germany or Austria-Hungary and that the money or other property concerned was not acquired by such woman, either directly or indirectly, from any subject or citizen of Germany or Austria-Hungary subsequent to January 1, 1917; or “(3) Woman, American citizen, married to German, etc. A woman who at the time or her marriage was a citizen of the United States, and who prior to April 6, 1917, intermarried with a subject or citizen of Germany or Austria-Hungary, and that Not acquired from German, etc.the money or other property concerned was not acquired by such woman, either directly or indirectly, from any subject or citizen of Daughter of citizen, etc.Germany or Austria-Hungary subsequent to January 1, 1917; or who was a daughter of a resident citizen of the United States and herself a resident or former resident thereof, or the minor daughter or daughters of such woman, she being deceased; or “(4) Diplomatic, etc., officer of enemy nation, when relations severed. A citizen or subject of Germany or Austria or Hungary or Austria-Hungary and was at the time of the severance of diplomatic relations between the United States and such nations, respectively, accredited to the United States as a diplomatic or consular officer of any such nation, or the wife or minor child of such officer, and that the money or other property concerned was within the territory of the United States by reason of the service of such officer in such capacity; or “(5) Interned alien enemy living in the United States.[R. S., secs. 4067-4070, pp. 784, 785](/us/rs/sec4067–4070/p784/785).Vol. 40, p. 531. A citizen or subject of Germany or Austria-Hungary, who by virtue of the provisions of sections 4067, 4068, 4069, and 4070 of the Revised Statutes, and of the proclamations and regulations thereunder, was transferred, after arrest, into the custody of the War Department of the United States for detention during the war and is at the time of the return of his money or other property hereunder living within the United States; or “(6) Foreign partnerships, corporations, etc., of other than German, etc., ownership. A partnership, association, or other unincorporated body of individuals outside the United States, or a corporation incorporated within any country other than the United States, and was entirely owned at such time by subjects or citizens of nations, States, or free cities other than Germany or Austria or Hungary or Austria-Hungary and is so owned at the time of the return of its money or other property hereunder; or “(7) Governments of Bulgaria or Turkey. The Government of Bulgaria or Turkey, or any political or municipal subdivision thereof; or “(8) Diplomatic, etc., property of Germany, Austria, etc. The Government of Germany or Austria or Hungary or Austria-Hungary, and that the money or other property concerned was the diplomatic or consular property of such Government; or “(9) Nationals of Germany, etc., for amount not exceeding $10,000. An individual who was at such time a citizen or subject of Germany, Austria, Hungary, or Austria-Hungary, or who is not a citizen or subject of any nation, State, or free city, and that such money or other property, or the proceeds thereof, if the same1513 has been converted, does not exceed in value the sum of $10,000, or although exceeding in value the sum of $10,000 is nevertheless susceptible of division, and the part thereof to be returned hereunder does not exceed in value the sum of $10,000: *Provided*, That an *Proviso*.Property of partner-ships, etc., not included.individual shall not be entitled, under this paragraph, to the return of any money or other property owned by a partnership, association, unincorporated body of individuals, or corporation at the time it was conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian, or seized by him hereunder; or “(10) A partnership, association, other unincorporated body ofPartnerships, etc., as to amounts not exceeding $10,000. individuals, or corporation, and that it is not otherwise entitled to the return of its money or other property, or any part thereof, under this section, and that such money or other property, or the proceeds thereof, if the same has been converted, does not exceed in value the sum of $10,000, or although exceeding in value the sum of $10,000, is nevertheless susceptible of division, and the part thereof to be returned hereunder does not exceed in value the sum of $10,000: *Provided*, That no insurance partnership, association, or*Proviso*.Restriction on insurance partnerships, etc. corporation, against which any claim or claims may be filed by any citizen of the United States with the Alien Property Custodian within sixty days after the time this paragraph takes effect, whether such claim appears to be barred by the statute of limitations or not, shall be entitled to avail itself of the provisions of this paragraph until such claim or claims are satisfied; or “(11) A partnership, association, or other unincorporated bodyPartnerships, etc., of other than Germany, controlled by other than German, etc., nationals. of individuals, having its principal place of business within any country other than Germany, Austria, Hungary, or Austria-Hungary, or a corporation, organized or incorporated within any country other than Germany, Austria, Hungary, or Austria-Hungary, and that the control of, or more than 50 per centum of the interests or voting power in, any such partnership, association, other unincorporated body of individuals, or corporation, was at such time, and is at the time of the return of any money or other property, vested in citizens or subjects of nations, States, or free cities other than Germany, Austria, Hungary, or Austria-Hungary:*Proviso*.Other rights not affected.*Ante*, p. 1512. *Provided, however*, That this subsection shall not affect any rights which any citizen or subject may have under paragraph
(1)of this subsection;— “Then the President, without any application being madePayment, etc., to party entitled thereto may be ordered without any application. 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, or of the interest therein to which the President shall determine such person entitled, either to the said owner or to the person by whom said property was conveyed, transferred, assigned, delivered, or paid over to the Alien Property Custodian: *Provided*, That no person*Provisos*.Status of former nationals of Germany, etc., but subsequently of other countries. shall be deemed or held to be a citizen or subject of Germany or Austria or Hungary or Austria-Hungary for the purposes of this section, even though he was such citizen or subject at the time first specified in this subsection, if he has become or shall become, ipso facto or through exercise of option, a citizen or subject of any nation or State or free city other than Germany, Austria, or Hungary, (first) under the terms of such treaties of peace as have beenUnder treaties with belligerents. or may be concluded subsequent to November 11, 1918, between Germany or Austria or Hungary (of the one part) and the United States and/or three or more of the following-named powers: The British Empire, France, Italy, and Japan (of the other part), or (second) under the terms of such treaties as have been or may beUnder treaties with nations, etc., formerly in enemy territory. concluded in pursuance of the treaties of peace aforesaid between any nation, State, or free city (of the one part) whose territories,1514 in whole or in part, on August 4, 1914, formed a portion of the territory of Germany or Austria-Hungary and the United States and/or three or more of the following-named powers: The British Status if territory remains part of Germany, etc.Empire, France, Italy, and Japan (of the other part). For the purposes of this section any citizen or subject of a State or free city which at the time of the proposed return of money or other property of such citizen or subject hereunder forms a part of the territory of any one of the following nations: Germany, Austria, or Hungary, shall be deemed to be a citizen or subject of such Receipts to be a full acquittance of Custodian, etc.nation. And the receipt of the said owner or of the person by whom said money or other property was conveyed, transferred, assigned, delivered, or paid over to the Alien Property Custodian shall be a full acquittance and discharge of the Alien Property Custodian or the Treasurer of the United States, as the case may be, and of the United States in respect to all claims of all persons heretofore or hereafter claiming any right, title, or interest in said money or other property, or compensation or damages arising from the capture of such money or other property by the President or the Alien Property Legal rights not barred.Custodian: *Provided further, however*, That except as herein provided no such action by the President shall bar any person from the prosecution of any suit at law or in equity to establish any right, title, or interest which he may have therein. “(c) Proceedings for recovery of money or other property. Any person whose money or other property the President is authorized to return under the provisions of subsection
(b)hereof may file notice of claim for the return of such money or other property, as provided in subsection
(a)hereof, 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, Determination of citizenship.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. “(d) Estates of decedents. Whenever a person, deceased, would have been entitled, if living, to the return of his money or other property hereunder, then his legal representative may proceed for the return of such money or *Proviso*.Conditions imposed.other property as provided in subsection
(a)hereof: *Provided, however*, That the President or the court, as the case may be, before granting such relief shall impose such conditions by way of security or otherwise, as the President or the court, respectively, shall deem sufficient to insure that such legal representative will redeliver to the Alien Property Custodian such portion of the money or other property so received by him as shall be distributable to any person not eligible as a claimant under subsections
(a)or
(c)hereof. “(e) Returns to nationals of the allies subject to reciprocal action thereby. No money or other property shall be returned nor any debt allowed under this section to any person who is a citizen or subject of any nation which was associated with the United States in the prosecution of the war, unless such nation in like case extends reciprocal Further restrictions.rights to citizens of the United States; nor in any event shall a debt be allowed under this section unless it was owing to and owned by the claimant prior to October 6, 1917, and as to claimants other than citizens of the United States unless it arose with reference to the money or other property held by the Alien Property Custodian or Treasurer of the United States hereunder. “(f) No other liens, etc., enforceable. Except as herein provided, the money or other property conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian, shall not be liable to lien, attachment, garnishment, trustee process, or execution, or subject to any order or decree of any court. 1515 “(g) The legal representative (duly appointed by a court in theLegal representative of a deceased person may proceed for recovery of property descended to an American citizen. United States) of a person, deceased, whose money or other property has been conveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of the United States, may (if not entitled to proceed under subsection
(d)of this section) proceed under sub-section
(a)for the recovery of any interest, right, or title in any such money or other property which has, by reason of the death of such person, become the interest, right, or title of a citizen of the United States, unless such citizenship was acquired throughRestriction. naturalization proceedings in which the declaration of intention was filed after November 11, 1918. Such legal representative shall give aBond required. bond, in a penal sum and with sureties satisfactory to the President or the court, as the case may be, conditioned that he will redeliver to the Alien Property Custodian all such money or other property not distributed to such citizen, or, if deceased, to his heirs or legal representatives. “(h) The aggregate value of the money or other property returnedAmount to former German nationals, etc., limited.*Ante*, pp. 1512,1513. under paragraphs
(9)and
(10)of subsection
(b)to any one person, irrespective of the number of trusts involved, shall in no case exceed $10,000. “(i) For the purposes of paragraphs
(9)and
(10)of subsectionAccumulated income added to principal.
(b)of this section accumulated net income, dividends, interest, annuities, and other earnings, shall be considered as part or the principal. “(j) Subsection
(g)and paragraphs
(9)and
(10)of subsectionPatents, trade marks, etc., restriction.
(b)of this section shall not apply to any patent, trade-mark, print, label, copyright, or right therein or claim thereto, conveyed, transferred, assigned, or delivered to the Alien Property Custodian, or seized by him, or to the proceeds received from the sale, license, or other disposition of any such patent, trade-mark, print, label, copyright, or right therein or claim thereto; but the Alien PropertyReturn of patents, trademarks, etc, .which have not been sold, etc. Custodian is authorized and directed to return to the person entitled thereto, whether or not an enemy or ally of enemy and regardless of the value, any patent, trade-mark, print, label, copyright, or right therein or claim thereto, which has been conveyed, transferred, as-signed, or delivered to the Alien Property Custodian, or seized by him, and which
(1)has not been sold, licensed, or otherwise dis-posed of under the provisions of this Act, and
(2)is not involved (at the time this subsection takes effect) in litigation in which the United States, or any agency thereof, is a party. “(k) This section shall not apply, however, to money paid toMoneys from patents excluded.Vol. 40, p. 420. the Alien Property Custodian under section 10 hereof.” " Sec. 2. That the “Trading with the Enemy Act”, as amended, is amendedNew matter. Payments to attorneys restricted. by adding thereto the following sections: " “Sec. 20. That no money or other property shall be paid, conveyed, transferred, assigned, or delivered under this Act to any agent, attorney, or representative of any person entitled thereto, unless satisfactory evidence is furnished the President or the court, as the case may be, that the fee of such agent, attorney, or representative for services in connection therewith does not exceed 3 per centum of the value of such money or other property; butMaximum fee allowed. nothing in this section shall be construed as fixing such fees at 3 per centum of the value of such money or other property, such 3 per centum being fixed only as the maximum fee that may be allowed or accepted for such services. Any person accepting any Punishment for receiving excess, etc.Vol. 40, p. 425.fee in excess of such 3 per centum shall, upon conviction thereof, be punished as provided in section 16 hereof. 1516 “Sec. 21. Claims of naturalized citizens.Presumption of expatriation removed if proof be given of inability to return, etc.Vol. 34, p. 1228. That the claim of any naturalized American citizen under the provisions of this Act shall not be denied on the ground of any presumption of expatriation which has arisen against him, under the second sentence of section 2 of the Act entitled “An Act in reference to the expatriation of citizens and their protection, abroad”, approved March 2, 1907, if he shall give satisfactory evidence to the President, or the court, as the case may be, of his uninterrupted loyalty to the United States during his absence, and that he has returned to the United States, or that he, although desiring to return, has been prevented from so returning by circumstances beyond his control. “Sec. 22. Fugitives from justice not entitled to return of property. No person shall be entitled to the return of any property or money under the provisions of this Act who is a fugitive from justice from the United States or any State or Territory thereof or the District of Columbia. “Sec. 23. Payment to person entitled to income of property held in trust. The Alien Property Custodian is directed to pay to the person entitled thereto, from and after the time this section takes effect, the net income, dividend, interest, annuity, or other earnings, accruing and collected thereafter, on any property or money held in trust for such person by the Alien Property Custodian or by the Treasurer of the United States for the account of the Alien Property Custodian, under such rules and regulations as Amount limited.the President may prescribe; but no person shall be paid, under this section, any amount in excess of $10,000 per annum. “Sec. 24. Payment of legally assessed taxes by Custodian. The Alien Property Custodian is authorized to pay all taxes (including special assessments), heretofore or hereafter lawfully assessed by any body politic against any money or other property held by him or by the Treasurer of the United States under this Act, and to pay the necessary expenses incurred by him or by any depositary for him in securing the possession, collection, or control or any such money or other property, or in protecting Funds available for taxes and expenses.or administering the same. Such taxes and expenses shall be paid out of the money or other property against which such taxes are assessed or in respect of which such expenses are incurred, or (if such money or other property is insufficient) out of any other money or property held for the same person, notwithstanding the fact that a claim may have been filed or suit instituted under this Act.” " Approved, March 4, 1923.