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OCR Page 1 of 10Goldberg - I believe ?
Statutory Authorization for Seizure
The government has clear statutory authority to seize the Nation's steel
mills under either of two statutes: The Defense Production Act of 1950, as
amended, and the Universal Military Training and Service Act.
Defense Production Act of 1950, as Amended
Section 201(b) of the Defense Production Act of 1950, as it was amended in
1951, provides that
"Whenever the President deems it necessary in the interest of
national defense, he * * may cause proceedings to be instituted in
any court having jurisdiction of such proceedings to acquire by con-
demnation, any real property, including facilities, temporary use
thereof, or other interest therein, together with any personal
property located thereon or used therewith, that he deems necessary
for the national defense, *
The section goes on to provide that before condemnation proceedings are in-
stituted, an effort shall be made to acquire the property by negotiation, unless
such an effort would involve, in the judgment of the President, such delay in
acquiring the property as to be contrary to the interest of national defense.
Obviously, in the present situation it would be appropriate for the President
to make the required finding that negotiation would result in delay prejudicial
to the interest of national defense.
Subsection (b) then goes on to provide that in any condemnation proceeding
under the section the court shall not order the party in possession to surrender
possession in advance of final judgment unless a declaration of taking has been
filed, and a deposit of the amount estimated to be just compensation has been
made, both as provided for in the Act of February 26, 1931 (46 Stat. 1421),
The statute thus referred to is commonly known as the Declaration of Taking
Act (40 USCA, Sec. 258a). It provides that in condemnation proceedings insti-
tuted by the United States, the government may at any time file a declaration
of taking and deposit in court the estimated compensation due the owner, and
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