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PERLMAN, BALDRIDGE, LYONS AND BROWNING
SUITE 1021, TOWER BUILDING
14TH AND K STREETS, NORTHWEST
PHILIP B. PERLMAN
HOLMES BALDRIDGE
WASHINGTON 5, D.C.
ELLIS LYONS
JAMES R. BROWNING
METROPOLITAN 8-2940
November Fourth
1 9 5 3
5 s ARCMIVES RECORDS AMD
SERVICE"
Charles Murphy, Esq.
Morison, Murphy, Clapp and Abrams
839 - 17th Street, N. W.
Washington, D. C.
Dear Charley:-
In accordance with your recent request I will set out briefly
the reasons why the Government in the Steel case didn't use the existing
statutory authority, to wit, Section 18 of the Selective Service Act and
Section 201 of the Defense Production Act of 1950, as amended.
dof1948
Section 18 of the Selective Service Act provides that upon ad-
vice of the National Securities Resources Board that it is in the interest
of national defense to obtain prompt delivery of materials authorized by
Congress for purchase for the exclusive use of the armed forces or for the
Atomic Energy Commission, the President is authorized, through the head of
any Government agency to place an order with a plant.
Such plant must
be notified that the order is placed under the provisions of Section 18.
The company is required to give such order precedence over any other orders.
Upon refusal or failure to deliver the President is authorized to seize and
operate such plant.
The Government must pay the owner just compensation
for the use and operation of the plant.
We couldn't use this Statute for the following three reasons.
First, the Act is not applicable where a failure or refusal is due to
impossibility of delivery because of a labor dispute.
Under Section 9
of the Selective Service Act of 1940, seizure was permitted where failure
to deliver was due to a labor dispute. Section 18 of the later Selective
Service Act omitted authority to seize in the case of a labor dispute.
Hence there was no congressional intent to authorize seizure where failure
to deliver was caused by a strike.
Second, Section 18 specifically limits seizure to plants producing
articles "the procurement of which has been authorized exclusively for the
use of the armed forces. "
Since most of the plants were producing for
civilian use and for overseas use by Marshall Plan countfies, as well as for
the armed forces of the United States the Statute wouldn't apply.
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"ocrText": "PERLMAN, BALDRIDGE, LYONS AND BROWNING\nSUITE 1021, TOWER BUILDING\n14TH AND K STREETS, NORTHWEST\nPHILIP B. PERLMAN\nHOLMES BALDRIDGE\nWASHINGTON 5, D.C.\nELLIS LYONS\nJAMES R. BROWNING\nMETROPOLITAN 8-2940\nNovember Fourth\n1 9 5 3\n5 s ARCMIVES RECORDS AMD\nSERVICE\"\nCharles Murphy, Esq.\nMorison, Murphy, Clapp and Abrams\n839 - 17th Street, N. W.\nWashington, D. C.\nDear Charley:-\nIn accordance with your recent request I will set out briefly\nthe reasons why the Government in the Steel case didn't use the existing\nstatutory authority, to wit, Section 18 of the Selective Service Act and\nSection 201 of the Defense Production Act of 1950, as amended.\ndof1948\nSection 18 of the Selective Service Act provides that upon ad-\nvice of the National Securities Resources Board that it is in the interest\nof national defense to obtain prompt delivery of materials authorized by\nCongress for purchase for the exclusive use of the armed forces or for the\nAtomic Energy Commission, the President is authorized, through the head of\nany Government agency to place an order with a plant.\nSuch plant must\nbe notified that the order is placed under the provisions of Section 18.\nThe company is required to give such order precedence over any other orders.\nUpon refusal or failure to deliver the President is authorized to seize and\noperate such plant.\nThe Government must pay the owner just compensation\nfor the use and operation of the plant.\nWe couldn't use this Statute for the following three reasons.\nFirst, the Act is not applicable where a failure or refusal is due to\nimpossibility of delivery because of a labor dispute.\nUnder Section 9\nof the Selective Service Act of 1940, seizure was permitted where failure\nto deliver was due to a labor dispute. Section 18 of the later Selective\nService Act omitted authority to seize in the case of a labor dispute.\nHence there was no congressional intent to authorize seizure where failure\nto deliver was caused by a strike.\nSecond, Section 18 specifically limits seizure to plants producing\narticles \"the procurement of which has been authorized exclusively for the\nuse of the armed forces. \"\nSince most of the plants were producing for\ncivilian use and for overseas use by Marshall Plan countfies, as well as for\nthe armed forces of the United States the Statute wouldn't apply."
}