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OCR Page 1 of 39MEMORANDUM TO ASSISTANT ATTORNEY GENERAL BALDRIDGE
Res President's Power to Seize the Steel Industry
The proposed Executive Order directing seimure of the steel
industry purports to issue "by virtue of the povers invested in the
President by the Constitution and lava of the United States." The
purposes of this nemorandum are to consider which existing lavs or independent
constitutional povers of the President are veilable to support the proposed
order and to indicate which of these sources of power are likely to
provide the most satisfactory support.
There ere two main statutory bases for energency seisure of
an industry: (1) Section 18 of the Selective Service Act of 1948, 50
U.S.C. App. 468, and (2) Title II of the Defense Production Act of 1950,
1
RS amended, 50 U.S.C. App. 2081.
In addition, there exists a nonstatutory
basis in the so-called inherent executive povers of the President, stemming
directly from the Constitution. We conclude that neither of the above
stetutory bases is entiraly desirable or fensible, and that the proposed
order should therefore be defended on the besis of the inherent executive
povers. The reasons for these conclusions are set forth in this memorandum.
We discuss, in Point I, the statutory provisions and, in Foint II, the
inherent povers, as they relate to the problems raised by the proposed order.
I
STATUTORY BASES FOR SEIZURE
A. The #Utilization of Industry" Provisions of Section 18
of the Selective Service Act of 1948.
TRUMAN
The pertinent provisions of Section 18 of the Selective
to "NATIONAL RECORDS ADMIN." A
ARCHIVES A
Service Aet of 1948, 50 U.S.C. App. 468 rend as follews:
COVERANE
(a) Whenever the President after consultation with and
receiving advice from the National Security Resources Board
determines that it is in the interest of the national
security for the Covernment to obtain prompt delivery of any
articles or materials the procurement of which has been
authorized by the Congress xclusively for the uso of the
armed forces of the United States, or for the use of
1
A pasaille additional statutory basis for netion is to be found in the
enorgeney injunction provisions of the Act. These provisions are
considered in a separate memorandus.
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