RECOVERY OF PROPERTY FROM ALIEN PROPERTY CUSTODIAN

Authors

Abstract

ln Banco Mexicano v. Deutsche Bank, 44 Sup. Ct. 209, both facts and law lie in a narrow compass. On June 15, 1916, the liquidators of the Banco Mexicano made a loan of $500,000 to the Deutsche Bank. Hugo Schmidt, the well-known agent of the Deutsche Bank, in the United States from 1914 to 1917 negotiated the loan and deposited the amount received with the Guaranty Trust Company of New York to the credit of the general account of the Deutsche Bank. When the United States entered the war on April 6, 1917, the Guaranty Trust Company reported the balance which it owed to the Deutsche Bank to the Alien Property Custodian who sequestered it. The liquidators of the Banco Mexicano after the close of hostilities, when the problem of the Alien Property Custodian was how to close its various trust estates rather than to open new ones, filed a claim for the amount of the loan against the United States. The principal contention was that under the amendment of June 5, 1920, of the Alien Property Act the debt arose with reference to money held by the Alien Property Custodian under the act.

Recommended Citation

RECOVERY OF PROPERTY FROM ALIEN PROPERTY CUSTODIAN, 22 Mich. L. Rev. 472 (1924).
Available at: https://repository.law.umich.edu/mlr/vol22/iss5/11