. ^ ;> ^ A ^ > ,1^ o F I Ni o ]sr AS TO THE CONSTRUCTION OF THE NON-INTERCOURSE ACTS CAPTURED PROPERTY ACTS UKLATIVELY TO THE PRIZE ACTS WASHINGTON: 1866. ' " t'-uf * »»*»»»»»»»»i IT»»»**»*T»>»»»>»¥»»|^. v^, «^^ Glass H: ^do o p I isr I o N AS TO THE CONSTRUCTIOISi OF THE NON-INTERCOURSE ACTS CAPTURED PROPERTY ACTS RELATIVELY TO THE PRIZE ACTS WASHINGTON: . 1866. NOV 23 mh U'6 ^ OFiisrioN^. Washington, April 11, 1866. Sir: The following observations on the construction and legal effect of the act of July 13, 1861, ch. 3, entitled "An act further to provide for the collection of duties on imports, and for other purposes," and especially sections 4, 5, 6, 7, 8, and 9 of that act, and on the act of May 20, 1862, ch. 81, supplementary to the foregoing, are respectfully submitted, not as argument on this or that side of any question, but in the sense prescribed to me by your instructions, to wit, as impartial opinion, to aid, so far as such opinion may contribute to this end, in the practical solution of the doubts arising in the administrative construction of those acts. Permit me prefatorily to say that the Government of the United States, meaning thereby the Legislative as well as the Executive Powers, would seem, at the time of these enactments, not fully to have deter- mined for itself how far its relation to the people and territory of the United States, wherein opposition to the laws was either flagrant or im- pending, should continue to be conducted within the limits of municipal sovereignty, and how far that relation was to fall into the domain of the jus belli. The President's proclamation of April 18, 1861, did but call out militia, to withstand insurrectionary combinations too powerful to be suppressed by the ordinary course of judicial proceedings, in the States of South Carolina, Georgia, Alabama, Florida, Mississippi, Louisiana, and Texas. The proclamation of May 3, 1861, calls out a volunteer force for the same objects, and with the same inducements. To be sure, the intermediate proclamations of April 19 and April 27 propose "to set on foot a blockade" of the ports within the above-men- tioned States, and those of Virginia and ISTorth Carolina ; but these pro- clamations are founded in part on the fact, that "the laws of the United States for the collection of the revenue cannot be effectually executed therein, conformably to that portion of the Constitution, which requires duties to be uniform throughout the United States;" these proclamations profess only to provide provisionally for the interval j)i"eceding the assembly of Congress; and the clause v^hich they contain declaring that vessels, approaching or attempting to leave either of the occluded ports, shall be warned specially, and have their papers endorsed, and captured only in case of thereafter again attempting to enter or leave such ports, and which form of special notice the law of war does not re- quire, would seem to indicate that the President had in his mind the idea of a pacific, rather than a belligerent, blockade of the coasts of the dis- turbed parts of the United States. This impression is confirmed by the consideration that, in his message to Congress, when it assembled, the President spoke of what had been done as being " proceedings in the nature of a blockade." The thought of a non-belligerent blockade might well have presented itself to the mind of the President, seeing that, in recognized authorities of the law of nations, it is laid down that neither embargo nor blockade necessarily constitutes a state of regular war; that these often precede the opening of hostilities, and have at start for object only provisional seizure, and may or may not assume the definitive character of war according to the progress of events; that modern history furnishes not a few examples of such pacific blockades, excluding of course belligerent capture and prize of war, and intending only municipal confiscation. (See Heffter, Droit International public de I'Europe, ed. 1857, p. 220, 232.) Correspondent with this thought would have been the strenuous de- nial on our part, which pervades the diplomatic correspondence of the Government, of the existence, at the time, of such a state of belligerency, between the United States and the insurgents, as justified the recogni- tion of them as belligerents by foreign Powers ; and the numerous acts of Congress, asserting and regulating the continued exercise, notwith- standing the current hostilities, of municipal sovereignty of the Govern- ment throughout the United States. The disclosures of time will probably show that less forceful and more beneficent purposes of the President in this respect were thwarted by unwise and unseasonable intimations from the ministers of foreign Powers. The adjudication of the Supreme Court of the United States in the " Prize Cases," so called, (2 Blach, 635,) determined that the blockade was a blockade jure belli, as against neutrals, and in certain cases as against citizens; but, say the Court, "it is a proposition never doubted, that the belligerent party, who claims to be sovereign, may exercise both bellig- erent and sovereign rights." — Ibid, p. 673, referring to Hose v. Himely, 4 Cranch, 272. Hence, in the light of all subsequent knowledge and matured expe- rience, as well as in that of the imperfect, and, as it were, formative con- ceptions of the actual time, we see that, war or no war, the enactments of July 13, 1861, and May 20, 1862, were made in the full and justifiable assertion of the permanency and completeness of the municipal sove- reignty of the United States. And thus we approach the two acts, justly assuming tliat, at the time of their enactment, and afterwards, first, the Government might rightfully do, as respects all pro^^erty within the insurgent States, what- soever it belongs to sovereign power to do ; and, secondly, that by these acts, and those in addition of August 6, 1861, July 17, 1862, March 12, 1863, and July 2, 1864, the Government did rightfully do whatsoever in its supreme discretion as a sovereign power it saw fit to do. Whether or no the law of nations imposes any quahfication in this respect, we shall have occasion to consider in the sequel. I observe only in this latter relation, now, that a sovereign, engaged in suppressing hostilities on the part of insurgent subjects, possesses larger powers than a sovereign engaged in hostilities against another sovereign; for the latter exercises only the powers belonging to the jus belli, while the former superadds thereto the powers belonging to the jus majestatis. — Hose v. Himely, 4 Cranch, 241 ; Hudson v. Gicestier, 4 Cranch, 293 ; Cherriot v. Foussat, 3 Binney, 252 ; 1 East's P. C, 104 ; Rycui's case, 2 Woodeson, 427, note a; Malleck's International Laio, p. 344; Upton's Maritime War, 212 ; The Revere, 24 Law Rep., 276 ; The Amy Warwick, 24 Laio Rep., 344; Smith's Trial, 96; The Savannah, 368; Ayala, De Jure ' et Officiis Bellicis, ch. 2. We are now prepared to consider what Congress purports to have enacted by these acts. The act of July 13, 18G1, is, according to its title, to provide for the collection of duties on imports, and for other puri)oses, and is throughout in general terms applicable to all time, and not merely to the existing disturbances in certain of the United States. Sections 1, 2, and 3 enact that if, by reason of unlawful combinations, the revenue laws ■ cannot be executed at any statute port of entry, the President may transfer the collection to any port of delivery in the same collection district ; which provisions require no further remark here than that their municipal character is evinced by their similitude to the enact- ments provided for the familiar case of the old nullification controversy in South Carolina. ' (Compare act of March 2, 1833, ch. 57.) In the present act, section 4 enacts that any such ports of entry may be declared closed by proclamation of the President, and if, while said ports are So closed, any ship or vessel from beyond the United States, or having on board any articles subject to duties, shall enter or attempt to enter any such port, the same, together with its tackle, apparel, furni- ture, and cargo, shall be forfeited to the United States. Here we have the full assertion of a purely municipal occlusion of ports, applicable to the case of a closed pox-t, in the possession of the United States, notwith- standing the contemporaneous fact of insurrection flagrant, and of the Federal laws maintained by Federal armed force organized as for war. Section 5 enacts the conditions of fact on which the President may jDro- claim the inhabitants of a State, or any part thereof, to be in a state of insurrection against the United States, and then proceeds to enact that, after such proclamation regarding such state — " Thereupon all commercial intercourse by and between the same, and the citizens thereof, and the citizens of the rest of the United States, shall cease and be unlawful so long as such condition of hostilities shall con- tinue; and all goods and chattels, wares and merchandise, coming from said State or section, into the other parts of the United States, and all proceeding to such State or section by land or water, shall, together with the vessel or vehicle conveying the same, or conveying persons to or from such State or section, be forfeited to the United States." Here the language is definite, explicit, and clear as to the case and subject of forfeiture, to wit, illegality of any commercial intercourse be- tween the citizens of the insurgent States and those of the rest of the United States (without special permission of the Government,) and con- sequent forfeiture of all vehicles and goods in transitu by land or water between the so-discriminated parts of the United States. It is in terms municipal forfeiture, not prize of war. And it is presumable that, considering the scope and spirit of the whole act, such property in transitu would be forfeitable, although belonging to a person not technically a "citizen," but commercially domiciled in the insurgent States. — See authorities collected in Laurent's Case, U. S. and Ci. B. Claims Commission, p. 120. The proclamation contemplated by the enactments of this section was duly issued by the President, August 16, 1861, and gave initiatory effect to the acts. — U. S. JLaivs, vol. 12, p. 1262. Section 6 enacts that " from and after fifteen days after the issuing of such proclamation, as provided in the last foregoing section of this act, any ship or vessel belonging in whole or in part to any citizen or inhabi- tant of said State or part of a State, whose inhabitants are so declared in a state of insurrection, found at sea, or in any port of the rest of the United States, shall be forfeited to the United States." Here question arises : Do or not the words of the sixth section involve inquiry of the destination of the vessel? Does the cargo, as well as the vessel, become forfeited ? Are the conditions of the case to be the same as those of the preceding section? Looking at the letter of this section, it would seem that, by it, Con- gress intended to comprehend not only any ship or vessel of such own- ership, in ports of the United States, regardless of any proposed voyage, or at sea, whithersoever bound. But, as to the latter case, of ships at sea, it might be the safer construction to comprehend them only when in form or in true purpose destined to some port of the United States. However this may be, yet the cargo of such ship or vessel, or any part thereof, having the same ownership, would, although not expressed, likewise be comprehended by construction. For it is difficult to see why, as rebel property, the vessel should be forfeited for undertaking an unlawful voy- age, and not her contents, for the same unlawftil voyage. General rules of law would make both subject to the same fate, where the inducements are the same, and under the same circumstances. Nothing occurs to the contrary of this, except a decision of the Suj^reme Coiirt on the Embargo Acts, (act of April 25, 1808, ch. 66, s. 14, 2 U. S. Laws, 501,) to the effect that the detention of a vessel authorized by that 8 act does not require the detention of the cargo, if it be separable from the vessel, and it be the will of the owner to make the separation, (Slocum V. Mayberry, 8 Cranch, 1 ;) because, the object of the law being to prevent the prohibited voyage, this object did not require detention of the goods. The voyage was broken up effectually by the detention of the vessel : hence the cargo might well be surrendered to the custody of the owner. For, say the Court, "The cargoes thus arrested and detained were gener- ally of a perishable nature, and it would have been wanton oppression to expose them to loss by unlimited detention, in a case where the owner was willing to remove all danger of exportation," (p. 11.) 'No such con- siderations apply to the case of rebel property confiscable as such. And the cargo, equally with the ship, is forfeited by the Non-intercourse Acts of the early history of the Government. Certain it is, meanwhile, that, as to cases of municipal forfeiture, it lies in the discretion of Congress to jironounce forfeiture, either of the vessel alone, or of the cargo alone, or of both together; and therefore the ques- tion is one stricti juris, on the construction of statutes. But there is at least plausible cause to think that the intention here was to forfeit cargo as well as vessel. And hence, at any rate, although the true meaning of this section be not so perfectly limpid as that of the fifth section, still it is prudent and safe to say, that the construction here suggested is one, which, in the ordinary course of justice, counsel would regard as of sufiicient gravity and apparent force to warrant suspension of opinion and action until it could be submitted to the determination of the proper courts of law. That a municipal seizure of property, belonging to a citizen or subject, (and in certain cases even foreign property,) may be made on the high seas, is indubitable. — JjCI Jeune Eugenie, 2 Mason, 409, 413. Section 7 enacts that "in the execution of this act, and of the other laws of the United States providing for the collection of duties on im- ports and tonnage, it may and shall be lawful for the President, in addi- tion to the revenue cutters in service, to employ in aid thereof such other suitable vessels as may, in his judgment, be required." Section 8 enacts that " the forfeitures and penalties incurred by virtue of this'?ict may be mitigated or remitted in pursuance of the authority vested in the Secretary of the Treasury by the act entitled ' An act pro- 9 viding for mitigating or remitting the forfeitures, penalties, and disabili- ties accruing in certain cases therein mentioned, approved March 3, 1797,' or, in cases where sj)ecial circumstances seem to require it, accord- ing to regulations to be prescribed by the Secretary of the Treasury." This enactment, it is manifest, confers on the Secretary not merely the power he had in similar matters by previous laws, (Comp. Acts of March 3, 1797, and of February 11, 1800,) bat also large additional powers. According to the former acts, he could remit only on the report of the district judge, before whom the case might be pending, and on the facts reported by such judge, (The Margaj-etta, 2 Gallison, 515.) According to the present act, he may, when special circumstances se^m to him to requii'e it, proceed without judicial report, and in pursuance of regulations of the Treasury Department. In either case, conformably with established rules of law, the Secre- tary's power to remit applies at any time before or after final condemna- tion until the proceeds shall have been actually distributed, and such remission extends to shares of the proceeds accruing to individuals, as well as to the interest of the United States. — United States v. Morris, 10 Wheaton, 246 ; McLane v. United States, 6 Peters, 404. Section 9 enacts that proceedings on seizures for forfeitures under the act may be prosecuted in the Courts of the United States in any district iuto which the property so seized may be taken, (or in which it may be seized.) So much as to the tenor of the act of July 13, 1861. The proclamation of the President construes and executes all the pro- visions of the act, in the following words, namely : " I hereby enjoin all marshals and ofiicers of the revenue and of the military and naval forces of the United States, to be vigilant in the enforcement of the said act, and in the enforcement of the penalties and foi'feitures imposed or declared by it, leaving any party who may think himself aggrieved thereby to his application to the Secretary of the Treasury for the remission of any penalty or forfeiture, which the said Secretary is authorized by law to grant, if, in his judgment, the special circumstances of any case shall require such remission." — U. S. Statutes, vol. 12,^. 1262. Here we see that the officers of the ISTavy, and of the Army, as well as of the Treasury, are to aid in making the seizures contemplated by the act, although such seizures are purely municipal, and that all persons 2 10 aggrieved thereby arc to present their grievances to the Secretary of the Treasury. Next in order of relation comes the siipplementary act of May 20, 1862, which empowers the Secretary of the Treasury to grant or to refuse clearance to any vessel or other vehicle laden with goods, wares, or merchandise, destined to a foreign or domestic port, whenever he shall have satisfactory reason to believe that such goods, wares, or merchan- dise, or any part thereof, whatever may be their ostensible destination, are intended for ports or places in possession or under control of insur- gents against the United States; and any vessel or vehicle so departing, or attempting to depart, without such clearance, is, with her tackle, ap- parel, furniture, and cargo, forfeited to the United States. • The same act empowers the Secretary of the Treasury to prohibit and prevent the transportation, in any vessel, or upon any railroad, turnj)ike, or other means of transportation in the United States, of any goods, wares, and merchandise, of whatever character, and whatever may be the ostensible destination of the same, in all cases where there shall be satisfactory reason to believe that such goods, wares, or merchandise are intended for any place in the possession or under the control of insur- gents against the United States; and any goods, wares, or merchandise transported, or attempted to be transported, in violation of this provision shall be forfeited to the United States. Section 4 enacts that proceedings for the penalties and forfeitures accruing under this act, and for the mitigation and remission of the same, shall conform to the provisions of the act of July 13, 1861, to which this act is supplementary. Finally, section 5 enacts that " the proceeds of all penalties and forfeit- ures, incurred under this act, or the act to which this is supplementary, shall be distributed in the manner provided by the 91st section of the act of March 2, 1799, entitled 'An act to regulate the collection of duties on imports and tonnage.' " This act is important, not merely because it adds to the scope of for- feitures, but for the greater reason that it makes express grant of a share of the forfeitures, accruing as well under the act itself as under that of July 13, 1861, as for revenue seizure, thus suj^plying a deficiency in that act, and rendering still more positive and clear the purpose of Congress 11 to enact a foi-feiture, not as condemnation jure belli, but by municipal right, for the use of the Treasury and the seizing officers of the Treasury. JSTow, pausing at this stage of the investigation, and reverting to the single inquiry, — what is the true meaning of the two cognate acts of July 13, 1861, and May 20, 1862? — it would seem rightful to assume, as a thing beyond peradventure or doubt, that these acts, in express terms, inten- tion, and spirit, do enact mere municipal forfeitures, subject to the admin- istration of the Secretary of the Treasury. In justification of the assumption of the Government to retain and ex- ercise complete municipal sovereignty over insurgents against the United States, general authorities were cited at the commencement of this Opin- ion. Confirmation of the doctrine, as applied specially to the two acts of Congress before us, occurs in a judicial opinion entitled to deference, that of Judge Treat, of the District of Missouri, in the case of the United States V. Barrels of Cement, (3 American Law Register, N. S., 735, 747.) His words are as follows : " Considering the statute (of July 13, 1861) as the exercise of muni- cipal or intra-territorial sovereignty, prohibiting certain commercial operations, the claimants, no matter where residing within the territorial jurisdiction of the United States, were bound thereby, irrespective of State citizenship or residence. All citizens, loyal or disloyal, are alike subject to the law. Hence a decision of the question as to such citizen- ship or residence on the one hand, or as to the loyalty or disloyalty of claimants on the other, is not necessary in this case. The analogies drawn from the laws of war, as laid down by publicists, may assist in solving the constitutional questions which arise concerning the power of the Federal Government in suj)pressing insurrections, and may also aid in the interpretation of the statutes passed concerning such a condition of hostilities ; but the case before the Court is not one to be decided by international law, but by municipal statutes. The .voyage was not be- tween this and a foreign country during a foreign war, does not affect any supposed neutral right, and necessarily involves, therefore, no doc- ti-ine of international law, regulating warlike operations between foreign belligerents. The questions are intra-territorial entirely, and relate solely to the powers and duties of the Federal Government, intra-territorially, under the Constitution. * * * * fpi^e position of foreign nations with respect to this insurrection, it must be remembered, does not deter- mine its status in American courts. The latter follow exclusively the decision of the political department of the United States Government on that question. Even if other nations had recognized the so-called Con- federate Government as an independent Power, their recognition would bind themselves and their subjects alone, not the United States, Those foreign nations which have recognized a state of belligerency, and as- sumed the position of neutrals, estop their subjects from disputing the lawfulness of captures on the high seas, according to the laws of mari- 12 time warfare. The ships and cargoes of their subjects are to be judged accordingly. But rebel property thus captured is amenable to municipal authority. All American courts are bound to treat the insurrectionary States as integral parts of the Union, and subject to its Constitution and laws. In the adjudication of all such questions arising here, the United States statutes would furnish the rules of decision. In other Avords, as to all foreign nations, the United States Government is absolutely sov- ereign Avithin its own territorial limits, and over its own subjects. Its internal constitution is a subject Avith Avhich foreign PoAvers have no right to intermeddle. The equality and independence of nations could not otherwise exist." The same learned Judge, in another case, that of the United States against Certain Packages, (2 American Laio Megister, N. S., 419,) makes the folloAving observations : " The act of July 13, 1861, is a municipal and revenue statute. " Waiving all discussions of the constitutional question, (which is purely municipal or intra-territorial,) and looking only to the international laAA'S of blockade, neutrals cannot sail on a voyage Avith the intent to enter a blockaded port Avithout becoming lawful prize under the laAv of nations. A citizen of the United States subject to the municipal laAA'' may be for- bidden by that laAV to do what a neutral would haA-e a right to do on the high seas. A neutral, for instance, may laAvfully enter any unblockaded port of the adverse belligerent Avith a cargo not contraband, and depart therefrom. But if an American citizen (the United States being the other belligerent) should attempt to do so, the United States might subject him to severe penalties personally, and confiscate his vessel and cargo, if thus found ' adherent to the enemy,' as Avas done by the act of July 6, 1812. He is subject both to the laAv of nations and to the municipal laAv of his OAvn domicil." Further reference, in support of the same opinion, may be made to the cases of the United States v. The Steamboat Hannibal, and of the United States V. The Champion, (2 American Law Register, N. S., 421.) If there were nothing else to affect the question, Ave might Avell stop here, and conclude that, in virtue of the provisions of the act of July 13, 1861, and of May 20, 1862, the jurisdiction of the Secretary of the Treas- ury is complete, in regard to all the cases comprehended within the pur- view of those acts. ISTor could any question be raised in this respect, but for the fact, that, on seizures made in cases Avhere the subject-matter and the circumstances Avere such as those acts define, proceedings have been instituted and con- demnations had on the prize side of the admiralty courts as for captures jure belli, instead of on the instance side as for seizures by municipal authority; and that, in consequence of this, the proceeds are noAV claimed 13 for distribution as prize money, lialf to the captors, and half to the pen- sion fund of the l!^avy. Hence the ultimate question may be one of conflict of law between revenue acts and prize acts. At the time when most of the takings and of the proceedings for con- demnation occurred, the question of prize stood on old acts, namely, that of April 23, 1800, and its supplements, especially those of January 22, 1813, April 26, 1816, and March 3, 1849, together with certain amenda- tory provisions in the more recent acts of March 25, 1862, July 17, 1862, and March 3, 1863, in so far as regards the provisional custody of prize money and its ultimate distribution. All these acts are now superseded by the later act of June 30, 1861, which constitutes the existing statute prize law of the United States. Although the late acts, including that now in force, are all subsequent in date to the revenue act of July 13, 1861, and most of them to that of May 20, 1862, yet, in view of the tenor of the pre-existing acts, that fact is not decisive as to any matter of present consideration. Still the circumstance has some weight. These forfeitures were ex- pressly granted to the Treasury and its officers by the Eevenue Acts of July 13, 1861, and May 20, 1862 ; and what good reason is there to pre- tend that the grants were revoked by mere implication of subsequent Prize Acts, and this, in many cases, even after the forfeitures had actually in right or fact accrued to the Treasury ? According to the Prize Acts, the proceeds of all captured property, ad- judged good prize, shall, when the vessels captured are of equal or supe- rior force to the vessels making the capture, be the sole property of the captors, and when of inferior force shall be divided equally betAveen the United States and the officers and men making the capture, in certain defined proportions ; and all prize money arising from captures made by the vessels of the Navy of the United States is, in the interval of time between the sale of the prizes and the final distribution of the question of prize in due form of law, deposited with proper officers of the Treas- ury.— TAe Porpoise, 2 Curtis, 0. G. B., 307. Now the critical question is, — Do the Prize Acts supersede the acts of municipal forfeiture? Is every provision of revenue law to be deemed and taken as absorbed and extinguished by prize law ? 14 The assumption that it is so is based upon the opinion of the Supreme Court in the case of " The Sally," (8 Cranch, 382,) which is to the effect: 1. That, in pursuance of adjudications of the prize courts of Great Britain, property engaged in illegal intercourse with the enemy is deemed enemy property, and so must be condemned as prize to the captors, notwith- standing any antecedent municipal forfeiture ; 2. That the municipal forfeiture was absorbed in the more general operation of the laws of war ; 3. That " the property of an enemy seems hardly to be within the purview of mere municipal regulations, but is confiscable under the jus gentium;'' and, 4. That if the doctrine were otherwise, still the Prize Act " operates as a lawful grant of all property rightfully captured by commissioned privateers as prize of war." As to the first of these four propositions, to wit, that the property en- gaged in illegal intercourse with the enemy is to be deemed enemy proj)- erty, it is immaterial whether we deny that absolutely, or consider it as true, under certain conditions ; for it is but the assertion of a mere legal fiction, advanced for the purpose of subjecting different things to the same legal consequences by fictitious and artificial assimilation. As to the second proposition, to wit, that municipal forfeitures are ab- sorbed by the general operation of the laws of war, that again is not only a legal fiction, but a metaphorical form of words to disguise a thought, which, if expressed in simple language, would not be admitted by any save interested parties. It amounts to this : — No matter what disposition you, the Government, may, in the exercise of your sovereign power, ex- pressly make of property subject to municipal forfeiture, — whatever that may be, Ave, the prize courts, -undertake to defeat your sovereign and positive laws on this subject, by setting up against them the legal fiction of an all-devouring general operation of the laws of war, which means our own construction of rules of maritime prize wrought out by us in the interest of prize captors ! How can the prize courts rightfully assert any such power, in a purely domestic question, to overrule the statute law of their own Government? The third proposition, doubtingly enunciated by the Court, and in the form of a semble, not of a positive assertion of truth, is the groundwork of the decision. " iSemhle" [in effect say the Court] that the property of an enemy, being confiscable by the jus gentium, is hardly within the pur- 15 view of a mere municipal regulation. Perhaps -'yes,' and perhaps "no," as to the property of enemies in fact. Bat, in the matter before us, it is not the property of enemies in fact, but of Americans. And it is very debateable whether the decision has any application to cases like this ; because it must be admitted that insurgents are only enemies in a quali- fied sense, and by fiction, construction, artificial assimilation treated as identity ; since they do always continue subject de jure to the municipal sovereignty of the legitimate Government. Finally, as to the fourth proposition of the Court, — that is altogether fallacious. In virtue of what established rule of construction does the Court assert that a grant of prize forfeitures to prize captors annuls a grant of reve- nue forfeitures previously vested in the Treasury ? That is not apparent as general doctrine. Least of all is it apparent, if such were a general doctrine, how it would apply to the present matter, as to which not only does the statute vest the forfeiture in the Treasury, but the express ex- ecutive command of the President, as constitutional " Commander-in- Chief of the Army and IsTavy of the United States," plainly and peremp- torily orders all ofiicers, military, naval, and civil, to deal with the proj)- erty, described in these acts, not as prize, but as Treasury forfeitures, subject to remission by the Secretary. Why may not "the property of an enemy" be within the purview of mere municipal regulations, when the party is but a constructive or ficti- tious enemy, and is in fact and in truth a subject, and so amenable to the municipal law ? It seems, on the contrary, evidently just that the prop- erty of an enemy subject should, in certain conditions, be within the purview of mere municipal regulations. It is the peculiarity of the legal predicament of a rebel, 'as we have already seen, to be responsible both to the municipal law and the jus gentium. Neither in the opinion of the Court in the case of " The Sally," nor in the argument of counsel in the twin case of " The Eapid," (8 Crancli, 154,) is the present contingency touched; although in " The Eapid" the Court does argumentatively consider and decide that property of a citizen of the United States may be prize of war to the United States. In "The Sally," the Court loosely and upon hasty presentation of some- 16 thing which in its opinion " hardly seems to be," comes to a conQjusion, certainly erroneous in its generality of "statement, and which as argu- ment stands upon the equally cursory statement of opinion attributed to the prize courts of Great Britain. While, in the early part of the present century, the political depart- ment of the American Government was engaged in steadily combatting the over-strained constructions of the laws of maritime war, set up by the courts and publicists of England, it is remarkable that not a few of the most exceptionable of those constructions were at the same time being transported one by one into our own jurisprudence by the judicial department of our Government, with a prevailing tendency to exaggerate the rights of prize, in the interest of captors, that is, of maritime depre- dation. One of the marked manifestations of that tendency is the pri- vateer decision in the case of "The Sally." It may be too late now to undo that which is ah^eady done in this re- spect; but the occasion is a good one to stop going on in that direction, and to begin to act on a wiser and better policy of our own, and ceasing, in a purely domestic question, to submit the rights of our own sovereignty to the imaginary pression of hostile or foreign prize law. The opinion of the Court, in the case of " The Sally," exhibits no in- trinsic claims to respect. It is the curtest possible, and furnishes very scanty and imperfect reasons for the decision. The Court half apologizes for this unsatisfactory brevity, by referring to the previous case of " The Eapid." But in that case no opinion what- ever is given on these points. "The Eapid" and "The Sally" were both war-captures, made during the late war between Great Britain and the United States. But for the occurrence of a foreign war, those vessels would have been confiscable under the Non-intercourse Acts, and they ceased to be so because of that war: which consideration may serve to sustain these two decisions, but fails to reach the present question. The English prize case of "The Nelly," (1 C. Eob., 219, note,) on on which our Supreme Court relied in the case of " The Sally," is quite as unsatisfactory as the latter ; and although it is pertinent to the latter case, because in "The Nelly," as well as "The Sally," the property was 17, affected by foreign war, yet, morever^ a decision the other way, that of " The Etrusco," was very summarily cast aside by Sir Wilham Scott. If foreign prize law is to decide tne question, it is not easy to see why that of England should be accepted as conclusive, rather than the con- trary law of France and Spain, as cited in the case of " The JSTelly." The nearest analogous case to the present is that of " The Dickinson," (Becisions of Hay and Marriott, p. 1,) which was an incident of the American Eevolution. There the forfeiture did not go to the captors, but to the Lord High Admiral. In G-reat Britain, the Crown has power to limit the operation of hos- tilities, and to exempt from prize, generally or specially ( The JElsebe, 5 C, Bob. 173;) it may restore prize as against the interest of captors, (The St. Ivan, Edwards, 377;) it may at any time before distribution alter or revoke a grant of prize money, (Alexander v. I>uke of Wellington, 2 Russ. & M. 35;) and emergencies of public policy in particular cases suffice to divert condemnation from the captors, and award it to the Crown, (Ships taken at Genoa, 4 C. Bob. 388.) These considerations serve, at least, to show how unsafe it is to transfer to our admiralty jurisprudence some detached dictum of the English prize cases, as that in "The Nelly," without regard to the temperaments and qualifications attaching to English prize law by reason of its complex relations to the Crown, to the Lord High Admiral, and to the Exchequer. It IS much to be regretted, said a statesman of the last generation, speaking of the decisions of the time and temper of that of " The Sally," — it is much to be regretted that "so great a passion for prizes" * * * fascinated and seduced our courts, and contaminated our code with a "craving for condemnations." In fine, the decision itself in the case of "The Sally" is a debate- able one; and, if sound, stiU it does not, either in fact or in terms, cover the eases before us, and is not entitled to be regarded as dictating what decision shall be made of them. It is wide of the question before us. That question is a new one, and it is this: May not the United States, in the exercise of their sovereignty as such, determine what shall be done with property taken by the United States from Americans, legitimate subjects of the Uiited States? By what rule of right .3 18 or reason is it, that, in regard to the property of such Americans, prize law should assume to override municipal law? It is in the mere discre- tion of the Government whether it will or not allow any prize money to maritime captors, even in time of foreign war; just as it is in the dis- cretion of the sovereign to allow or not to allow booty to land captors in time of foreign war. All that, in the United States, stands absolutely upon statute law, enacted in virtue of the power given by the Constitu- tion to Congress to "make rules concerning captures on land and water." In the present case, the statute does undoubtedly, in express terms, enact that certain property shall be forfeited and distributed as revenue forfeiture. Surely Congress has the power so to enact. That is not a ques- tion of international law, jus inter gentes, but of domestic policy and do- mestic law, with which the international law has no concern. And it is begging the whole question to pretend that the law of prize, enacted by Congress, abrogates, extinguishes, and annuls the law of revenue forfeit- ure enacted by the same Congress. There is one important adjudication, that of Judge Betts, of the south- ern district of New York, the case of "The Sarah Starr," in which, while commenting on the provisions of the act of July 13, 1861, and de- ciding that the case before him was one of prize, yet he concludes that "there is no incompatibility in inforcing the forfeiture, through the power of the Court under the process of prize, or in proceedings for con- demnation on the instance side of the Court, on motion of the district attorney in the same suit." — 3£S. Opinion in the case of the brig Sarah Starr and cargo, and the schooner Aighurth and cargo. In his discussion of these cases, Judge Betts appears to assume that the sixth section of the act of July 13, 1861, comprehends cargo as well as vessel. In the case of "The Amazon," and in other cases from the eastern district of Pennsylvania, heretofore acted on by the Treasury Department, it has been distinctly maintained by Judge Cadwalader, that seizures, coming within the letter of the act of July 13, 1861, even although proceeded against as prize, are nevertheless treatable as revenue forfeitures, within the jurisdiction of the Secretary of the Treasury. Admitting, as ruled by Judge Betts, that a case may come within the purview both of the Prize Acts and the Eevenue Acts, and so be proceeded i 19 against by double process at the same time, on the instance and the prize side of the' admiralty court, then it would follow that the district attor- ney might sue on the instance side alone, and, at the outset, with as much propriety as to sue on the prize side alone. In other words, a true determination of the present question cannot be precluded by the mere fact of the district attorney having, in his dis- cretion, and it may be erroneously, elected to sue on the prize side of the Court, instead of the instance side. It is no more competent here to say, that the captors in prize have a vested right to a distributive share of the proceeds in the cases under consideration, by reason of statute promise, than it is to say that the revenue officers have a vested right by similar statute promise; for the statute engagement of distribution to the revenue officers in the fifth sec- tion of the act of May 20, 1860, is just as positive and explicit, as the statute engagement to naval captors in the act of April 23, 1800, or that of July 17, 1862. Which of these acts, if either, is paramount and exclusive, — which, if either, is to take and dispose of the property in dispute, — is a question of statute construction, and of public law, which, regarding as well the amount of money at stake as the momentous character of the legal prin- ciples involved, seems to be pre-eminently fit to receive its final determina- tion at the hands of the Supreme Court of the United States. It is understood that the question arises formally, and awaits decision, in the case of "The Gray Jacket," now pending in the Supreme Court. In the Circuit Courts of the United States, and, indeed, in the courts of the States, when a class of cases, more or less numerous, happens to be pending, and one of them shall have been taken up to the highest Court for final decision, it is the ordinary practice, and the received exercise of judicial discretion, to continue and suspend all the cases of the same class, until the test case shall have been finally determined. It seems to me that the practice of the courts in this respect furnishes a rule of action here, which may well be followed by the Treasury De- partment. Applicable to the main question there is another class of considerations, which, although not involving so. much debate of technical law as the issue of conflict between revenue forfeiture and prize forfeiture, yet is 20 more important, perhaps, in its influences on the determination of the true effect of these acts. The acts affect in terms only the property of Americans, whether such by nationality or by domicil : Americans personally loyal, it may be, as well as Americans disloyal, and Americans inhabiting the loyal States, as well as Americans inhabiting the insurgent States. In order to stop the commercial intercourse between the two divisions of the Union and their respective inhabitants, it was necessary to enact general laws compre- hensive in their purview. But, in the execution of such laws, cases are prone to occur where technical violation of the statute may be attended by mitigating circumstances, or may be altogether innocent in spirit or intention, nay, may be absolutely meritorious and praiseworthy. It would be in accordance to all the traditions of the Government, and in congeniality with received usages of legislation, to provide for the pun- ishment of such illegal intercourse by forms of law admitting remission or mitigation of penalties and forfeitures. To do this, would not imply special or undue regard for inhabitants of the insurgent States: it would be dictated still more by tenderness towards inhabitants of the loyal States, equally subject to the penal operation of the acts. Such is mani- festly the inducement of these acts . In order that they mi^ht not oper- ate oppressively, and in order to enable the 'Government to afford relief in particular cases deserving it. Congress enacted, not a law of prize, but a law of revenue forfeitures, subject to the jurisdiction of the Secretary of the Treasury. ' Confirmation of this view of the subject is found in that provision of these acts, which empowers the Secretary of the Treasury to grant licenses or clearances for the intercourse otherwise prohibited, and to make general regulations in this behalf Thereupon it would follow con- sistently, as the acts in fact provide, that the Secretary should have power to mitigate or remit the consequences of things done, or omitted to be done, either in violation of or according to the regulations of the Department. Eevenue forfeiture would accomplish all possible objects of public poHcy contemplated by the acts. Prize forfeiture could be no more effective towards the attainment of the end sought than revenue forfeiture. Prize money to captors, and nothing else, makes difference between the 21 two forms of forfeiture. And whether to grant prize money to captors or not, and if granting it, then in what cases, is, we repeat, a question of pubhc policy not depending on any supposed laws of war, but on the sole discretion of the Government. Congress might have subjected all these cases to the law of war-prize, if it had seen fit so to do ; but it did not ; it chose to subject them to the municipal law, apparently for the express purpose of bringing them within the scope of remission or mitigation, according to the accustomed forms of statute. If, by construction of the supposed absorbing qualities of the laws of war, these revenue forfeitures are perverted into prize forfeitures, then all the wise and beneficent purposes of Congress in this respect are frus- trated. For there is no convenient statute routine, if indeed there be any statute means, whereby either a loyal inhabitant of the insurgent States or a feal inhabitant of the loyal States, can obtain relief in the case of the unjust forfeiture of his property as prize of war. To be sure, the President may, perhaps, have jurisdiction over the question of prize, just as the Crown has in Great Britain ; for the statute or other grant of prize to captors in Great Britain is just as effectual in terms of donation as it is in -the United States. But, we repeat, no convenient statute means for prize remission esist as with revenue forfeitures. Whether the construction of prize law shall be allowed to frustrate the declared will of Congress in the present matter is a consideration, inde- pendently of all the other considerations suggested, which would seem to justify suspension of distribution of prize, that is, of administrative action adverse to the express terms of these acts, until the question of law involved shall have been adjudicated by the Supreme Court. These considerations appeal with peculiar force to the Secretary of the Treasury. Disobedience to his regulations constitutes the offence which these acts punish. The acts, in terms, require him to take complete jurisdiction of the subject; to receive the forfeitures into the Treasury; to remit or to mitigate in his discretion ; and to distribute a share of for- feitures among ofiicers of the Treasury. Shall he repudiate and renounce this jurisdiction, which includes, not only his own official duties, but also the right of the Treasurj^, which he administers ? And if so, why shall he do this ? Is he compelled thus to pretermit the performance of a 22 statute duty, merely because some district attorney has, for good or bad cause, or noue at all, instituted proceedings on the prize side of the district court, instead of the instance side, as required by the letter of statute and the express command of the President. Surely such a step, on the part of a subordinate officer, does not determine the power or regulate the duties of the Secretary of the Treasury. Nothing less than a declaratory act of Congress, or a decision of the Supreme Court, can suffice to unloose the hand of the Department in this behalf, and take from it either power or money committed to it by un- equivocal provisions of acts of Congress. There is one other act, intermediate between those of July 13, 1861, and May 20, 1862, which demands attention. It is the strange one of August 6, 1861, entitled "An act to confiscate property used for insurrec- tionary purposes." Section 1 sets forth the conditions of such illegal uses, involving the consequence of liability of the property to confiscation, and then enacts that " all such property is hereby declared to be lawful subject of j;;7'~e and capture } and it shall be the duty of the President of the United States to cause the same to be seized, confiscated, and condemned." Section 2 enacts that "such prizes and captures shall be condemned in the district or circuit court of the United States having jurisdiction of the amount, or in admiralty in any district in which the same may be seized, or into which they may be taken and proceedings first instituted." Section 3 enacts that "the Attorney General or any district attorney of the United States in which said property may at the time he, may in- stitute the proceedings of condemnation, and in such case they shall be wholly for the benefit of the United States; or any person may file an information with such attorney, in which case the proceedings shall be for the use of such informer and the United States, in equal parts." Section 4 provides for the emancipation of slaves employed by their masters in any service against the Government, and is irrelevant to any present question. This anomalous act, with its inaccurate language, confusion of liabili- ties, remedies, and jurisdictions, its omissions as singular as its commis- sions, offers a very striking illustration of the embarrassments which sometimes occur in the exposition of acts of Congress; 23 In the absence of any authoritative judicial commentaries on this act, we may possibly determine its legal effect by liberal resort to conjectural supplement of its deficiencies, and discretionarj^ redistribution of its un- assorted elements. "When the act speaks of "'prize and capture," without discrimination of place, as whether by sea or land, we are not to suppose it intends to create a new law of land-prize, that is, military booty or loot. There is not in this act or any other, provision for applying'the rules of prize process and distribution to land captures by land forces. Nay, according to a recent opinion of the Supreme Court, capture on the land cannot be regarded as prize, in any sense. (3Irs. Alexanders Cotton, 2 Wallace, 404.) All such captures, except as they may be included within the purview of the acts of July 13 1861, and of May 20, 1862, or of other provisions of this act of August 6, 1861, belong to the category of the Confiscation Act (July 17, 1862) or that of the Captured Property Acts (March 12, 1863, and July 2, 1864.) And the general tenor of the Captured Property Acts seems to require that all insurgent property captured within the United States shall be turned over to the Treasury Department. That is especially required of all oflacers and privates of the army, and of all officers, sailors, and ma- rines of the navy, as to any property upon the inland waters of the United States. — See U. S. Statutes, vol. 12, p. 821. To return to the act of August 6, 1861: There may be cases of mari- time capture, and so of possible prize, comprehended within the condi- tions of forfeiture prescribed by this act. The unskilful framers of the act seem to have supposed so ; for the second section gives cognizance of cases to "admiralty" in language of contra- distinction from the district court, as if these were distinct and separate courts. And yet, on the other hand, this fact is inconclusive, because jurisdiction in admiralty does not necessarily imply jJi'ize, since revenue seizures are equally cognizable in admiralty. . Moreover, the third section expressly enacts, that condemnation under this act shall be either for the benefit of the United States, or on qui tarn information, half to the informer, and half to the United States. With reference to which, the second section gives jurisdiction to the circuit and district courts as in civil matters, according to the amount in controversy. 24' This provision is of universal terms, and seems to exclude all questions of prize (in the sense of prize law) from the purview of the act. Note, however, that this act contains no express grant of power to the Secretaiy of the Treasury to mitigate or remit forfeiture, nor any clause for the distribution of forfeiture or any part of it among officers of the Treasury. In fine, the act stands by itself, with apparently little, if any, practical importance, except as it may have served to support here and there a qui tarn information for the forfeiture of some stray piece of insurgent property, seized in places where the functions of the courts of the United States were going on without interruption. If any property captured on the high seas were so conditioned as to come within its purview, the cap- tor, nevertheless, probably caused it to be libelled as prize of war, and so the relation of it to this act may have passed without notice ; and if any such property were captured on land, or upon the inland waters of the United States, it is embraced within the provisions of other acts, either the two Non-intercourse Acts or the Confiscation or the Captured Prop- erty Acts. I say the Captured Property Acts, because, whatever question might exist as to the validity of the first of the acts, by reason of its having been approved after the expiration of the Congress, (March 12, 1863;) as to which there certainly may be question, (^dishing, Lex Pari iame^it aria, j). 920, s. 2378 ;) still that act is saved by the force of the subsequent act (July 21, 1864) on the same subject. Hence, upon examination of all the cases pending, it may not appear that any exist, which present the same conflict of law and right, between the act of August 6, 1861, and the Prize Acts, as that between these and and the Non-intercourse Acts. If any such cases of conflict do exist, then the reasons for suspension of distribution are similar to those which apply to the cases of conflict under the Non-intercourse Acts. All the conflict attaches to the condition of American property, and such only, that is, American by citizenship, or American by commercial domicil, whether in the loyal or the insurgent States. It does not apply to foreign property captured jwre belli, as belonging to persons not subject to the municipal jurisdiction of the United States. To resume : If you determine to act on the hypothesis of discriminative 25 suspension in order to await decision of the Supreme Court, then the first thing to do will be to classify the pending cases, according to the several categories into which they respectively fall. The cases, on which distribution might be suspended, are all such as are comprehended within the letter of the acts of July 13, 1861, and May 20, 1862, and of that of August 6, 1861, as they are severally explained in the foregoing observations. It would comprehend only Americans by nationality or domicil, and their property, whether a vehicle and its con- tents, or other property in transitu, by land or water, contrary to the non-intercourse provisions of these acts, or a ship (and her cargo) found in a port of the United States, or at sea under certain circumstances, or the specific property employed in aid of the rebellion. Such suspension would not cover prize money due on foreign property captured for breach of blockade or other cause appertaining to the jus belli, and so condemnable as prize; nor property of Americans proceeded against under the Confiscation Acts; nor such property held in virtue of the two Abandoned Property Acts. The next thing to do would be to establish regulations and forms of examination on notice, for cases as to which the Secretary of the Treas- ury intends to assume to remit in his discretion, as he lawfully may, with- out waiting for the certificate of a district judge. And, as the power of regulation, conferred on the Department by these Non-intercourse Acts, is ample in other respects, it might, perhaps, be well to make provision as to the institution of proceedings in these cases on the instance side of the admiralty courts, and as to needful appeals to the Supreme Court. I have the honor, in conclusion, to state, as the legitimate result of the foregoing reflections, that — Inasmuch as by the express terms of the acts of July 13, 1861, May 20, 1862, and August 6, 1861, and of the proclamation of the President of August 16, 1861, the Secretary of the Treasury is charged specially with the execution of these acts; And inasmuch as the forfeitures pronounced by these acts are in and by the same expressly declared to accrue to the Treasury, with power of remission or mitigation in certain cases ; And inasmuch as these acts still remain unrepealed, and of full force, except in so far as they may have been modified by the acts of March 12, 20 1863, and July 21, 1864, which also give exclusive jurisdiction to the Treasury Department ; Therefore, if any condemnations in prize have taken place, attaching to property and cases coming within the apparent purview of these acts, it is my opinion that, in the mere and plain discharge of his administra- tive duties, and in the judicious exercise of a sound and wise discretion, the Secretary of the Treasury may well and lawfully suspend the distri- bution of the proceeds of all such condemnations, until whatever there • be of questionable, if any thing, in the true construction of the acts, shall have been definitively determined, in a proper case or cases before it, by the Supreme Court of the United States. I am, very respectfully. Your obedient servant, C. Gushing. The Hon. Hugh McCulloch. Secretary of the Treasury. LIBRARY OF CONGRESS 013 701 790 8 '■t^% K^ ■>^^^-