"(B) has participated in any arrangement to conceal during the time of war any property or interest within the United States of any person who would be so barred; or

(C) has during the time of war and prior to the cessation of actual fighting done business within the territory (excluding that occupied by the military or naval forces) of any nation with which the United States has at any time since December 7, 1941, been at war; or

'(D) has during the time of war and prior to the cessation of actual fighting directly or indirectly acted with or aided or abetted any nation with which the United States has at any time since December 7, 1941, been at war,

may bring a suit against the United States in the Court of Claims for just compensation in respect of any property or interest taken from such person and vested in or transferred to the Alien Property Custodian (other than any property or interest acquired by the United States prior to December 18, 1941). No such suit shall, however, be instituted unless the plaintiff has, at least ninety day prior to its institution, filed a notice of claim pursuant to section 9 (a) or 32 hereof.

"(2) In any suit under this subsection, the Attorney General may request the Secretary of State to certify to the Court of Claims that the government of the country of which the plaintiff is a citizen, or in which the plaintiff is incorporated, or has its principal place of business, has notified the Secretary of State that it will permit within its territory the taking of evidence according to the law and procedure of the Court of Claims, before a person authorized to take evidence within the United States in cases instituted in the Court of Claims, and that, upon application of such person, the courts of that country will issue such process as may be necessary to compel the attendance and testimony of witnesses and the production, examination, and transcription of documents before him, unless issuance of process or disclosure of like testimony or evidence is prohibited by law in cases in its own courts. Upon such request, further prosecution of the suit may be stayed until the Secretary of State so certifies with respect to the government or governments referred to in the Attorney General's request and the suit may be dismissed unless the certification is made within a reasonable time. The Secretary of State shall certify to the Court of Claims any notification received hereunder from a foreign government.

(3) In any suit under this subsection, the plaintiff shall have the burden of proving all material facts, without benefit of any presumption with respect to ownership, control, residence, or nationality. At the request of the defendant, the plaintiff shall produce for examination by the defendant and for use at the trial, any witness, document, record, book, book of account, file, or paper or other writing, which could be produced through legal process at the request of either party if the parties and the witness or evidence were within the United States, but the plaintiff shall be excused from producing such witness or evidence if he satisfies the court that the witness or evidence is available to the defendant for examination and for use at the trial to the same extent as if they were within the United States, or can be made so available by the defendant through legal process. The court may stay further prosecution of the suit for failure by the plaintiff to produce any witness or evidence which he is obliged to produce hereunder and shall dismiss the suit if such witness or evidence is not produced within a reasonable time. It shall be no defense to a stay or dismissal hereunder that production of any such witness or evidence is prevented by reason of the laws of any foreign country, including, without limitation, laws respecting the secrecy of information with respect to ownership and control of property, transactions and communications, and laws respecting process, the privileges or immunities of parties and witnesses, the right of examination and cross-examination of witnesses, the execution of letters rogatory and the taking of depositions. The provisions of this paragraph (3) shall be applicable whether or not certification has been requested pursuant to paragraph (2) hereof.

'(4) Any person authorized to take evidence within the United States in cases instituted in the Court of Claims may be designated by the chief justice of the Courts of Claims to hold sessions at any place within or without the United States to hear witnesses and take evidence in any case instituted under this subsection. Such person and stenographers and interpreters authorized by the court, and the attorneys for the United States and stenographers and interpreters authorized by the Attorney General, shall receive their necessary travel expenses and their actual expenses incurred for subsistence while traveling on duty outside the United States in an amount not to exceed $25 per day in the case of persons

designated to hold such sessions and attorneys, and not to exceed $15 per day in the case of stenographers and interpreters. Allowances for expenses of travel and subsistence herein authorized shall be made by order of the Court of Claims or by direction of the Attorney General, as the case may be. They shall be deemed general administrative expenses of the Office of Alien Property Custodian and upon certification by the chief justice of the Court of Claims or by the Attorney General, as the case may be, shall be paid as such by the Alien Property Custodian in accordance with law.

(c) If the court shall determine that the plaintiff is entitled to just compensation under subsection (b) hereof, it shall enter a finding of the value of the property or interest at the time of taking, as determined by the court. In determining such value at the time of taking, nothing shall be included on account of any patent, copyright or trade-mark, or any portion thereof, or any application for or interst in such patent, copyright or trade-mark, which the court shall determine to be invalid. Against the value so found, the court shall credit the value of such part of the property or interest or proceeds as has been returned or paid to any claimant under this Act or tendered to the plaintiff. If, after such credit, the court shall determine that no amount remains to be awarded to the plaintiff, it shall dismiss the petition on the merits. If the court shall determine that an amount remains to be awarded, it shall enter a finding of such amount and upon the expiration of sixty days from the entry, shall enter judgment upon such finding unless, within such sixty days, a return or tender to the plaintiff has been made and notice thereof given to the court. In the event of such return or tender, the court shall modify the finding by deducting from the award the value of the property or interest or proceeds so returned or tendered, and shall enter judgment upon the modified finding. For the purposes of this subsection determination of the value of any property or interest or proceeds returned or paid or tendered shall be as of the date of tender, whether or not accepted. judgments rendered pursuant to this section shall be subject to review by the Supreme Court as provided in section 288 of title 28 of the United States Code.

All

'(d) Any person who institutes a suit under subsection (b) hereof may not thereafter institute, prosecute, or further maintain a suit under section 9 (a) in respect of the same property or interest or the net proceeds thereof. The entry of a final judgment for the plaintiff in a suit under section 9 (a) for the payment or conveyance, transfer, assignment, or delivery of any property or interest or proceeds, or the entry in such a suit of a final judgment for the defendant on a ground or grounds which would preclude relief in a suit under subsection (b), shall bar the institution of any suit under subsection (b) in respect of the same property or interest.

(e) Legal representatives (whether or not appointed by a court in the United States) or successors in interest by inheritance, devise, bequest, or operation of law, other than persons themselves precluded from bringing suit under subsection (b) hereof, shall be eligible to institute, prosecute, and maintain suits, and to file notices of claim, under this section and section 9 (a) to the same extent as their principals or predecessors would have been.

"SEC. 34. No return may be made pursuant to section 9 (a) or 32 (a) unless notice of claim for return has been filed within two years from the seizure by or vesting in the Alien Property Custodian, as the case may be, of the property or interest in respect of which the claim is made or within two years from the date of enactment of this section, whichever is later. No suit pursuant to section 9 (a) or 33 (b) may be instituted after the expiration of two years from the date of seizure by or vesting in the Alien Property Custodian, as the case may be, of the property or interest in respect of which relief is sought or from the date of enactment of this section, whichever is later, but in computing such two years there shall be excluded any period during which there was pending a claim for return pursuant to section 9 (a) or 32 hereof, or a suit pursuant to section 9 (a). "SEC. 35. (a) Any property or interest vested in or transferred to the Alien Property Custodian (other than any property or interest acquired by the United States prior to December 18, 1941), or the net proceeds thereof, shall be equitably applied by the Custodian in accordance with the provisions of this section to the payment of debts owed by the person who owned such property or interest immediately prior to its vesting in or transfer to the Alien Property Custodian. No debt claim shall be allowed under this section if it was not due and owing at the time of such vesting or transfer, or if it arose from any action or transactions prohibited by or pursuant to this Act and not licensed or otherwise authorized pursuant thereto, or (except in the case of debt claims acquired by the Custodian) f it was at the time of such vesting or transfer due and owing to any person who

is precluded from bringing suit under section 33 (b) hereof or who has since the beginning of the war been convicted of violation of this Act, as amended, sections 1-6 of the Criminal Code (18 U. S. C. 1-6), title I of the Act of June 15, 1917 (ch. 30, 40 Stat. 217), as amended; the Act of April 20, 1918 (ch. 59, 40 Stat. 534), as amended; the Act of June 8, 1934 (ch. 327, 52 Stat. 631), as amended; the Act of January 12, 1938 (ch. 2, 52 Stat. 3); title I, Alien Registration Act, 1940 (ch. 439, 54 Stat. 670); the Act of October 17, 1940 (ch. 897, 54 Stat. 1201); or the Act of June 25, 1942 (ch. 447, 56 Stat. 390). Any defense to the payment of such claims which would have been available to the debtor shall be available to the Custodian, except that the period from and after the beginning of the war shall not be included for the purpose of determining the application of any statute of limitations. Debt claims allowable hereunder shall include only those of citizens of the United States or of the Philippine Islands; those of corporations organized under the laws of the United States or any State, Territory, or possession thereof, or the District of Columbia or the Philippine Islands; those of other natural persons who are and have been since the beginning of the war residents of the United States and who have not during the war been interned or paroled pursuant to the Alien Enemy Act (50 U. S. C. 21); and those acquired by the Custodian. Legal representatives (whether or not appointed by a court in the United States) or successors in interest by inheritance, devise, bequest, or operation of law of debt claimants, other than persons themselves precluded from bringing suit under section 33 (b) hereof, shall be eligible for payment to the same extent as their principals or predecessors would have been.

"(b) The Custodian shall fix a date or dates after which the filing of debt claims in respect of any or all debtors shall be barred, and may extend the time so fixed, and shall give at least sixty days' notice thereof by publication in the Federal Register. In no event shall the time extend beyond the expiration of two years from the date of the last vesting in or transfer to the Custodian of any property or interest of a debtor in respect of whose debts the date is fixed, or from the date of enactment of this section, whichever is later. No debt shall be paid prior to the expiration of one hundred and twenty days after publication of the first such notice in respect of the debtor, nor in any event shall any payment of a debt claim be made out of any property or interest or proceeds in respect of which a proceeding pursuant to this Act for return or for just compensation is pending and was instituted prior to the expiration of such one hundred and twenty days.

(c) The Custodian shall examine the claims, and such evidence in respect thereof as may be presented to him or as he may introduce into the record and shall make a determination, with respect to each claim, of allowance or disallowance, in whole or in part.

"6" (d) Payment of debt claims shall be made only out of such money included in, or received as net proceeds from the sale, use, or other disposition of, any property or interest owned by the debtor immediately prior to its vesting in or transfer to the Alien Property Custodian, as shall remain after deduction of (1) the amount of the expenses of the Office of Alien Property Custodian (including both expenses in connection with such property or interest or proceeds thereof, and such portion as the Custodian shall fix of the other expenses of the Office of Alien Property Custodian), and of taxes, as defined in section 37 nereof, paid by the Custodian in respect of such property or interest or proceeds, and (2) such amount, if any, as the Custodian may establish as a cash reserve for the future payment of such expenses and taxes. If the money available hereunder for the payment of debt claims against the debtor is insufficient for the satisfaction of all claims allowed by the Custodian, ratable payments shall be made in accordance with subsection (g) hereof to the extent permitted by the money available and additional payments shall be made whenever the Custodian shall determine that substantial further money has become available, through liquidation of any such property or interest or otherwise. The Custodian shall not be required through any judgment of any court, levy of execution, or otherwise to sell or liquidate any property or interest vested in or transferred to him, for the purpose of paying or satisfying any debt claim.

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(e) If the aggregate of debt claims filed as prescribed does not exceed the money from which, in accordance with subsection (d) hereof, payment may be made, the Custodian shall pay each claim to the extent allowed, and shall serve by registered mail, on each claimant whose claim is disallowed in whole or in part, a notice of such disallowance. Within sixty days after the date of mailing of the Custodian's determination, any debt claimant whose claim has been disallowed in whole or in part may file in the District Court of the United States for the District

of Columbia a complaint for review of such disallowance naming the Custodian as defendant. Such complaint shall be served on the Custodian, The Custodian, within forty-five days after service on him, shall certify and file in said court a transcript of the record of proceedings in the Office of Alien Property Custodian with respect to the claim in question. Upon good cause shown such time may be extended by the court. Such record shall include the claim as filed, such evidence with respect thereto as may have been presented to the Custodian or introduced into the record by him, and the determination of the Custodian with respect thereto, including any findings made by him. The court may, in its discretion, take additional evidence, upon a showing that such evidence was offered to and excluded by the Custodian, or could not reasonably have been adduced before him or was not available to him. The court shall enter judgment affirming, modifying, or reversing the Custodian's determination, and directing payment in the amount, if any, which it finds due.

(f) If the aggregate of debt claims filed as prescribed exceeds the money from which, in accordance with subsection (d) hereof, payment may be made, the Custodian shall prepare and serve by registered mail on all claimants a schedule of all debt claims allowed and the proposed payment to each claimant. In preparing such schedule, the Custodian shall assign priorities in accordance with the provisions of subsection (g) hereof. Within sixty days after the date of mailing of such schedule, any claimant considering himself aggrieved may file in the District Court of the United States for the District of Columbia a complaint for review of such schedule, naming the Custodian as defendant. A copy of such complaint shall be served upon the Custodian and on each claimant named in the schedule. The Custodian, within forty-five days after service on him, shall certify and file in said court a transcript of the record of proceedings in the Office of Alien Property Custodian with respect to such schedule. Upon good cause shown such time may be extended by the court. Such record shall include the claims in question as filed, such evidence with respect thereto as may have been presented to the Custodian or introduced into the record by him, any findings or other determinations made by the Custodian with respect thereto, and the schedule prepared by the Custodian. The court may, in its discretion, take additional evidence, upon a showing that such evidence was offered to and excluded by the Custodian or could not reasonably have been adduced before him or was not available to him. Any interested debt claimant who has filed a claim with the Custodian pursuant to this section, upon timely application to the court, shall be permitted to intervene in such review proceedings. The court shall enter judgment affirming or modifying the schedule as prepared by the Custodian and directing payment, if any be found due, pursuant to the schedule as affirmed or modified and to the extent of the money from which, in accordance with subsection (d) hereof, payment may be made. Pending the decision of the court on such complaint for review, and pending final determination of any appeal from such decision, payment may be made only to an extent, if any, consistent with the contentions of all claimants for review.

"(g) Debt claims shall be paid in the following order of priority: (1) Wage and salary claims, not to exceed $600; (2) claims entitled to priority under sections 191 and 193 of title 31 of the United States Code, except as provided in subsection (h) hereof; (3) all other claims for services rendered, for expenses incurred in connection with such services, for rent, for goods and materials delivered to the debtor, and for payments made to the debtor for goods or services not received by the claimant; (4) all other debt claims. No payment shall be made to claimants within a subordinate class unless the money from which, in accordance with subsection (d) hereof, payment may be made permits payment in full of all allowed claims in every prior class.

"(h) No debt of any kind shall be entitled to priority under any law of the United States or any State, Territory, or possession thereof, or the District of Columbia, solely by reason of becoming a debt due or owing to the United States as a result of its acquisition by the Alien Property Custodian.

(i) The sole relief and remedy available to any person seeking satisfaction of a debt claim out of any property or interest which shall have been vested in or transferred to the Alien Property Custodian (other than any property or interest acquired by the United States prior to December 18, 1941), or the proceeds thereof, shall be the relief and remedy provided in this section, and suits for the satisfaction of debt claims shall not be instituted, prosecuted, or further maintained except in conformity with this section: Provided, That no person asserting any interest, right, or title in any property or interest or proceeds acquired by the Alien Property Custodian, shall be barred from proceeding pursuant to this Act for the return

thereof or for just compensation in respect thereof, by reason of any proceeding which he may have brought pursuant to this section; nor shall any security interest asserted by the creditor in any such property or interest or proceeds be deemed to have been waived solely by reason of such proceeding. The Alien Property Custodian shall treat all debt claims now filed with him as claims filed pursuant to this section. Nothing contained in this section shall bar any person from the prosecution of any suit at law or in equity against the original debtor or against any other person who may be liable for the payment of any debt for which a claim might have been filed hereunder. No purchaser, lessee, licensee, or other transferee of any property or interest from the Alien Property Custodian shall, solely by reason of such purchase, lease, license, or transfer, become liable for the payment of any debt owed by the person who owned such property or interest prior to its vesting in or transfer to the Alien Property Custodian. Payment by the Alien Property Custodian to any debt claimant shall constitute, to the extent of payment, a discharge of the indebtedness represented by the claim

SEC. 36. The officer or agency empowered to entertain claims under sections. 9 (a), 32, and 35 hereof shall have power to hold such hearings as may be deemed necessary; to prescribe fules and regulations governing the form and contents of claims, the proof thereof, and all other matters related to proceedings on such claims; and in connection with such proceedings to issue subpenas, administer oaths, and examine witnesses. Such powers, and any other powers conferred upon such officer or agency by sections 9 (a), 32, and 35 hereof may be exercised through subordinate officers designated by such officer or agency.

'SEC. 37. (a) The vesting in or transfer to the Alien Property Custodian of any property or interest (other than any property or interest acquired by the United States prior to December 18, 1941), or the receipt by him of any earnings, increment, or proceeds thereof shall not render inapplicable any Federal, State, Territorial, or local tax for any period prior or subsequent to the date of such vesting or transfer, nor render applicable the exemptions provided in title II of the Social Security Act with respect to service performed in the employ of the United States Government or of any instrumentality of the United States.

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(b) The Alien Property Custodian shall, notwithstanding the filing of any claim or the institution of any suit under this Act, pay any tax incident to any such property or interest, or the earnings, increment, or proceeds thereof, at the earliest time appearing to him to be not contrary to the interest of the United States. The former owner shall not be liable for any such tax accruing while such property, interest, earnings, increment, or proceeds are held by the Alien Property Custodian, unless they are returned pursuant to this Act without payment of such tax by the Alien Property Custodian. Every such tax shall be paid by the Alien Property Custodian to the same extent, as nearly as may be deemed practicable, as though the property or interest had not been vested in or transferred to the Alien Property Custodian, and shall be paid only out of the property or interest, or earnings, increment, or proceeds thereof, to which they are incident or out of other property or interests acquired from the same former owner, or earnings, increment, or proceeds thereof. No tax liability may be enforced from any property or interest or the earnings, increment, or proceeds thereof while held by the Alien Property Custodian except with his consent. Where any property or interest is transferred, otherwise than pursuant to section 9 (a), 32, or 33 hereof, the Alien Property Custodian may transfer the property or interest free and clear of any tax, except to the extent of any lien for a tax existing and perfected at the date of vesting, and the proceeds of such transfer shall, for tax purposes, replace the property or interest in the hands of the Alien Property Custodian.

(c) Subject to the provisions of subsection (b) hereof, the manner of computing any Federal taxes, including without limitation by reason of this enumeration, the applicability in such computation of credits, deductions, and exemptions to which the former owner is or would be entitled, and the time and manner of any payment of such taxes and the extent of any compliance by the Custodian with provisions of Federal law and regulations applicable with respect to Federal taxes, shall be in accordance with regulations prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury to effectuate this section. Statutes of limitations on assessments, collection, refund, or credit of Federal taxes shall be suspended, with respect to any vested property or interest, or the earnings, increment or proceeds thereof, while vested and for six months thereafter; but no interest shall be paid upon any refund with respect to any period during which the statute of limitations is so suspended.

'(d) The word "tax" as used in this section shall include, without limitation by reason of this enumeration, any property, income, excess-profits, war-profits,