United States v. Oregon

vides that such property shall escheat to the State.^[1] A United States statute, on the other hand, provides that when a veteran dies without a will or legal heirs in a veterans’ hospital, his personal property “shall immediately vest in and become the property of the United States as trustee for the sole use and benefit of the General Post Fund . ...”^[2] In reliance upon these provisions of their respective statutes, both the State of Oregon and the Government of the United States filed claims for Warpouske’s estate in the Oregon probate court having jurisdiction of the matter.

Recognizing that the federal statute, if applicable and valid, would make the claim of the United States paramount, the State attacked the Government’s reliance upon that statute on two grounds: first, it urged that the federal statute did not apply to this case on the theory that its provisions depended upon the Government’s having made a valid contract with the veteran prior to his death and that Warpouske had made no such contract because he had been mentally incompetent to do so when he entered the hospital and at all times thereafter up to his death; and, secondly, it urged that the federal statute, even if applicable, was invalid because it pertains to the devolution of property, a matter contended to have been wholly reserved to the States by the Tenth Amendment.

After hearings, the probate court found as a fact that Warpouske had been unable to enter into a valid contract with the Government because of his mental

incompetence. That court then accepted the State’s interpretation of the federal statute as requiring a valid contract as a prerequisite to its application and concluded that since such a contract could not, in this case, have been made, the State was entitled to Warpouske’s property by virtue of its escheat law. On appeal, the State Supreme Court affirmed on the same grounds.^[3] Because of the importance of this question of federal statutory construction and an alleged conflict between this decision and decisions previously made by other state courts of final jurisdiction,^[4] we granted certiorari.^[5]

Since we accept the findings of the two state courts that Warpouske could not and did not enter into a contract to leave his property to the United States, the crucial question is whether the Government can prevail in the absence of such a contract. We hold that it can on the grounds that the federal statute relied upon does not require a contract and that this statute does not violate the Tenth Amendment.

The controlling provision was passed in 1941 as an amendment to the Sundry Appropriations Act of 1910.^[6] The 1910 Act quite plainly and unequivocally provided that the admission of an applicant to a veterans’ home should “be and constitute a valid and binding contract between such applicant and the Board of Managers of said home that on the death of said applicant while a member of such home, leaving no heirs at law nor next of kin, all personal property owned by said applicant at the time of his death, including money or choses in action held by him and not disposed of by will . . . shall vest in

and become the property of the said Board of Managers for the sole use and benefit of the post fund of said home . . . .” The contractual nature of these provisions of the 1910 Act was clear and, indeed, we expressly recognized that fact when the question of the validity of the Act was brought before this Court.^[7]

The 1910 Act was greatly amplified, however, by the amendments adopted in 1941^[8] and the central provision of the Act, quoted above, was significantly changed. Section 1 of the new Act restates this provision without reference to the word “contract,” providing simply that when a veteran dies “while a member or patient in any facility, or any hospital while being furnished care or treatment,” all his personal property “not disposed of by will or otherwise, shall immediately vest in and become the property of the United States as trustee for the sole use and benefit of the General Post Fund . ...”^[9] The Act then goes on to supplement this basic provision with other provisions that are drawn in the language of contract. But these provisions must be read in the context of § 2 of the Act which provides that the death of a veteran in a veterans’ hospital “shall give rise to a conclusive presumption of a valid contract.”^[10] Read in this context, the language of contract which appears in these other provisions of the Act is not at all inconsistent with the provision for automatic vesting without a contract in § 1. Quite the contrary, it seems plain to us that

these “contractual” provisions were included in the Act for the purpose of reinforcing rather than detracting from the provisions of § 1 — the thought apparently being that there was some chance that the Act would be attacked as unconstitutional and that it would consequently be advisable to include alternative bases upon which it could be upheld.^[11]

This natural construction we give to § 1 makes it fit well in the pattern of legislation dealing with this subject. The solicitude of Congress for veterans is of long standing.^[12] Veterans’ pensions, homes, hospitals and other facilities have been supplied on an ever-increasing scale. Many veterans, as did the deceased veteran here, have had to depend upon these benefits for long periods of their lives. Warpouske, for example, appears to have spent more than ten years of his life, at various intervals from time to time, in veterans’ homes and hospitals throughout the country. These were the only homes he had at those times. The congressional plan here is that whatever little personal property veterans without wills or kin happen to leave when they die in veterans’ homes and hospitals should be paid into the General Post Fund, to be used for the recreation and pleasure of other ex-service men and women who have to spend their days in veterans’ homes and hospitals. This idea was expressed by Representative Jennings during the discussion of the 1941 Act on the floor of the House: “And would it not be much better to let that money go into a fund that would inure to the benefit of other veterans than to

let . . . it go into a fund under the escheat laws of [a] State?”^[13]

Having concluded that the provisions of § 1 are clear and unequivocal on their face, we find no need to resort to the legislative history of the Act.^[14] Since the State has placed such heavy reliance upon that history, however, we do deem it appropriate to point out that this history is at best inconclusive. It is true, as the State points out, that Representative Rankin, as Chairman of the Committee handling the bill on the floor of the House, expressed his view during the course of discussion of the bill on the floor that the 1941 Act would not apply to insane veterans incompetent to make valid contracts.^[15] But such statements, even when they stand alone, have never been regarded as sufficiently compelling to justify deviation from the plain language of a statute. They are even less so here for there is powerful countervailing evidence as to the intention of those who drafted the bill. The bill was drawn up and sent to the Speaker of the House, in the very form in which it was passed, by the Veterans’ Bureau itself.^[16] And that Bureau, we are told, has consistently interpreted the 1941 Act as making the sanity or insanity of a veteran who dies in a veterans’ hospital entirely irrelevant to the determination of the Government’s rights under the Act.

We see no merit in the challenge to the constitutionality of § 1 as construed in this natural manner. Congress undoubtedly has the power — under its constitutional powers to raise armies and navies and to conduct wars— to pay pensions, and to build hospitals and homes for veterans. We think it plain that the same sources of

power authorize Congress to require that the personal property left by its wards when they die in government facilities shall be devoted to the comfort and recreation of other ex-service people who must depend upon the Government for care. The fact that this law pertains to the devolution of property does not render it invalid.^[17] Although it is true that this is an area normally left to the States, it is not immune under the Tenth Amendment from laws passed by the Federal Government which are, as is the law here, necessary and proper to the exercise of a delegated power.^[18]

The judgment of the Oregon Supreme Court is reversed and the cause is remanded for further proceedings not inconsistent with this opinion.

Reversed.

with whom

Mr, Justice Whit-taker concurs, dissenting.

I do not see how this decedent’s estate can constitutionally pass to the United States. The succession of real and personal property is traditionally a state matter under our federal system. Mager v. Grima, 8 How. 490 , 493-494. That tradition continues, United States v. Burnison, 339 U. S. 87 , 91-92; Clark v. Allen, 331 U. S. 503 , 517; Irving Trust Co. v. Day, 314 U. S. 556 , 562; Lyeth v. Hoey, 305 U. S. 188 , 193. An individual can contract away his assets — making the United States the promisee — and the contract will be enforced, provided, it

is valid under state law. United States v. Stevens, 302 U. S. 623 , 627. It may be that an action in quantum meruit would lie against the estate of a person who, though utterly incompetent as Adam B. Warpouske concededly was, received treatment at a federal hospital.^[1] It may be that the United States could appropriate all unexpended funds from federal pensions or federal insurance policies in exchange for the services rendered an incompetent. See United States v. Hall, 98 U. S. 343 ; Wissner v. Wissner, 338 U. S. 655 ; cf. Miller Music Corp. v. Daniels, Inc., 362 U. S. 373 . The power of Congress to legislate concerning the claims of all veterans, whether competent or incompetent, is well settled. Hines v. Lowrey, 305 U. S. 85 .

We deal here, however, with an inheritance that the incompetent veteran received from his brother — an estate worth about $13,000. How Congress can provide for that sum to pass to the United States is difficult to understand. Oregon has provided how the property of one who dies intestate and without heirs shall be distributed;^[2] and that is its constitutional right under the Tenth Amendment. Never before, I believe, has a federal law governing the property of one dying intestate been allowed to override a state law. Some state inheritance laws are affected by federal policy, as we recently held in Kolovrat v. Oregon, ante, p. 187. Thus where a treaty

pital and who leaves personal property not disposed of by will and to which no surviving spouse, next of kin or heirs are entitled under the laws of his domicile. Such property, the Act says, “shall immediately vest in and become the property of the United States.” § 1. The acceptance of care or treatment at a Veterans’ Hospital is by the terms of the Act acceptance of the provisions of the Act, and has “the effect of an assignment” of the property effective at death. § 1. The fact of death in a Veterans’ Hospital of a veteran “leaving no spouse, next of kin, or heirs” gives, rise “to a conclusive presumption” of a valid contract for the disposition of the property in that way to the United States. § 2. Moreover, the Veterans’ Administration is authorized to administer the estate, paying creditors’ claims, if presented within designated times, and granting them the preference and priorities prescribed by local law. § 4.

We know that, while the Act is based on “a conclusive presumption” that a contract to assign the property to the United States was made, there was in fact no contract in this case. During the period of Warpouske’s hospitalization — from March 1, 1956, to March 19, 1956, the day of his death — he was either comatose or semicomatose.^[3] We deal with a presumption that is contrary to the fact (cf. Tot v. United States, 319 U. S. 463 ). We have then a case involving the power of Congress to provide for the administration of the estate of a deceased veteran where he has in fact made no assignment of it to the Federal Government. To what power is that necessary and proper?

Federal Government (as most people do today) is not among the enumerated powers. At bottom of the present statute, as the Court points out, is a desire to make those who use a Veterans’ Hospital help finance its operations.^[4] Congress can set rates for services rendered; it can obtain from patients assignments of assets to the United States; it can induce and encourage people to make these hospitals beneficiaries under their wills. But I do not see how it is possible for the United States to take a man’s property without his consent when the United States is not a creditor in the accepted sense. The only constitutional way in which that can be done is by taxation or by condemnation. This law as applied is indeed a levy that has no support in the Constitution; and it makes a serious inroad on the Tenth Amendment. With all deference, I dissent.