Margolin v. United States/Opinion of the Court
An act of Congress approved September 2, 1914 (38 Stat. 711, c. 293 (Comp. St. §§ 514a-514j)), provided for a Bureau of War Risk Insurance in the Treasury Department, directed it to insure American vessels, their freight, passage money, and cargoes against war risks, and further authorized it to prescribe necessary rules and regulations. This was amended by Act June 12, 1917, c. 26, 40 Stat. 102 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, §§ 514a-514i), so as to provide insurance for masters, officers and crews of American vessels; and the following new section was added:

'Sec. 5a. No claim agent or attorney shall be entitled to      receive any compensation whatever for services in the collection of claims against the Bureau of War Risk Insurance      for death, personal injury, or detention, except when      proceedings are taken in accordance with section five in a      district court of the United States, in which case the judge      shall, as a part of his determination and order, settle and      determine the amount of compensation not to exceed ten per      centum of amount recovered, to be paid by the claimant on      behalf of whom such proceedings are instituted to his legal      adviser or advisers, and it shall be unlawful for any lawyer      or other person acting in that behalf to ask for, contract      for, or receive any larger sum than the amount so fixed.'      Section 514ee.

An act approved October 6, 1917 (40 Stat. 398, c. 105 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, § 514a et seq.)), again amended the original act, provided for Divisions of Marine and Seamen's Insurance and of Military and Naval Insurance, made definite provision for insuring members of the military and naval forces, and added another new section:

'Sec. 13. That the director, subject to the general direction      of the Secretary of the Treasury, shall administer, execute,      and enforce the provisions of this act, and for that purpose      have full power and authority to make rules and regulations,      not inconsistent with the provisions of this act, necessary      or appropriate to carry out its purposes, and shall decide      all questions arising under the act, except as otherwise      provided in sections five and four hundred and five. Wherever      under any provision or provisions of the act regulations are      directed or authorized to be made, such regulations, unless      the context otherwise requires, shall or may be made by the      director, subject to the general direction of the Secretary      of the Treasury. The director shall adopt reasonable and      proper rules to govern the procedure of the divisions, to      regulate the matter of the compensation, if any, but in no      case to exceed ten per centum, to be paid to claim agents and      attorneys for services in connection with any of the matters provided for in articles two, three, and four, and to      regulate and provide for the nature and extent of the proofs      and evidence and the method of taking and furnishing the same      in order to establish the right to benefits of allowance,      allotment, compensation, or insurance provided for in this      act, the forms of application of those claiming to be      entitled to such benefits, the method of making      investigations and medical examinations, and the manner and      form of adjudications and awards.' Section 514kk.

An act approved May 20, 1918 (40 Stat. 555, c. 77, § 1 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, § 514kk)), amended section 13, above quoted, so that it should provide:

'Sec. 13. That the director, subject to the general direction      of the Secretary of the Treasury, shall administer, execute,      and enforce the provisions of this act, and for that purpose      have full power and authority to make rules and regulations      not inconsistent with the provisions of this act, necessary      or appropriate to carry out its purposes, and shall decide      all questions arising under the act, except as otherwise      provided in section five. Wherever under any provision or      provisions of the act regulations are directed or authorized      to be made, such regulations, unless the context otherwise      requires, shall or may be made by the director, subject to      the general direction of the Secretary of the Treasury. The      director shall adopt reasonable and proper rules to govern      the procedure of the divisions and to regulate and provide      for the nature and extent of the proofs and evidence and the      method of taking and furnishing the same in order to      establish the right to benefits of allowance, allotment,      compensation, or insurance provided for in this Act, the      forms of application of those claiming to be entitled to such      benefits, the methods of making investigations and medical      examinations, and the manner and form of adjudications and      awards: Provided, however, that payment to any attorney or      agent for such assistance as may be required in the      preparation and execution of the necessary papers shall not exceed $3 in any one case: And provided further,      that no claim agent or attorney shall be recognized in the      presentation or adjudication of claims under articles two,      three, and four, except that in the event of disagreement as      to a claim under the contract of insurance between the bureau      and any beneficiary or beneficiaries thereunder an action on      the claim may be brought against the United States in the      District Court of the United States in and for the district      in which such beneficiaries or any one of them resides, and      that whenever judgment shall be rendered in an action brought      pursuant to this provision the court, as part of its      judgment, shall determine and allow such reasonable      attorney's fees, not to exceed five per centum of the amount      recovered, to be paid by the claimant in behalf of whom such      proceedings were instituted to his attorney, said fee to be      paid out of the payments to be made to the beneficiary under      the judgment rendered at a rate not exceeding one-tenth of      each of such payments until paid.

'Any person who shall, directly or indirectly, solicit,      contract for, charge, or receive, or who shall attempt to      solicit, contract for, charge, or receive any fee or      compensation, except as herein provided, shall be guilty of a      misdemeanor, and for each and every offense shall be      punishable by a fine of not more than $500 or by imprisonment      at hard labor for not more than two years, or by both such      fine and imprisonment.'

An act approved August 9, 1921. (42 Stat. 147, c. 57), provided for the establishment of the Veterans' Bureau, with 'the functions, powers, and duties conferred by existing law upon the Bureau of War Risk Insurance.' Section 3 (Comp. St. Ann. Supp. 1923, § 967 1/4 b).

Petitioner was found guilty under an indictment which charged that he unlawfully received fifteen hundred dollars as a fee and compensation for services in preparing and presenting to the United States Veterans' Bureau an affidavit executed by Yetta Cohen in support of her claim for insurance money provided for by the act approved October 6, 1917, and amendments thereto. The trial court imposed a fine of two hundred and fifty dollars and its judgment was affirmed by the Circuit Court of Appeals. 3 F.(2d) 602.

It appears that Yetta Cohen retained petitioner, a member of the bar, to press allowance of her claim as a beneficiary designated in a policy issued to her nephew under the War Risk Insurance Act. He corresponded with the Veterans' Bureau, made one trip from New York to Washington where he examined records and interviewed officials, and prepared the necessary papers. It may be assumed that his services were useful and of some substantial value. For them he demanded two thousand dollars and received fifteen hundred. The exceptions raise the questions whether section 13, Act of May 20, 1918, forbids an attorney from charging more than $3 for any services rendered a beneficiary in respect of a claim under the War Risk Insurance Act when no action in court has been instituted, and whether if so construed that section offends the Fifth Amendment.

Petitioner claims that the inhibition against receiving any sum greater than $3 relates solely to the clerical work of filling out the form or affidavit of claim and does not apply to useful investigation and preparatory work such as he did. He insists that this view is supported by the reports of the committees of the Senate and House of Representatives which recommend passage of the bill, also by a communication from the Secretary of the Treasury, incorporated therein. See S. R. 429 and H. R. 471, 65th Cong., 2d Sess.

We find no reason which would justify disregard of the plain language of the section under consideration. It declares that any person who receives a fee or compensation in respect of a claim under the act, except as therein provided, shall be deemed guilty of a misdemeanor. The only compensation which it permits a claim agent or attorney to receive where no legal proceeding has been commenced is $3 for assistance in preparation and execution of necessary papers; and the history of the enactment indicates plainly enough that Congress did not fail to choose apt language to express its purpose.

The validity of section 13, construed as above indicated, we think, is not open to serious doubt. Calhoun v. Massie, 253 U.S. 170, 40 S.C.t. 474, 64 L. Ed. 843.

Affirmed.

Mr. Justice BRANDEIS took no part in the consideration or determination of this cause. 

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