New-York tribune., 1917-11-27
All Firms of Germany and
Allies Are Ordered to
Liquidate
Life Concerns
Are Excepted
Four. Corporations Must
Settle Up Their Affairs
and Quit Business
fStof Correspondence

WASHINGTON, Nov. 2G.--The fight
on the menace of German insurance
companies, begun by The Tribune soon
after the declaration of war, ended to-
day in the ruling Of Secretary of the
Treasury McAdoo that all enemy and
ally of the enemy" fire and casualty
insurance companies now doing busl'
meas in the United States must liqui-
date.
For the present, enemy and enemy
ally life insurance companies are per
mitted to continue. German marine
insurance was barred b. Presidential
proclamation on July Is.
The ruling Of Secretary McAdoo
made on the application of the com
panies now put out Of business for
permits to continue under the trading
with the enemy act, is as follows:
Upon careful weighing Of the evil
dence submitted have reached the
conclusion that the safety Of the
United States requires that enemy
and ally of enemy marine, FIRE and
casualty insurance companies shall
not be allowed to do business as 60
ing concerns. The consideration OF
safety is 50 important as 20 render II
unnecessary TO determine at this
time whether this action is also de-
manded by other considerations in
cident to the successful prosecution
of the war.
an these circumstances, ! am con-
yinced that the best interests of the
country will be served by the liquida-
tion Of these companies, under the
direction Of their American manage
mcnt, and subject to such regulations
as the Secretary of the Treasury may
from time TO time prescribe.
"As the liquidation of the life in
surance companies involved may
work an injustice TO policyholders,
and as the information accessible 70
such companies cannot benefit the
enemy, because Of the character OF
the business and its inconsiderable
proportions, these companle. for the
present Will be allowed 10 continue
existing contracts"
The companies affected b. the ruling
are: The Aachen & Munich, Of Mu-
mich; the Hamburg Bremen, of Ham
burg: the Nord Deutsche, of Hamburg,
ard the Prussian National, Of Berlin,
all direct writing companies, and these
reinsurance companies: Munich Rein
surance, of Munich; Frankona Rein
surance, of Berlin, the Hamburg As
surance. OF Hamburg; the South Ger
man Reinsurance, of Munich; the Co.
logne Reinsurance, OF Cologne; the
Minerva, Retro and Reinsurance, OF
Cologne; the First Bulgarian, Bull
garia; the Balkan National, Of Bull
Caria, and the international Reinsur-
ance, Of Vienna, Austria.
In addition there is the Frankfort
General, Of Frankfort, which has been
transacting a general casualty busi-
ness in the United States.
The German fire companies received
55,000,000 in premiums in the United
States last year They had s3,500, ,000,-
600 insurance outstanding, according
to the last reports available, and assets
in the United States Of S35,000.000
Their margin of assets to potential liza.
biities was about one-tenth of that OF
the American and English companie:
doing business here. One line of at
tack upon them was the fact that the
home companies are 20 all intents anC
purposes bankrupt and the American
branches were not in position 10 meet
any unusual demand such as Il Sar
Francisco or a Baltimore fire.