New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-07
Assets of German
Insurance Firms
Must Stay in y. S.
President, by Proclamation,
Says Business Will Be
Permitted to Continue
States to Make Rules
Superintendent Phillips Esti-
mates Companies Garry 49,
5oO,OOo,OOO in Risks
States to Make Rules

mates companies Larry PO,-
5OO,O00,000 in Risks
Resides the general proclamation is
.,.d yesterday by President Wilson,
..-ourc,rr the state of war, the Pres
don. issued r proclamation defining
,,c status or the German insurance
lorpsn.cs dong business in this coun-
.-~ which .a cfcc. permits the con-
,.-sarcc o. their operations In the
Y-,tcd states. However, 1t is provided
,.st the German companies must not
transfer any OF their assets from this
country 90 Germany.
President Wilson points out the
,,ccss,-s for this step because OF the
Great American interests involved.
Jesse S. Phillips. State Superlntcn-
don. OF INSURANCE. who placed at more
chan S..-..o0o.ooo the risks held by
che German companies In this country,
announced last evening that he would,
~ accordance with the Presidents
..o,Is~s,or. formulate rules for the
Guidance OF tie companies and also
fr.. p, would notify banks holding as
se.s Of the companies that they must
10, be transferred
The Presidents Proclamation
The proclamation reads:
Whereas. Certain insurance com
manic. incorporated under the laws Of
,5e German Empire have been admitted
n transact the business Of insurance
g, various states Of the United States
r. means or separate United States
branches. established pursuant TO the
Laws o. such states. and arc now en-
RACED in business under the supcryi-
ZION o. the insurance departments
thereof. with assets iva the United
States deposited with insurance de-
rartmerts. or in the hands Of resident
trustees. citizens Of tho United States,
for the protection OF an policy holders
within the United States; and,
Whereas. The interests of the citi-
Gems Of the United States in the pro-
lection Afforded by such insurance arc
OF great magnitude, so that II is
deemed 20 be important that the agen-
c,ez Of such companies in the United
States be- permitted 10 continue IN
business. now.
Therefore. ]. Woodrow Wilson. Pres
ident Of the United States Of America,
bv virtue Of the powers vested in me
Is such. hereby declare and proclaim
that such branch establishments of
German insurance companies, now en-
gage IN the transaction of business IN
the 1ited States. pursuant 10 the laws
o. the several states, are hereby au-
thorzed and permitted TO continue the
transaction of their business in ac-
co-dance with the laws Of such state
10 the same manner and 10 the same
extent as though "a state Of war did
not now exist.
provided. However. that all funds
OF such establishments. row i'm the pos
session Of their managers or agents. or
which shall hereafter come INTO their
possession. shall be subject 10 such
rules and regulations concerning the
payment and disposition thereof as
shall he prescribed by the insurance
supervising officials OF the state DO
which the principal office Of such es-
Enlistment IN the United States Us To-
Gated. but in no event shall! any funds
belonging to OF held for the beneht OF
such companies be transmitted outside
Of the United states nov be used as the
basis for the establishment. directly
= lee O. or
outside Of the United States, TO or for
the benefit or use Of the enemy or any
O. his allies without the permission Of
this government
Fifteen German Companies
There are ten German fire insurance
COMPANIES ina the United States, four
life Insurance companies and one ca
sualty company. Some OF these insure
Directly. while others are reinsurance
corporations.
or the total insurance written by
them. Nr. Phillips said, quarter is
held in New York State. Under the
insurance law their assets are held
here. SO that even if Germany should
rot regard the arrangement blndlnG
the policy holders would still be pro-
tected because Of the assets here.
But there is no likelihood OF Germans
objections. because al the outbreak OF
the European war similar course
was taken i'm Berlin with regard 10
British companies operating IN the
German Empire, where they continue
10 DO business
Mr. Phillips said that ne anticipated
no attempt on the part Of the German
companies here 20 disobcy the plan OF
President Wilson, for there have been
70 transfers Of assets by them 10 their
home Offices in the nearly three years
OF war, and DO his opinion. these cor
porauons are financially stronger TO-
Cay than they were TWO years ago
State to Make Regulations
Superintendent Phillips issued the
following statement:
In view OF the proclamation OF the
President issued this afternoon, Ger
man insurance companies admitted IN
ms state will be permitted 10 continue
me Transaction Of business the same
IS II a state Of war did not exist be-
fween this country and Germany, pro
nded such companies meet the capital
ana deposit requirements OF our statute
and maintain the statutory reserves.
IN accordance with the proclama-
uon rules and regulations Will be pre-.
scubed 20 require the managers OF
sleh companies to keep IN the Unlteo
S'ales all OF the assets now or when
nay hereafter come into their posses
zen for the benefit Of American policy
holders. am not prepared 10 state
we precise rules and regulations which