The sun., 1917-07-15
'INSURANCEBY
GERMAN FIRMS
is FORBIDDEN
Presidents Proclamation
Stops Their Marine and
War Risk Business.
TO CUT OFF NEWS OF SHIPS
Payment on Existing Con-
tracts Suspended for Dura-
tiOn of War.
TO CUT OFF NEWS OF SHIPS

WAsHINcroN, July 14.-President Will
son issued to-day a proclamation pro-
hibiting German insurance companies
from doing further business in marine
or war risk Insurance in the United
States and forbldding American insur-
ance companies from reinsuring with
them. Payment on existing contracts Is
suspended during the war. except In
case of vessels now at sea.
The Presidents proclamation contains
the first official acknowledgment that
valuable information may be getting to
Germany through German insurance
companies. The nature of marine anc
war risk insurance Is SUCH" II says,
that those conducting II must of neces-
sity be in touch with the movements of
ships and cargoes. and II has been con-
sidered by the Government of great i'm
portance that this information should
not be obtained by allen enemies"
President Wilson's proclamation reads !:
Whereas certain insurance companies
Incorporated under the laws OF the
German Empire have been admitted to
transact the business of marine and war
risk insurance in various States of the
United States, by means OF separate
United States branches established pur-
suant to the laws of such States, and
are now engaged in such business under
the supervision of the insurance depart
ments thereof with assets in the United
States deposited with insurance depart
ments or in the hands of resident trus-
tees, citizens of the United States, for
the protection of all policyholders in
the United States,
Must Keep Alien Enemies In Dark.
And whereas the nature OF marine
and war risk insurance Is such that
those conducting II must of necessity be
in touch with the movement of ships and
cargoes and II has been considered by
the Government of great Importance that
this Information should not be obtained
by alien enemies
Now. therefore, I, Woodrow Wilson.
President OF the United States of Amer
lea, by virtue Of the powers vested in
me as such, hereby declare and proclaim
that such branch establishments of Ger
man insurance companies now engaged
in the transaction OF business in the
United States pursuant to the laws OF
the several States are hereby prohibited
from continuing the transaction OF the
business of marine and war risk insur-
ance either as direct insurers or rein
surers; and all individuals. firms and
insurance companies incorporated under
any States or Territories of the United
States or OF any foreign country and
established pursuant to the laws OF such
States and now engaged in the United
States in the business of marine and war
risk insurance either as direct insurers
or reinsurers are hereby prohibited from
reinsuring with companies incorporated
under the laws OF the German Empire,
no matter where located and all per-
sons in the United States are prohibited
from insuring against marine or war
risk with insurance companies incorpo-
rated under the laws OF the German
Empire or with individuals, firms and
insurance companies Incorporated under
the laws OF any OF the States or Terri
tories Of the United States or OF any
foreign country and now engaged in the
business OF marine or war risk insurance
in the United States which reinsures
business originating in the United States
with companies incorporated under the
laws of the German Empire, no matter
where located.
Covers All Existing Contracts.
The foregoing prohibition shall ex-
Ien0 ana operate as 10 all existing con-
tracts for insurance and reinsurance
which are hereby suspended for the
period of the war, except that they shall
not operate to vitiate or prevent the
insurance or reinsurance OF. and the
payment or receipt OF. premiums on in
surance or reinsurance under existing
contracts on vessels or interest at risk
on the date of this proclamation, and
such insurance or reinsurance, II for a
voyage, shall continue In force until
arrival at destination, and II for time
until thirty days from the date OF
this proclamation, but II on a voyage al
that time. until the arrival at destIna.
tion.
Nothing herein shall be construed tc
operate to prevent the payment or re.
ceipt of any premium, or claim now duS
or which may become due on or in re-
spect to assurances or reinsurances moi
prohibited by this proclamation.
Funds Must Remain In u. s.
THAT all funds of such German com
panies now In the possession of thei
managers or agents, or which shall here
after come into their posse sion, shall b,
| subject to such rules and regulation
concerning the payment and disposition
thereof as shall be prescribed by tn,
| insurance supervising officials of tn
| State In which the principal Office o
such establishment in the United State