New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-12
Fire Insurance Protection
Amendments Leave
Loopholes
Debate in Senate
Frelinghuysen Wants Right to
Terminate Contracts
With Foreigners
tS,ar Cmrcpondcncel


TO go in doing business in this coun-
try was debated by the Senate to-day
in considering the trading-with- the
enemy bill. Some surprise was occa-
stoned by the fact that no reference
was made TO German controlled insur-
ance companies whose ostensible head
quarters is in some neutral country
contiguous to Germany, or in some
instances in the Entente countries
themselves companies which are doing
business in Germany at the present
time.
No proposal was made to further
safeguard American interests by CIV
ing the President power to license and
control neutral and allied corporations
that have peen transactng business in
Germany, while having agencies in
this country.
1t is pointed out that some Swedish
and Russian companies. for instance,
are really controlled by Germany and
have agencies in this country which
obtain information not only for the
but actually marine insurance. This
information is sent to the neutrals con-
tiguous to Germany. and could readily
be sent on TO the agencies OF the same
company inside Germany.
Few Attend Debate
With only from eight to thirteen
Senator'S in the chamber-thirteen was
the largest number at any time during
the bills consideration-the Senate
considered the measure for several
hours, adopting several amendments.
The most important change was on an
amendment by Senator Frelinghuysen,
of New Jersey, which had for its OBJ
ject the protection of American insur-
ance companies which have reinsured
their risks with German companies. 1t
gives those companies the right TO ter
inmate their contracts with the German
companies on giving only thirty days
notice. Mr.. Frelinghuysen explained
that some companies had contracts
running for one TO five years which
otherwise they could not break. The
amendment follows:
Provided further. that no insurance
company, organized within the United
States shall be obligated TO continue
any existing contract or treaty entered
into prior to the beginning of the, war
with any enemy or ally Of enemy in
Surance or reinsurance company, but
any such company may abrogatc and
cancel any such contract or treaty b.
serving thirty days notice in writing
upon the President of its election TO
abrogate such contract or treaty
Marine Insurance Big Issue
The debate centred mostly on a pro-
vision which declared that there should
be no change in the Presidents proc
lamation forbidding German marine
insurance companies to do business IN
this country during the war.
There is no chance for American in
Surance companies rcestablishing that
business during the war" said Senator
Frelinghuysen, in deprecatinC the
amendment at is not desired by the
insurance companies that there should
be a continuance Of those relations
which existed before the war.
after the proclamation of the Pre-
dent had been in effect several months.
the risks which had been underwritten
before the proclamation expired be
cause the ships reached port The only
insurance remaining, the only insur-
ance in the marine business which runs
over a period longer than the trip, IS
insurance on the hulls, and that bust
ness can easily be placed elsewhere
than with the German companies.
THAT business is rapidly being liqui-
dated. The proclamation against ma
rine insurance was good thing. No
American company would wish II with
drawn. But the FIRE insurance is
different thing. The fire insurance
policies are written for long terms, and
TO uproot them would impose hard
ships"
Mr.. Frelinghuysen pointed out that
it had been discovered that the Ger
mans were receiving much valuable
information through their marine in
surance companies here, especially as
the German companies naturally knew
Of the sGilings and cargoes Of NUM-
ton laden vessels.
Fire Insurance Different
"But to impound the assets of the
German fire insurance companies, as
the House bill proposed" he said,
would force American companies TO
bring suits to recover their losses.
Therefore. think the President should
be given power to liquidate their as
sets, so as TO pay their losses"
A humorous feature of the debate
was the discussion of whether the Pres
ident should be permitted to modify the
terms Of his own proclamation against
marine insurance companies. IL devel-
oped that this had been written into
the bill when il was intended to vest
all the mower with the Secretary of
Commerce. Senators gravely stated
that il had been feared Secretary
CT ,,b de-
proclamation Of the President with re-
gard to marine companies. Therefore.
il had been specifically provided that
this proclamation should not be
changed When the change was made,
so that the power was conferred on the
President, instead of on the Secretary,
the idea of the restriction was un-
changed thus binding the President
not to change his own proclamation.
The idea of Secretary Redfeld rough
" riding over the President proved too
much for the sense Of humOr of some
Senators in the chamber, but they did
not ioin in the serious debate on the
propriety of preventing the President
from making such change.
Finally, the Senate struck out the
Objectionable language, which read:
THE President, however, shall have no
power 20 license any enemy or ally OF
enemy insurance or reinsurance COM
pany, or other person, to do any act or
to carry on any business prohibited by
his proclamation of July 10, 1917.
Senators Nardsman and Reed, who
have been much denounced as pro-Ger-
mans and obstructionists. took occasion
to-day to praise the plan of prohibiting
German controlled marine insurance
companies from doing business here.