SEC. 4. That section three of such Act is hereby amended to read as follows: "SEC. 3. That the Bureau of War Risk Insurance, with the approval of the Secretary of the Treasury, is hereby authorized to adopt and publish forms of war-risk policies and to fix reasonable rates of premium for the policies which it is authorized to issue under this Act, which rates shall be subject to such change to each port and for each class as the Secretary shall find may be required by the circumstances. All proceeds of the aforesaid premium and from salvage which have been or are hereafter received shall be covered into the Treasury of the United States to the credit of the Bureau of War Risk Insurance, and in addition to all other appropriations made under this Act are hereby permanently appropriated for the purpose of paying losses and return premiums accruing under this Act." SEC. 5. That there is hereby added to such Act a new section, to be known as section three a, to read as follows: "SEC. 3a. That whenever it shall appear to the Secretary of the Treasury that the effecting of such insurance is desirable in the national interest in the case of vessels engaged in any trade, the owner of every American merchant vessel engaged in such trade shall insure the master, officers, and crew of such vessel against loss of life or personal injury from war risks as well as for compensation during detention by an enemy of the United States following capture. "Such insurance shall be effected either with the Bureau of War Risk Insurance or in insurance companies, and on terms satisfactory to the Secretary of the Treasury. "Such insurance shall provide, and the Bureau of War Risk Insurance is authorized to write policies so providing "(a) In case of death, permanent disability which prevents the person injured from performing any and every kind of duty pertaining to his occupation, or the loss of both hands, both arms, both feet, both legs, or both eyes, or any two thereof, for the payment of an amount equivalent to one year's earnings, or to twelve times the monthly earnings of the insured, as fixed in the articles for the voyage (hereinafter referred to as the principal sum), but in no case shall such amount be more than $5,000 or less than $1,500; "(b) In case of any of the following losses, for the payment of the percentage of the principal sum indicated in the following tables: "One hand, fifty per centum; "One arm, sixty-five per centum; "One foot, fifty per centum; "One eye, forty-five per centum; "Total destruction of hearing, fifty per centum; "That the Bureau of War Risk Insurance may include in its policy undertakings to pay specified percentages of the principal sum for other losses or disabilities; and "(c) In case of detention by an enemy of the United States, following capture, for the payment during the continuance of such detention of compensation at the same rate as the earnings of the insured immediately preceding such detention, to be determined in substantially the same manner as provided in subdivision (a) of this section. 53174-27- -2 "The aggregate payments under this section in respect to any one person shall not exceed the amount of the principal sum. "Payments provided for in this section shall be made only to the master, officer, or member of the crew concerned, except that a payment for loss of life shall be made to the estate of the insured for distribution to his family free from liability of debt, and payment on account of detention by an enemy following capture shall be made to dependents of the person detained, if designated by him. "No claim under this section shall be valid unless made by the master, officer, or member of the crew concerned, or his estate, or a person designated under this section, within two years after the date on which the President suspends the operations of this Act in so far as it authorizes insurance by the United States." SEC. 6. That there is hereby added to such Act a new section to be known as section three b, to read as follows: "SEC. 3b. That in the event of failure of the owner of any vessel to effect insurance of the master, officers, and crew of such vessel prior to sailing, in accordance with section three a of this Act, the Secretary of the Treasury is hereby authorized to effect such insurance with the Bureau of War Risk Insurance at the expense of the owner of such vessel, and the latter shall be liable for such expense and, in addition, to a penalty of not exceeding $1,000. The amount of such premium, with interest and of the penalty and of all costs, shall be a lien on the vessel." SEC. 7. That section five of such Act is hereby amended to read as follows: 66 SEC. 5. That the Secretary of the Treasury is authorized to establish an advisory board, to consist of three members skilled in the practices of war-risk insurance, for the purpose of assisting the Bureau of War Risk Insurance in fixing rates of premium and in adjustment of claims for losses, and generally in carrying out the purposes of this Act; the compensation of the members of said board to be determined by the Secretary of the Treasury, but not to exceed $20 a day each, while actually employed. He is likewise authorized to appoint two persons skilled in the practices of accident insurance for the purpose of assisting the Bureau of War Risk Insurance in the adjustment of claims for death, personal injury, or detention; the compensation of the persons so appointed to be determined by the Secretary of the Treasury, but not to exceed $20 a day each, while actually employed. In the event of disagreement as to the claim for losses, or amount thereof, between the said bureau and the parties to such contract of insurance, an action on the claim may be brought against the United States in the district court of the United States, sitting in admiralty, in the district in which the claimant or his agent may reside." SEC. 8. That there is hereby added to such Act a new section to be known as section five a, to read as follows: "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." SEC. 9. That section seven of such Act is hereby amended to read as follows: "SEC. 7. That for the purpose of paying losses and return premiums accruing under the provisions of this Act there is hereby appropriated out of any money in the Treasury of the United States not otherwise appropriated, the sum of $50,000,000." SEC. 10. That section eight of such Act is hereby amended to read as follows: "SEC. 8. That there is hereby appropriated, for the purpose of defraying the expenses of the establishment and maintenance of the Bureau of War Risk Insurance, including the payment of salaries herein authorized and other personal services, and for the purchase of necessary books of reference, periodicals, etc., that may be paid for in advance out of any money in the Treasury of the United States not otherwise appropriated, the sum of $250,000." SEC. 11. That section nine of such Act is hereby amended to read as follows: "SEC. 9. That the President is authorized whenever in his judgment the necessity of further war insurance by the United States shall have ceased to exist to suspend the operation of the Act, in so far as it authorizes insurance by the United States against loss or damage by risks of war, which suspension shall be made, in any event, within four years after the passage of this Act, but shall not affect any insurance outstanding at the time or any claims pending adjustment. For the purpose of the final adjustment of any such outstanding insurance or claims, the Bureau of War Risk Insurance may, in the discretion of the President, be continued in existence a further period not exceeding three years." SEC. 12. That the Act entitled "An Act to amend an Act entitled 'An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,' approved September second, nineteen hundred and fourteen," approved August eleventh, nineteen hundred and sixteen, and the Act entitled "An Act to amend an Act entitled 'An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,' approved September second, nineteen hundred and fourteen," approved March third, nineteen hundred and seventeen, are hereby repealed. Approved, June 12, 1917. MARINE AND WAR-RISK INSURANCE BY GERMAN COMPANIES PRO HIBITED No. 1386 By the President of the United States of America. A PROCLAMATION 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 pursuant to the laws of such States, and are now engaged in such business under the supervision of the Insurance Departments thereof, with assets in the United States deposited with Insurance Departments or in the hands of resident trustees, citizens of the United States, for the protection of all policy-holders in the United States; And whereas, the nature of marine and war-risk insurance is such that those conducting it must of necessity be in touch with the movements of ships and cargoes, and it 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 America, by virtue of the powers vested in me as such, hereby declare and proclaim that such branch establishments of German 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 insurance either as direct insurers or reinsurers; and all individuals, firms, and insurance companies incorporated under the laws of any of the 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 persons in the United States are prohibited from insuring against marine or war risks with insurance companies incorporated under the laws of the German Empire or with individuals, firms, and insurance companies incorporated under the laws of any of the States or Territories 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 reinsure business originating in the United States with companies incorporated under the laws of the German Empire, no matter where located. The foregoing prohibitions shall extend and operate as to all existing contracts 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 insurance or reinsurance under existing contracts on vessels or interest at risk on the date of this proclamation, and such insurance or reinsurance, if for a voyage, shall continue in force until arrival at destination, and if for time, until thirty days from the date of this proclamation, but if on a voyage at that time, until the arrival at destination. Nothing herein shall be construed to operate to prevent the payment or receipt of any premium, return premium, or claim now due or which may become due on or in respect to insurances or reinsurances not prohibited by this proclamation. That all funds of such German companies now in the possession of their managers or agents, or which shall hereafter come into their possession, shall be subject to such rules and regulations concerning the payment and disposition thereof as shall be prescribed by the insurance supervising officials of the State in which the principal office of such establishment in the United States is located, but in no event shall any funds belonging to or held for the benefit of such companies be transmitted outside of the United States, nor be used as the basis for the establishment, directly or indirectly, of any credit within or outside of the United States to or for the benefit or use of the enemy or any of his allies without the permission of this Government. In witness whereof, I have hereunto set my hand and caused the seal of the United States to be affixed. Done at the District of Columbia this thirteenth day of July in the year of our Lord one thousand nine hundred and seventeen and of the Independence of the United States the one hundred and forty-second. [SEAL.] By the President: FRANK L. POLK Acting Secretary of State. WOODROW WILSON |