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Full text of "Trading with the enemy : act approved October 6, 1917"



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GIFT OF 




I Trading With the Enemy 



Guaranty Trust Company 
of New York 



Trading With the Enemy 



Act Approved October 6, 1917 



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Guaranty Trust Company of New York 

140 Broadway 

LONDON OFFICE FIFTH AVENUE OFFICE PARIS OFFICE 

32 Lombard St., E. C. Fifth Avenue and 43d Street Rue des Italiens, 1 & 3 



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COPYEIGHT, 1917 
GUARANTY TRUST COMPANY OF NEW YORK 



Contents 




Foreword 


5 


Synopsis of Act 


11 


Text of Act 


39 


Index to Synopsis 


65 



36499c 



Foreword 

Reasons for Legislation 

For more than a century the United States 
has recognized the principle that commercial 
intercourse ceases between rival countries at 
war. The Supreme Court, in passing on this 
question in 1814, said it is a "fundamental 
proposition" of international law that neither 
business, nor correspondence can be main- 
tained between the citizens of belligerent 
nations, except so far as may be allowed by 
the "sovereign authority." 

Congress has, accordingly, passed an act 
setting forth in definite and concrete form 
the allowances and prohibitions which are to 
prevail in the existing emergency, and has 
gone the length of making violations of its 
mandate criminal, the offenders being sub- 
ject to fine or imprisonment, or both. This 
is a novel development of a principle of 
international law; but the economic and 
financial resources of all the nations engaged 
in the present war are now of such vital im- 
portance that it is incumbent upon the 

[5] 



Government to provide against the rendering 
of assistance to the enemy in any form or 
degree, and to conserve to the uttermost our 
own resources for ourselves and for those 
with whom we make common cause. In 
doing this, Congress has not enunciated any 
new principle of international law, but has 
interpreted its existing canons in the light 
of an immediate emergency. 

Purposes of Legislation 

The chief objects of this measure may be 
stated as : 

First, to recognize and apply, subject to 
definite modification, the principles of inter- 
national law interdicting trade in time of war; 
and 

Second, to conserve and utilize, upon a 
basis of practical justice, such enemy prop- 
erty as may be found within the jurisdiction 
of the United States. 

Interdiction of Trade 

The authorization of trade under license is 
one of the principal modifications of the rules 
of international law which are provided for 
[6] 



in the present legislation forbidding trade 
between citizens of the United States and 
subjects of the enemy. 

In effect the law prohibits all trade what- 
soever with an enemy or ally of enemy of the 
United States, except by license issued by the 
President. However, a citizen or subject of 
an enemy or ally of enemy country, residing 
here or in a neutral country, is affected by the 
prohibitions of the law only when declared 
to be an enemy or ally of enemy by proclama- 
tion of the President. 

Other acts prohibited by the law, except 
when licensed, include: the transportation of 
an enemy, or an ally of enemy, into or from 
the United States; the transmission of any 
letter, document, or other form of communi- 
cation, to or from the United States, to an 
enemy or ally of enemy; the carrying on of 
business in the United States by enemy or 
ally of enemy insurance and reinsurance 
companies and others, through branches, 
agencies, or otherwise; and publication of 
any news item or comment on the war in 
foreign languages. 

[7] 



Conservation and Utilization of Enemy Property 
In order that the United States, as far as 
is practicable, may utilize and conserve 
enemy property, the law provides for the 
surrender of alien enemy property to an alien 
property custodian. Such money or prop- 
erty may be invested in Government bonds. 
This gives the United States the benefit of 
the use of such funds during the period of the 
war, without confiscation; and, at the same 
time, protects the interests of subjects of 
belligerent nations. 

Patents, Trademarks, and Copyrights 

The prosecution, in enemy countries, of 
applications for letters patent, and for regis- 
tration of trademarks and copyrights, is per- 
mitted to our citizens, and is permitted, in 
this country, to subjects of enemy or ally 
of enemy countries. The use of enemy 
patents, trademarks, and copyrights by 
citizens of the United States, for the purpose 
of manufacture or otherwise, is also per- 
mitted, and adequate remedy for compensa- 
tion therefor to enemy owners is provided 
for. This latter provision will undoubtedly 

[8] 



open a large field of industry for the manu- 
facture of many articles, now manufactured 
in Germany, by the use of processes and de- 
vices which are protected here by patents 
held by Germans. 



Our Foreign Trade Division is prepared to 
give any information that may be desired, 
especially in regard to such regulations and 
orders as may be issued from time to time 
under this Act. 



October 8, 1917 



[9] 



Synopsis of 
Trading With the Enemy Act 

DEFINITIONS 

EnemV or Ally of Enemy. Briefly stated, any 
person residing or doing business within an enemy 
country, and any person residing outside of the 
United States and doing business in an enemy 
country, and any corporation incorporated with- 
in an enemy country or incorporated within any 
country other than the United States and doing 
business within an enemy country, are termed 
"enemy." Doing business within an enemy 
country means having a branch, or agency actively 
conducting business within that country. 

The bill does not bring within the term "enemy* * 
a neutral, unless such neutral has a branch of its 
business within an enemy country. Nor does 
the bill term "enemy" a citizen or subject of an 
enemy nation residing in a neutral country and 
conducting no part of his business in an enemy 
country. The act provides, however, that a 
citizen or subject of an enemy country, residing 
or doing business anywhere, may by proclamation 
of the President be included in the term "enemy." 
(Sec. 2.) 

The term "ally of enemy" is defined along 

[in 



similar lines as the definition of the term "enemy." 
(Sec. 2.) 

Person. An individual, partnership, asso- 
ciation, company, or other unincorporated body 
of individuals, or corporation, or body politic. 
(Sec. 2.) 

United States. All land and water, conti- 
nental or insular, in any way within the juris- 
diction of the United States or occupied by the 
military or naval forces thereof. (Sec. 9). 

The Beginning of the War. Midnight 
ending the day on which Congress has declared 
or shall declare war or the existence of a state of 
war. (Sec. 2.) 

End of the War. Date of proclamation of 
exchange of ratifications of the treaty of peace, 
unless the President shall, by proclamation, 
declare a prior date, in which case the date so 
proclaimed shall be deemed to be the "end of 
the war" within the meaning of this Act. (Sec. 2.) 

To Trade. 

(a) Pay, satisfy, compromise, or give security 
for the payment or satisfaction of any debt or 
obligation. 

(b) Draw, accept, pay, present for acceptance 
or payment, or indorse any negotiable instru- 
ment or chose in action. 

(c) Enter into, carry on, complete, or perform 
any contract, agreement, or obligation. 

' [12] 



(d) Buy or sell, loan or extend credit, trade in, 
deal with, exchange, transmit, transfer, assign, 
or otherwise dispose of, or receive, any form of 
property. 

(e) To have any form of business or commercial 
communication or intercourse with. (Sec. 2.) 

Bank or Banks. National banks, State 
banks, trust companies, or other banks or banking 
associations doing business under the laws of the 
United States, or of any State of the United 
States. 

Acts Prohibited Except by License 

Acts, transactions, and business prohibited 
and made criminal by the law, unless performed 
or carried on under license, include: 

Trade 

Trading, or attempting to trade, directly or 
indirectly with or on behalf of any person, with 
knowledge or reasonable cause to believe that such 
person is an enemy or ally of enemy, or is conduct- 
ing the trade in connection with an enemy or 
ally of enemy. (Sec. 3-a.) 

Transportation of Enemy or Ally of Enemy 

Transporting or attempting to transport any 
person, with knowledge or reasonable cause to 
believe that such person is a subject or citizen 
of an enemy or ally of enemy nation. (Sec. 3-b.) 

[13] 



Transmission of Communications 

Transmitting or attempting to transmit out 
of or into the United States any letter or other 
communication (except through the mail), or 
transmitting any letter or other writing, book, 
map, plan, or other paper, picture, or any tele- 
gram, cablegram, or wireless message, or other 
form of communication, intended for or to be 
delivered directly or indirectly to an enemy or 
ally of enemy, except that this provision shall 
not apply to persons in the service of the United 
States or of any nation not an enemy or ally of 
enemy nor to such persons or class of persons as 
the President may make exempt. (Sec. 3-c.) 

Enemy or Ally of Enemy Doing Business Here 

Doing business in the United States by every 
enemy or ally of enemy, including insurance and 
reinsurance companies, whether through an 
agency, branch office, or otherwise. This re- 
striction shall not apply until thirty days have 
elapsed after the enactment of the law, or until 
license is refused upon application made within 
thirty days after enactment. (Sec. 4-a.) 

Change of Name 

No enemy or ally of enemy and no partnership 
of which he was a member, at the beginning of 
the war, shall be permitted to change his or its 
name, during the war. (Sec. 4-b.) 

[141 



Granting of Licenses 

Authority to Grant Licenses 

The President may grant licenses, special or 
general, temporary or otherwise, and for such 
period of time and containing such provisions 
and conditions as he shall prescribe, to any per- 
son or class of persons to do any act or to an 
enemy or ally of enemy to do business prohibited 
by this law (Sec. 5-a.) 

Revocation and Renewal 

The President may revoke or renew licenses 
from time to time, if in his opinion such action 
is compatible with the safety of the United States 
and the successful prosecution of the war. 
(Sec. 5-a.) 

Delegation of Power 

To carry out the provisions of this Act, the 
President may exercise any power or authority 
conferred hereunder through such officer or officers 
as he may direct. (Sec. 5-a.) 

Export of Coin or Money 

The President may investigate, regulate or 
prohibit any transaction in foreign exchange, 
export of gold or silver coin or bullion, and trans- 
fer of credit in any form by any bank, other than 
credits relating solely to transactions to be exe- 
cuted wholly within the United States, and trans- 

[15] 



fers of evidences of indebtedness or of the owner- 
ship of property between the United States and 
any foreign country, whether enemy, ally of 
enemy, or otherwise, or between residents of one 
or more foreign countries, by any person within 
the United States, and may require any person en- 
gaged in such transaction to furnish under oath 
complete information relative thereto. (Sec. 5-b.) 

Suspension of Performance of an Act to Prevent 
Violation 

If the President has reasonable cause to believe 
that any act is about to be performed in violation 
of restrictions prohibiting tr ading, the transporta- 
tion of an enemy or ally of enemy, or the trans- 
mission of letters, documents, or other communi- 
cations to an enemy or ally of enemy, he may order 
the suspe nsion of the performance of such act for a 
period not exceeding ninety days, pending inves- 
tigation of the facts by him. ((Sec. 5-a.) 

Letters Patent Applied for under License 

The President may grant licenses for the prose- 
cution of applications for letters patent or for 
registration of trademarks, or copyrights in the 
country of an enemy, or of an ally of enemy. 
(See page 32.) 

Enemy or Ally of Enemy Doing Business Here 

Every enemy or ally of enemy, including enemy 
or ally of enemy insurance or reinsurance com- 

[16] 



panies, doing business within the United States 
through an agency or branch office, or otherwise, 
may, within thirty days after October 6, 1917, 
apply to the President for a license to continue 
to do business; and, within thirty days after such 
application, the President may enter an order 
either granting or refusing to grant such license. 
(Sec. 4-a.) (Sec. 5-a.) 

Unlawful to Continue Business Without License 

If a license is not applied for within thirty days 
after October 6, 1917, or if a license shall be 
refused to any enemy or ally of enemy, whether 
insurance or reinsurance company, or other per- 
son, making application, or if any license granted 
shall be revoked by the President, all trade or 
attempt to trade with, to, from, for, by, on ac- 
count of, or on behalf of, or for the benefit of such 
enemy or ally of enemy shall be unlawful. (Sec. 
4-a.) 

May Continue Business Pending License Appli- 
cation 

For a period of thirty days after October 
6, 1917 and further pending entry of order by 
the President after application made within thirty 
days by an enemy or ally of enemy, other than an 
insurance or reinsurance company, it shall be 
lawful for such enemy or ally of an enemy to con- 
tinue to do business in this country and for any 

[17] 



person to trade with, to, from, for, on account of, 
on behalf of, or for the benefit of such enemy or 
ally of enemy. (Sec. 4-a.) 

May not Export Funds 

During such period an enemy or ally of enemy 
insurance company may continue to do business 
in accordance with the terms of the President's 
Proclamation of April 6, 1917, as modified by the 
Proclamation of July 13, 1917, but may not trans- 
mit any funds out of the country or allow any 
funds to be used as a basis for credit for an enemy 
or ally of enemy. (Sec. 4-a.) 

Licenses to do Business Restricted 

The President shall not have power to license 
any marine or war-risk insurance or reinsurance 
business; or to authorize the transmission of 
any funds out of the United States, or their use 
as the basis for any credit, within or outside of the 
United States, for an enemy or ally of enemy. 
(Sec. 4-a.) 

Payments Under Existing Policies or Contracts, 
After Refusal or Revocation of License 

A policy-holder or an insurance company, not 
an enemy or ally of enemy, holding insurance or 
having effected reinsurance with an enemy or ally 
of enemy company, may receive payment from 
such enemy company, of any premium, return 
premium, claim, money, security, or other prop- 
erty due or to become due and in force at the time 

[18] 



a license is revoked or refused such enemy com- 
pany. Policies or contracts existing at such time 
are not made void by this act; and any policy- 
holder or insurance company having any claim 
to money or other property of the enemy or ally 
of enemy insurance company in the control of 
the alien property custodian or of the Treasurer 
of the United States, may make application for 
the payment thereof and may institute suit as 
provided in this Act. (Sec. 4-a.) 

Notice of Refusal or Revocation of License 

Reasonable notice of intent to refuse to grant 
a license, or to revoke a license granted, to any 
reinsurance company shall be given by the Presi- 
dent to all insurance companies within the United 
States known to be doing business with such 
reinsurance company. (Sec. 4-a.) 

Effect of Law on Void Transactions 

Nothing in this law shall render valid any act 
or transaction, constituting trading with an 
enemy, since the beginning of the war and prior 
to October 6, 1917, or any such act or trans- 
action thereafter performed or entered into, 
except as authorized, which would otherwise be 
void or illegal at law. Any conveyance, transfer, 
delivery, or loan of money or other property, 
prohibited by this act, made after October 6, 
1917, without license, shall create no right or 

[19] 



remedy with respect thereto. Likewise the 
assignment, endorsement, or delivery of any debt, 
bill, note, or other obligation by or from an enemy 
or ally of enemy shall create no right or remedy 
against any person liable thereon, unless such 
obligation was made prior to the war or under 
license granted by the President. Any person 
who pays or satisfies such obligation will be sub- 
ject to penalties prescribed for violation of the 
provisions of this act. (Sec. 7-b.) 

Pre-War Payments 

The law does not prohibit the payment of 
money belonging to an enemy or ally of enemy 
to a person within the United States, not an enemy 
or ally of enemy, if the funds so paid were received 
prior to the beginning of the war and the pay- 
ments arose from transactions entered into prior 
to the war and not in contemplation thereof. A 
license from the President, however, is required 
before such payment may be made. The law 
furthermore does not prevent the performance or 
completion of any contract originally entered into 
by an enemy or ally of enemy, if, prior to the be- 
ginning of the war and not in contemplation 
thereof, the interest of the enemy or ally of enemy 
devolved upon a person not an enemy or ally of 
enemy, and no enemy or ally of enemy will be 
benefited by such performance other than by 
release from the obligation. (Sec. 7-b.) 

[20] 



Custodian of Enemy Property 
Powers 

The President is authorized to appoint an 
Alien Property Custodian who shall be empowered 
to receive all money and property in the United 
States due or belonging to an enemy or ally of 
enemy, and to hold and administer and to account 
for the same under the general direction of the 
President. Such custodian shall be required to 
give bond in form and amount as the President 
shall prescribe. (Sec. 6.) 

Payment to Custodian a Discharge 

Payment and delivery of money or property to 
such custodian shall be a full acquittance or dis- 
charge, for all purposes of the obligation of the 
person making such payment or delivery, and the 
Custodian, or such other person as the President 
may appoint, shall have power to evidence upon 
the record or otherwise such acquittance or dis- 
charge and to deliver any security therefor, which 
has come into his possession. Any person so 
empowered by the President will be furnished 
with a certificate from the President which will be 
accepted as evidence of his authority in the same 
manner as a power of attorney. (Sec. 7-e.) 

Moneys Invested in Government Bonds 

All moneys paid to or received by the Alien 
Property Custodian shall be deposited in the 

[21] 



Treasury of the United States and may be in- 
vested by the Secretary of the Treasury in United 
States Government bonds or certificates of in- 
debtedness. As soon after the end of the war as 
the President may deem practicable, such securi- 
ties shall be sold and the proceeds deposited in the 
Treasury. (Sec. 12.) 

Other Property to be Deposited in Banks 

All other property including stocks, bonds, 
notes, time drafts, or other securities (except 
checks, or drafts payable on demand) of an enemy 
or ally of enemy shall be deposited in any bank or 
banks, or trust companies in the United States 
designated by the President. Such depositaries 
are authorized to collect dividends, interest, or 
income which may become due on any stocks, 
bonds, notes, or other securities, and to deposit 
same in the Treasury of the United States. 
(Sec. 12.) 

Rights of Custodian 

The Custodian, in respect of all property other 
than money, shall possess the powers of a com- 
mon law trustee, and under prescribed regula- 
tions may manage such property and exercise 
such rights as may appertain thereto when 
necessary to prevent waste or to protect such 
property, to the end that the interests of the 
United States or of the persons who may ulti- 

[22] 



mately become entitled thereto, may be preserved 
and safeguarded. (Sec. 12.) 

Corporations or unincorporated associations 
or trustees issuing shares or certificates repre- 
senting beneficial interests are required to trans- 
fer stocks delivered to the custodian upon de- 
mand of the latter, accompanied by delivery of the 
certificates. The returns from property sold by 
the Custodian shall be deposited in the Treasury 
of the United States. (Sec. 12.) 

Money or property required or authorized to 
be paid or transferred to the Custodian, shall 
upon his written order be paid or transferred to 
the Treasurer of the United States. (Sec. 12.) 

Disclosure of Stockholders, Officers, and Directors 
of Corporations and Unincorporated Associations 

Every corporation organized in the United 
States, and every unincorporated association 
or company, or trustee or trustees within the 
United States, issuing shares or certificates repre- 
senting beneficial interests are required to furnish 
the Custodian, within sixty days after October 6, 
1917, with a full list of the names of every officer, 
director, or stockholder, living outside of the 
United States, known to be, or whom there is 
reasonable cause to believe to be, a citizen or 
subject of a nation at war with the United States 
or of an ally of such nation, together with the 

[23] 



amount of stock or shares owned by each. A 
similar list may also be required by the President 
of all. stock and shares owned on February 3, 
1917, by an enemy or ally of enemy or which the 
corporation, company, or trustee has reasonable 
cause to believe is owned by an enemy or ally of 
enemy, though standing on the books in the name 
of another person. The name of any officer, 
director, or stockholder contained in this list may 
be stricken therefrom by the Custodian if he is 
satisfied that such officer, director, or stock- 
holder is not an enemy or ally of enemy. The 
President may extend the time for filing lists or 
returns for an additional period not to exceed 
ninety days. (Sec. 7-a.) 

Money, Property and Debts 

Any person in the United States holding or 
having custody or control, alone or jointly, of 
any property, beneficial or otherwise, for or on 
behalf of an enemy or ally of enemy, or for any 
person whom he may have reasonable cause to 
believe to be an enemy or ally of enemy, or any 
person in the United States indebted in any way 
to an enemy or ally of enemy, or to any person 
believed to be such, is required to furnish the 
Custodian with a statement containing the par- 
ticulars of such holdings of indebtedness. Such 
report shall be made within thirty days after 
October 6, 1917, or within thirty days after 

[24] 



such property shall come within the custody or 
control of such person, or after such indebted- 
ness becomes due. The President may also 
require a similar report of all property so held on 
February 3, 1917, but the name of any person 
included in such report may be stricken out by the 
Custodian if he is satisfied that such person is 
not an enemy or ally of enemy. The President 
may extend the time for filing lists or returns, 
for an additional period not to exceed ninety 
days. (Sec. 7-a.) 

Any money or property owing or belonging to 
an enemy or ally of enemy who has not been 
granted a license by the President, may be re- 
quired by the President to be paid over or con- 
veyed to the Custodian. (Sec. 7-c.) If not so 
required, any person, not an enemy or ally of 
enemy, owning or holding money or property of 
an enemy or ally of enemy, if such enemy or ally 
of enemy does not hold a license hereunder, may, 
with the consent of the President, pay or transfer 
the same to the Custodian. (Sec. 7-d.) 

Enforcement of Rights Affecting Enemy 
Property and Contracts 

Mortgages and Liens 

Any person, not an enemy or ally of enemy, 
holding a mortgage, pledge, lien, or other right 
in the nature of security in any property of an 

[25 1 



enemy or ally of enemy, which by law or by the 
terms of the instrument creating such right may 
be disposed of, may hold such property or, 
after default, may dispose of such property after 
notice to the Custodian under regulations pre- 
scribed by the President. Likewise, any person, 
not an enemy or ally of enemy, who is a party 
to a contract with an enemy or ally of enemy 
the terms of which provide for a termination upon 
notice or for acceleration of maturity on demand, 
may terminate or mature such contract upon 
notice to the Custodian. 

If any surplus remains after the satisfaction of a 
mortgage or other claim, notice thereof shall be 
given to the President and such surplus held sub- 
ject to his control and order. (Sec. 8-a.) 
Notice to Custodian 

The notice to the Custodian shall be for no 
longer period than is required by law or by the 
instrument providing for such notice. If no 
notice is required by law or by such instrument, 
notice will not be required by the Custodian. 
Notice given to the Custodian in accordance with 
the above shall have the same effect as if served 
upon an enemy or ally of enemy personally. 
(Sec. 8-a.) 

Contracts Prior to War 

Any contract entered into prior to the war, 
between any citizen of the United States, orcor- 

[26] 



poration or organization within the United States, 
and an enemy or ally of enemy, the terms of which 
provide for the delivery of anything produced, 
mined, or manufactured in the United States, to 
an enemy or ally of enemy, may be abrogated 
by such citizen or corporation, by serving thirty 
days' notice in writing upon the Custodian. 
(Sec. 8-b.) 

Claims for Property Transferred to Custodian 

Any person, not an enemy or ally of enemy, 
having any interest, right, or title to any money 
or other property transferred to the Custodian, 
or to whom any debt may be owing from an enemy 
or ally of enemy whose property has been trans- 
ferred to the Custodian, may file with the Custodian 
a notice of his claim. If application is made 
by the claimant for the transfer of such money or 
property, the President, with the assent of the 
owner thereof and of all persons claiming an 
interest therein, may order the payment or de- 
livery to the claimant of such money or property, 
held by the Custodian or by the Treasurer of the 
United States, or of such interest therein as the 
President may determine the claimant is entitled 
to. An order of the President herein shall not 
bar any person from prosecuting suit to establish 
any right or interest in such money or property. 
(Sec. 9.) 

[27] 



May Sue in District Court 

If the claimant files notice of his claim but 
makes no application to the President, or if the 
President shall not act on such application within 
sixty days, the claimant may, within six months 
after the end of the war, institute a suit in equity 
to establish the interest, right, title, or debt so 
claimed. Such suit shall be instituted in the 
district court of the United States for the district 
in which the claimant resides, or if the claimant 
is a corporation, the suit shall be instituted in the 
district where such corporation has its principal 
place of business. The property or money 
claimed shall be held by the Custodian until final 
decree is entered and satisfied by payment, or 
until the suit is otherwise terminated. Except 
as provided in the law, the money or property 
paid to the Custodian shall not be liable to lien, 
attachment, garnishment, trustee process, or exe- 
cution, nor shall it be subject to any order or de- 
cree of any court. But money paid to the Cus- 
todian and deposited in the Treasury of the United 
States, as a trust fund for the payment of an 
enemy or ally of enemy owner of letters patent, or 
trademark, print, label, or copyright registration, 
used by a citizen of the United States under 
license from the President, may be distributed by 
order of a court. (Sec. 9.) 

[28] 



Enemy May Sue or Defend 

An enemy or ally of enemy licensed hereunder 
may bring suit if the basis thereof originated in 
business transacted within the United States 
under such license; and, similarly, defend a suit 
brought against him. (Sec. 7-b.) 

Notice from President a Defense 

Notice from the President that he believes a 
person asserting a claim in law or equity is an 
enemy or ally of enemy shall operate as a prima 
facie defense to such suit. (Sec. 7-b.) 

Statute of Limitation Suspended 

The running of any statute of limitation shall 
be suspended with reference to the rights or rem- 
edies on any contract entered into prior to the 
beginning of the wax between parties neither of 
whom is an enemy or ally of enemy, the terms of 
which provide for payment of money evidenced 
by commercial paper drawn against or secured by 
funds or property situated in an enemy or ally 
of enemy country. No suit shall be maintained 
on any such contract in the United States until 
after the end of the war, or until such funds or 
property shall be released for payment or for 
satisfaction of such contract. This provision 
shall not be construed to prevent the suspension 
of the running of any statute of limitation in 
cases where such suspension would occur under 
existing law. (Sec. 8-c.) 

[29] 



Settlement of Claims 

After the end of the war, any claim of an enemy 
or ally of enemy to money or other property held 
by the Custodian, or deposited in the United 
States Treasury, shall be settled as Congress shall 
direct, except that, on order of the President, or 
of the court as provided in this Act, the Custodian 
or the Treasurer of the United States shall con- 
vey or pay to any person to whom the President 
shall order, or in whose behalf a final judgment or 
decree shall be entered, money or property of an 
enemy or ally of an enemy held by the Custodian 
or the Treasurer of the United States. The 
Treasurer of the United States on order of the 
Custodian shall repay to the licensee of any patent, 
trademark, or copyright, any funds deposited 
by said licensee. (Sec. 14.) 

Statements for Collectors of Customs 

Statements by Master of Ship and Owners, Ship- 
pers or Consignors of Cargoes 

The master, or person in charge of any vessel, 
before departure of such vessel from port, shall 
deliver to the collector of customs of the district 
wherein such vessel is located, a statement duly 
verified under oath, that the cargo is not shipped 
or to be delivered in violation of law. The owner, 
shipper, or consignor of the cargo of such vessel 
shall in like manner deliver to the collector a 

[30] 



similar statement as to the cargo or parts thereof, 
shipped by them; which statement shall contain 
the names and addresses of the actual consignees, 
or, if a shipment is made to a bank or other factor, 
the names and addresses of the persons who are 
the actual consignees. Copies of these statements 
shall be delivered to the American consular office 
at the port of destination of the cargo by the mas- 
ter or person in control of the vessel. (Sec. 13.) 

Refusal of Clearance of Vessel 

Whenever there is reasonable cause to believe 
that the manifest or statement is false, or that the 
vessel is about to carry any property to or for the 
account of an enemy or ally of enemy, the collec- 
tor of customs, subject to review by the President, 
may refuse clearance to any vessel for which 
clearance is required by law, and by formal notice 
served upon the owner or person in command 
or in charge of any domestic vessel for which 
clearance is not required by law, may forbid the 
departure of such vessel from port. (Sec. 14.) 

Report of Export of Coin or Bullion 

When any cargo intended for export contains 
gold coin, silver coin, bullion, or other moneys 
of the United States, the collector of customs shall 
report to the President the amount thereof with 
names of trustees, consignors, and consignees, 
and any other facts known to the collector, par- 
ticularly those which may indicate that the ship- 

[31] 



ment may be intended for delivery to an enemy 
or ally of enemy. (Sec. 14.) 

Patents, Trademarks and Copyrights 

Prosecution of Applications . 

An enemy or ally of enemy may file and prose- 
cute in the United States an application for a 
patent, or for registration of a trademark, print, 
label, or copyright, and pay any fee required by 
law including attorney's fees. If an enemy or 
ally of enemy is unable during the war, or within 
six months thereafter, on account of conditions 
arising out of the war, to file such application, or 
to pay any official fee required by law within the 
prescribed period, he may be granted an extension 
of nine months beyond the expiration of such 
period, provided the nation of which such appli- 
cant is a citizen or subject extends similar privi- 
leges to citizens of the United States. (Sec. 10-a.) 

Any citizen of the United States, or any cor- 
poration organized within the United States, 
when duly authorized by the President, is per- 
mitted to pay to an enemy or ally of enemy, 
any tax, annuity, or fee which may be required 
by the laws pertaining to patents, trademarks, and 
copyrights, of such enemy or ally of enemy nation. 
Any citizen or corporation may file and prosecute 
an application for patent or registration of trade- 
mark or copyright in the country of an enemy or 

[32] 



ally of enemy, after first receiving a license from 
the President, and may pay the fees required by 
law and agent's fees, the amount of which shall be 
subject to the control of the President. (Sec. 10-b.) 

Use of Patent, Trademark or Copyright Owned 
by Enemy or Ally of Enemy 

Permission to manufacture under patent or 
use any trademark or copyright owned or con- 
trolled by an enemy or ally of enemy during the 
existence of the war may be granted under license 
issued by the President. He may prescribe the 
conditions of the license, including the fixing of 
prices of articles and products necessary to the 
health of the military and naval forces of the 
United States and the successful prosecution of 
the war, and the rules under which it may be 
granted and the fee which shall be charged there- 
for. (Sec. 10-c.) 

The licensee shall render, at stated periods (at 
least annually), to the President a statement of 
the extent of the use of the license and the 
prices received and shall pay to the Alien Property 
Custodian an amount not to exceed five per cen- 
tum of the gross sums received from the use of 
such inventions, trademarks, or copyrighted mat- 
ter, or five per centum of the value of the use of 
such inventions, trademarks, or copyrighted mat- 
ter, if so ordered by the President. The amount 
paid shall be deposited by the Custodian with the 

[33] 



Treasurer of the United States as a trust fund for 
the licensee or for the owner of the patent, trade- 
mark or copyright. (Sec. 10-d.) 

Licenses will continue during the term fixed 
in the license, or, in the absence of a limitation, 
during the term of the patent or copyright. 
(Sec. 10-e.) 

For violation of these provisions or of the 
conditions of the license, the President, after due 
notice and hearing, may cancel any license. 
(Sec. 10-e.) 

Invention Against Public Safety Kept Secret 

If the President is of the opinion that the pub- 
lication of an invention, through grant of a patent, 
may endanger the public safety or assist the 
enemy, he may order that such invention be kept 
secret and patent be withheld until the end of the 
war. If it be established that application for such a 
patent has been filed in any other country, or such 
invention published without the consent of the 
Commissioner of Patents or a license of the Presi- 
dent, such invention may be held abandoned. 
(Sec. 10-i.) 

Powers of Attorney 

Powers of attorney heretofore or hereafter 
given by an enemy or ally of enemy to any per- 
son in the United States, in so far as the same may 
be necessary in the prosecution of an application 
for a patent or the registration of a trademark 

[34] 



or copyright or the maintenance of a suit against 
a person other than a licensee to restrain infringe- 
ment, are valid. (Sec. 10-g.) 

Remedies of Enemy and Ally of Enemy 
Owners of Patents and Copyrights 

Suits Against Licensee 

An owner of a patent or copyright may, within 
one year after the end of the war, file a bill in 
equity against the licensee, in the United States 
district court (for the district in which the licensee 
resides, or, if a corporation, in which it has its 
principal place of business) for recovery from a 
licensee for all use and enjoyment of his patent, 
trademark, or copyright. The Treasurer of the 
United States shall be made a party to the suit, 
and the Custodian shall receive notice thereof 
within thirty days after its entry. The licensee 
shall be entitled to make any and all defences 
to such suit which would be available were no 
licenses granted. (Sec. 10-f.) 

If judgment is rendered for the payment of 
royalty, the same shall be satisfied so far as pos- 
sible by the fund which has been paid to the Cus- 
todian by the licensee. If any balance is left, the 
same shall be returned to the licensee. (Sec. 10-f.) 

If no suit is brought against the licensee within 
one year after the termination of the war, all 
funds deposited by the licensee shall be returned. 

[35] 



After entry of suit or repayment of funds, the 
licensee shall not be required to make further 
reports to the President. (Sec. 10-f.) 

If suit is brought, the court may terminate the 
license and, in such event, may restrain infringe- 
ment thereafter, or may continue the license for a 
stated period with such royalties as it may find 
just and reasonable. (Sec. 10-f.) 

Suits Against Others than Licensee 

The owner of a patent or copyright may in- 
stitute and prosecute suits in equity, against any 
person other than a licensee, to enjoin the in- 
fringement of patents and copyrights, in the same 
manner and to the same extent as if the United 
States were not at war. Final judgment in such 
suit in favor of an enemy or ally of enemy shall 
not be entered except upon thirty days' notice 
to the Custodian. (Sec. 10-g.) 

Suspension of Provision Relating to Ally 
of Enemy by President 

The President may by proclamation suspend 
the provisions of this act so far as they may apply 
or relate to an ally of enemy. (Sec. 5-a.) 

Publications in Foreign Language 

The publication or circulation, in any foreign 
language, of any news item or comment respect- 
ing the United States or any nation engaged in 

[36] 



the present war, or their policies or international 
relations, shall not be permitted unless the 
publisher files with the postmaster, at the place 
of publication, a complete translation of the 
entire article in the English language. This 
translation shall be made under oath and the 
article published shall be accompanied by a 
statement showing that a true translation has 
been filed giving the name of the postoffice. 

Publications in any foreign language failing to 
comply with the above regulations shall not be 
admitted to the mails, and their distribution in 
any other manner is declared unlawful. 

For a false statement in the affidavit in connec- 
tion with translation aforementioned, the affiant 
shall be punishable for perjury. 

Censorship Established 

If the President deems it expedient he may 
cause to be censored communications by mail, 
cable, radio, or other means between this and any 
country specified by him. Attempts at evasion 
or concealment from such censorship shall be 
punishable by a fine of not more than $10,000 or 
imprisonment for not more than ten years, or 
both. (Sec. 3-d.) 

President May Prohibit Imports 

During the war, it shall be unlawful to import 
into the United States any article or articles from 

[37] 



any country of which the President shall make 
proclamation, except as ordered by him. (Sec. 11.) 

Penalty for Violation 

Violation of the provisions of this law, or of 
any license, rule, or regulation thereunder, shall 
be punishable by fine of not more than $10,000, 
or, if the offender is an individual, by imprisonment 
for not more than ten years, or both. The 
officer, director, or agent of any corporation who 
knowingly participates in such violation, shall 
be punished by a like fine, imprisonment, or both. 
Any property or any vessel concerned in such 
violation shall be forfeited to the United States. 
(Sec. 16.) 

Jurisdiction of District Courts 

The district courts of the United States are 
given jurisdiction to issue all orders and decrees 
which may be necessary and proper to enforce 
the provisions of the law, with right to appeal as 
prescribed by law. (Sec. 17.) 

The several courts of first instance in the Phil- 
ippine Islands and the district court of the 
Canal Zone shall have jurisdiction of offenses 
under this law committed within their respective 
districts, and concurrent jurisdiction with the dis- 
trict courts of the United States of offences under 
this law committed on the high seas. (Sec. 18.) 

[38] 



Trading With the Enemy Act 

(Approved October 6, 1917) 

Be it enacted by the Senate and House of Represen- 
tatives of the United States of America in Congress assem- 
bled, That this Act shall be known as the ' 'Trading with 
the enemy Act." 

Sec. 2. That the word "enemy," as used herein, shall 
be deemed to mean, for the purposes of such trading and 
of this Act — 

(a) Any individual, partnership, or other body of Enemy 
individuals, of any nationality, resident within the ter- 
ritory (including that occupied by the military and naval 
forces) of any nation with which the United States is at 

war, or resident outside the United States and doing bus- 
iness within such territory, and any corporation incorpo- 
rated within such territory of any nation with which the 
United States is at war or incorporated within any coun- 
try other than the United States and doing business within 
such territory. 

(b) The government of any nation with which the 
United States is at war, or any political or municipal 
subdivision thereof, or any officer, official, agent, or 
agency thereof. 

(c) Such other individuals, or body or class of individ- 
uals, as may be natives, citizens, or subjects of any nation 
with which the United States is at war, other than citi- 
zens of the United States, wherever resident or wherever 
doing business, as the President, if he shall find the safety 
of the United States or the successful prosecution of the 
war shall so require, may, by proclamation, include within 
the term "enemy." 

The words "ally or enemy," as used herein, shall be 
deemed to mean — 

(a) Any individual, partnership, or other body of indi- Ally of 
viduals, of any nationality, resident within the territory Enemy 
(including that occupied by the military and naval forces) 
of any nation which is an ally of a nation with which the 
United States is at war, or resident outside the United 
States and doing business within such territory, and any 
corporation incorporated within such territory of such 

[39] 



Person 



United States 



Beginning of 
the War 



End of the 
War 



Bank or 
Banks 



To Trade 



ally nation, or incorporated within any country other than 
the United States and doing business within such territory. 

(b) The government of any nation which is an ally of 
a nation with which the United States is at war, or any 
political or municipal subdivision of such ally nation, or 
any officer, official, agent, or agency thereof. 

(c) Such other individuals, or body or class of individ- 
uals, as may be natives, citizens, or subjects of any nation 
which is an ally of a nation with which the United States 
is at war, other than citizens of the United States, wherever 
resident or wherever doing business, as the President, 
if he shall find the safety of the United States or the suc- 
cessful prosecution of the war shall so require, may, 
by proclamation, include within the term "ally of enemy." 

The word "person," as used herein, shall be deemed to 
mean an individual, partnership, association, company, or 
other unincorporated body of individuals, or corporation or 
body politic. 

The words "United States," as used herein, shall be 
deemed to mean all land and water, continental or insular, 
in any way within the jurisdiction of the United States or 
occupied by the military or naval forces thereof. 

The words "the beginning of the war," as used herein, 
shall be deemed to mean midnight ending the day on which 
Congress has declared or shall declare war or the existence 
of a state of war. 

The words "end of the war," as used herein, shall be 
deemed to mean the date of proclamation of exchange of 
ratifications of the treaty of peace, unless the President 
shall, by proclamation, declare a prior date, in which case 
the date so proclaimed shall be deemed to be the "end of 
the war" within the meaning of this Act. 

The words "bank or banks," as used herein, shall be 
deemed to mean and include national banks, State banks, 
trust companies, or other banks or banking associations 
doing business under the laws of the United States, or of 
any State of the United States. 

The words "to trade," as used herein, shall be deemed 
to mean — 

(a) Pay, satisfy, compromise, or give security for the 
payment or satisfaction of any debt or obligation. 

(b) Draw, accept, pay, present for acceptance or 
payment, or indorse any negotiable instrument or chose in 
action. 

[40] 



(c) Enter into, carry on, complete, or perform any 
contract, agreement, or obligation. 

(d) Buy or sell, loan or extend credit, trade in, deal 
with, exchange, transmit, transfer, assign, or otherwise dis- 
pose of, or receive any form of property. 

(e) To have any form of business or commercial com- 
munication or intercourse with. 

Sec. 3. That it shall be unlawful — 

(a) For any person in the United States, except with Prohibitions 
the license of the President, granted to such person, or 

to the enemy, or ally of enemy, as provided in this 
Act, to trade, or attempt to trade, either directly or Trade 
indirectly with, to, or from, or for, or on account of, or on 
behalf of, or for the benefit of any other person with knowl- 
edge or reasonable cause to believe that such other person 
is an enemy or ally of enemy, or is conducting or taking 
part in such trade, directly or indirectly for, or on account 
of, or on behalf of, or for the benefit of, an enemy or ally 
of enemy. 

(b) For any person, except with the license of the Transporta- 
President, to transport or attempt to transport into or from tion of 
the United States, or for any owner, master, or other Enemy 
person in charge of a vessel of American registry to trans- 
port or attempt to transport from any place to any other 

place, any subject or citizen of an enemy or ally of enemy 
nation, with knowledge or reasonable cause to believe that 
the person transported or attempted to be transported is 
such subject or citizen. 

(c) For any person (other than a person in the service Transmis- 

of the United States Government or of the Government sion of Com- 

of any nation, except that of an enemy or ally of enemy muxueations 

nation, and other than such persons or classes of persons 

as may be exempted hereunder by the President or by 

such person as he may direct) to send, or take out of, or 

bring into, or to attempt to send, or take out of, or bring 

into the United States, any letter or other writing or 

tangible form of communication, except in the regular 

course of the mail; and it shall be unlawful for any person 

to send, take, or transmit, or attempt to send, take, or 

transmit out of the United States, any letter or other 

writing, book, map, plan, or other paper, picture, or any 

telegram, cablegram, or wireless message, or other form of 

[41] 



communication intended for or to be delivered, directly 
or indirectly, to an enemy or ally of enemy: Provided, 
however. That any person may send, take, or transmit out 
of the United States anything herein forbidden if he shall 
first submit the same to the President, or to such officer 
as the President may direct, and shall obtain the license 
or consent of the President, under such rules and regula- 
tions, and with such exemptions, as shall be prescribed by 
the President. 

Censorship (d) Whenever, during the present war, the President 

shall deem that the public safety demands it, he may 
cause to be censored under such rules and regulations as 
he may from time to time establish, communications by 
mail, cable, radio, or other means of transmission pass- 
ing between the United States and any foreign country 
he may from time to time specify, or which may be carried 
by any vessel or other means of transportation touching 
at any port, place, or territory of the United States and 
bound to or from any foreign country. 

Any person who willfully evades or attempts to evade 
the submission of any such communication to such censor- 
ship or willfully uses or attempts to use any code or other 
device for the purpose of concealing from such censorship 
the intended meaning of such communication shall be 
punished as provided in section sixteen of this Act. 

Insurance Sec. 4. (a) Every enemy or ally of enemy insurance 

Companies or reinsurance company, and every enemy or ally of 
or others enemy, doing business within the United States through an 

Doing Busi- agency or branch office, or otherwise, may, within thirty 
ness in U. S. days after the passage of this Act, apply to the President 
for a license to continue to do business; and, within thirty 
days after such application, the President may enter 
an order either granting or refusing to grant such license. 
The license, if granted, may be temporary or otherwise, 
and for such period of time, and may contain such pro- 
visions and conditions regulating the business, agencies, 
managers and trustees and the control and disposition 
of the funds of the company, or of such enemy or ally of 
enemy, as the President shall deem necessary for the safety 
of the United States; and any license granted hereunder 
may be revoked or regranted or renewed in such manner 
and at such times as the President shall determine: Pro- 
vided, however, That reasonable notice of his intent to re- 

[42] 



fuse to grant a license or to revoke a license granted to any 
reinsurance company shall be given by him to all insurance 
companies incorporated within the United States and 
known to the President to be doing business with such 
reinsurance company: Provided further, That no insur- 
ance company, organized within the United States, shall Abrogation 
be obligated to continue any existing contract, entered into f Insurance 
prior to the beginning of the war, with any enemy or ally Contracts 
of enemy insurance or reinsurance company, but any such 
company may abrogate and cancel any such contract by 
serving thirty days' notice in writing upon the President 
of its election to abrogate such contract. 



For a period of thirty days after the passage of this 
Act and further pending the entry of such order by the 
President, after application made by any enemy or ally 
of enemy insurance or reinsurance company, within such 
thirty days as above provided, the provisions of the 
President's proclamation of April sixth, nineteen hundred 
and seventeen, relative to agencies in the United States of 
certain insurance companies, as modified by the provisions 
of the President's proclamation of July thirteenth, nineteen 
hundred and seventeen, relative to marine and war-risk 
insurance, shall remain in full force and effect so far as it 
applies to such German insurance companies, and the con- 
ditions of said proclamation of April sixth, nineteen hun- 
dred and seventeen, as modified by said proclamation of 
July thirteenth, nineteen hundred and seventeen, shall also 
during said period of thirty days after the passage of this 
Act, and pending the order of the President as herein 
provided, apply to any enemy or ally of enemy insurance or 
reinsurance company, anything in this Act to the contrary 
notwithstanding. It shall be unlawful for any enemy or 
ally of enemy insurance or reinsurance company, to whom 
license is granted, to transmit out of the United States 
any funds belonging to or held for the benefit of such 
company or to use any such funds as the basis for the 
establishment directly or indirectly of any credit within 
or outside of the Umted States to, or for the benefit of, 
or on behalf of, or on account of, an enemy or ally of 
enemy. 

For a period of thirty days after the passage of this 
Act, and further pending the entry of such order by the 
President, after application made within such thirty days 

[43] 



Lawful to 
Continue 
Business 
30 Days 



Transmission 
of Funds 
Unlawful 



by any enemy or ally of enemy, other than an insurance 
or reinsurance company as above provided, it. shall be law- 
ful for such enemy or ally of enemy to continue to do busi- 
ness in this country and for any person to trade with, to, 
from, for, on account of, on behalf of, or for the benefit 
of such enemy or ally of enemy, anything in this Act to the 
contrary notwithstanding: Provided, however. That the 
provisions of sections three and sixteen hereof shall apply 
to any act or attempted act of transmission or transfer 
of money or other property out of the United States and 
to the use or attempted use of such money or property as 
the basis for the establishment of any credit within or 
outside of the United States to, or for the benefit of, or on 
behalf of, or on account of, an enemy or ally 01 enemy. 
Unlawful to If no license is applied for within thirty days after the 
Continue passage of this Act, or if a license shall be refused to any 

Business enemy or ally of enemy, whether insurance or reinsurance 

Without company, or other person, making application, or if any 

License license granted shall be revoked by the President, the 

provisions of sections three and sixteen hereof shall forth- 
with apply to all trade or to any attempt to trade with, to, 
from, for, by, on account of, or on behalf of, or for the 
benefit of such company or other person: Provided, how- 
ever, That after such refusal or revocation, anything in this 
Act to the contrary notwithstanding, it shall be lawful for a 
policy-holder or for an insurance company, not an enemy 
or ally of enemy, holding insurance or having effected rein- 
surance in or with such enemy or ally of enemy insurance 
or reinsurance company, to receive payment of, and for such 
enemy or ally of enemy insurance or reinsurance company 
to pay any premium, return premium, claim, money, 
security, or other property due or which may become due 
on or in respect to such insurance or reinsurance in force 
at the date of such refusal or revocation of license: and 
nothing in this Act shall vitiate or nullify then existing 
policies or contracts of insurance or reinsurance, or the 
conditions thereof; and any such policy-holder or insurance 
company, not an enemy or ally of enemy, having any claim 
to or upon money or other property of the enemy or ally of 
enemy insurance or reinsurance company in the custody or 
control of the alien property custodian, hereinafter provided 
for, br of the Treasurer of the United States, may make 
application for the payment thereof and may institute suit 
as provided in section nine hereof. 

[44] 



Change of 
Name 



Suspension 
of Provisions 
Applicable to 
an Ally of 
Enemy 

Granting of 
Licenses 



(b) That, during the present war, no enemy, or ally of 
enemy, and no partnership of which he is a member or was a 
member at the beginning of the war, shall for any purpose 
assume or use any name other than that by which such 
enemy or partnership was ordinarily known at the begin- 
ning of the war, except under license from the President. 

Whenever, during the present war, in the opinion of the 
President the public safety or public interest requires the 
President may prohibit any or all foreign insurance com- 
panies from doing business in the United States, or the 
President may license such company or companies to do 
business upon such terms as he may deem proper. 

Sec. 5. (a) That the President, if he shall find it 
compatible with the safety of the United States and with 
the successful prosecution of the war, may, by proclama- 
tion, suspend the provisions of this Act so far as they 
apply to an ally of enemy, and he may revoke or renew 
such suspension from time to time; and the President 
may grant licenses, special or general, temporary or other- 
wise, and for such period of time and containing such 
provisions and conditions as he shall prescribe, to any 
person or class of persons to do business as provided in 
subjection (a) of section four hereof, and to perform any 
act made unlawful without such license in section three 
hereof, and to file and prosecute applications under sub- 
section (b) of section ten hereof; and he may revoke or 
renew such licenses from time to time, if he shall be of 
opinion that such grant or revocation or renewal shall be 
compatible with the safety of the United States and with 
the successful prosecution of the war; and he may make 
such rules and regulations, not inconsistent with law, as 
may be necessary and proper to carry out the provisions 
of this Act; and the President may exercise any power or 
authority conferred by this Act through such officer or 
officers as he shall direct. 

If the President shall have reasonable cause to believe 
that any act is about to be performed in violation of section 
three hereof he shall have authority to order the postpon- 
ment of the performance of such act for a period not ex- 
ceeding ninety days, pending investigation of the facts 
by him. 

(b) That the President may investigate, regulate, or Export of 
prohibit, under such rules and regulations as he may pre- Coin or 
scribe, by means of licenses or otherwise, any transactions Bullion 

[45] 



Suspension 
of Perform- 
ance of 
Illegal Act 



in foreign exchange, export or ear-markings of gold or 
silver coin or bullion or currency, transfers of credit in any 
form (other than credits relating solely to transactions 
to be executed wholly within the United States), and 
transfers of evidences of indebtedness or of the ownership 
of property between the United States and any foreign 
country, whether enemy, ally of enemy or otherwise, or 
between residents of one or more foreign countries, by any 
person within the United States; and he may require any 
such person engaged in any such transaction to furnish, 
under oath, complete information relative thereto, includ- 
ing the production of any books of account, contracts, 
letters or other papers, in connection therewith in the 
custody or control of such person, either before or after 
such transaction is completed. 

Sec. 6. That the President is authorized to appoint, 
prescribe the duties of, and fix the salary (not to exceed 
$5,000 per annum) of an official to be known as the Alien 
Property Custodian, who shall be empowered to receive 
all money and property in the United States due or be- 
longing to an enemy, or ally of enemy, which may be paid, 
conveyed, transferred, assigned, or delivered to said cus- 
todian under the provisions of this act; and to hold, ad- 
minister, and account for the same under the general 
direction of the President and as provided in this Act. 
The Alien Property Custodian shall give such bond or bonds, 
and in such form and amount, and with such security as 
the President shall prescribe. The President may further 
employ in the District of Columbia and elsewhere and fix 
the compensation of such clerks, attorneys, investigators, 
accountants, and other employees as he may find neces- 
sary for the due administration of the provisions of this 
Act: Provided, That such clerks, investigators, accountants 
and other employees shall be appointed from lists of eligi- 
bles to be supplied by the Civil Service Commission and 
in accordance with the civil service law: Provided further, 
That the President shall cause a detailed report to be made 
to Congress on the first day of January of each year of all 
proceedings had under this Act during the year preceding. 
Such report shall contain a list of all persons appointed or 
employed, with the salary or compensation paid to each, 
and a statement of the different kinds of property taken 
into custody and the disposition made thereof. 

[46] 



Sec. 7. (a) That every corporation incorporated within 
the United States, and every unincorporated association, 
or company, or trustee, or trustees within the United 
States, issuing shares or certificates representing beneficial 
interests, shall, under such rules and regulations as the 
President may prescribe and, within sixt}' days after the 
passage of this Act, and at such other times thereafter as 
the President may require, transmit to the Alien Property 
Custodian a full list, duly sworn to, of every officer, director, 
or stockholder known to be, or whom the representative of 
such corporation, association, company, or trustee has 
reasonable cause to believe to be an enemy or ally of 
enemy resident within the territory, or a subject or citizen 
residing outside of the United States, of any nation with 
which the United States is at war, or resident within the 
territory, or a subject or citizen residing outside of the 
United States, of any ally of any nation with which the 
United States is at war, together with the amount of stock 
or shares owned by each such officer, director, or stock- 
holder, or in which he has any interest. 

The President may also require a similar list to be trans- 
mitted of all stock or shares owned on February third, 
nineteen hundred and seventeen, by any person now 
defined as an enemy or ally of enemy, or in which any 
such person had any interest; and he may also require a 
list to be transmitted of all cases in which said corporation, 
association, company, or trustee has reasonable cause to 
believe that the stock or shares on February third, nineteen 
hundred and seventeen, were owned or are owned by such 
enemy or ally of enemy, though standing on the books in 
the name of another: Provided, however, That the name 
of any such officer, director, or stockholder shall be stricken 
permanently or temporarily from such list by the alien 
property custodian when he shall be satisfied that he is 
not such enemy or ally of enemy. 

Any person in the Unites States who holds or has or 
shall hold or have custody or control of any property ben- 
eficial or otherwise, alone or jointly with others, of, for, 
or on behalf of an enemy or ally of enemy, or of any person 
whom he may have reasonable cause to believe to be an 
enemy or ally of enemy and any person in the United 
States who is or shall be indebted in any way to an enemy 
or ally of enemy, or to any person whom he may have 
reasonable cause to believe to be an enemy or ally of enemy, 

[471 



Disclosure of 
Stockholders, 
Directors, 
and Officers 
of Corpora- 
tions 



Disclosure of 
Money or 
Property 



Extension of 
Time for 
Filing Lists 



Effect of 
Law on 
Unlawful 
Transactions 



shall, with such exceptions and under such rules and reg- 
ulations as the President shall prescribe, and within thirty 
days after the passage of this Act, or within thirty days 
after such property shall come within his custody or 
control, or after such debt shall become due, report the fact 
to the Alien Property Custodian by written statement under 
oath, containing such particulars as said custodian shall 
require. The President may also require a similar report 
of all property so held, of, for, or on behalf of, and of all 
debts so owed to, any person now defined as an enemy or 
ally of enemy, on February third, nineteen hundred and 
seventeen: Provided, That the name of any person shall 
be stricken from the said report by the alien property cus- 
todian, either temporarily or permanently, when he shall be 
satisfied that such person is not an enemy or ally of 
enemy. 

The President may extend the time for filing the lists or 
reports required by this section for an additional period 
not exceeding ninety days. 

(b) Nothing in this Act contained shall render valid 
or legal, or be construed to recognize as valid or legal, any 
act or transaction constituting trade with, to, from, for 
or on account of, or on behalf or for the benefit of an enemy 
performed or engaged in since the beginning of the war and 
prior to the passage of this Act, or any such act or transac- 
tion hereafter performed or engaged in except as authorized 
hereunder, which would otherwise have been or be void, 
illegal, or invalid at law. No conveyance, transfer, 
delivery, payment, or loan of money or other property, in 
violation of section three hereof, made after the passage 
of this Act, and not under license as herein p ovided shall 
confer or create any right or remedy in respect thereof; 
and no person shall by virtue of any assignment, indorse- 
ment, or delivery to him of any debt, bill, note, or other 
obligation or chose in action by, from, or on or behalf of, 
or on account, or for the benefit of an enemy or ally of 
enemy have any right or remedy against the debtor, 
obligor, or other person liable to pay, fulfill, or perform 
the same unless said assignment, indorsement, or delivery 
was made prior to the beginning of the war or shall be made 
under license as herein provided, or unless, if made after 
the beginning of the war and prior to the date of passage 
of the Act, the person to whom the same was made shall 
prove lack of knowledge and of reasonable c.iuse to believe 

[48] 



on his part that the same was made by, from or on behalf 
of, or on account of, or for the benefit of an enemy or 
ally of enemy; and any person who knowingly pays, 
discharges, or satisfies any such debt, note, bill, or other 
obligation or chose in action shall, on conviction thereof, 
be deemed to violate section three hereof: Provided, 
That nothing in this Act contained shall prevent the 
carrying out, completion, or performance of any con- 
tract, agreement, or obligation originally made with or 
entered into by an enemy or ally of enemy where, prior to 
the beginning of the war and not in contemplation thereof, 
the interest of such enemy or ally of enemy devolved by 
assignment or otherwise upon a person not an enemy or ally 
of enemy, and no enemy or ally of enemy will be benefited 
by such carrying out, completion, or performance other- 
wise than by release from obligation thereunder. 

Nothing in this Act shall be deemed to prevent pay- 
ment of money belonging or owing to an enemy or ally of 
enemy to a person within the United States, not an enemy 
or ally of enemy, for the benefit of such person or of any 
other person within the United States, not an enemy or ally 
of enemy, if the funds so paid shall have been received 
prior to the beginning of the war and such payments arise 
out of transactions entered into prior to the beginning of 
the war, and not in contemplation thereof: Provided, 
That such payment shall not be made without the license 
of the President, general or special, as provided in this Act. 

Nothing in this Act shall be deemed to authorize the 
\ prosecution of any suit or action at law or in equity in any 
court within the United States by an enemy or ally of 
enemy prior to the end of the war, except as provided in 
section ten hereof: Provided, however, That an enemy or 
ally of enemy licensed to do business under this Act may 
prosecute and maintain any such suit or action so far as the 
same arises solely out of the business transacted within the 
United States under such license and so long as such license 
remains in full force and effect: And provided further, 
That an enemy or ally of enemy may defend by counsel 
any suit in equity or action at law which may be brought 
against him. 

Receipt of notice from the President to the effect that 
he has reasonable ground to believe that any person is an 
enemy or ally of enemy shall be prima facie defense to any 
one receiving the same, in any suit or action at law or in 

[491 



Payments 
Prior to War 



Maintenance 
of Suit 



Defense to 
Suit by 
Enemy 



equity brought or maintained, or to any right or set-off or 
recoupment asserted by, such person and based on failure 
to complete or perform since the beginning of the war any 
contract or other obligation. In any prosecution under 
section sixteen hereof, proof of receipt of notice from the 
President to the effect that he has reasonable cause to 
believe that any person is an enemy or ally of enemy shall 
be prima facie evidence that the person receiving such 
notice has reasonable cause to believe such other person 
to be an enemy or ally of enemy within the meaning of 
section three hereof. 
Surrender of (c) If the President shall so require, any money or other 
Enemy property owing or belonging to or held for, by, on account 

Property of, or on behalf of, or for the benefit of an enemy or ally of 

enemy not holding a license granted by the President here- 
under, which the President after investigation shall deter- 
mine is so owing or so belongs or is so held, shall be con- 
veyed, transferred, assigned, delivered, or paid over to the 
alien property custodian. 

(d) If not required to pay, convey, transfer, assign, or 
deliver under the provisions of subsection (c) hereof, any 
person not an enemy or ally of enemy who owes to, or holds 
for, or on account of, or on behalf of, or for the benefit of an 
enemy or of an ally of enemy not holding a license granted 
by the President hereunder, any money or other property, 
or to whom any obligation or form of liability to such 
enemy or ally of enemy is presented for payment, may, 
at his option, with the consent of the President, pay, 
convey, transfer, assign, or deliver to the alien property 
custodian said money or other property under such rules 
and regulations as the President shall prescribe. 

(e) No person shall be held liable in any court for or 
in respect to anything done or omitted in pursuance of any 
order, rule, or regulation made by the President under the 
authority of this Act. 

Delivery to Any payment, conveyance, transfer, assignment, or 

Custodian delivery of money or property made to the Alien Property 
full dis- Custodian hereunder shall be a full acquittance and dis- 

charge of charge for all purposes of the obligation of the person 

obligation making the same to the extent of same. The Alien Prop- 
erty Custodian and such other persons as the President may 
appoint shall have power to execute, acknowledge, and 
deliver any such instrument or instruments as may be 
necessary or proper to evidence upon the record or other- 

[50] 



wise such acquittance and discharge and shall, in case of 
payment to the Alien Property Custodian of any debt or 
obligation owed to an enemy or ally of enemy, deliver up 
any notes, bonds, or other evidences of indebtedness or 
obligation, or any security therefor in which such enemy 
or ally of enemy had any right or interest that may have 
come into the possession of the Alien Property Custodian, 
with like effect as if he or they, respectively, were 
duly appointed by the enemy or ally of enemy, creditor, or 
obligee. The President shall issue to every person so 
appointed a certificate of the appointment and authority 
of such person, and such certificate shall be received in 
evidence in all courts within the United States. When- 
ever any such certificate of authority shall be offered to any 
registrar, clerk, or other recording officer, Federal or other- 
wise, within the United States, such officer shall record the 
same in like manner as a power of attorney, and such record 
or a duly certified copy thereof shall be received in evidence 
in all courts of the United States or other courts within the 
United States. 

Sec. 8. (a) That any person not an enemy or ally of Enforcement 
enemy holding a lawful mortgage, pledge, or lien, or other of Liens 
right in the nature of security in property of an enemy or 
ally of enemy which, by law or by the terms of the instru- 
ment creating such mortgage, pledge, or lien, or right, may 
be disposed of on notice or presentation or demand, and 
any person not an enemy or ally of enemy who is a party 
to any lawful contract with an enemy or ally of enemy, 
the terms of which provide for a termination thereof upon 
notice or for acceleration of maturity on presentation or 
demand, may continue to hold said property, and, after 
default, may dispose of the property in accordance with 
law or may terminate or mature such contract by notice 
or presentation or demand served or made on the Alien 
Property Custodian in accordance with the law and the 
terms of such instrument or contract and under such rules 
and regulations as the President, shall prescribe; and such 
notice and such presentation and demand shall have, 
in all respects, the same force and effect as if duly served 
or made upon the enemy or ally of enemy personally: 

[51] 



Abrogation 
of Enemy 
Contracts 



Provided, That no such rule or regulation shall require 
that notice or presentation or demand shall be served or 
made in any case in which, by law or by the terms of said 
instrument or contract, no notice, presentation, or demand 
was, prior to the passage of this Act, required; and that 
in case where, by law or by the terms of such instrument 
or contract, notice is required, no longer period of notice 
shall be required: Provided further, That if, on any such 
disposition of property, a surplus shall remain after the 
satisfaction of the mortgage, pledge, lien, or other right 
in the nature of security, notice of that fact shall be given 
to the President pursuant to such rules and regulations as 
he may prescribe, and such surplus shall be held subject 
to his further order. 

(b) That any contract entered into prior to the begin- 
ning of the war between any citizen of the United States 
or any corporation organized within the United States, and 
an enemy or ally of an enemy, the terms of which provide 
for the delivery, during or after any war in which a present 
enemy or ally of enemy nation has been or is now engaged, 
of anything produced, mined, or manufactured in the 
United States, may be abrogated by such citizen or cor- 
poration by serving thirty days' notice in writing upon the 
Alien Property Custodian of his or its election to abrogate 
such contract. 



Suspension (c) The running of any statute of limitations shall be 

of Statute of suspended with reference to the rights or remedies on any 
Limitations contract or obligation entered into prior to the beginning 
of the war between parties neither of whom is an enemy or 
ally of enemy, and containing any promise to pay or 
liability for payment which is evidenced by drafts or other 
commercial paper drawn against or secured by funds or 
other property situated in an enemy or ally of enemy 
country, and no suit shall be maintained on any sucn 
contract or obligation in any court within the United 
States until after the end of the war, or until the said 
funds or property shall be released for the payment or 
satisfaction of such contract or obligation: Provided, 
however, That nothing herein contained shall be con- 
strued to prevent the suspension of the running of the 
statute of limitations in all other cases where such suspen- 
sion would occur under existing law. 

[52] 



Sec. 9. That any person, not an enemy, or ally of enemy, Claims 
claiming any interest, right, or title in any money or against 
other property which may have been conveyed, trans- Property De- 
ferred, assigned, delivered, or paid to the Alien Property posited with 
Custodian hereunder, and held by him or by the Treasurer Custodian 
of the United States, or to whom any debt may be owing 
from an enemy, or ally of enemy, whose property or any 
part thereof shall have been conveyed, transferred, as- 
signed, delivered, or paid to the alien property custodian 
hereunder, and held by him or by the Treasurer of the 
United States, may file with the said custodian a notice 
of his claim under oath and in such form and containing 
such particulars as the said custodian shall require; and 
the President, if application is made therefor by the claim- 
ant, may, with the assent of the owner of said property 
and of all persons claiming any right, title, or interest 
therein, order the payment, conveyance, transfer, assign- 
ment or delivery to said claimant of the money or other 
property so held by the Alien Property Custodian or by the « 

Treasurer of the United States or of the interest therein 
to which the President shall determine said claimant 
is entitled: Provided, That no such order by the President Right to Sue 
shall bar any person from the prosecution of any suit not Barred 
at law or in equity against the claimant to establish 
any right, title or interest which he may have in such 
money or other property. If the President shall not so 
order within sixty days after the filing of such application, 
or if the claimant shall have filed the notice as above 
required and shall have made no application to the Pres- 
ident, said claimant may, at any time before the expira- 
tion of six months after the end of the war, institute a suit 
in equity in the district court of the United States for the 
district in which such claimant resides, or, if a corpora- 
tion, where it has its principal place of business (to which 
suit the Alien Property Custodian or the Treasurer of the 
United States, as the case may be, shall be made a party 
defendant), to establish the interest, right, title, or debt 
so claimed, and if suit shall be so instituted then the money 
or other property of the enemy, or ally of enemy, against 
whom such interest, right, or title is asserted, or debt 
claimed, shall be retained in the custody of the Alien 
Property Custodian, or in the Treasury of the United States, 
as provided in this Act, and until any final judgment or 
decree which shall be entered in favor of the claimant 

[53] 



shall be fully satisfied by payment or conveyance, trans- 
fer, assignment, or delivery by the defendant or by the 
Alien Property Custodian or Treasurer of the United States 
on order of the court, or until final judgment or decree 
shall be entered against the claimant, or suit otherwise 
terminated. 
Property not Except as herein provided, the money or other prop- 
Subject to erty conveyed, transferred, assigned, delivered, or paid to 
Lien while the Alien Property Custodian shall not be liable to lien, at- 
with tachment, garnishment, trustee process, or execution, or 

Custodian subject to any order or decree of any court. 

This section shall not apply, however, to money paid 
to the Alien Property Custodian under section ten hereof. 

Sec. 10. That nothing contained in this Act shall be 
held to make unlawful any of the following Acts: 
Enemy may (a) An enemy, or ally of enemy, may file and prose- 

Apply for cute in the United States an application for letters patent, 
Letters or for registration of trademark, print, label, or copy- 

Patents right, and may pay any fees therefor in accordance with 

and as required by the provisions of existing law and fees 
for attorneys or agents for filing and prosecuting such 
applications. Any such enemy, or ally of enemy, who is 
unable during war, or within six months thereafter, on 
account of conditions arising out of war, to file any such 
application, or to pay any official fee, or to take any ac- 
tion required by law within the period prescribed by law, 
may be granted an extension of nine months beyond the 
expiration of said period, provided the nation of which the 
said applicant is a citizen, subject, or corporation shall 
extend substantially similar privileges to citizens and 
corporations of the United States. 
U. S. Citizen (b) Any citizen of the United States, or any corpora- 
may Apply tion organized within the United States, may, when duly 
in Enemy authorized by the President, pay to an enemy or ally of 
Country enemy any tax, annuity, or fee which may be required by 

the laws of such enemy or ally of enemy nation in relation 
to patents and trademarks, prints, labels, and copyrights; 
and any such citizen or corporation may file and prosecute 
an application for letters patent or for registration of trade- 
mark, print, label, or copyright in the country of an enemy, 
or of an ally of enemy after first submitting such applica- 
tion to the President and receiving license so to file and 
prosecute, and to pay the fees required by law and cus- 

[54] 



tomary agents' 'fees, the maximum amount of which in 
each case shall be subject to the control of the President. 

(c) Any citizen of the United States or any corporation 
organized within the United States desiring to manufac- 
ture, or cause to be manufactured, a machine, manufac- 
ture, composition of matter, or design, or to carry on, or 
cause to be carried on, a process under any patent or to use 
any trademark, print, label or copyrighted matter owned 
or controlled by an enemy or ally of enemy at any time 
during the existence of a state of war may apply to the 
President for a license; and the President is hereby author- 
ized to grant such a license, non-exclusive or exclusive as 
he shall deem best, provided he shall be of the opinion that 
such grant is for the public welfare, and that the applicant 
is able and intends in good faith to manufacture, or cause 
to be manufactured, the machine, manufacture, composi- 
tion of matter, or design, or to carry on. or cause to be 
carried on, the process or to use the trademark, print, 
label or copyrighted matter. The President may prescribe 
the conditions of this license including the fixing of prices 
of articles and products necessary to the health of the 
military and naval forces of the United States or the 
successful prosecution of the war and the rules and regu- 
lations under which such license may be granted and the 
fee which shall be charged therefor, not exceeding $100, and 
not exceeding one per centum, of the fund deposited as 
hereinafter provided. Such license shall be a complete 
defense to any suit at law or in equity instituted by the 
enemy or ally of enemy owners of the letters patent, trade- 
mark, print, label or copyright, or otherwise, against the 
licensee for infringement or for damages, royalty, or other 
money award on account of anything done by the licensee 
under such license, except as provided in subsection (f) 
hereof. 

(d) The licensee shall file with the President a full 
statement of the extent of the use and enjoyment of the 
license, and of the prices received in such form and at 
such stated periods (at least annually) as the President 
may prescribe; and the licensee shall pay at such times as 
may be required to the Alien Property Custodian not to 
exceed five per centum of the gross sums received by the 
licensee from the sale of said inventions or use of the 
trademark, print, label or copyrighted matter, or, if 
the President shall so order, five per centum of the value 

[55] 



U. S. Citizen 
May Obtain 
License to 
Use Enemy 
Patent 



Statement of 
Use and En- 
joyment of 
Patent 



Compensa- 
tion for Use 



of the use of such inventions, trademarks, prints, labels 
or copyrighted matter to the licensee as established by the 
President; and sums so paid shall be deposited by said 
Alien Property Custodian forthwith in the Treasury of 
the United States as a trust fund for the said licensee and 
for the owner of the said patent, trademark, print, label 
or copyright registration as hereinafter provided, to 
be paid from the Treasury upon order of the court, as pro- 
vided in subdivision (f) of this section, or upon the direc- 
tion of the Alien Property Custodian. 
Term of (e) Unless surrendered or terminated as provided in 

License this Act, any license granted hereunder shall continue dur- 

ing the term fixed in the license or in the absence of any 
such limitation during the term of the patent, trademark, 
print, label, or copyright registration under which it is 
granted. Upon violation by the licensee of any of the pro- 
visions of this Act, or of the conditions of the license, the 
President may, after due notice and hearing, cancel any 
license granted by him. 
Enemy (f) The owner of any patent, trademark, print, label 

Owner or copyright under which a license is granted hereunder 

May Sue for may, after the end of the war and until the expiration of 
Accounting one year thereafter, file a bill in equity against the licensee 
in the district court of the United States for the district 
in which the said licensee resides, or, if a corporation, in 
which it has its principal place of business (to which suit 
the Treasurer of the United States shall be made a party), 
for recovery from the said licensee for all use and enjoy- 
ment of the said patented invention, trademark, print, 
label, or copyrighted matter: Provided, however. That 
whenever suit is brought, as above, notice shall be filed 
with the Alien Property Custodian within thirty days after 
All Defences date of entry of suit: Provided further. That the licensee 
Available may make any and all defences which would be available 

were no license granted. The court on due proceedings 
had may adjudge and decree to the said owner payment 
of a reasonable royalty. The amount of said judgment 
and decree, when final, shall be paid on order of the court 
to the owner of the patent from the fund deposited by the 
licensee, so far as such deposit will satisfy said judgment 
and decree; and the said payment shall be in full or par- 
tial satisfaction of said judgment and decree, as the facts 
may appear; and if, after payment of all such judgments 
and decrees, there shall remain any balance of said deposit, 

[56 1 



such balance shall be repaid to the licensee on order of the 
Alien Property Custodian. If no suit is brought within 
one year after the end of the war, or no notice is filed as 
above required, then the licensee shall not be liable to make 
any further deposits, and all funds deposited by him shall 
be repaid to him on order of the Alien Property Custodian. 
Upon entry of suit and notice filed as above required, or 
upon repayment of funds as above provided, the liability 
of the licensee to make further reports to the President 
shall cease. 

If suit is brought as above provided, the court may, at 
any time, terminate the license, and may, in such event, 
issue an injunction to restrain the licensee from infringe- 
ment thereafter, or the court, in case the licensee, prior 
to suit, shall have made investment of capital based on 
possession of the license, may continue the license for such 
period and upon such terms and with such royalties as it 
shall find to be just and reasonable. 

(g) Any enemy, or ally of enemy, may institute and 
prosecute suits in equity against any person other than a 
licensee under this Act to enjoin infringement of letters 
patent, trademark, print, label, and copyrights in the 
United States owned or controlled by said enemy or ally 
of enemy, in the same manner and to the extent that he 
would be entitled so to do if the United States was not at 
war: Provided, That no final judgment or decree shall be 
entered in favor of such enemy or ally of enemy by any 
court except after thirty days' notice to the Alien Property 
Custodian, such notice shall be in writing and shall be 
served in the same manner as civil process of Federal courts. 

(h) All powers of attorney heretofore or hereafter 
granted by an enemy or ally of enemy to any person 
within the United States, in so far as they may be 
requisite to the performance of acts authorized in sub- 
sections (a) and (g) of this section shall be valid. 

(i) Whenever the publication of an invention by the 
granting of a patent may, in the opinion of the President, be 
detrimental to the public safety or defense, or may assist 
the enemy or endanger the successful prosecution of the 
war, he may order that the invention be kept secret and 
withhold the grant of a patent until the end of the war: 
Provided, That the invention disclosed in the application 
for said patent may be held abandoned upon it being estab- 
lished before or by the Commissioner of Patents that, in 

[57] 



Return of 
Deposit to 
Licensee if 
no Suit is 
Instituted 



Practice on 
Hearing 



Enemy May 
Enjoin In- 
fringement 
of Patent 



Powers of 

Attorney 

Valid 



Patents on 
Inventions of 
Detrimental 
Consequence 
May be 
Withheld 



violation of said order, said invention has been published 
or that an application for a patent therefor has been filed 
in any other country, by the inventor or his assigns or 
legal representatives, without the consent or approval 
of the commissioner or under a license of the President. 
When an applicant whose patent is withheld as herein 

Provided and who faithfully obeys the order of the 
'resident above referred to shall tender his invention 
Suit for to the Government of the United States for its use, 

Compensa- he shall, if he ultimately receives a patent, have the right 
tion in Court to sue for compensation in the Court of Claims, such right 
of Claims to compensation to begin from the date of the use of the 

invention by the Government. 
May Sec. 11. Whenever during the present war the Presi- 

Prohibit dent shall find that the public safety so requires and 

Imports shall make proclamation thereof it shall be unlawful to 

import into the United States from any country named in 
such proclamation any article or articles mentioned in 
such proclamation except as such time or times, and under 
such regulations or orders, and subject to such limita- 
tions and exceptions as the President shall prescribe, 
until otherwise ordered by the President or by Congress: 
Provided, however, That no preference shall be given to 
the ports of one State over those of another. 
Investment Sec. 12. That all moneys (including checks and drafts 

of Funds in payable on demand) paid to or received by the Alien 
Government Property Custodian pursuant to this Act shall be deposited 
Bonds forthwith in the Treasury of the United States, and may be 

invested and reinvested by the Secretary of the Treasury 
in United States bonds or United States certificates of 
indebtedness, under such rules and regulations as the 
President shall prescribe for such deposit, investment, 
and sale of securities; and as soon after the end of the war 
as the President shall deem practicable, such securities 
shall be sold and the proceeds deposited in the Treasury. 
Banks May AH other property of an enemy, or ally of enemy, con- 

Act as veyed, transferred, assigned, delivered, or paid to the Alien 

Depositaries Property Custodian hereunder shall be safely held and 
for Custo- administered by him except as hereinafter provided; and 
dian; also the President is authorized to designate as a depositary, or 

Secretary of depositaries, of property of an enemy or ally of enemy 
Treasury any bank, or banks, or trust company, or trust 

companies, or other suitable depositary or depositaries, 
located and doing business in the United States. The 

[581 



Alien Property Custodian may deposit with such desig- 
nated depositary or depositaries, or with the Secretary of 
the Treasury, any stocks, bonds, notes, time drafts, time 
bills of exchange, or other securities, or property (except 
money or checks or drafts payable on demand which are 
required to be deposited with the Secretary of the Treas- 
ury) and such depositary or depositaries shall be author- 
ized and empowered to collect any dividends or interest 
or income that may become due and any maturing obli- 
gations held for the account of such custodian. Any 
moneys collected on said account shall be paid and de- 
posited forthwith by said depositary or by the Alien 
Property Custodian into the Treasury of the United States 
as hereinbefore provided. 

The President shall require all such designated depos- 
itaries to execute and file bonds sufficient in his judgment 
to protect property on deposit, such bonds to be condi- 
tioned as he may direct. 

The Alien Property Custodian shall be vested with all 
of the powers of a common-law trustee in respect of all 
property, other than money, which shall come into his 
possession in pursuance of the provisions of this Act, 
and, acting under the supervision and direction of the 
President, and under such rules and regulations as the 
President shall prescribe, may manage such property 
and do any act or things in respect thereof or make any 
disposition thereof or of any part thereof, by sale or other- 
wise, and exercise any rights which may be or become 
appurtenant thereto or to the ownership thereof, if and 
when necessary to prevent waste or to protect such prop- 
erty, and to the end that the interests of the United States 
in such property and rights or of such person as may 
ultimately become entitled thereto, or to the proceeds 
thereof, may be preserved and safeguarded. It shall be 
the duty of every corporation incorporated within the 
United States and every unincorporated association, or 
company, or trustee, or trustees within the United States 
issuing shares or certificates representing beneficial inter- 
ests to transfer such shares or certificate upon its, his, or 
their books into the name of the Alien Property Custodian 
upon demand, accompanied by the presentation of the 
certificates which represent such shares or beneficial inter- 
ests. The Alien Property Custodian shall forthwith 
deposit in the Treasury of the United States, as herein- 

[59] 



Bonds 
Necessary 



Powers of 
Alien 
Property 
Custodian 



Delivery to 
United States 
Treasurer 



Distribution 
of Alien 
Property 
Held by 
Custodian 



Ship Masters' 
Certificates 
as to Cargo 
and Con- 
signee 



before provided, the proceeds of any such property or 
rights so sold by him. 

Any money or property required or authorized by the 
provisions of this Act to be paid, conveyed, transferred, 
assigned, or delivered to the Alien Property Custodian shall, 
if said custodian shall so direct by written order, be paid, 
conveyed, transferred, assigned, or delivered to the Treas- 
urer of the United States with the same effect as if to the 
Alien Property Custodian. 

After the end of the war any claim of any enemy or 
of an ally of enemy to any money or other property 
received and held by the alien property custodian or de- 
posited in the United States Treasury, shall be settled as 
Congress shall direct: Provided, however, That on order 
of the President as set forth in section nine hereof, or 
of the court, as set forth in sections nine and ten hereof, the 
Alien Property Custodian or the Treasurer of the United 
States, as the case may be, shall forthwith convey, trans- 
fer, assign, and pay to the person to whom the President 
shall so order, or in whose behalf the court shall enter 
final judgment or decree, any property of an enemy or ally 
of enemy held by said custodian or by said Treasurer, so 
far as may be necessary to comply with said order of the 
President or said final judgment or decree of the court: 
And provided further, That the Treasurer of the United 
States, on order of the alien property custodian, shall, as 
provided in section ten hereof, repay to the licensee any 
funds deposited by said licensee. 

Sec. 13. That, during the present war, in addition to 
the facts required by sections forty-one hundred and 
ninety-seven, forty-one hundred and ninety-eight, and 
forty-two hundred of the Revised Statutes, as amended 
by the Act of June fifteenth, nineteen hundred and seven- 
teen, to be set out in the master's and shipper's manifests 
before clearance will be issued to vessels bound to foreign 
ports, the master or person in charge of any vessel, before 
departure of such vessel from port, shall deliver to the 
collector of customs of the district wherein such vessel is 
located a statement duly verified by oath that the cargo 
is not shipped or to be delivered in violation of this Act, 
and the owners, shippers, or consignors of the cargo of 
such vessels shall in like manner deliver to the collector 
like statement under oath as to the cargo or the parts 

[60] 



thereof laden or shipped by them, respectively, which 
statement shall contain also the names and addresses of 
the actual consignees of the cargo, or if the shipment is 
made to a bank or other broker, factor, or agent, the names 
and addresses of the persons who are the actual consignees 
on whose account the shipment is made. The master or 
person in control of the vessel shall, on reaching port of 
destination of any of the cargo, deliver a copy of the 
manifest and of the said master's, owner's, shipper's, 
or consignor's statement to the American consular officer 
of the district in which the cargo is unladen. 

Sec. 14. That, during the present war, whenever there 
is reasonable cause to believe that the manifest or the addi- 
tional statements under oath required by the preceding 
section are false or that any vessel, domestic or foreign, is 
about to carry out of the United States any property to or 
for the account or benefit of an enemy, or ally of enemy, 
or any property or person whose export, taking out, or 
transport will be in violation of this Act, the collector of 
customs for the district in which such vessel is located is 
hereby authorized and empowered, subject to review by 
the President, to refuse clearance to any such vessel, 
domestic or foreign, for which clearance is required by 
law, and by formal notice served upon the owners, master, 
or person or persons in command or charge of any domestic 
vessel for which clearance is not required by law, to forbid 
the departure of such vessel from the port, and it shall 
thereupon be unlawful for such vessel to depart. The 
collector of customs shall, during the present war, in each 
case report to the President the amount of gold or silver 
coin or bullion or other moneys of the United States con- 
tained in any cargo intended for export. Such report 
shall include the names and addresses of the consignors 
and consignees, together with any facts known to the 
collector with reference to such shipment and particularly 
those which may indicate that such gold or silver coin or 
bullion or moneys of the United States may be intended 
for delivery or may be delivered, directly or indirectly, 
to an enemy or an ally of enemy. 

Sec. 15. That the sum of $450,000 is hereby appropri- 
ated, out of any money in the Treasury of the United 
States not otherwise appropriated, to be used in the 
discretion of the President for the purpose of carrying out 
the provisions of this Act during the fiscal year ending 

[61] 



Collector 
May Refuse 
Clearance 
for False 
Representa- 



Appropria- 

tion 

$450,000 



June thirtieth, nineteen hundred and eighteen, and for 
the payment of salaries of all persons employed under this 
Act, together with the necessary expenses for transporta- 
tion, subsistence, rental of quarters in the District of 
Columbia, books of reference, periodicals, stationery, 
typewriters and exchanges thereof, miscellaneous supplies, 
printing to be done at the Government Printing Office, 
and all other necessary expenses not included in the lore- 
going. 
Penalty for Sec. 16. That whoever shall willfully violate any of the 

Violation provisions of this Act or of any license, rule, or regulation 
issued thereunder, and whoever shall willfully violate, 
neglect, or refuse to comply with any order of the Presi- 
dent issued in compliance with the provisions of this Act, 
shall, upon conviction, be fined not more than $10,000, 
or, if a natural person, imprisoned for not more than ten 
years, or both; and the officer, director, or agent of any 
corporation who knowingly participates in such viola- 
tion shall be punished by a like fine, imprisonment, or 
both, and any property, funds, securities, papers, or other 
articles or documents, or any vessel, together with her 
tackle, apparel, furniture, and equipment, concerned in 
such violation shall be forfeited to the United States. 
United States Sec. 17. That the district courts of the United States 
District are hereby given jurisdiction to make and enter all such 

Courts rules as to notice and otherwise, and all such orders and de- 

crees, and to issue such process as may be necessary and 
proper in the premises to enforce the provisions of this 
Act, with a right of appeal from the final order or decree 
of such court as provided in sections one hundred and 
twenty-eight and two hundred and thirty-eight of the Act 
of March third, nineteen hundred and eleven, entitled 
"An Act to codify, revise, and amend the laws relating 
to the judiciary. " 
Philippines Sec. 18. That the several courts of first instance in 

and the Philippine Islands and the district court of the Canal 

Canal Zone Zone shall have jurisdiction of offenses under this Act 
committed within their respective districts, and concur- 
rent jurisdiction with the district courts of the United 
States of offenses under this Act committed upon the high 
seas and of conspiracies to commit such offenses as de- 
fined by section thirty-seven of the Act entitled "An Act 
to codify, revise, and amend the penal laws of the United 
States." approved March fourth, nineteen hundred and 

[62] 



Line, and the provisions of said section for the purpose 
of this Act are hereby extended to the Philippine Islands 
and to the Canal Zone. 

Sec. 19. Ten days after the approval of this Act and Publications 
until the end of the war it shall be unlawful for any in Foreign 
person, firm, corporation, or association, to print, Language 
publish, or circulate, or cause to be printed, published, or 
circulated in any foreign language, any news item, edi- 
torial, or other printed matter, respecting the government of 
the United States, or of any nation engaged in the present 
war, its policies, international relations, the state or con- 
duct of the war, or any matter relating thereto; Provided, 
that this section shall not apply to any print, newspaper, 
or publication where the publisher or distributor thereof, 
on or before offering the same for mailing, or in any man- 
ner distributing it to the public, has filed with the post- 
master at the place of publication, in the form of an affi- 
davit, a true and complete translation of the entire article 
containing such matter proposed to be published in such 
print, newspaper, or publication, and has caused to be 
printed, in plain type in the English language, at the head 
of each such item, editorial, or other matter, on each copy 
of such print, newspaper, or publication, the words ''True 
translation filed with the postmaster at , on 

(naming the postoffice where 
the translation was filed, and the date of filing thereof), as 
required by the Act of (here giving the 

date of this Act)." 

Any print, newspaper, or publication in any foreign lan- 
guage which does not conform to the provisions of this 
section is hereby declared to be non-mailable, and it shall 
be unlawful for any person, firm, corporation, or associa- 
tion, to transport, carry, or otherwise publish or distribute 
the same, or to transport, carry, or otherwise publish or 
distribute any matter which is made non-mailable by the 
provisions of the Act relating to espionage, approved 
June 15, 1917: Provided further, that upon evidence satis- 
factory to him that any print, newspaper, or publication, 
printed in a foreign language may be printed, published, 
and distributed free from the foregoing restrictions and 
conditions without detriment to the United States in the 
conduct of the present war, the President may cause to be 
issued to the printers or publishers of such print, news- 
paper, or publication, a permit to print, publish and circu- 

[63] 



late the issue or issues of their print, newspaper, or publica- 
tion, free from such restrictions and requirements, such per- 
mits to be subject to revocation at his discretion. And 
the Postmaster General shall cause copies of all such 
permits and revocations of permits to be furnished to the 
postmaster of the postoffice serving the place from which 
the print, newspaper, or publication, granted the permit is 
to emanate. All matter printed, published and distributed 
under permits shall bear at the head thereof in plain type 
in the English language, the words, " Published and dis- 
tributed under permit authorized by the Act of 

(here giving date of this Act), on file at the 
postoffice of , (giving name of 

office)." 

Any person who shall make an affidavit containing any 
false statement in connection with the translation provided 
for in this section shall be guilty of the crime of perjury 
and subject to the punishment provided therefor by Section 
125 of the Act of March 4, 1909, entitled " An Act to codify, 
revise, and amend the penal laws of the United States," 
and any person, firm, corporation, or association, violating 
any other requirement of this section shall, on conviction 
thereof, be punished by a fine of not more than five hun- 
dred dollars ($500), or by imprisonment of not more than 
one year, or, in the discretion of the Court, may be both 
fined and imprisoned. 



[64 



Index 



Ally of Enemy 

Defined, 11 

Doing Business Here, 14 

License, 15 

Suspension of Act, and, 16 
Alien Property Custodian 

Appointment, 21 

Method of Procedure, 21 

Powers, 21 

Pre- War Contracts and, 26 

Rights, 22 
Banks 

Defined, 13 

Deposits by Custodian, 22 
Beginning of War 

See Definitions, 12 
Bullion 

Exports of, 15, 31 
Change of Name 

Enemy Prohibited, 14 
Claims 

Settlement of, 30 
Coin 

Exports of Gold, 15, 31 
Collectors of Customs 

Authority Under Act, 30 

Clearances, 31 

Coin Exports, 15, 31 
Citizens of United States 

Rights to Enemy Patents, etc. 
33 

Contracts Prior to War 
See Alien Property Custo- 
dian, 26 
Copyrights 

See Letters Patent, 32, 33, 
34, 35,136 



Corporations 

Must Furnish List of Alien 
Directors, Officers or Stock- 
holders to Custodian, with 
Holdings, 23 
Definitions 

Ally of Enemy, 11 

Bank, 13 

Beginning of War, 12 

End of War, 12 

Enemy, 11 

Person, 12 

To Trade, 12 

United States, 12 
Doing Business Here 

Enemy or Ally of Enemy, 14, 
16 
Directors, Enemy or Ally 
of Enemy 

Listed With Custodian, 23 
End of War 

See Definitions, 12 
Enemy 

Contracts, 18 

Defined, 11 

Doing Business Here, 14, 16 

Enforcement of Contracts, 
25, 26, 27 

License, 15 

Not to Export Funds, 18 

Property of, 21 

Right to Sue or Defend, 29 
Foreign Language 

War Comment in, 36 
Gold Coin or Bullion 

Exports of, 15, 31 
Government Bonds 

Alien Property and, 21 



65 



Imports 

May be Prohibited, 37 

Insurance Companies (Enemy) 
Licenses, 16, 17, 18 
Policyholders' Payments, 18, 

19 
Reinsurance, 16, 17 
See Marine, 18 
See War-Risk, 18 

Inventions 

If Injurious May be Withheld, 
34 

Letters Patent (Trademarks 

and Copyrights) 
Applications for, 32 
License May be Obtained, 32 
Power of Attorney, 34 
Remedies of Enemy Owner, 

35 
Sought Here by Enemy or 

Ally, 32 
Sought in Enemy Country 

by IT. S. Citizen, 32 
Use of Enemy Patent, 33 

License 

Authority to Grant, 15 
General, 15 

In Letters Patents, etc., 16 
In Pre-War Payments, 20 
Insurance Companies, 18 
Renewal of, 15 
Restricted. 18 
Revocation of, 15 
Special, 15 
Temporary, 15 
To Change Name, 14 
To Trade With Enemy. 15 
To Transmit Communica- 
tions, 14 
To Transport Enemy, 13 

Marine Insurance 
Not to Be Licensed, 18 



Mortgage 
25 

Notice 

Contracts, 26 

From President as to Enemy, 

29 
Required in Coin Exports, 31 
Required in Licenses, 19 
To Custodian, 26 

Officers, Enemy or Ally of 
Enemy (Corp.) 
Listed With Custodian, 23 



Person 

See Definitions, 



12 



Powers of Attorney 
34 

Proclamation 

President May Issue, 36, 37 

Prohibitions 

Change of Name, 14 
Communication With Enemy, 

14 
Doing Business in U. S., 14 
Publication, War Comments, 

36 
Trading With Enemy, 13 
Transportation of Enemy, 13 

Property 

Disclosure of, 24 
Enforcement of Rights, 25, 

26, 27, 28. 29. 30 
Transfer to Custodian. 21 

Reinsurance Companies 
See Insurance Companies, 18 

Statute of Limitation 
Suspended, 29 

Stock 

Enemy Holdings of, 23 
Listed With President, 24 



[66] 



Stockholders, Enemy or Ally 
of Enemy 
Listed With Custodian, 23 

Suspension of Act 
Ally of Enemy, 36 

To Trade 

See Definitions, 12 

Trademarks 

See Letters Patent, 32 

United States 
See Definitions, 12 



United States District Court 

Jurisdiction, 38 
Violations of Act 

Penalties, 38 
Void Transactions 

Effect of Act on, 19 
War Comment 

Prohibited in Foreign Lan- 
guage, 36 
War-Risk Insurance 

Not to Be Licensed, 18 

Penalties, 38 



167 1 



Guaranty Trust Company of New York 
Functions and Facilities 



Guaranty Trust Company 
of New York 



Invites accounts of banks and bankers, 
firms, corporations and individuals 



Functions and Facilities 



General 
Banking 
Department 



Foreign 
Department 



Bond 
Department 



Trust 
Department 



Transacts the general business of the bank; 
extends credit; pays interest on daily bal- 
ances, and on certificates of deposit. 

A fully equipped banking institution. 
Handles direct all kinds of foreign banking 
transactions with the leading banks in all 
parts of the world. Accepts time drafts 
for the purpose of financing shipments to 
or from the United States. Issues letters of 
credit and travelers' checks. 

Investigates, examines, and underwrites 
bond issues; gives advice to customers in 
regard to their investments; buys and sells 
securities. 

Acts as trustee under corporate mortgages. 
Acts as executor, administrator, administra- 
tor with the will annexed, testamentary 
trustee, guardian of estates of infants, com- 
mittee of property of incompetents, trustee 
under voluntary trusts. 



Transfer, 
Registration, 
Coupon, and 
Reorganization 
Departments 



Acts as depositary and agent of voting trus- 
tees; holds securities or cash under escrow 
agreements. 

Acts as custodian of securities and financial 
agent for individuals and corporations. 

Acts as transfer, fiscal, and disbursing agent; 
registrar, co-registrar, and depositary for 
corporations organizing, reorganizing, or 
established. 



Income Tax 
Department 



Foreign 
Offices 



Assists customers and others in solving 
questions concerning the requirements of 
the Federal Income Tax Law, and in com- 
piling annual returns. 

This Company maintains fully equipped 
offices in London and Paris. It has resi- 
dent representatives in Petrograd and 
Buenos Aires and travelers in many coun- 
tries abroad, affording to importers and ex- 
porters complete facilities for extending 
their international trade. 



\ Full details of the facilities offered by any or all of the 
I departments will be sent on request. 



UNIVERSITY OF CALIFORNIA LIBRARY 



U. C. BERKELEY LIBRARIES 




cqsmtse 1 ^