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HEARINGS

BEFORE THE

SUBCOMMITTEE OF THE
COMMITTEE ON COMMERCE

UNITED STATES SENATE

SIXTY-FIFTH CONGRESS

FIRST SESSION

ON

H. R. 4960

A BILL TO DEFINE, REGULATE, AND PUNISH TRADING

WITH THE ENEMY, AND FOR OTHER PURPOSES

JULY 23, 24, 25, 27, 30, AND

AUGUST 2, 1917

Printed for the use of the Committee on Commerce

Dup, 19:22
D. of D.

WASHINGTON
GOVERNMENT PRINTING OFFICE

1917

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TRADING WITH THE ENEMY.

MONDAY, JULY 23, 1917.

UNITED STATES SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON COMMERCE,

Washington, D. C. The subcommittee met, pursuant to call, at 10.30 o'clock a. m., in the committee room, Capitol, Senator Joseph E. Ransdell presiding.

Present: Senators Ransdell (chairman), Vardaman, and Fernald.

Also present: Hon. Charles Warren, Assistant Attorney General of the United States; Albert Lee Thurman, Esq., Solicitor, Department of Commerce; Edward T. Quigley, Esq., Assistant Solicitor, Department of Commerce; Mr. B. S. Cutler, Chief of the Bureau of Foreign and Domestic Commerce, Department of Commerce; Francis M. Phelps, Esq., L. Steward Bacon, Esq., and Thomas E. Robertson, Esq., representing the law and rules committee of the American Patent Law Association; J. G. Boston, Esq., of the firm of Cadwallader, Wickersham & Taft; O. G. Saxon, Esq., of the firm of Cravath & Henderson, representing the New York Stock Transfer Association; Mr. K. W. Buck, representing certain shippers of New York City; and Mr. J. S. Edgar, representing the Diarsenol Co., of Toronto, Canada.

The CHAIRMAN. The committee will come to order.
The subcommittee had under consideration the following bill:

1

as

H. R. 4960.-AN ACT To define, regulate, and punish trading with the enemy,

and for other purposes. Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act shall be known as the “Trading with the 4 enemy Act.”

SEC. 2. That the word “enemy," as used herein, shall 6 be deemed to mean, for the purposes of such trading and of 7 this Act8 (a) Any individual, partnership, or other body of 9 individuals, of any nationality, resident within the territory 10 (including that occupied by the military and naval forces) 11 of any nation with which the United States is at war, or

(1)

1 resident outside the United States and doing business within

2 such territory, and any corporation incorporated within such

3 territory of any nation with which the United States is at

4 war or incorporated within any country other than the 5 United States and doing business within such territory: 6 Provided, That nothing in this Act shall impair or affect 7 the President's proclamation of April sixth, nineteen hundred 8 and seventeen, or any amendment, modification, or revoca9 tion thereof, in relation to the branches of enemy or ally of

emy O

10 enemy insurance companies in the United States, when

11 such branches are under the management of citizens of the 12 United States, and such branches, and the managers and 13 trustees thereof, shall be subject to license by the Secretary

14 of Commerce regulating the business thereof and the con

15 trol and disposition of the funds thereof, subject to rules and 16 regulations prescribed by the Secretary of Commerce, with

17 the approval of the President: Provided further, That the

18 definition of “enemy" in this subdivision shall not include 19 any person outside the United States residing outside of the 20 territory of any nation, or ally of any nation, with which the 21 United States is at war, in so far as such person does business 22 with neutrals, allies of the United States, or with the Gov. 23 ernment or people of the United States, and such business 24 is not connected directly or indirectly with any business 25 done by such person within the territory of any nation or 1 ally of any nation with which the United States is at

2 war.

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(b) The Government of any nation with which the United States is at war, or any political or municipal subdi

5 vision thereof, or any officer, official, agent, or agency thereof. 6 (c) Such other individuals, or body or class of indi7 viduals, as may be citizens or subjects of any nation with 8 which the United States is at war, wherever resident or 9 wherever doing business, as the President, if he shall find 10 the safety of the United States or the successful prosecution

ever

13

11 of the war shall so require, may, by proclamation, include 12 within the term “enemy."

The words “ally of enemy,” as used herein, shall be 14 deemed to mean15 (a) Any individual, partnership, or other body of individ

16 uals, of any nationality, resident within the territory (including

17 that occupied by the military and naval forces) of any nation

18 which is an ally of a nation with which the United States

19 is at war, or resident outside the United States and doing

20 business within such territory, any any corporation incorpo

21 rated within such territory of such ally nation, or incorpo22 rated within any country other than the United States and 23 doing business within such territory: Provided, That the 24 definition of “ally of enemy" in his subdivision shall not

25 include any person outside the United States residing outside

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