Executive Order 2991

By virtue of the authority vested in me by "An Act to define, regulate and punish trading with the enemy, and for other purposes", approved October 6, 1917, known as the "Trading with the enemy Act", as amended, I hereby make the following orders, rules and regulations, and determinations.

  The words "Insurance Company" as used herein shall be deemed to mean a Partnership, Association, Mutual Company, Branch, General Agency whether incorporated or unincorporated, group of individual underwriters, corporation or body politic whose business in whole or in part consists of insurance or underwriting in any one or more of its branches.

The word "enemy," as used herein, shall be deemed to mean either an "enemy" or "ally of enemy," as the case may be. 

The Alien Property Custodian shall have power, and he is authorized and directed, to hold, manage, administer, protect, preserve, control, and to re-insure or retrocede, and to sell or otherwise dispose of, in accordance with the following rules and regulations, any and all property, other than money, of any insurance company heretofore doing business within the United States which has been or shall be conveyed, transferred, assigned, delivered, and/or paid over to him, pursuant to the provisions of the "Trading with the enemy Act" as amended, and the proclamations and Executive orders issued in pursuance thereof, or which has been or shall be required so to be conveyed, transferred, assigned, delivered, and/or paid over to him, or which shall be seized by him.

 The Alien Property Custodian shall have the power and authority to do any and all things reasonable and proper in or about the taking over, custody, management, administration, protection, preservation and control of such business, property and assets, including (but without limiting the generality of the foregoing) the power and authority to collect all premiums, commissions, agency balances, bills, notes, accounts, dividends, interest, rents, and other receivables, and income and profits and accumulations and distribution of principal or income; to pay all leases, claims, premiums, adjustment charges, rents, interest and other accounts and liens or charges; to vote in person or by proxy shares of stock or other beneficial interest in corporations, unincorporated associations, companies or trusts upon any questions at all times and upon all matters upon which any owner of such stock or other beneficial interest shall have the right to vote, including the power and authority to vote for or against and to take part in any sale, dissolution, consolidation, amalgamation, or reorganization of any sort, of any such corporation, unincorporated association, company or trust, or of its assets or any part thereof, and to exercise any rights or privileges that may be or become appurtenant to the ownership of such stock or other beneficial interest with like force and effect and under like circumstances in all respects as though the absolute owner thereof; to give any notices and file any papers or writings of any kind, proper or necessary for the creation, perfection, protection, liquidation or otherwise in respect of any claims, demands, choses in action or other rights of any kind, and to settle, compromise and adjust claims, demands and choses in action; to intervene in any suit or proceeding and to file and maintain claims, demands and suits of all kinds in or before, any court, board, commission or other body; to determine and pay all reasonable and proper expenses incurred in or about or with respect of the exercise of any of the powers and authority vested in the Alien Property Custodian or any depositary for him, including expenses that may be incurred in or about securing possession, custody or control of any such property, and including also taxes and other charges heretofore or hereafter lawfully assessed upon or against such property, by any body politic, provided that this shall not he construed to require the payment of any stamp or other taxes upon or on account of conveyance, transfer, assignment or delivery of property to the Alien Property Custodian or to any agent, attorney, bailee, nominee or depositary for him; and provided further that this shall not in any way affect the power of the Commissioner of Internal Revenue or any regulations made by him or under his authority.

Whenever any such property or any part or parcel thereof is or shall be subject to any claim of lien, charge or incumbrance, or in or shall be held or retained adversely to the Alien Property Custodian or to any requirement with respect to such property made by him, the Alien Property Custodian may compromise or settle such controversy and pay any such claim in any way that he shall decide to be proper and as though he were the absolute owner of the property involved; and he shall have the power and authority to make any payment or payments necessary and to execute and deliver any instruments or writings necessary and proper to effect or evidence the same.

Whenever any such property or any part or parcel thereof shall constitute part of, or have been used in the conduct of, the business of any such insurance company, the Alien Property Custodian, in addition to the rights, powers and authority elsewhere herein conferred upon him in respect of such property, may continue the conduct or other operation of the business of such insurance company conducted anywhere within the United States prior thereto by, or for, such company; and for such purpose, the Alien Property Custodian shall have the right, power and authority to employ and discharge managers, agents, attorneys, servants and other employees, to effect insurance and reinsurance, to issue policies, certificates, or other contracts of insurance or reinsurance; to adjust, compromise, settle and pay claims of every kind arising in connection with such business; to require money owing by insurance companies, banks, trustees, trust companies, state or municipal officers, or other depositaries on special or general deposit to be paid by him or upon his order; to collect debts, premiums, commissions, dues, assessments and other receivables owing to the said business or to the former enemy owner or owners thereof and created out of or by the operation of such business, and also debts, accounts and other receivables accruing or arising out of the conduct or other operation or such business or undertaking, by the Alien Property Custodian or under his direction or authority; to pay the wages and salaries of managers, agents, attorneys, servants and other employees, and rents, and current accounts and other liabilities; to intervene in any suit or action pending in any court or before any board, commission or other body, in which such business or any of the property or assets thereof shall be involved or concerned and to prosecute or defend, as the case may be; to file, prosecute and maintain in the name of the Alien Property Custodian or otherwise as may be proper, any claim or suit arising out of or based upon transactions had prior or subsequent to the time when such business or property was demanded or taken over by the Alien Property Custodian, but growing out of the conduct or operation of such business or any other use, custody, or management of any property or assets thereof; and generally, to manage, administer, preserve, conduct, operate and control such business and any or all parts or parcels and assets thereof as though the absolute owner, either in the name of the Alien Property Custodian or otherwise as he shall determine.

The Alien Property Custodian may appoint agents, attorneys, bailees, depositaries, liquidators and/or managers who under his direction and control, within the limits of the authority conferred by him, shall be authorized and directed to hold, manage, administer, protect, preserve and otherwise control the business, property and assets demanded and taken over by him, or any part or parcel thereof; and they may be authorized and directed to continue the conduct of such business which the Alien Property Custodian himself as provided elsewhere herein, could continue. Such agents, attorneys, bailees, depositaries, liquidators and managers shall have and exercise the rights, powers and authority which shall be from time to time conferred upon him or them by the Alien Property Custodian; and such rights, powers and authority may be enlarged, restricted or revoked by the Alien Property Custodian at any time and without giving any notice or reason therefor; and the remuneration of all such agents, attorneys, bailees, depositaries, liquidators and managers shall be fixed by the Alien Property Custodian and may be increased or reduced at any time.

The Alien Property Custodian shall have full power and discretion with respect to the business, property and assets of any insurance company which has been or shall be conveyed, transferred, assigned, delivered or paid over to him, or required so to be, or which has been or shall be seized by him, and may liquidate, reinsure or retrocede, or sell or otherwise dispose of in accordance with the provisions of said "Trading with the enemy Act" as amended, the said business in whole or in part at such times and upon such terms as he may determine, and may devote so much of the property and assets of such insurance company in his possession or under his control or subject to his demand as shall be necessary to effect such reinsurance or retrocession. Where the business is reinsured in whole or in part, such reinsurance shall be effected only in insurance companies incorporated within and under the authority of the laws of the United States, or of any State or Territory of the United States.</li>

<li>The Alien Property Custodian shall have the power, in and about the conduct of such business and of its liquidation, retrocession and/or reinsurance to sell at private sale, without public or other advertisement any stocks, beneficial interests in stocks, including voting trust certificates and all other rights appurtenant to the ownership of stocks, bonds, negotiable instruments or evidences of indebtedness, and maps, in parcels, lots or quantities having a market value at the time of sale not exceeding ten thousand dollars ($10,000) for each parcel, lot, or quantity sold. Any such sale may be conducted at such place and upon such terms and conditions as to the Alien Property Custodian, or his authorized agent may seem proper. The reasons in the public interest for the foregoing determination, order, rule and regulation are:
 * (a) The properties above described can not usually be sold to the best advantage at public sale after public or other advertisement.
 * (b) The sales hereby authorized may be made at the time and place of most favorable demand, and upon such terms and conditions as may be necessary to secure the beet market price.
 * (c) Unnecessary expense, delay and inconvenience may be avoided.</li>

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<ol> <li>Nothing herein contained shall limit or shall be construed to limit, in any way, the rights, powers and authority conferred upon the Alien Property Custodian by the "Trading with the enemy Act" and the amendments thereto and the Executive orders heretofore issued pursuant thereto.</li>

<li>All Executive orders heretofore made are amended and modified hereby to such an extent as may be necessary to conform with the provisions hereof; but with this exception, all of such orders in force and effect at the time this order is issued are expressly ratified and continued in full force and effect.</li></ol>

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 * 12 November, 1918.