WAR AND COMMERCE.

King Country Chronicle, Volume VIII, Issue 698, 26 August 1914, Page 7

WAR AND COMMERCE.

Continued from page 2. then, the Bame rules apply as if the parties to the contract had become enemies As to contracts of insurance, if these are made before the war, their legal effects are suspended during iUs currency, but revive after peace. But insurances effected ever prior to the war will not avail if the loss incurred is due to the operations of the British fleet. For instance, suppose a British merchant had shipped good i in the Seydlitz, which he had insured against loss during the voyage to Bremen, and the vessel having resisted capture was sunk, then the insured could not recover from the insurance company. To allow it to be otherwise would be to allow the enemy to insure himself against captare by British cruisers in British insurance offices, which would, of course, be absurd. A contract made even by British subjects is invalid if made in furtherance of trade with the enemy. Contracts c-f life and fire insurance, if they involve periodical payments to persons divided by the line of war are lawful if made before war broke out, but are suspended during its currency, both as regards the payment of premiums and of losses, if Buch accrue. In the case of a life policy, where a claim accrues during the war, only the eqivitable value of the policy at the time of the last payment is recoverable on peace not the full amount payable on dea*h if at the time of death the premiums were in arrears

As to contracts of agency between enemies divided by the line of war, these are abrogated fay the war if they involvn a continuance of intercourse, but if they are of a strictly limited character, not involving further intercourse during the war, they can be validly carried out As to contracts of partnership between enemies entered into prior to the declaration of war, these absolutely determine because the- existence of a State wer would make it impossible for the partners to carry put those rights and liabilities which are necessarily involved in the contract of partnership. The partners would, however, be permitted to recover the equitable value of their share on the restoration of peace As to interests in companies and other corporations, similar rules prevail. The corporation, whether a company or not, takes its character as an enemy or a friend from ita domicile, which is usually, but not necessarily, the place where it is registered. Its character depends on the situation of its head office, where its administrative business is carried on. Enemy directors in a company should immediately resign, while enemy shareholders retain their interests in suspense, these reviving as to the payment of dividends and so on when the war is over. Enemy de-benture-holders are in a similar position as regards interest