.difficulty, and it is in the interest of the Community,
that it should be carried on. The appointment of a
Controller in such cases is considered advantageous
rather than otherwise für the firms concerned.
4. The „Trading with the Enemy Amendment
Act, 1914“, gives His Majesty’s Government rather
more stringent powers. Section 12 authorises them,
in certain cases where the public interest seems to
require it, to appoint a Supervisor. This offleer does
not interfere with the fiim’s business activities. The
sole object of appointing him is to ensure that money
is not transmitted to the enemy and to prevent trade
with the enemy ; Subject to this, His Majesty’s Go
vernment have no desire to interfere in any way with
tbe operations of firms in this country whatever their
Constitution.
5. His Majesty’s Government have not seized
and do not, as at present advised, propose to setze
enemy property which was in this country at the
outbreak of war. All persons who hold enemy property
or are tiustees for enemies are, however, required to
make a return to the custodian appointed under the
Trading with the Enemy Amendment Act, whilst all
sums which, had a state of war not existed, would
have been payable and paid by firms or Companies
to or for the benefit of an enemy by way of dividends,
interest. or share of profits must, under the same Act,
be paid to the custodian. Other enemy property may
also be vested in the custodian by Order of the Court.
The custodian is empowered by Order of the Court
to pay out of these sums money owing to British
creditors, but, Subject to this, money in bis hands
remain intact (being in no sense confiscated) until the
end of the war, when theis final disposal will be
decided upon and determined by Order in Council.
6. Copies of the Trading with the Enemy Pro-
clamation No. 2 of the 9th September, „The Trading
with the Enemy Act, 1914“, and „The Trading with
the Enemy Amendment Act, 1914“. are attached
herein. (Siche S. 77.)
Issue of Licences to carry on Business
in the United Eingdom.
7. A license is required to allow of a business
being carried on in the United Kingdom in any case
where the proprietor or any one of the proprietors is
in enemy country, unless the business is incorporated
as a British Company, or is a brauch of an enemy
firm within the meaning of paragraph 6 of the Tra
ding with the Enemy Proclamation Nr. 2.
8. Instructions that business should be disconti-
nued have been given in nine cases where the pro
prietors had lest for Germany at- or just before the
outbreak of war, and where there was reason to
suppose they were actively assisting the King’s ene
mies ; and in five cases where the business could not
go on without communication with enemy country.
In two other cases, where the owners had lest for
Germany, the refusal of the licence to trade resulted
in the closing of the business.
9. Licences have also been refused in seven cases
where there was a partner (or partners) in enemy
country), but in six of these cases the partner (or
Partners) here, bas (or have) been told that no objec-
tion would be taken to his (or their) carrying on
bussiness on his (or their) own account, and in one
other case, where no profits were being made, the
English partner was informed that no objection would
be taken to the partnership business being carried
on. In one case where His Majesty’s Government re
fused to graut a licence they appointed a Controller.
Patents, Designs, and Tr ade - maris.
10. By the Patents, Designs and Trade-marks
(Temporary Rules) Acts, the Board of Trade were
given Power to make rules during the continuance of
war, for the avoidance or Suspension of patents,
designs and trade-marks. The object of this legis-
lation was to secure the continuance of manu-
facture under various important patents, and to allow
of trade in this country beeing carried on freely, without
the infringements of legal rights. It was not the ob
ject of the Act to confiscate property of allen ene
mies, but merely to suspend their rights under proper
and reasonable conditions.
11. The rules under which this Act are admini-
stered provide that, the Board of Trade may, on the
application of any person, and Subject to such terms
and conditions, if any, as they may think fit, order
the avoidance or Suspension, in whole or in part, of
any patent or licence granted to a Subject of any
State at war with His Majesty, and the Board, before
granting any such application may reqnire to be
satisfied on the following heads:
a) That the pateutee or license is the Subject of a
State at war with His Majesty;
b) That the person applying intends to manufacture,
or cause to be manufactured, the patented article,
or to carry on. or cause to be carried on, the
patented process;
c) That it is in the general Interests of the country
or of a Section of the Community, or of a trade,
that such article should be manufactured or such
process carried on as aforesaid.
12. The Practice in respect to these applications
has been to grant to proper applicants licenses to
manufacture under the patents on the condition of
paying a royalty to the State until the Board other
wise order. The ultimate destination of the royalty
will dopend on the attitude of the enemy Govern
ments in regard to English patents ; and the licence
will continue, if not otherwise revoked, until a rea
sonable licence is offered after the conclusion of the
war by the patentee.
13. As regards trade-marks the provisions are
similar, and the principles upon which the board have
acted are as solle ws:
