**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAB**

mor~blo oeor&e 8. Butler, Chalrlaan urd of xnauraMo oomlrrlowra mtln lk, Pa-8

**,** 

### ~Oplalon BO. 6-6539 ' &I collactlon of a gr tax on one of the



### wel cknouladge rata 

### m on 

### the above quartloo, 

### m

47thb8- ec **oartain ompany** ovna 

### ia to **be vea**  **ment** 1 **uuder** the toiora given u8 a and 

### flxturaa

are to be reet for purpoaea of determlnlng the **a** aompany, **88 a**  **base for**  **comput** la particular Company contends ura and Sixturea are 

### to be clasoed 

### the tax computation, ther should rlao be regarded 08 an lnvaataentunder Article 

### 7065for the 

### purpoaaol fLxi brrckot. This oolrteatlon la 

### "g the 

### prenhm tax aaed upon 

### the UWuage of Artlob 

### 7064 in vhlch tax reducing **inVe8t** mnta are **aet** 

### forth,partloularly **the** 

### OOirOlUd~w p&am vhloh 

### reada: ‘or other proport7 10 thlx

## 604 ,

.
‘1poorabla GOrp B. Butlar, paga P
*, Mate in vhioh b7 **UV** 

### Iwura&e emlera may la- ..vaattheir funda.* "P16aae8dvlae ii 

### the Comp.saj~a furniture 6od flxturaa, of th6 v6lua lt la uaed **aa part**  OS 

### the rntlre6886t8, 6167 also beQ6aaed '686 t6.xr6ducI= lnVa8tJQOat Uudcr Artiola 7064,” Artlola 7064, aa 8taanded by bate 1941, 47th Legialatrole, page e69, Chapter 184, Artiale XVIII, Section 1, prorldr8 that 6t6r7 **in8W6We** oorporatlon, Lloyd~a, or reciprocal, m4 every other 

### organicatlon or concern tranaoctlug 

### thebusl**0188** of f&6 h8wana6 vlthin thf8 atat6, 8hBll pa7 Cartatn t&Is8 **Upon** the* groa8 promiua recelpta. S6id artiole provider r&her that 66ch of 

### l uch.oompaaleaah611 file vlth the BoaM of 

### Iaaur6nce CommiaalOn6ra 4 l 

### voro raport shoving the amount of auah premium8 **ooll6ot6d b7**  

### it during th6 preaedillg 7anre ?rovlaloa

la made **for &**  **reduatioa** In **tha amount**  **of** said **t8x6s** u f6lloval

“If an7 l

uoh lnauraace carrier ahall:‘have 

### aa much aa 0128fourth of it8 entlrs la aeta, 

### aa ahow b7 aald avora statement, invested la on7 or all of the follovl~ aeaurltlca:~tate 

### la this Stata, bond8 of thla **stat6 ore**  of any 

## county, fnccrpmwted **oity** or tom of this State, **or other**  brmartY in this State in vhlch br lev mu% Insurance carrierp’ WY invest their funddo, then the anruW tax of aw auoh **iwuropoe carriera**  aball be ona and bog 

### hall (1 l/2) par oent of It8 raid &roar premlluP 

### reC6:Ptat an& if an7 such iaauraace carrier”shal1 lavaat aa aforeaatd aa much aa one halX (l/S) OS l-eta, **un ths**  **annual tax**  **of** lwh la aurmca **oerrim a&611**  b6 three fourth8 (3/h) Of OW (1) per cant of it.8 oaa p remlua



### raorlptaaa l

bova 

### datlnede
. . . our81 **Tbp6 we**  **tbr66 atbtutea**  vhloh deflw tha SeoWitlaa rodpropart which prat + **ovwd** and held bt auoh ocWWleal

..: . 

## 605

. :

,, soPorable George 8. Butlrr, pga f

.

?. 

### ArtlOb 4705, R.C.S., aa amended, definaa the poperty 

### aad l

aourltl6a

of vhloh tha oapltal atook of bry **lnr~r6LiO6 OWpaW,**  **Oth6P th6n**  life, haalth @ad b6O:dabt, mm7 coaalat. 3. Article 5706. R.C.S.. aa amended.defleaa the nourltl68allowed for the-investmint of funda-over and **&~a.** tba gpld-up capital atook of auab compani6a and **v6** bellan it tootrole tha praaeat 

### lnqukr7. tallova I 

### Thla **6FtfCl6** raada la part a, “Ho oompatay, wtcept any vrltlng Life,Hoalth aad Acoldent **bCUP6UC6,** organized und6r the pravl- : alone of thlr 

### Chaptar,ahall invest 

### Ita funds 

### over

...I “L and above It8 -id-up o6plt61 atoak ln any otbr

. manner 

### thanaa~follova: ..~ .-.



### ‘ia) In bond0 

### of th6 

### Unltad State8 or 

### of rly Of the stat68 

### Of thrmtad 

### Stat68**pJloVid6d** 

### au& .---A beada **6P6, bt**  the tlare of purchase, irrtereat-be&r- . lag or not lo dafoult. i I "(b) In bond8 or firat lieaa on unincumbered 

### real aotbte la this atate or lo any' other atate, . : Ommtry, or **prOVinCe** in vhlab conrpsny me7 be 

### dul7 1106a88d

t0 **OOWlUOt** a~ ln8UrbnCebualnraa. . . . '(0) rr&

bonda or other intercat-baaring 6vidence of lndebtedneaa o? bay OOUut7, mad dlatrlot, vater dlatrlat, munlclpallty, any aubdlvlslon of a County, iLWXpOrbt6d olty, tom, achosl tlI8trict, 

### l anIt6ry or 

### aever ayatem bonda OTvarrauta, vh6n apaclal revenue8 to meat the principalaed intereat pqncnta of such munlolpally 

### ownedrevenua vater ayateo lmd 

### aevaray8t6m bonda or varranta ah611 have bean appropriated, pledged or 

### OtherVl86 provided for by auah mualalpAllty. . . . ‘(a) 1. In the 

### l

toclca, bonda, dab6atUr68, 

### bill8 of l

xohbbge or oth6r oommaro~l not68 or bill8 **end 866LW:t:68**  **Of** a07 **88b6et d&V&&at**  oorpo?atlOrr,



### lwaporat6d undar the la*8 Of t 

### ET8 **rim** .tat6, uhlah ha lyt Qfmlkd in thr m7-at o?noaorabla Oaorga 8. Butler, p6g6 ~4

‘any of it6 obllgatlona fas a period 

### of flv6 (5) year8 **icuaedlate~~** preaadw **the d&t6**  **of the**  **&** ***** **v68tfII6at; .**  **. .**  "(a) In loaaa upon the pladge of ~7 **nor+ g&&i,**  **.8tO6k, OF**  boeda, **Or Oth6r**  **6Vid6M6** Of ladebtadearm,

l uoeptabl6 48 ~aveatmeota **uadar the**  t6rM Of thi8 **hI,** . . . 8

. . . .' (Bawhaala 

### oura) The **tarn** glnve8tm6at~a b88 been dafinad many M&68 ty **varloua** 

### oourta, and thoae da?leltlona are ramrltably aoatlttoet . 

### t?Ot6

th8 **?OllOV:~l** 

## 606 ,:



### “An ~lavaatmanc~ oauall7 mama 

### tb6 **mm** Ia**I68thd OC**  th6 FOpaFt pWOb8SSd by th6 

### 107iIl8 06% of moea 

### or oapitrl lo 66996 agaalea of wogwt

. for laoo~8‘or dfit*" la., 7 A (26) EL Zlppott I. Tipgett, & I .

.. g~Iav6ataerrta*

usually *ad8 **th6** putting out Of 1110aay

**on** lnter68t 6lth6C **b:r** 108~8 or by ths **purehare** of fnaome-produeleg **raparty. ”**  Drove va **Cuml~a** Dlatlll6rleaCorp., -5 F. bum. 659. 5 "~favaatment~ 

### aa aomonl7 used and underrtood, mcaaa the pl601~ of capital or laying out ,. of mock67in a va7 lntffndea to 6eoure laaama or .*profit icon It8 6mployrusat."- In r6 &van, 49 1. ’ 9. (Pd) 753B 141 Ohlo St. 603.

aAn @l.avestmeat’* Im geearally daflaad 48 th6 aonv6raloe of rm4y or eirau&tlng capital late aoma l paolea of proparty Prom vhloh an **luecm6 or**  profit la **axp6otod** to **br dorived**  **in the**  

### ordlMrt comae **at trad**  **-0 bua100aa~** **”** In r6 **Peneeuka** ma, 35 

### x.a. ? 1

36 1n, a35 XrYr 875. *ro ~InwW’ ma-7 

### earrlea ths id60 Of 80 laylag

it l to po@mo a ?otwn. To 1nvmrt la .

_

r,4* ‘

. **I-**

**. .**  **: fPoorabla**  Oeorga 8. Batlar, pago 5

**not to**  **erpead ia**  **aa uaprbduotlm**  thing.” D&r%8 q, BulUngtoa, 47 83. (W) 555, 

### 164 man. 272. .. .i

It i8 awent, therefore, that the term8 

### l lave8tí & %weetment’ are urob in Articles 7064 aad 4706 :a thdr **0rdlWFJ** oonnotatloay, 

### and that **money**

### pale **out for**  **furniture** md 

## fixture8

18 

## not iavrrted.', Although &tiole 7064 as umaed requlrer that **the value**  **of such**  **furniture an4**  **fir** tar.8 be inoluded in the repwt of “entirea88et8,’ the pl&U @ton&eat of that art1018 18 to l rolude them from t&e li8t of tu rodwing lare8tmeatr.

We u-8 aot unalndful of 

## the prorlrloar oi 

### Artlale

., vhloh deal rlth the goner81 power8 o? piv8k @argoratloar, prt1ouur17 the f011001ng~

?Evw7 p&vat@ oorpomtloa u rwh hai powor; **a**

**. ,**  **. .**  

# f -“4. To purohue, hold, loll, 

# modgag;; or otherwiri oonvey rush real eltate **8n4** perroael 88tat8 98 t& require. ;a . .plU'~O808 Of th0 COl'~ONLtiOll 8h811 Thl8 srtlele generally l utho~lrar all corporatloor to purchaseand own ruch property, but the p~ovlrlon8of the utlolespertalnlng to then8 pwtloular corporatlonr, .i.e., ln8ur8nce oompcmle8 other **thba** life, health and 8cOldeq, mp3r8oee ruch general 6r **OVl8lOPr 1ll8OfEW**  **48 iWOll8i8tellt**  tlwrev1th. Article 70 lo aot 811 eunbllng **rtatute.** It **i8** OtU **8tbtUto 8rrd**  **mU8t b0**  8brlOtlJ OOartrUed. PliFtitllW Ud Iixturu8 are not vlthla t& rtrtutory deflaltloo of **tu Fe-**  **~UOlng iavalt~at8.** 

lhutlng 

# that ttm toegolng Sally ln8ver8 7our la1 :
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