The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-10-02
supreme Cowrt-Spccini Term.

LIABILITY OF CORPORATE BODIES TO TAXATION.
OCT The Mu.,'el Life Insurance Company
81 Netc Yo,k u.s. Joseph Jenkins The plaintiffs in
9st that they are not liable to taxation, and have
brought this action against the tax collector for
wopgtully, as they contend, leyyiDg on their pro-
psrty: Corporations, it is admitted, liable to
taxation on their capital but mutual insUr.
aDce companies, like the plaintiffs it s argued, have
mo capital . This position, it seems to me-, is
not Inairtainabe, either in principle or 10 point of
lew The word capital in its general accepta
ton, and where not otherwise specially defined,
meals the stock or fund on which an individual
or finn or corporation trades carries business.
Cease q Mutual Insurance Company of Buffalo. 4
Comstock, 442 Where fixed sum in given To-
stance is expressly declared to be the capital that
sum, whether increased by profits or diminished by
losses, is taken as the measure of taxaton-not
from any principle, but because such happens to be
the wording Of the particular act or charter.
Such was the case Of the Bank Of Utica, in Paige
oS9 All moneyed or stock corporations, de-
irving an income or profit, are liable to tax
alton on their capital; and, of course, if that
capital be not otherwise limited, on the fund
upon which they do business A corporation au-
tbolized by law to make assurances, whether on
fires or on lives is moneyed corporation, and may
make profits, although non,ine it makes no peri
odical dividend. In the Mutual Life Insurance Co.,
who are the plaintiffs in this case, every customer,
in proportion to the business he brings to the con-
cern, is stockholder-his shares instead Of being,
as in ordinary corporations, exact aliquot parts
Of the common fund, are graduated BY the ptemlSms
fund capital, instead of being confined to fixed
invariable sum, grows with the growth Of those
premiums; the interest being in the first instance.
resorted to for the payment Of losses The mere
circumstance that portion Of the common fund
is liable to be withdrawn the happening of
death, does not destroy its character as capital
the same result follows from death in the case
of private. partnership. and from fire or ship
wreck in the case Of an ordinary insurance
company. The company themselves, on their
invitations to the public. obviously contcm-
plate their moneys and securities as capital: They
sIeak Of their " stability and perpetuity'' Of
their business, as founded on can accumulated
fund of million of dollars, securely invested 10
bonds and mortgages, &c" And in the act of in.
corporation, when directing the investment OF the
premiums received for insurance." it is provided
IL at the real property "to secure such investment
of capital, shall, in every case, be worth twice
the amount loaned thereon" The conclusion
then, is, that this accumulated fund.- by what.
ever name it may be designated, is the corporate
property Of the plaintiffs, and not the individual
property of the stockholders contributors, except
in the same sense and with the same qualifications
the capital Of any corporation not found
ed on the mutual principle and that the plaintiffs,
therefore, liable to taxation, in respect OF such
fund, in the same manner any other corporation
in respect Of its capital Judgment for the defen-
lant.