The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-09-05
Superior Court-special Term.


COMPANIES TO TAXATION.
The Ne,c York CITY Insurance Company cs. the
Mayor, aldermen, &C., Of Neso YorG-HoFFMAN,
in 1887 unass
the act Of the 10th of April, 1S49. The nominal
capital is $780, 900, of which only 900 has been
paid in, in cash. The remaining 100000 consists
Of premium notes deposited with the company By
parties apply ing for insurance, end held a. pledges
against contingent Losses, as hereafter explained.
The company was taxed for the year 1853 the sum
OF $6,l7l IS, upon capital of $500,0s0. The as.
sessment roll was delivered to the Receiver Of
Taxes, and the necessary steps taken to enforce
payment. A petition was presented to the Board
OF Supervisors for remission Of three ffths Of the
tax, as SO much improperly assessed, which was re-
i .a me sum OF s24eS o. was paid to the Re-
sessed, and upon the capital Of 5000 00O A variant
having bee issu for the collection Of the residue,
the present action is commenced restrain the de
ftndsnts from recovering the same-thst such tax
be st, ckeD from the assessment ro and for general
relief The portions of the articles Of association,
under which the claim of the plaintiffs is made are
as follows-By the 9Th section "The capital stock
shall be at least $500 900, consisting of premium
notes base ~ on applications for insurance, and,
in addition thereto, such sum as may be added I'M
der the provisions Of article nine of the charter" The
9th article provides that the Board Of Directors may
according to the provisions Of the act Aforesaid,
(hct of lS49) with cash capital of not less than
$50, 900, nor more than 5000 600, as an additional
security to the insured beyond the funds herein
which such capital stock be subscribed, and paid
in for the purpose aforsaid. They may also in
f0rmity to the act afOrsad determine what interest
tall be allowed on said capital, and to what extent
the owners shall participate in the profits and pres
cribe the liability of the owners thereof. This
clause Is framed under the 2ls section of the act Of
April, ls49. TIE articles Of association verified
by certificate of three persons appointed by the
Comptroller of the State, who state that the com.
pany has received and is in tie actual possession
Of premium notes, based on the applications for in
surance to the full extent required by the fifth
section Of the act entitled An Act to provide for
April TO- ls49, to wit: the amount Of 100000, and
which appli atoms are signed by more than one
hundred different individual applicants" Upon
this the certificate of the Comptroller required by the
came only incorporated under that statute. Now
the fifth section providing that emo company formed
for the purpose Of doing business Of marine, fire,
inland navigation insurance, shall commence bust
county Of Kings,) until agreements have been en-.
tered into for insurance, with at least hundred
applicants the premiums on which, If 1t be marine,
shall amount to three hundred thousand dollars, or
If it be fire or inland navigation, shall amount to
two hundred thousand dollars; and notes have been
received in advance for the premiums on such risks
payable at the end Of, or within twelve months from
date thereof which notes shall be considered part
of the capital stock and shall he deemed valid and
shall be negotiable and collectable for the
purpose Of paying any losses which may
accrue, or otherwise. Comparing the 18th
and twenty-frst section of the act, it is plain
that the Legislature have defined the premium notes
to be given as constituting the main capital, and
the cash which may at discretion be raised I'M
der the 21st section as additional capital merely.
By the first section of the act respecting taxes
irving income or profit from their capital, or 9th
erwise, shall be liable to taxation on their capital
Il r. s.. p. l and it is fully settled that com ,anes
OF this description are moneyed corporations. (Mu
al c.. - II IL
Comst., p. 45) must assume that the form OF thu
notes which is set forth 10 the complaint. is in
cordsnce with the fifth section of the act and was
considered by the certfers, although they are not
mace payable at the end OF, or within, twelve
N ont.s. Otherwise must suppose that the notes,
the form Of which is given does not represent the
original notes received and certified to. At any
rate, am bouod to consider that notes answering
the requistion Of the section were received, and
were held when the assessment was made; and then
the act expressly declares that they form part of
the CAPT al stock. But 1t is urged that these notes
arc not payable absolutely, but only conditiona!y,
rived from them. The answer is to be found in the
definition by Justice Gardiner Of what the Legsla
ture means by capital in similar statute, viz the
fund upon which the Incorporation transacts its
business, which would be liable to Its creditors. and
in case Of ins ,lvency, pass to receiverl a Com
stock, 4S The nineteenth section OF the statute
declares that notes taken In absence Of premiums
under the act are not to be considered az debts OF
snc eomp1ny III uctetminau8 wueSuoE ~ Ii iuSolNeus,
but are to he regarded a. assets Of the company.
This point apreals to me 80 clear, that forbear ex
sniDing the other questions raised in the cause.
The complaint must be dismissed. with costs.
RAILROAD CoNsoLiDATIoN,--Acc According TO pre-
vious notice, meeting Of the stockholders of tho
Cincinbasi and Chicago sndthe Cncinnati, Logans.
port and Chicago Railroad companies, was held at
Newcastle, Indiana, on Thursday last, 10 consider
the propriety of consolidating the two Companies
an after tree and full discussion In regard to the
beneficial results Of such act, vote was taken
upon the question, and upwards OF thirty Thousand
four hundred votes were cast In favor Of consolids