The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-08-05
City Auditor George For
man Gives That ESti-
mate to the STAR.
BASED ON PRUDENTIAL
BEING TAXED ON RESERVE
Nugent and BOggs Decide That
Company Must Pay on
S14,6z3,279.37 Fund.

When the opinion of City Counsel
James R. Nugent and City Attorney
Herbert Boggs was announced today
stating that the Prudential Insurance
Company would be assessed on its s14,-
e23, ,279.S7 reserve fund, City Auditor For-
man set to work and figured that the
city tax rate would be as low as 81 30
on every 800 valuation and that of the
county about 81 cents, making the total
rate of S1.94. It was expected that it
would be 81 or more. Mr.. Fornan said
the rate might be even lower than s194.
If other ratables were found at the
last moment. The rate last year was
sl.s3
These two officials of the city's law
department had another conference to-
day with officials of the insurance COM
pany, and, though no conclusion <as
reached, it is the opinion of Messrs.
Nugent and Boggs that the city is en-
titled to a tax of s275.0oO on the reserve
fund. From this amount. If it is OBJ
tanned, the county will receive between
1000 and 100000 This opinion is being
prepared. today.
The finance committee of the Com-
mon Council will meet tomorrow night
TO prepare the tax budget, and it is
expected the law departments opinion
WILDE received at that time and enable
the committee to name a lower tax
rate than that contemplated at first.
The conferees representing the Pru-
Dental were Edward D. Duffield gen-
eral solicitor; Wilbur S. johnson, comps
troller and fourth vice. president. and
John X Gore. actuary. The Insurance.
people went over the ground covered
al yesterdays conference with Messrs.
Nugent and Boggs without an agree-
ment. II is thought that the company
will take an appeal from the opinion,
and in the meantime pay to the city
an amount less than named by the
citys law department
In discussing the tax reduction, after
the decision of Messrs. Nugent and
Boggs was given, Mr.. Forman said
THE rate Will be much lower than
we expected 1t to be. In 1908 the rat
ables were s295, 100000. With the s25.eoo.-
COO increase this year, which includes
the additional increase through the as
sessment on the Prudential, the rat
ables are brought to 1920, 000,00o.
THE tax levy is s4,24S.OO0. This will
bring the city rate down TO $1.S2, with
. points off for pol tax. making it
s1.3o. The county tax rate at present
is 65 cents. but they did not figure on
the Prudentiars assessment. and that
viii bring it down to 81. making the
total S1.94. 1t may be even less.
The opinion means that the Pru-
Dental will be called on to pay taxes
for this year on an assessment that will
aggry gate the sum of $4,000, 900 in per-
sonalty and more than s100o0,00e al
ditiona in real estate. making a tot i
of sS5 0o0 600, which is more than aly
other insurance company pays in this
country, it is said
Full Text of Opinion.
The text of the opinion drawn up by
City Attorney Boggs and sent to the
Tax Board on the Prudential matter
is as follows:
In 81 a Mt fpr of IA
alton for the year 1909 the Prudential
Life Insurance Company of America
claims deductions from it's total assets
of the following items:
=. Amount apportioned to deferred
dividend policies. as required by Chap
ter II, Laws 1907, s14,693. 1881.
-. Miscellaneous debts and liabilities.
SO. .sO7, ,4S6.3s,
las to the first item;
THE question is whether this amount
should be allowed as part of the cem-
panys debts and liabilities.
Life Insurance companies are taxa
BILE under the supplement of 1906, to
the general tax act of 1908 tP. l.. 1906.
page 41S) which provides that associa-
tions or corporations of this State
whose business is that Of the assurance
on lives shall be assessed and taxed
upon the full amount or value of their
property exclusive of real estate situ-
ate in this State. and exclusive of Sc
curities to the value of FIVE hundred
thousand dollarsl, deducting from such
amount or value the amount of their
debts and liabilities; to ascertain the
said amount statement of the amount
or value of the property and of the
debts and liabilities of such associa-
tion or corporation as they existed on
the thirty first day of December next
preceding such statement shall be an
nualiy made to the assessor or taxing
Eisele e. King.
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