Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-10-19
Supreme Court Decides
Co. Must Pay Newark
on $l4,623,279.37.
REVERSES STATE BOARDS
DECISION AGAINST CITY
Justice Minturn Holds Com
pany's Reserve Policy Fund Is
Not Exempt Under 1907 Law.

Due diligence on the part of Mayor
Jacob Haussling and his law DEPART
ment has, according to n decision OF the
Supreme Court, rendered today, saved
the taxpayers of this city secs, 1890
for the current year, and insured nm In
come of approximately half a million
dollars annually on a reserve fund
which counsel for the Prudential Insur-
ance Company held WINS not taxable.
The assessment on which the exemption
was claimed was a personal tax of
S14,823,279.37, levied In 1900, on what
the Prudential claimed to he a reserve
fund on deferred dividend policies un-
der law of 1907.
This was one of the insurance re-
vision laws passed after the Legislative
investigation Of 1907 and the commit
tee of senators which prepared the law
consisted to James F. Minturn, now
presiding officer of the branch court
which rendered today's decision, and
Thomas j. Hillery, Of Morris. and Ed
mund w. Wakelee. of Bergen. y
Last year Mayor Haussling and City
Counsel James r. Nugent, with City
Attorney Herbert Boggs, concluded
that the claim of the Prudential for ex-
emption under the act of 1907 on ac-
count of the special reserve liability
was unwarranted.
The local Board of Tax Assessors
concurred in that view. The County
Board of Taxation affirmed that viewN
The State Board of Taxation reversed
the decision of the county board.
Mayor Haussiing and his legal adj
visers appealed from the decision of this
State board to the Supreme Court. and
today that body decided in favor of
Newark and reversed the ruling of the
State Board of Taxation.
Arrears of Personal Taxes.
As result the amount now due and
classed as arrears of personal taxes"
is 1912, 2,613.79. This increase of $4,000
is on account of interest and other
fixed charges The deputy collector.
George w Tunison, will, under the law.
receive approximately $1,000 as a fee
for the collection of the amount in
arrears
The value of the fund assessed last
year was $14,623, ,279.37. and the tax as
sesed was $279. .303.60. The Prudential
refused to pay and the claim went into
|
arrears.
For this year the Prudential claims
the reserve fund had grown to $780,
| 2S3,57420 and the tax assessed is about
| $3S9,446 Local authorities were adj
vised that it was a mistake to repeat
| the assessment Mayor Haussling and
his advisers thought otherwise and the
courts have agreed with them.
Saved Tax Increase.
failure to have included this
assessment in the local tax levy this
year would have meant an increase
of more than ten points in the local
tax levy That is part of what Mayor
Haussling and mis- law department have
saved to the taxpayers of the city.
| Especial to the Newark Star.J
| TRENTON, Oct. 1e.-In an opinion
filed in the Supreme Court today by
Justice Minturn the city of Newark
wins a big victory over the Prudential
Insurance Company in the matter OF
the assessment of some s14,623, ,279.37,
upon which the insurance company
claimed exemption under the law Of
1907
The latter amount was assessed by
the city taxing authorities and affirmed
by the Essex County Tax Board. The
insurance company appealed from the
determination of the local board and
the county board to the State Board
of Equalization, and the latter held
that the assessment constituted a spe-
cial reserve fund on deferred dividend
participating policies and, therefore,
was exempt under the provisions OF
the 1907 law.
Instead of affirming the State board
under the contention that the law of
1907 had changed the fund from assess
ment and making 1t liability, the
Supreme Court holds to the views ex-
pressed by the City Board of Assessors
of Newark and the Essex County Tax
Board and affirms the contention OF
the local boards when they held that
the 1907 law did not change the char
acter of the fund. and it was, therefore.
subject to assessment.
In his opinion Justice Minturn goes
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