Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-08-18
NUGENT FIRM IN
STAND AGAINST
PRUDENTIAL Co.
Still Holds That No Contingent
Liability Can Be
Exempted.
CONFERENCE IS HELD
OVER M0OTED QUESTION
Deferred Dividend Fund of
S23,OOO,0O0 Not Dis
cussed Today.

City COUNSEL James X. Nusehl am
City Attorney Herbert Boggs had a
conference at the law department OF
the city Hall today with Wilbur 5.
Johnson, comptroller of the Prudential
Insurance Company. and Frederick Il.
Johnston. associate actuary of the COM
pany, about exemptions, amounting to
about $4,000, 900. claimed by the 0
pany for liabilities in various funds
placed in the ratables this year by the
Board of Assessment and Revision OF
Taxes, but which the law department
has refused to recognize as valid liza
bilities.
Mr.. Nugent did not make any modi-
f~ication II his views after the ques-
tion had been threshed out for an hour
and stood by his written opinions to
the tax board that these exemptions
should not be allowed.
He holds that no contingent liability
can be exempted from taxation. Most
of the exemptions claimed by the Pru-
Dental are for contingent liabilities,
S6SAA do itiitS -SL 6SitS ~
values on policies, which it may never
be called upon to pay; premiums paid
in advance, etc, making a total of 81
144,0 23. As.
The question of the taxing of the
deferred dividend fund. amounting to
about $4,000, 900. did not come up to-
day, as the city and the insurance
company are so far apart on this point
that further parley would be a mere
waste of time. The company paid
taxes IN this big amount last year, bu.
because of a new classification made
by Vivian NJ. Lewis, commissioner of
banking and insurance. claimed am ex-
emption this year. There Is bound to
be another night through the courts on
this point. The 1913, 900. 900 fund has
been placed in the ratables as usual.
The company lost in Its legal fight
last year to void payment OF taxes on
the fund.
Not a Present Liability.
Edward d. Dufield. attorney for the
Prudential, had submitted TO the law
department a statement showing err
sonalty items amounting to So, 991, 229. IS
20 ~ "a company Al0lliltI tAtIIlD
ton because of miscellaneous debts
and liabilities" Mr.. Nugent held to-
day. as he had previously advised
President James L. Carroll and the
other members or the City Tax Board
that the item of $3.50, 673. SO. being the
present value of amounts not vet due
on supplementary contracts not ins ,lv-
ing life contingencies, was not entitled
IN axonntion haoa.ioa IL Ura. ,.A4 -
present, but an uncertain liability.
He took the same position in regard
to tn, surrender value of policies that
have been cancelled, which may be de-
manded by the policy-holders. and
which item amounts to $685. SIS. He
held that premiums paid in advance
were taxable, also unearned interes.
and rent paid In advance. the former
OF these Items amounting to 1892, Bali
and the later to 1882, 277. 35.
Dividends or other profits due policy
holders which AVE not actually been
paid and which amount to $l74,S62 81
he held to be taxable, unless any part
of 1t was for dividends actually de-
ciared and now due.
The total of these amounts entirely
eliminated from the exemption claims
ONE to 81. 144, 02S.45.
This leaves $3,S47, 206.2 of the amount
claimed as exemptions. The law de-
partment advised the city tax board
to pursue the same policy with the re-
mainder, tax whatever appears to be
a contingent liability and exempt what
Is only an actual and certain liability.
That cours will result in the major
portion of the remainder claimed for
exemption being stricken out.
The Prudential in its annual tax
statement this year placed its personal
taxation liability at s6,4S2, 600, which is
So, 500, 900 less than was admitted last
year, the special dividend fund not
being taken into consideration.
The conference today was sought by
the Prudential officials. Mr.. Nugent
and Mr.. Boggs listened to what they
had to say and discussed the various
points at issue will them. but told
them that they felt certain that their
position was the logical one and hat
they could not frecede fyofn it,