Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-07-27
TAKES ISSUE WITH
PRUDENTIAL OVER
TAX ASSESSMENT
Nugent Contends S2,l44,023
Shouldn't Be Allowed as
Al Miscellaneous Debts.

imam opinion addressed to the Board
of Assessment and Revision of Taxes,
City Counsel James r. Nugent today
settled several points on which the
board was in doubt, in making the an
nual assessment on the Prudential In
surance Company's property. In all,
Mr.. Nugent points out, there is 81
144. 023.4 5 charged up as miscellaneous
debts and liabilities in the Prudential
report, which should not be allowed.
The opinion follows:
Through Mr.. Dufield, attorney of
the Prudential Insurance Company, I
received a statement showing items
making up the sum of $5,991, 229.6S, for
which deduction is claimed as "mfscel-
laneous debts and liabilities" The
numbers refer to the c~orrespondingly
numbered items in he annual state
ment of the company, of which Mr..
Gutter, your secretary, has a copy.
'"The following items SHOULD not be
allowed:
80. Present value of amounts not yet
due on supplementary contracts not in
volving life contingencies, etc, $685.
673.99.
This is not a present liability and is
uncertain; if a liability on policies then
the sum deductable is fixed by certifi-
cate of the Banking and Insurance
Commission
40. Liabilities on policies Cancelled
and not included in net reserve upon
which a surrender alu may be de-
manded, $4S5,67s
This ppear to be an uncertain and
. 1.-L.1!4.. .NNx xrhinh tho
company may never be called to pay.
go. Premiums paid in advance, in
Guiding surrender values so applied,
$692, 394.11.
1T is true there is a nominal book
keepers liability for the whole Of this
sum. If policies mature or if there is
a cancellation before these policies are
earned. 1 presume they must be repaid.
hut the actual liability cannot be fixed.
II can only be estimated. Certainly
the whole of this fund is not an actual
present liability.
s'21. Unearned interest and rent paid
in advance, $685.. 277.3o.
.pThis item is the same in principle
rs sa0, and should not be allowed for
the same reasons
a3t Dividends or other profits due
nolicy-holders, including those contin-
cant on payment of outstanding and
nraferred premiums, $174,S62.S1.
"If any part of this item consists OF
aividends. etc., actually declared n
due. it is a fixed, certain liability and
should be allowed, but part is stated
m he contingent and should not be al
lowed, The item, as 1t stands, should
nat be allowed, but the amount of the
f1xed liability and that of the contin-
cent should be separated and deduc-
ton given only for the total or the
nxed.
sI think. then, that the following
stems should not be allowed, viz:
.. Amount. $5S3,oIo 20
10. Amount. 4S6,ote W
%, Amount. ...s....s..s.. oS1,o5f II
II. Amount. 3S2,z't 90
32,144,023 As
s'This whole sum should, in my judg-
ment, be deducted from the item OF
e5. 9g1, 229, 6S, claimed by the company
in its taxing statement, leaving only a
balance of s3,s47, 206. 90, and there also
should be deducted so much of Item 81,
dividends or other profits, etc. STA
$685. as appears to be contingent and
certain and not a hxed, fir la
bility.
"As to the item II, total policy claims
made up of items II, IL, 13. Ia. Is and
16, 81, 2e9, 694. 49, this refers to items so
numbered on the annual statement of
the company under heading liabilities
II liabilities on policies not actually
due. they should not be allowed. II
liabilities other thar IN policies out.
uncertain and indefinite. they should
moi be allowed
THE statute taxes life insurance
companies their actual assets. deduct
ing their debts and liabilities. The la
bilities on policies TO be deducted are
the present values Of the policies as
fixed by the commissioner of banking
and MISUNDERSTANDING else"
D