Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-22


cerned, are proportionally the same
as those of the educational depart
ment.
I'm 1907 the Legislature passed an
act Up. L. 1907, page 1922 compelling
every domestic life insurance COM
pany doing business in this State,
conducted on the mutual plan or In
which the policyholders are by the
terms of their policies entitled to
share In the profits or surplus, to an
nually ascertain the amount of such
surplus to which all such policies as
a separate class are entitled and shall
annually apportion to such policies
as q class the amount of it's surplus
so ascertained.
I'm compliance with this statute of
1907 the board of directors of the
Prudential Insurance Company, by
resolutions passed February 10, 1908,
and February 8, 1909. set apart from
the profits and surplus of the COM
pany, the net sum of fourteen million,
six hundred and twenty-three thou
sand. two hundred and seventy-nine
dollars (s14,629, 279).
City Assesses Fund.
THE commissioner of banking and
Insurance considered this item OF $14,-
1920 an asset in his computation
of the company's property, and the
CITY assessed the fund for the first
time In 1909 The Prudential pro-
tested against the assessment of the
fund, claiming that 1t was la
hillty, and not subject to taxation.
The same conditions prevailed in 1910,
when the fund had grown to the
amount of $40, 2SS,574.
1.-THE Prudential appealed to the
II. F1 - n " "A
the latter body sustained the city in
the assessment of the fund
1.-THE Prudential then appealed to the
State Board of Equalization OF Taxes,
and the latter decided in favor of the
insurance company, to the effect that
the fund was a liability and not sub
1ect to taxation. The city then car
ried the case to the Supreme Court
and the latter body, on october lS,
1910. reversed the State board and
sustained the city in the assessment.
1.-THE Court of Errors and Appeals
affirmed the decision of the Supreme
Court on March 6, 1911, and the city
collected the taxes on the fund for
1909 and 1910, which amounted in
money to $3.50. 1851.
I'm 1911 the deferred dividend fund
had grown to $23. All AL, and in 1912 to
$2S, 917, S71. The commissioner of bank
ing and insurance in his certificate
for these years classified the fund as
a liability in direct contrast to his
classification of this same fund for
the years 1909 and 1910. The city
again assessed the fund in 1911 and
1912, and the Prudential protested
against the payment of same, on the
grounds that the fund was classified
as a liability by the commissioner of
INt,v "a inc n xvQ
fore not taxable. The city appealed
to the Supreme Court on rule to show
cause why writ of mandamus should
not issue, commanding the commits
sioner of banking and insurance TO
correct u valuation officially made by
him of the outstanding policies of the
Prudential Insurance Company by
striking out a certain item and re-
dueing the total valuation by the
amount of such item.
"The Supreme Court discharged the
rule on December %, 1911. and the
Court of Errors and Appeals affirmed
the decision of the Supreme Court on
November 18, 1912. The city was
therefore unable to collect the taxes
on the deferred dividend fund for the
years 1911 and 1912.
1.-THE above is a true history OF the
taxation of the Prudential deferred
dividend fund, up to the meeting of
the Legislature of 1913, when remedial
legislation was sought But the pow
erful influence of this gigantic cor
poration prevailed, Notwithstanding
the justice of the city's contention
backed up by court decisions, until
the State Department of Banking and
Insurance reversed itself. Thus no
relief was given to the city, and a
large reduction in its ratables and a
possible raise in It's tax rate re-
suited.
Injury to City.
1.-THE following facts are of greater
Importance at this juncture than the
above, as they show how lack OF
home rule subjects the city of New
ark to injury through the chickering's
and caprice of a great corporation
and its controlling influences. and
further, shows the demand of con-
trolling agencies outside of the city,
for the increase of real estate valua-
tons within a certain zone of the
city
TN 1912 the Board of Assessment
and Revision of Taxes increased the
assessment on the real estate owned
by the Prudential Insurance Com
pany on the westerly side of Broad
street. between Market street and
Bank street, $545, 800 over the assess
ment of 1911, the property not hav-
ing been increased since 1906. The
Prudential appealed to the Essex
County Board of Taxation for a re-
duction on the assessment, claiming
that their property was assessed at
an amount in excess of its true value
and out of all proportions with the
property on the easterly side OF
Broad street. The county tax board
granted reduction to the Prudential
of $210, 400, and increased the valu-
atoms on the easterly side Of Broad
street from Mechanic street to Clin-
ton street, also the valuation on
Clinton street between Broad and
Beaver streets and on Branford place
in amounts ranging from 20 to 10C
per cent The Prudential, not salts
| fed with the decision of the county
board, carried their appeal to the
State board, and the latter body
granted reduction of $4,000 on one
piece of property, and sustained the
assessments on the other properties
in this particular block. The prop
erty owners on the easterly side OF
Broad street appealed to the State
board against the increased assess
ments as made by the county board
| and these cases are now pending
Shortly after the State board heard
the testimony in the appeal of the
| Prudential on real estate a letter
was received by each member of the
Board of Assessment and Revision
| of Taxes, signed by Mr.. Frank B
| Jess, president of the State Board OF
Equalization of Taxes, calling the at
| tention of each commissioner of the
Importance of adhering strictly to
the law in assessing property at its
| true value.
Letter Sent Assessors.
1.-The following is copy of said
letter:
Board of Equalization OF Taxes of New
Jersey.
Trenton, May Is, 1918.