The Washington herald., 1913-12-16
TAX OF 100000
TO BE REFUNDED
Ruling by Supreme Court
Favors Mutual Benefit In
surance Companies.
OTHER CASES DECIDED
Suits Resulting from Titanic Disaster
Advanced and win Be Given
Early Hearing.

One and a half million dollars in
taxes must be refunded by the Com
missioner of Internal Revenue, It was
said at the Department Of Justice yes
terday, after the Supreme Court Of
the United States denied the govern
ment a writ of certiorari in the suit
brought by the Mutual Benefit Life In
surance Company OF Newark. N. Jo
against an internal revenue collector.
The suit was instituted to compel the
government to refund taxes collected
under the corporation tax law of 1903
and the company won in the lower
court, the decision being affirmed by
the Circuit Court Of Appeals. BY It's
action yesterday. the highest court al
firmed the decision and taxes collected
! from mutual benefit insurance COM
panies must be refunded, II is asserted.
The court affirmed the judgment Of the
Court Of Claims dismissing the petition
of owners of land on Garrish Island, a
summer resort on the coast Of Maine,
about three miles from Portsmouth. The
court held that the owners should not
be compensated by the government for
900 acres Of land. even though projectiles
fired In the battery forming the fort de-
fense of Portsmouth harbor might carry
over the land.
Construes bankruptcy Act.
An important opinion Of the court, con-
strung the Federal bankruptcy act. as
to what constituted 'preference, was
the affirmation OF the Judgment OF the
Circuit Court of Appeals of the Second
circuit reversing the judgment Of the
Federal District Court for southern New
York, in the matter Of Ludvigh, trustee
in bankruptcy for Philip Horowitz, and
Joseph Horowitz, partners, against the
American Woolen Company.
Just before the bankruptcy proceedings
were instituted the woolen company
took back certain consignments Of goods.
The trustee in bankruptcy sued to recover
the value OF the goods thus taken. al
leging that II was an undue preference
in fraud Of other creditors. The district
court for the Southern district Of New
York gave judgment. but the Court of
Appeals reversed the finding and Judge
Day yesterday affirmed the Court OF
Appeals judgment, holding that the
Niagara Company was not a fraudulent
concern and that the contract between
the American woolen Company and the
Horowitz Brothers amounted to an
agency: that the title to the goods had
never passed from the woolen company
and the contracts were not fraudulent.
"Titanic Ca.es" Advanced.
An order was entered advancing the
Titanic cases." which had been set for
hearing in January. These cases against
the Oceanic Steam Navigation Company,
which owned the Titanic, involve the
question of the financial liability OF the
company, and an early hearing will be
given.
The court upheld the validity OF a
Montana law taxing premiums collect
ed upon life insurance in excess of
losses and expenses in a test case
brought by the New York Life Insur-
ance Company. The court refused to
modify its decree dismissing Federal
prosecution against C. w. Summers,
national banker Of Alaska, indicted for
violating the national banking act
There will be one more opinion day"
before the holidays and the court viii
take holiday recess from next Mon
day until January s.