Provident Life & Trust Co. v. Durham

Citations

• 212 Pa. 68
• 61 A. 636
• 1905 Pa. LEXIS 553

Syllabus

<p>Taxation — Corporations — Assessment ■—■ Trust company — Insurance assets—Acts of June 8,1891, P. L. 229, June 8, 1893, P. L. 353, June 1,18S9, P. L.‘ 420—February 18, 1869, P. L. 194.</p> <p>On a bill in equity for an injunction against tax assessors it appeared that the plaintiff was a trust company which also conducted a life insurance business as a department of its business. It paid the five mills tax upon the assessed value of its capital stock under the Act of June 8, 1891, P. L. 229 as amended by the Act of June 8, 1893, P. L. 353 and also the four mills state tax on the bonds, mortgages and other securities held by it as trustee, executor, administrator and guardian. The defendants sought to assess the company with a four mills tax upon a fund of $31,646,779.17 invested in bonds, mortgages and other securities, and held by it as a reserve fund accumulated in its insurance department to offset maturing risks and like valid demands. The defendants contended that under the Act of February 18, 1869, P. L. 194, these insurance assets were not owned by the corporation, but represented net profits of the insurance department. Held, that the insurance assets wei’e not a part of the net profits of the insurance department within the meaning of the act of February 18, 1869, but were owned by the corporation in its own right, and not'taxable under the Act of June 8, 1891, P. L. 229.</p> <p>Dean and Potter, JJ., dissent.</p>