SIXTY-THIRD CONGRESS. Sess. I. C11. 16. 1913. 173 all other natural deposits, not to exceed 5 per centum of the gross m{ggg¤¤ ¤¤·°¤¤- yalue at the mine of the output for the year for which the computation ' is made· and m case of insurance companies the net addition, if any, I““"°“°°°°"“*”‘“*°* required by law to be made within the year to reserve funds and the sums other than dividends paid within the year on policy and annuity P . · contracts: Provided, That mutual fire insurance com anies requiring u'¤R°£.i"am insim their members to make premium deposits to provide fiir losses and ex- “"" °°'“P““*°°· penses shall not return as income any portion of the premium deposits returned to their dpolicylholders, but shall return as taxable income all income receive by them from all other sources plus such portions of the premium deposits as are retained b the companies for purposes other than the pa ent of losses and, expenses and reinsurance M mu I m_ reserves: Pr fla-lrliher, That mutual marme insurance com anies smilie etmpum. shall include in their return of gross income gross premiums collected and received by them less amounts paid for reinsurance, but shall be entitled to include in deductions from gross income amounts repaid to policyholders on account of premiums previously paid by them and interest paid upon such amonmts between the ascertainment thereof and the payment thereof and life insurance companies shall not include as income in any gear such pprtion of any actual pzgmium received from any indivi ual dpolicy older as shall have n paid back or credited to such indivi ual policyholder, or treated as an abatement of premium of such individual policyholder within 1,,,,,,,, N, mw such year; (third) the amount of interest accrued and paid within ¤<1£l¤;it the year on its indebtedness to an amount of such indebtedness ' not exceeding one-half of the sum of its interest bearing indebtedness and its paid—up capital stock outstanding at the close of the year, or if no capital stock, the amount of interest aid within the year on an amount of its indebtedness not exceeding the amount of capital employed in the business at the close of the year: Provided, E b um That in case of indebtedness wholly secured by collateral the subject mi. Y of sale in ordinary business of such corporation, jomt stock company, or association, the total interest secured and paid by such company, corporation, or association within the year on any such indebtedness may be deducted as a part of its expense of doing business: Provided Bonn md {urther, That in the case of bonds or other indebtedness, which have moms, ‘°'"° een issued with a guaranty that the interest payable thereon shall be free from taxation, no deduction for the payment of the tax herein imposed shall be allowed; and in the case o a bank, banking associa- 1°°“°“ °“ ‘*°P°"°'· tion, loan, or trust com any, interest paid within the year on deposits or on moneys received for investment and secured by interest-bearing certificates of indebtedness issued by such bank ba 1ation, Tm! loan or trust company; (fourth) al sums paid by it wit the year ` for taxes imposed un er the authority of the United States or of any State or Territo thereof, or imposed by the Government any Fmmmpmmm foreign country:rPrmnHed, That in the case of a corporat1ouL§o1nt— neaueum on tual stock company or association, or insurance company, orgamz , au- “°“*“°”“"" S‘**“”’“· thorized, or existing under the laws of any fore@ country, such net income shall be ascertained by deducting from the gross amount of its income accrued within the year from business transacted and capital invested within the United States, (first) all the ordinary and B¤¤i¤¤¤¤ <»¤1>¤¤=¤=— necessary expenses actually paid within the year out of earnmgs in the mamtenance and operation of its business and property withm the United States, including rentals or other payments required to be made as a condition to the continued use or possession of property; (second) all lowes actuall sustained within the year in business con- mgm ¤¤<1 d¤x>¤=<=i¤· ducted by it within the Uliited States and not compensated by ]1JS}11°- ` ance or otherwise, including a reasonable allowance for depreciation by use, wear and tear of rolperty, if any, and in the case of mines a reasonable allowance for d,ep etion of ores and all other natural depos-
