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Show UtJ COMPANIES MUST PAY ON INCOME Washington. Dec. 21. Commissioner Commission-er of Internal Revenue Cabell today decldod that tho dividends paid by mutual and "participating" Insurance companies to their policyholders aro subject to assessment as income under un-der the corporation tax law. The companies contended, according accord-ing to tho commissioner, that theso dividends were not dividends In tho commercial sense, but Blmply refunds to policyholders of an overcharge In the Insurance premium-Some premium-Some of the madmlttcd, ho added, that exigencies of business and competition com-petition had resulted i ntho companies compa-nies making "misrepresentations of facts as to dividends ot their prospective prospec-tive purchasers of insurance." no |