
    THE UNITED STATES v. BOSTON INSURANCE COMPANY
    November 23, 1925.
    [58 C. Cls. 603; 269 U. S. 197]
    Judgment was rendered against the United States in the court below. On appeal the judgment was reversed, the Supreme Court deciding:
    The revenue act of 1916, sec. 12, par. “ First,” subdiv. (c), in defining deductions from gross income allowable in ascertaining the net income of domestic corporations, included, in the case of insurance companies, “ the net addition, if any, required by law to reserve funds.” Held, that “ reserve funds ” does not embrace funds held by a fire and marine insurance company, as required by the New York Superintendent of Insurance, to cover accrued but unsettled claims for losses. McCoaeh v. Insurance Co., 244 V. S. 585, followed; Maryland Casualty Co. v. United States, 251 U. S. 342, explained and in part disapproved.
   Mr. Justice McReyNolds

delivered the opinion of the Supreme Court  