The statute assumes that such a value will to some extent depend on the surplus of company's assets over its liabilities, representing the fund in which the shareholder is equitably interested, and from which he would look for his final dividend, were the company to be wound up. To describe this surplus the word "capital" is used. Batterson v. Hartford, 50 Conn. 558, 561. It will be equivalent to the amount of the original capital with any accumulated profits, less all existing debts and liabilities. Batterson's Appeal, 72 Conn. 374, 376. The legislature seems to have thought that it would be inequitable to tax the shareholder both on the full market value of his stock, and on surplus property which helped to create that value, invested in real estate which was otherwise and directly taxed.
In this manner ยง 3836 taxes the corporation for all its property, real and personal. Batterson's Appeal, 72 Conn. 374, 376; Barrett's Appeal, 73 id. 288, 292; State v. Travelers Ins. Co., 73 id. 255, 279. Section 3833 provides for an additional tax directly upon these corporations, for all real estate owned by them, except such property as is required for the transaction of its appropriate business.
The real question is whether such real estate be part of that capital or capital and surplus representing, at the date of the return to the town assessors, the excess in value of the net assets above the amount of corporate debts and liabilities, in which the shareholders are directly interested. Batterson's Appeal, 72 Conn. 374, 376. It is this excess or "surplus of corporate property," which is treated as equitably owned by the shareholders and mainly builds up the market value of their shares. Batterson v. Hartford, 50 Conn. 558, 562; Security Co. v. Hartford, 61 id. 89. Land acquired and held for the purpose of responding to particular liabilities, whether through action by the corporation or by force of statutory requirements, would not be a part of such capital or surplus, to any greater extent than that of its value after deducting the amount of such liabilities.