Charter Oak Council, Inc. v. Town of New Hartford

• Decision Date: 10 June 1936
• Citation: 121 Conn. 466,185 A. 575
• Court: Connecticut Supreme Court
• Parties: CHARTER OAK COUNCIL, Inc., BOY Scouts of America. v. TOWN OF NEW HARTFORD et al.

185 A. 575

121 Conn. 466

CHARTER OAK COUNCIL, Inc., BOY Scouts of America. v. TOWN OF NEW HARTFORD et al.

Supreme Court of Errors of Connecticut.

June 10, 1936

Appeal from Superior Court, Litchfield County; Newell Jennings Judge.

Action by the Charter Oak Council, Incorporated, Boy Scouts of America, against the Town of New Hartford and others for a judgment declaring property of the plaintiff in defendant town to be exempt from taxation, brought to the superior court and tried to the court. Judgment for plaintiff, and defendants appeal.

Error and a new trial ordered.

Conclusion that Charter Oak Council, Inc., Boy Scouts of America, was organized and that its camp was used exclusively for " educational" and " charitable purposes," within tax exemption statute, held supported by finding although it was found that each boy scout attending camp paid regular charge toward expenses, that camp store was operated for 20 minutes a day, small profits from which were devoted to camp fund, and that, when income permitted, certain officials and employees were paid bonuses in addition to salaries. Gen.St.1930, § 1163(7) (Rev.1949, § 1761); 36 U.S.C.A. § 21 et seq.

H. Roger Jones, of Hartford, for appellants.

W. Arthur Countryman, Jr., of Hartford, for appellee.

Argued before MALTBIE, C.J., and HINMAN, BANKS, AVERY, and BROWN, JJ.

HINMAN, Judge.

The complaint alleged that the plaintiff, a corporation organized under the laws of the state of Connecticut, " is engaged in the mental, moral and physical education, including training in patriotism, courage, self-reliance and kindred virtues of young boys in the County of Hartford," and owns certain land with buildings thereon in the town of New Hartford, which are used during the summer months each year for the purpose of a camping ground; that this property is exempt from taxation, under section 1163 of the General Statutes, subdivision (7), as " the real property of *** a Connecticut corporation organized exclusively for scientific, educational, literary, historical or charitable purposes or for two or more such purposes and used exclusively for carrying out one or more of such purposes and the personal property of, or held in trust for, any such corporation, provided (a) any officer, member or employee thereof does not receive or at any future time shall not receive any pecuniary profit from the operations thereof, except reasonable compensation for services in effecting one or more of such purposes or as proper beneficiary of its strictly charitable purposes" ; and prayed for a judgment so declaring. Allegations pertaining, to the assessment of a tax on the property in the list of 1933 and a claim that the assessment be declared illegal and void were not pursued or relied upon on the trial except as affecting the general claim to exemption.

On the trial the court found that the plaintiff is a corporation without capital stock, organized under the general law (General Statutes, chap. 192 [section 3497 et seq.]), but also operates under a charter granted to it by the Boy Scouts of America, the national organization, a corporation chartered by the Congress of the United States (U.S.C.A. title 36, chap. 2 [section 21 et seq.]). The articles of association of the Connecticut corporation dated December 9, 1919, set forth the purposes as being: " To affiliate with, to conform to the regulations and requirements of, and to continue to be a branch or Council of the Boy Scouts of America *** and as such branch or council, to organize, promote the organization of, maintain, supervise and administer local troops of Boy Scouts of America in the City of Hartford, Connecticut, and vicinity, and in such additional territory as may from time to time be assigned to its jurisdiction by said national organization; to extend, and promote the extension of Boy Scout training to all boys of the Scout age throughout the territory of said council, including training in patriotism, courage, self-reliance and kindred virtues, using the methods which are now in common use by the Boy Scouts; and in general to promote the welfare of the Boy Scouts of America, and its members, in accordance with the constitution and by-laws of said national council. *** To acquire, receive, buy, hold, mortgage, sell and convey real and personal property for the use and benefit of this corporation, or to carry out its work and purposes." The certificate of incorporation was signed by nine persons, and was approved by the Secretary of the State and recorded as prescribed by the statute (section 3498). This provides that " when such certificate shall have been duly approved and, recorded, the persons so associated [by signing the certificate], with such others as may be associated with them or become their successors in such manner as the by-laws of the corporation provide, shall be a body politic and corporate and shall have all the powers conferred upon corporations by section 3382. *** Such corporation may at any time amend its original certificate of incorporation, by a three-fourths vote of its incorporators, their associates and successors, present and voting at a meeting *** duly called to consider such amendment," and by causing a certificate to be filed, recorded, and approved in the same manner as the original certificate of incorporation.

On September 27, 1933, with the obvious purpose of bringing the corporation expressly within proviso (a) of section 1163 (7) of the General Statutes, above quoted, and of accomplishing the segregation of the corporation's property from private, and dedication of it to public, uses essential to exemption from taxation, the executive board of the plaintiff corporation adopted the following resolution: " Resolved that the certificate of incorporation of the Charter Oak Council of Boy Scouts of America, Incorporated, be amended by adding after article 2 thereof, the following: Article 3 No officer, member or employee of said council shall now or at any future time receive any pecuniary profit from the operations of said council except reasonable compensation for services in effecting one or more of such purposes, or as a proper beneficiary of its strictly charitable purposes; but all such profit shall be devoted to the purposes of the corporation. Article 4 Upon the dissolution of said corporation, no member thereof shall receive any profit from or share in any of the property of said corporation, but all of the property, assets, or surplus of said corporation shall vest in some Connecticut corporation organized for a purpose as nearly similar as may be possible and containing in its charter provisions having the same effect as articles 3, 4 and 5 hereof, and all property received by said corporation and all assets other than those used in the operation thereof for its charitable purposes shall be held in perpetuity under the terms hereof. Article 5 All real estate owned by said...