Fitterer v. Crawford

• Decision Date: 12 June 1900
• Parties: FITTERER v. CRAWFORD, Collector, Appellant
• Court: Missouri Supreme Court

57 S.W. 532

157 Mo. 51

FITTERER v. CRAWFORD, Collector, Appellant

Supreme Court of Missouri, Second Division

June 12, 1900

Appeal from Grundy Circuit Court. -- Hon. P. C. Stepp, Judge.

Reversed.

John W Schooler, S. S. Kelso and S. C. Price for appellant.

(1) The Constitution and statute exempting property from taxation are to be strictly construed against the claim of exemption. Washington University v. Rouse, 42 Mo. 323; State ex rel. v. Railroad, 89 Mo. 532; State ex rel. v. Railroad, 99 Mo. 42; State ex rel. v Arnold, 136 Mo. 450; Scotland County v Railroad, 65 Mo. 134; State ex rel. v. Lange, 16 Mo.App. 468; Wyman v. St. Louis, 17 Mo. 337; Railroad v. Cass Co., 53 Mo. 17; Cincinnati College v. The State, 19 Ohio 110; Redemptorist Fathers v. Boston, 129 Mass. 180; Portland Hibernian Society v. Kelly, 28 Ore. 173; Railroad v. Guffey, 120 U.S. 569; Bangor v. Masonic Lodge, 73 Me. 428; Co. Commissioners v. Sisters of Charity, 48 Md. 34; Theological Seminary v. The People ex rel., 101 Ill. 578; Mayor of Baltimore v. Grand Lodge, 60 Md. 280; 25 Am. and Eng. Ency. of Law, 157, and authorities cited in n. 3, p. 157, note 1, p. 158. (2) The plaintiff lodge should not be considered a charitable institution within the meaning of our Constitution and statute, exempting certain property from taxation "when used for purposes purely charitable." (3) The first story of the building involved in this case is a store room for rent; the second story is divided into offices which are rented to tenants, and the third floor is used by the plaintiff lodge, for lodge room and ante-rooms in connection therewith, which lodge and ante-rooms are used as a meeting place for the lodge. It is too plain to admit of any sort of contention that the first and second stories are not used for charitable purposes. They are used as any other business building is used in the city of Trenton. In such cases the building is not exempt. St. Marys School v. Crowl, 10 Kan. 333; Vail v. Beach, 10 Kan. 166; Washburn College v. Commissioners, 8 Kan. 344; Commissioners v. Sisters of Charity, 48 Md. 34; Appeal Tax Court v. Baltimore Academy, 50 Md. 437; People v. Graceland Cemetery, 86 Ill. 336; Seminary v. The People ex rel., 101 Ill. 578; Des Moines Lodge v. County of Polk, 56 Ia. 34; Wayland v. St. Louis, 17 Mo. 335. (4) The application of the proceeds of property to a purpose purely charitable within the meaning of our statute, would not meet the requirement that the property itself shall be used exclusively for purposes purely charitable as a condition of its exemption from taxation. Literary Ass'n v. Pelton, 36 Oh. St. 253; Portland Hibernian Society v. Kelly, 28 Or. 173; Cincinnati College v. State, 19 Oh. 110; Trustees v. Boston, 120 Mass. 212.

Hall & Hall for respondents.

(1) The respondent lodge is a charitable institution. State ex rel. v. Powers, 10 Mo.App. 263; Bishop Residence Co. v. Hudson, 91 Mo. 671; Missouri Historical Society v. Academy of Science, Lucas et al., 94 Mo. 459; Ould v. Washington Hospital, 95 U.S. 303; Duke v. Fuller, 9 N.H. 536; Philadelphia v. Masonic Home, 160 Pa. St. 372; Fire Insurance Patrol v. Bogel, 120 Pa. St. 504. (2) It is a charitable institution within the meaning of the law exempting property of charitable institutions from taxation, though it limits its benefits to its own members and their families. Hibernian Benevolent Society v. Kelly, 28 Or. 173; Burd Orphan Asylum v. School Dist., 90 Pa. St. 21; Savannah v. Solomon Lodge, 53 Ga. 93; Indianapolis v. Grand Master, 25 Ind. 518; State v. Board of Assessors, 34 La. 574; State v. Addison, 2 S.C. 499; Petersburg v. Petersburg Ben. Ass'n, 78 Va. 431. (3) Its building and ground are exempt from taxation under the Constitution and statutes of the State of Missouri. Constitution, art. X, sec. 6; R. S. 1889, sec. 7504. (4) The fact that respondent lodge rents a part of its building and uses the rents for the purposes of the lodge does not render its property subject to taxation. State ex rel. v. Powers, 10 Mo.App. 263; s. c., 74 Mo. 476; Gymnastic Society v. Hudson, 12 Mo.App. 342; s. c., 85 Mo. 32; Cooper Hospital v. Burdsall (N. J.), 42 A. 853; The City of Henderson v. Strangers Rest Lodge, 17 S.W. 213; County of Henepin v. Brotherhood of Gethsemane, 27 Minn. 460; Book Agents v. Hinton County Trustee, 21 S.W. 321; Boys' School v. Gill, 145 Mass. 139.

BURGESS, J. Gantt, P. J., and Sherwood, J., concur.

OPINION

BURGESS, J.

This is an injunction proceeding by which the plaintiffs, John Fitterer, William P. Lafferty and Chas. H. Cook, trustees of Trenton Lodge No. 111 of Ancient Free and Accepted Masons, seek to enjoin and restrain the collection of $ 55.50 taxes levied by the county court of Grundy county, in 1897, for state, county, township, school and other taxes, against the property of said lodge, including its lodge building, which property is alleged to be used for purposes purely charitable.

A preliminary injunction was granted, which upon final hearing was made perpetual. Defendant appeals.

The case was tried upon the following agreed state of facts:

"For the purposes of the trial of the above cause, it is agreed that the facts which shall be taken and considered as the evidence in the case are as follows, viz.:

"That plaintiffs, John Fitterer, William P. Lafferty and Chas. H Cook, are the duly elected and qualified trustees and agents of Trenton Lodge No. 111 of Ancient Free and Accepted Masons, and as such trustees have the control and management of and hold the legal title to the property and effects of said lodge and its members in trust for the use, benefit, occupancy and enjoyment of the officers and members of said lodge.

"The objects and purposes of said order are to nurse, care for and provide for its sick, afflicted and needy members and their families, bury the dead, care for the widows of its deceased members and care for and educate their orphan children, and to inculcate in its members the principles of morality, temperance, benevolence and charity and teach them their duty and true fraternal relation to mankind.

"Its revenue is provided by membership fees paid by persons joining the order, dues by its members, and rents as hereinafter stated. Each member of the order, not exempt, is required by its laws to pay as regular dues three dollars per annum.

"The worshipful master, senior and junior wardens are the committee of the lodge on charity and the trustees of the lodge, and as such committee are authorized to draw from the funds of the lodge, by an order from the worshipful master, any sum not exceeding ten dollars for the relief of any one object at one time.

"Except as above the individual members of said lodge are not entitled to receive any pecuniary benefits from the lodge, and in no case are they entitled to receive, directly or indirectly, any benefit, profit or private gain from said lodge or in any manner participate in the distribution of the funds or property of the lodge.

"John Fitterer, William P. Lafferty and Chas. H. Cook, as such trustees for said lodge, have and hold the legal title of the following described real estate in Grundy county, Missouri, to-wit: A part of lots four and five in block seventeen of the original town (now city) of Trenton, described by metes and bounds as follows, to-wit: Commencing at a point on Water street fifty feet eight inches southwest from the northeast corner of said block at the intersection of Water street and College avenue, running thence southwesterly along the northwest side of Water street thirty-two feet and eight inches, thence northwesterly through said lot four on a line parallel with the side lines of said block of the alley, thence northeasterly along the line of said alley thirty-two feet and eight inches, thence southeasterly through said lot five parallel with the side lines of said lot five to the place of beginning. Upon which is erected a three-story brick building. The first story of which is a store room and is rented, the second story is also rented, the third story is used and occupied by the members of said lodge as a lodge room and ante-rooms used in connection therewith.

"The rents received from the portions of the building rented are paid into the treasury of the lodge.

"The lodge borrowed about $ 9,500 at eight per cent interest per annum, which is secured by deed of trust on said property, which was used in the construction of said building.

"The rents secured from the building are paid to the treasurer of said lodge, and are used in connection with the other revenue of the lodge, for the purposes of the lodge as above provided, and in paying the interest and principal on said debt. No part of said rents can be paid or used in any manner for the private gain or profit of the members of the lodge, but after the payment of said debt and interest must be kept and used as the other funds of said lodge, and any division or distribution of said rents or any other funds or property of said lodge among its members would be in direct violation of its laws and of the obligation taken by its members.

"The above described real estate belonging to the plaintiffs was regularly assessed for taxation by the legally elected and duly qualified township assessor of Trenton township, Grundy county, Missouri, for the taxes for the year 1897. And the assessor's book was duly made out by the township assessor of said township and returned to the county court of said Grundy county, Missouri. Said county court levied the proper taxes due the different funds for the State, county and township funds against said property; and by order of said county court the county clerk of said county made out and extended said taxes mentioned in the plaintiff's petition against said...