People ex rel. Seeman v. Greer Coll.

• Decision Date: 19 April 1922
• Docket Number: No. 14160.,14160.
• Citation: 302 Ill. 538,135 N.E. 80
• Parties: PEOPLE ex rel. SEEMAN et al. v. GREER COLLEGE et al.
• Court: Illinois Supreme Court

302 Ill. 538

135 N.E. 80

PEOPLE ex rel. SEEMAN et al.

v.GREER COLLEGE et al.

No. 14160.

Supreme Court of Illinois.

April 19, 1922.

Suit by the People, on the relation of Jacob Seeman and others, against Greer College and the Attorney General. From a decree dismissing the bill, relators appeal.

Affirmed.

Appeal from Circuit Court, Vermilion County; John H. Marshall, judge.

Robert R. Rodman, of Hoopeston, and Acton & Acton, of Danville, for appellants.

Edward J. Brundage, Atty. Gen., Gunn & Platt, of Danville, and Dyer & Dyer and G. H. Couchman, all of Hoopeston (Clarence N. Boord, of Springfield, of counsel), for appellees.

DUNN, J.

‘An act to revise the law in relation to universities, colleges, academies and other institutions of learning,’ in force July 1, 1874, provided in section 1 as follows:

‘That any corporation which has been, or may be incorporated under any general law of this state, for the purpose of establishing or conducting a university, college, academy, or other institution of learning in addition to the powers granted by such law shall have power to take by purchase, gift, grant, devise or bequest, and to hold for the use of such corporation, any real or personal property whatever, and to sell, convey, mortgage, or otherwise use the same, as may be considered most conducive to the interests of such institution.But such corporation shall have no power to divert any gift, grant, devise or bequest from the specific purpose designated by the donor.’ Hurd's Stat. 1921, chap. 144, sec. 1.

In 1919 an act was passed which by its title purported to amend the former act, and in its body purported to amend it by adding a section to be known as section 1a, as follows:

‘That if any corporation mentioned in section 1 of this act, that has been incorporated at the request of any person who has given or devised property for the purpose of establishing and maintaining any institution mentioned in section 1 of this act, heretofore has or hereafter shall divert such gift or devise to any purpose other than the specific purpose for which it was given or devised, or, if it shall become impracticable to maintain such institution, or, if such corporation shall be guilty of a misuser or nonuser of its principal corporation franchises, then a bill in chancery may be filed in the circuit court of the county in which such institution is located, or in the county where any real estate that was given or devised to such institution, is situated, against such corporation, in the name of the people of the state of Illinois, upon the relation of the Attorney General, state's attorney, or the donor of the property given or devised, or the heirs at law of any deceased donor, and a summons may thereupon issue to any county in the state for said corporation, and the practice shall be the same as other proceedings in chancery; and upon a hearing, if the facts alleged in the bill are proven, the court shall enter a decree dissolving the corporation, and vesting the title in any property, so given or devised, in the donor thereof, or in case of his death, in his heirs at law then surviving.’ Hurd's Stat. 1921, c. 144, § 1a.

On January 3, 1921, a bill was filed under the latter act in the circuit court of Vermilion county in the name of the people, on the relation of Jacob Seeman and others, against Greer College and the Attorney General, which alleged that John Greer died about January 1, 1890, and the relators are his surviving heirs; that Greer College is a corporation organized on May 28, 1890, under the act of 1872 (Laws 1871-72, p. 296) concerning corporations, for the purpose of establishing and maintaining an institution of learning at Hoopeston, in Vermilion county, for the higher education of young men and women; that it was organized at the special request of John Greer, who by his will executed on August 12, 1889, and probated in the county court of Iroquois county, gave and bequeathed to three trustees, ‘the said persons to become a body corporate, with power to nominate and elect successors, to act as trustees for the fund and for the purposes in this clause mentioned,’ $25,000-$15,000 for the erection of a building in Hoopeston, to bear the name of Greer College and to be used for the higher education of young men and women, $10,000 to be invested and the income applied to the maintenance of the college building and grounds and other purposes connected with the promotion and maintenance of the college. The will also gave the residue of the testator's property to the ‘said trustees of Greer College for such purposes connected with the welfare of said college as to them, the said trustees, may seem expedient.’ Before the death of the testator and after the execution of his will he desired the trustees named in the will to proceed at once to erect the college, and at his request they proceeded to do so, and the testator, for the purpose of carrying out the plan set forth in his will, conveyed to them certain real estate in Iroquois county and gave to them $25,000 in cash, notes, and securities, and after his death they received under the will $25,000 in cash, notes, and securities as trustees for Greer College. With the money so received they procured a conveyance to the corporation of real estate in Hoopeston upon which they erected a building for college purposes at a cost of $50,000, which was completed in the year 1890, and was occupied and used for the purpose of maintaining an institution for the higher education of young men and women, as contemplatedby the will. After the incorporation of the college the trustees conveyed to it the lands which the testator had conveyed to them, and also delivered to the corporation all the moneys bequeathed to them as trustees for Greer College, and the corporation still holds all that property. At the time of the incorporation of Greer College it was located in Hoopeston, and for a number of years the attendance was sufficient for its successful operation, but after 1905 the increase in number and resources of colleges and universities was such that Greer College was unable to compete for students, and the attendance became so small and the revenue derived from the property of the college and the tuition of students so reduced that by the end of the school year 1913 the number of students had decreased to about 10, and, though the trustees did everything in their power to maintain an institution of learning as contemplated by the testator, it became impracticable to do so. About January 6, 1914, Greer College made an agreement with the board of education in Hoopeston by which the college gave the use of the college building to the board of education to conduct a high school, and the board of education has ever since used such building for a high school, except one room in the basement, and Greer College employed the superintendent of the high school as president of Greer College at a nominal salary of $200. There were ostensibly about six students in Greer College, though, in fact, they were merely pupils attending the high school, but living outside the high school district and paying tuition, and were therefore enrolled as students in Greer College. Greer College hires and pays two teachers, ostensibly for teaching in the college, but in fact they give practically all their time to teaching in the high school, though paid from funds derived from the property of Greer College donated by John Greer.

As a basis for relief the complainants aver that Greer College was incorporated at the request of John Greer, who gave and devised property for the purpose of establishing and maintaining an institution of learning known as Greer College, and that it has become impracticable to maintain such institution; that the defendant Greer College has diverted said gift and devise of John Greer to a purpose other than the specific purpose for which it was given and devised, and has been and is now guilty of a misuser of its corporate franchises. The prayer of the bill was that the court would enter a decree dissolving the corporation and vesting the title in all of the real estate described in the heirs of John Greer. The defendants filed separate demurrers to the bill, which were sustained, the complainants elected to abide by their bill, it was dismissed for want of equity, and the relators have appealed.

The appellants contend that the demurrers did not present the question of the constitutionality of the act because they did not point out the particular provisions of the Constitution claimed to be violated. The demurrers were general, and it was not necessary to state any ground of demurrer other than the want of equity in the bill. No statute of this state and no rule of court requires demurrers to state the reasons why the pleading demurred to is insufficient. A general demurrer to a bill in chancery for want of equity is sufficient to entitle the defendant to raise any question...