State ex rel. St. Louis Young Men's Christian Ass'n v. Gehner

• Citation: 11 S.W.2d 30,320 Mo. 1172
• Decision Date: 02 October 1928
• Docket Number: 28655
• Parties: The State ex rel. St. Louis Young Men's Christian Association v. Frederick Gehner as Assessor of City of St. Louis, and Frederick Gehner as President, and William Appeal et al. as Members, of Board of Equalization of City of St. Louis, and Edmond Koeln as Collector of City of St. Louis
• Court: Missouri Supreme Court

11 S.W.2d 30

320 Mo. 1172

The State ex rel. St. Louis Young Men's Christian Association v. Frederick Gehner as Assessor of City of St. Louis, and Frederick Gehner as President, and William Appeal et al. as Members, of Board of Equalization of City of St. Louis, and Edmond Koeln as Collector of City of St. Louis

No. 28655

Supreme Court of Missouri

October 2, 1928

On Motion for Rehearing, October 27, 1928.

Writ quashed.

Forrest C. Donnell, John B. Edwards, Joseph W. Lewis, George C Mackay, S. B. McPheeters, Xenophon P. Wilfley and Wilbur B. Jones for relator.

(1) Relator's property is being used exclusively for religious, educational and purely charitable purposes, and as such is expressly exempted from taxation under the Constitution and statutes of Missouri. Constitution, Art. 10 sec. 6; Sec. 12753, R. S. 1919; State ex rel. v Johnston, 214 Mo. 656. (2) By the great weight of authority Young Men's Christian Associations have been held entitled to exemption as charitable, educational or religious institutions. 37 Cyc. 945; 5 R. C. L. 374; Commonwealth v. Y. M. C. A., 116 Ky. 711; Y. M C. A. v. Com., 181 Ky. 384; Y. M. C. A. v. Ottawa, 29 Ont. L. 574; Re Y. M. C. A., 29 Ont. L. 582 (lodgings and meals to visitors); Waycross v. Sav. Co., 90 S.E. 382; Little v. City of Newburyport, 210 Mass. 414; Y. M. C. A. v. Collector, 33 Philippine, 217; In re Syracuse Y. M. C. A., 213 N.Y.S. 35; Ann. Cases 1912R, p. 427, notes; 34 A. L. R. 1067. (3) Such statutory exemption is not lost by the fact that the organization receives some revenue from its activities which is devoted to its maintenance and applied exclusively to its purposes, provided it is not conducted for private gain. State ex rel. v. Powers, 10 Mo.App. 263, affirmed 74 Mo. 476; State ex rel. v. Johnston, 214 Mo. 656 (military pay school); Waycross v. Waycross Sav. Co., 90 S.E. 382; Hot Springs School Dist. v. Sisters of Mercy, 84 Ark. 497; Cathedral of St. John v. Denver, 37 Colo. 378; Brewer v. Missionary Assn., 124 Ga. 490; School of Domestic Arts v. Carr, 322 Ill. 562; Congregational Society v. Board of Review, 290 Ill. 108; Sisters of Third Order v. Board of Review, 231 Ill. 317; German Hospital v. Board of Review, 233 Ill. 246; Proctor Hospital v. Board of Review, 233 Ill. 583; Ky. Orphan School v. Louisville, 100 Ky. 470; Morgan v. Presbyterian Church, 31 Ky. L. Rep. 38; Dayton v. Speers Hospital, 165 Ky. 56; Corbin Y. M. C. A. v. Com., 181 Ky. 384; State ex rel. v. Bd. of Assessors, 52 La. Ann. 223; Appeal Tax Court v. St. Peters Acad., 50 Md. 321; Frederick County v. Sisters of Charity, 48 Md. 43; W. E. Sanatorium v. Stonehan, 205 Mass. 335; Charlesbank Holmes v. Boston, 218 Mass. 14; Mass: Gen. Hospital v. Belmont, 233 Mass. 190; Hennepin County v. Brotherhood of Gethsemane, 27 Minn. 460; St. Elizabeth Hosp. v. Lancaster Co., 109 Neb. 104; Carter v. Whitcomb, 74 N.H. 482; Danville Imp. v. St. Francis Sanatorium, 89 N. J. L. 293; Nat. Navy Club v. City of N. Y., 203 N.Y.S. 114; Re Vassar, 127 N.Y. 1; O'Brien v. Physicians' Hospitals, 96 Ohio St. 1; Episcopal Academy v. Philadelphia, 150 Pa. 565; Phil. v. Y. W. C. A., 125 Pa. St. 572; Scott v. All Saints Hospital (Tex.), 203 S.W. 146; San Antonio v. Santa Rosa Infirmary (Tex.), 249 S.W. 498; Reynolds Memorial Hospital v. County Court, 78 W.Va. 685; St. Joseph Hospital Assn. v. Ashland County, 96 Wis. 636. (4) Public policy favors institutions engaged in conferring benefits on the public.

Julius T. Muench, Charles J. Dolan and Arthur E. Haid for respondents.

(1) The properties in question are exempt from taxation only if used exclusively for religious worship, for schools, or for purposes purely charitable. Constitution, Art. 10, sec. 6; R. S. 1919, sec. 12753; State ex rel. v. St. Louis Y. M. C. A., 259 Mo. 233; St. Louis Lodge v. Koeln, 262 Mo. 444. (2) Laws exempting property from taxation must be strictly construed. People v. Y. M. C. A., 157 Ill. 403; Trustees of Y. M. C. A. v. City of Paterson, 61 N. J. L. 420; St. Louis Lodge v. Koeln, 262 Mo. 444.

OPINION

Gentry, J.

This is an original proceeding instituted in this court by the St. Louis Young Men's Christian Association, a corporation organized and existing under the statute governing benevolent, religious and educational associations. Relator seeks by certiorari to annul and quash certain assessments and tax bills issued against three pieces of real estate owned by it in the city of St. Louis, which assessments were regularly made by the officers of that city. The City Board of Equalization having declined to comply with the request of relator that such property be declared exempt, application to this court for certiorari was made. The respondents herein are the assessing and tax-collecting officers of the city of St. Louis.

It is claimed by relator in its petition for writ of certiorari that the assessment of the three pieces of real estate belonging to it is in violation of Section 6 of Article X of the Constitution of Missouri and Section 12753, Revised Statutes 1919, both of which exempt from taxation real estate of certain size in incorporated cities and the buildings thereon, "when the same are used exclusively for religious worship, for schools or for purposes purely charitable." It is claimed by respondents, in their return, that the properties in question are not used exclusively for religious worship, for schools or for purposes purely charitable; and do not, therefore, come within the exemption authorized by the Constitution and laws of Missouri, but are subject to taxation. Relator has filed a motion for judgment on the pleadings.

The issue is clear cut. There is no dispute about the facts, counsel having filed in this court an agreed statement, which Judge Sherwood some years ago said was a very good way for lawyers to try a case.

Relator first obtained its legal existence by a pro-forma decree of the St. Louis Circuit Court in 1877 under the statutes governing the organization of benevolent, religious and educational associations, now Chapter 90, Article XI, Section 10265 et seq., Revised Statutes 1919. A new charter was authorized by a pro-forma decree in the same court in 1898, which charter contained some amendments. From this charter, it will be seen that the object of relator is the "improvement of the spiritual, mental and physical condition of young men." Relator has two classes of members, active and associate. Any male member in good standing of a Protestant Evangelical Church may become, and thereafter during such church connection continue, an active member of the association by the payment, in advance of such membership, such fees as may be prescribed by the board of directors. Active members are elected by the board of directors. Any man of good character may become an associate member by the payment annually, in advance of membership, fees as the board of directors shall prescribe. Provision is made for the election of directors and of their qualifications, also for certain committees that function in behalf of relator. There is also provision made for discipline, amendment of the charter, etc. The names of Thomas S. McPheters, Edward P. V. Ritter, Geo. T. Coxhead, Seldon P. Spencer, and other well known St. Louis men, were signed to the petition for incorporation. It should also be mentioned that there is an age limit for members. The real estate in question and the buildings thereon were purchased and erected by contributions of many public spirited citizens of St. Louis, some of whom contributed liberally thereto. The community fund of that city helps to pay deficits in the income of relator, and relator is affiliated with some 2,000 similar organizations in the United States, each one having a large membership. Relator's membership consists of boys, young men and older men of the city, of all faiths, creeds, and colors. Relator's activities are numerous, social, athletic, musical, and patriotic, also activities that are religious, charitable and educational in their character.

Relator owns a lot at the southeast corner of Sixteenth and Locust Streets, and the building thereon, known as the "Downtown Building;" it is ten stories in height. The first floor is used for the following purposes: for men lobby, lounge, reading and writing room, billiard room, soda fountain and part of the offices; for boys, a lobby, game and club rooms, and boys' offices, also locker rooms for both men and boys. On the ground floor is a cafeteria, barber shop, tailor shop, community boys' club, shower bath and swimming pool. The second floor is an assembly hall for general use, educational class-rooms for Y. M. C. A. School, gymnasium and office. The third floor is used for three handball courts and educational class rooms. The fourth floor is used for the office of the Metropolitan Church Federation of St. Louis, the general offices of the Y. M. C. A. and bedrooms. There are three handball courts on the fifth floor, and the remainder of the fifth, sixth, seventh, eighth, ninth, and tenth floors are devoted to bedrooms. The total number of private rooms in this building used for sleeping purposes is 371; but no dormitory room. The rooms are rented by the week to young men desiring homes. Out of an accommodation of 500 men approximately fifteen may be accommodated on a night basis. The 371 rooms are divided into 252 single rooms and 119 double rooms. A single room rents for from $ 5.75 to $ 6.75 per week, the double rooms rent for from $ 3.50 to $ 5 per week per man. Some of the rooms in this building were endowed by churches, clubs and other organizations. Each person applying for a room receives the same subject to the approval of the board of managers, and a printed agreement regarding admission to and residence in the Downtown...