State v. Kansas City College of Medicine and Surgery, No. 26507.

CourtMissouri Supreme Court
Writing for the CourtWhite
PartiesSTATE ex inf. OTTO, Atty. Gen., v. KANSAS CITY COLLEGE OF MEDICINE AND SURGERY.
Decision Date23 June 1926
Docket NumberNo. 26507.
285 S.W. 980
STATE ex inf. OTTO, Atty. Gen.,
v.
KANSAS CITY COLLEGE OF MEDICINE AND SURGERY.
No. 26507.
Supreme Court of Missouri, in Banc.
June 23, 1926.

Information in the nature of quo warranto by the State, on the relation of Robert W.

[285 S.W. 981]

Otto, Attorney General, against the Kansas City College of Medicine and Surgery, to oust respondent from enjoying the powers and privileges of a corporation. Respondent dissolved as a corporation, and charter and franchise declared forfeited.

North T. Gentry, Atty. Gen., and J. Henry Caruthers, Asst. Atty. Gen., for relator.

James R. Page and John V. Hill, both of Kansas City, for respondent.

WHITE, J.


The relator filed in this court an information in the nature of a quo warranto, seeking to oust the respondent from enjoying the powers and privileges of a corporation.

The relator sets out several alleged reasons why the corporate franchise of the respondent should be forfeited. The important ones of these may be summarized as follows:

(a) That it keeps no intelligible record of its proceedings as a college.

(b) That, although the respondent (under what is now article 9, c. 90, R. S. 1919), was organized as a corporation for benevolent purposes, it is conducted for private profit and gain, contrary to the law of its incorporation.

(c) That for purely monetary considerations respondent is and has been engaged in the sale of diplomas and certificates of graduation, without regard to the educational qualifications or fitness of those who receive them.

(d) That the instructors in defendant's school are selected from the student body, and are wholly incompetent to perform the functions and duty of teaching and giving scientific instruction necessary in a medical school.

(e) That the respondent does not maintain a properly organized curriculum covering four years' instruction, which is essential for a medical school of four years' requirement, as provided by statute.

(f) That respondent, for the purpose of instruction, has not provided any dispensary or any hospital where patients are received and treated, and where the students may receive instruction.

(g) That one of the avowed purposes of the maintenance of the corporation as a benevolent institution is to escape the lawful payment of taxes.

Other alleged misuses of corporate powers mentioned are more or less a repetition of those enumerated.

Upon the filing of the information, this court issued an order upon respondent to show cause why it should not forfeit its charter for the misuse of its powers, which order was served upon respondent June 22, 1925.

Respondent filed in this court, July 20, 1925, a demand for trial by jury and for that purpose transfer of the cause to the Jackson county circuit court. The motion was overruled August 4, 1925. Respondent filed its answer July 20, 1925, in which it denied generally and specifically the allegations of the information, and set up matters of defense, some of which were later stricken out on motion. What remains of the answer consists of general and specific denials of the charges contained in the information, together with some statements of evidence upon the issues.

This court, July 31, 1925, appointed Hon. Edward J. Bean, of St. Louis, special commissioner, to take the testimony and report on the law and the facts in the case. The commissioner took a large volume of evidence and March 6, 1926, filed his report, in which he made a finding of the facts and stated his conclusions of law sustaining the essential charges preferred by the Attorney General.

The articles of agreement by which the respondent was organized were entered into January 5, 1916. This document recited that the signers desired to found a corporation under the provisions of article 10, c. 33, R. S. 1909 (article 11, c. 90, R. S. 1919); that the name of the institution should be the Kansas City College of Medicine and Surgery; that the purpose for which it was formed was to promote the study and practice of "eclectic" medicine, surgery, pharmacy, and dentistry in all their departments, with a preparatory school for each department, a post graduate course of study of public health, and the establishment of a hospital operated therewith, etc. Charles A. Gilman, president, D. R. Alexander, secretary, and Edward H. Clark, treasurer, were the first board of directors. The articles were signed by those three men. The incorporators then applied to the circuit court of Jackson county for a pro forma decree of incorporation, and the court January 13, 1916, entered an order incorporating the Kansas City College of Medicine and Surgery.

The evidence shows that Dr. Alexander, the nominal secretary of the institution, was in fact the institution. He was business manager, handled all the funds, collected and disbursed all money paid to the institution. The management and control of the respondent's affairs were at all times in his hands. The corporation had no bank account. The laboratory man received $100 a month, and lived in the institution. The treasurer lived in the institution, and was supposed to receive $50 a month, but it was seldom paid to him, and he handled none of the money of the institution. At the time of the hearing, the institution owed him about $6,000, according to Dr. Alexander. Dr. Alexander himself received all the money and put it into his pocket, after defraying the expenses incurred. So far as the books of the institution showed, none of the money was ever paid out for equipment in the conduct of the college except one item for a tank that cost $70.

285 S.W. 982

Dr. Frederick C. Waite, representing the American Medical Association, inspected respondent's school, and testified in the case. Dr. Alexander said to him: "I am the school." The curriculum was nominally a four years' course, but what is called a repetitive curriculum; the work of the junior and senior years were the same and were combined. It was not a school of four years' requirement. There was no hospital connected with the school, and not dispensary. Alexander said that a hospital was under construction, and that the students could go to other hospitals on their own initiative, but, so far as he knew, and so far as required, men who graduated had never seen a sick patient. The evidence showed that proper hospital experience was necessary in a proper medical education. Dr. Waite swore that on one occasion Dr. Alexander said he knew he was not running a medical school.

Dr. Alexander was charged with the sale of diplomas, and a few examples will illustrate his method: Clarence L. Hobbs graduated from the St. Louis College of Physicians and Surgeons in 1922. A graduation from that school did not entitle him to examination for a license by the state board of health of Missouri, nor by the board of health of Connecticut. Hobbs desired to practice medicine in Connecticut, and Alexander told him that he would arrange it so that Hobbs could take the Connecticut board examination. He accomplished this by granting to Hobbs an honorary degree from the Kansas City College of Medicine and Surgery. With that diploma Hobbs passed an examination and received license to practice medicine in Connecticut. The so-called honorary...

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11 practice notes
  • State ex Inf. Taylor v. American Ins. Co., No. 36724.
    • United States
    • United States State Supreme Court of Missouri
    • December 30, 1946
    ...& Surgeons, supra, (317 Mo. 49, 295 S.W. 537, 542); State ex inf. Otto v. Kansas City College of Medicine & Surgery, 315 Mo. 101, 285 S.W. 980, The mere fact that the chief officers of the respondents never knew of, authorized or ratified the particular acts complained of, towit, Street's b......
  • State ex Inf. McKittrick v. Williams, No. 36718.
    • United States
    • United States State Supreme Court of Missouri
    • November 9, 1940
    ...ex inf. v. Arkansas Lbr. Co., 169 S.W. 145, 260 Mo. 276; State ex inf. Otto v. Kansas City College of Medicine & Surgery, 315 Mo. 101, 285 S.W. 980; 96 A.L.R., p. 237, sec. 2. (6) This proceeding is not in conflict with any provisions of the State or Federal Constitution with regard to due ......
  • State ex rel. Schneider's Credit Jewelers v. Brackman, No. 28671
    • United States
    • Court of Appeal of Missouri (US)
    • September 15, 1953
    ...a corporation constitutes a usurpation of its franchise, State ex inf. Otto, v. Kansas City College of Medicine and Surgery, 315 Mo. 101, 285 S.W. 980, 46 A.L.R. 1472; State ex rel. Gentry v. Monarch Transfer & Storage Co., supra, and would come within the scope of the quo warranto Proceedi......
  • Community Blood Bank of Kansas City Area, Inc. v. FTC, No. 18645.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (8th Circuit)
    • January 10, 1969
    ...v. Tax Service Ass'n, 290 Ill.App. 152, 8 N.E.2d 51 (1937); State ex inf. v. Kansas City College of Medicine and Surgery, 315 Mo. 101, 285 S.W. 980, 46 A.L.R. 1472 (1926); State v. Springfield African Social & Improvement Club, 169 Mo.App. 137, 154 S.W. 458 16 Forty-three hospitals, members......
  • Request a trial to view additional results
11 cases
  • State ex Inf. Taylor v. American Ins. Co., No. 36724.
    • United States
    • United States State Supreme Court of Missouri
    • December 30, 1946
    ...& Surgeons, supra, (317 Mo. 49, 295 S.W. 537, 542); State ex inf. Otto v. Kansas City College of Medicine & Surgery, 315 Mo. 101, 285 S.W. 980, The mere fact that the chief officers of the respondents never knew of, authorized or ratified the particular acts complained of, towit, Street's b......
  • State ex Inf. McKittrick v. Williams, No. 36718.
    • United States
    • United States State Supreme Court of Missouri
    • November 9, 1940
    ...ex inf. v. Arkansas Lbr. Co., 169 S.W. 145, 260 Mo. 276; State ex inf. Otto v. Kansas City College of Medicine & Surgery, 315 Mo. 101, 285 S.W. 980; 96 A.L.R., p. 237, sec. 2. (6) This proceeding is not in conflict with any provisions of the State or Federal Constitution with regard to due ......
  • State ex rel. Schneider's Credit Jewelers v. Brackman, No. 28671
    • United States
    • Court of Appeal of Missouri (US)
    • September 15, 1953
    ...a corporation constitutes a usurpation of its franchise, State ex inf. Otto, v. Kansas City College of Medicine and Surgery, 315 Mo. 101, 285 S.W. 980, 46 A.L.R. 1472; State ex rel. Gentry v. Monarch Transfer & Storage Co., supra, and would come within the scope of the quo warranto Proceedi......
  • Community Blood Bank of Kansas City Area, Inc. v. FTC, No. 18645.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (8th Circuit)
    • January 10, 1969
    ...v. Tax Service Ass'n, 290 Ill.App. 152, 8 N.E.2d 51 (1937); State ex inf. v. Kansas City College of Medicine and Surgery, 315 Mo. 101, 285 S.W. 980, 46 A.L.R. 1472 (1926); State v. Springfield African Social & Improvement Club, 169 Mo.App. 137, 154 S.W. 458 16 Forty-three hospitals, members......
  • Request a trial to view additional results

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