State v. M'Grath

• Decision Date: 21 May 1888
• Citation: 95 Mo. 193,8 S.W. 425
• Parties: STATE ex rel. RICHEY et al. v. McGRATH, Secretary of State.
• Court: Missouri Supreme Court

8 S.W. 425

95 Mo. 193

STATE ex rel. RICHEY et al. v. McGRATH, Secretary of State.

Supreme Court of Missouri.

May 21, 1888.

BENEVOLENT SOCIETIES — WHAT ARE — BUILDING ASSOCIATIONS — EXEMPTION FROM TAXES.

An association whose object is to enable members to accumulate, by small monthly contributions from their savings, a fund out of which they can secure homes for themselves and families, with a capital stock of $1,000,000, divided into 10,000 shares of $100 each, cannot be considered as a benevolent association, and therefore exempt from incorporation tax, under Acts Mo. 1887, § 12, providing: "As building associations are only aggregations of laborers," etc., "which start without any paid-up capital, and as their members only pay each month an assessment, in proportion to shares, for the purpose of furnishing a home to each of its members in turn, which assessments stop the moment that every member has been furnished with a home, they are really benevolent associations as mentioned in article 10, § 21, of the state constitution, and shall * * * be exempt from payment of the incorporation fee [tax] mentioned in said article 10, § 21."

Proceedings for mandamus.

Berry & Richey, for relators. Atty. Gen. Boone, E. Wilkerson, and R. F. Walker, for respondent.

NORTON, C. J.

This is a proceeding by mandamus in which the relators seek to compel the defendant, as secretary of state, to file and record in his office certain articles of association or agreement made by relators, and presented by them to defendant, and to issue a certificate of incorporation based thereon. The secretary of state refused to file the articles, and issue a certificate of incorporation, on the ground that he was not authorized to do so until the relators paid into the state treasury the sums required to be paid by article 10, § 21, of the constitution, and section 708, Rev. St. The said section of the constitution is as follows: "No corporation, company, or association, other than those formed for benevolent, religious, scientific, or educational purposes, shall be created or organized under the laws of this state, unless the persons named as corporators shall, at or before the filing of the articles of association or incorporation, pay into the state treasury $50 for the first $50,000 or less of capital stock, and a further sum of $5 for every additional $10,000 of its capital stock." Section 708, Rev. St., directs how such payments shall be made, and what shall be evidence of it to the secretary of state. The relators claim that by virtue of section 12, Acts 1887, p. 111, under which they seek to organize and become incorporate, they are exempted from the payment of the sums required to be paid by the constitution and statute above referred to. Said section 12 is as follows: "As building associations are only aggregations of laborers, mechanics, working-men,...