*1
MARIS, CLARK,
BIGGS,
Before
GOODRICH,
JONES,
Judges.
Circuit
GOODRICH,
Judge.
Circuit
case,
presents
This
comes to us
problem
problem. That
correctness
is the
Ap-
Tax
of the conclusion
the Board of
peals which
disallowed deduction
the
a testatrix to the
bequest by
estate tax of
Temperance,
Prohibition and
Board
Morals of the Methodist
Public
testatrix,
Simpson,
Ida
died
Church. The
applicable
statute
Reve-
in 1933. The
*2
and
1926,
9, 303(a)
body
Church
making
sole law
of the
nue Act of
c.
Stat.
Int.Rev.Acts,
its
constitutes
(3),
page
each
its Boards and also
U.S.C.A.
Confer-
the
The first General
which authorizes the
Court.
deduction
in
value
of ence
Methodist Church was
gross
estate
of the
amount
*
*
* * *
*
any
all
Rules there
to
the first General
condemning
corporation
operated
dealing
ex-
organized and
statements
with and
scientific,
clusively
has re-
charitable,
liquor
attitude
religious,
the
traffic. This
**
literary,
Rules
unchanged.
or
*.”1 mained
The General
educational
subject to
expectation
those
state
that
the
beneficiary
question
incor-
in
discipline
shall continue
of the Church
the
to evidence their desire
avoiding
porated in 1917in the District of Columbia
of salvation
“benevolent,
dealing
statute
under
with
the
“drunkenness, buying
*
*
evil,
such as
charitable, educational,
religious,
drinking
spirituous liquors or
selling
or
them,
T.
missionary” societies. D.C.Code
necessity”.
in
extreme
unless
cases of
seq.
objects
in
121 et
stated
the
Discipline declares the
Paragraph
pro-
incorporation are: “To
certificate of
regard
policy:
“We therefore
Church’s
every
temperance by
the cause of
mote
intoxi-
all
voluntary
abstinence from
total
legitimate means;
improper
to
the
citizen and
obligation of the
cants as the
narcotics;
drugs
to
render aid
use
traffic
complete
prohibition of the
legal
the
judgment
as in
to such causes
the
duty
gov-
of civil
drinks as the
alcoholic
trustees,
advance the
board of
tend to
Temperance has
Board of
ernment.” The
sug-
the Commissioner
welfare.” While
any by-laws
un-
adopted
operates
never
der the Articles of
gests significance
fact that the Board
Discipline
General
any
separately organized,
Conference.2
possible
disappears
significance
when it is
(as
shown)
seen
relation to the
its
that either
not understand
We do
General Conference of the Church is the
dissenting brother
our
the Commissioner or
same
that of such bodies as its Board of
application of the deduc
question
would
Foreign
and Board of Home Mis-
Missions
activity of
tion here if the
sions.
Temperance stopped
short
the Board of
possible attempt
In determining
bequest
to
or other
any
whether the
to
influence
Temperance qualifies
legislation.
the Board of
Reference to the
for de- wise affect
point,
relationship
duction the Board’s
law of
trusts we believe in
dissent,
although
Methodist
counsel
Church is relevant. as
So, also,
position
pressed
analogy.
is the
It is
governing
side
neither
regard
the Church with
advancement of
to both
clear that a trust for the
intoxicating liquor.
ap- religion
use and
is charitable. Scott on
sale
pears
clear, too,
that the
from facts
General Conference
is the
Act
time of the death of the decedent
1The
was amended
26 U.
page 230,
Int.Rev.Acts,
provides:
S.O.A.
the ad
this ease
phrase
dition of the
“and no
“Section
Article
substantial
part
carry
promote voluntary
total
'the
this Board
activities of which is
attempt
propaganda,
from all
intoxicants
nar-
otherwise
abstinence
legislation”.
promote
ing,
cotics,
observance and enforce-
to influence
Treasury Regulations
provi-
80, promulgated
ment of all
constitutional
statutory
sup-
under
the Act of 1826
sions and
enactments
amended
liquor
press
vided
traffic and
traffic in
:
speedy
drugs,
charitable,
Religious,
narcotic
scien-
“Art. 45.
legislation throughout
corporations.
tific,
of such
enactment
and educational
—A
world,
corporation
defend and maintain es-
or association to
such
tablished civil and
liberties.”
four
was made must meet
a transfer
points
organized
oper-
(1)
Mr. Scott
out:
It must be
tests:
specified pur-
is true that
“It
Statute
Chari-
or more of the
ated for one
pur-
organized
oper-
; (2)
made no mention
table Uses
of this
it must be
pose
pur-
exclusively
pur-
in its enumeration of charitable
ated
poses,
earnings
part
poses ;
no
of its net
any
being ‘repair
forts,
bridges,
private
form
stock-
to the benefit of
shall
inure
havens,
churches,
causeways,
individuals;
seabanks
no sub-
holders
highways.’
Sir Francis
shall be car-
of its activities
stantial
Moore,
act,
rying
propaganda,
the draftsman
ex-
or otherwise
at-
religious purposes
plained
legislation.”
tempting,
were omit-
to influence
intentionally
gifts
Discipline
‘lest
intended
ted
Article
operating at
the Board was
under which
step
Episcopal Church the
from ac
Christian Church. The
the Methodist
case that
has,
ceptance
1784,regarded
seeking
to his
organization in
the believer
since
personal
re-
practices
influence
same
is a
of members
others
direction
one,
gard
intoxicating liquors as
and it is
perfectly
natural
found
*3
step,
part
religious practices.
religious groups.
next
its
countless
equally
organized society
inherent
ap-
natural,
to
is
the
either
not
business
court
secure the sanction
or
the
or
is to
prove
ex-
disapprove
against
such inclusion or
out
certain
practices
secular
thought
no violation of
ward
to
long
clusion so
law
so,
as
be essential.
settled, al-
Sunday
long
The law is
Thus
involved.
well
we had
observance laws
is
prohibition
be
trust cannot
an im
while a charitable
before
portant
of alcohol became
illegal,
Scott
advocacy
regu
which is
created for a
on
of such
issue.
object
trust
party
legisla
the
the
lation
committees
before
major-
of a
part
not
to
advancement
have
be
tive bodies is a
of the achievement
not,
call for
democracy.
of course
ity
It must
in a
view.
desired result
“irra- safeguards
be
nor must it
undue
lie
against
violation of the law
tional”.
extension
its
is con-
by groups
when the court
in
think
counter-pressures
is
who
can
protection,
of the trust
differently
vinced that
the constitutional
will applied
courts,
court
that the
that which
serve no rational
to check
inter
Restatement,
any.
religion
declare it invalid.
374;
feres
freedom
with
Scott
sought
draw
Nor has the
to
prohibi-
point
the added
aside from
tion
bright
such a
line between
exercise
religious
a
intoxicants as
the use of
private
Judge
influence.
Hand
upheld, as a
practice,
cases
numerous
have
promoters of a
pointed
out6 that
trust,
for the
charitable
temperance
charity
charity
unclassed when the
are
intoxicating
society to
special
when
seeks a
charter or
a
upon
point,
contri-
liquors.4 Directly
a
positive
cruelty
seeks
to children
League Against Alco-
the World
bution to
accomplish
ends or
support of law to
its
gross in-
deductible
held
holism was
pro
a
to
university
when
seeks
Act of
in
Revenue
clause
a
come under
appropriations. Surely
church
a
vide
Coch-
question.
in
that here
to
1928similar
exemption
would
lose
as
religious
a
Revenue,
Internal
ran v. Commissioner
if, pending
proposal
repeal
institution
a
to
Cir.,
F.2d
Sunday
laws,
congregation
observance
part
difficult
of this
comes with
a meeting
property
case
on church
and au
regard
activity
to that
appear
to
thorized a committee
legislative body
peal.
before a
which
protest against
Board
has to with
do
to
the re
attempt
influence
A
legislation.
the
bright
to
majority of
the charitable trust
brings
validity
between
recognize
line
that which
con
pro
cases
of a gift to
person
viction to one
its influence
hibit or minimize manufacture and
sale
body politic
be
liquor.7 They
drawn. Mr.
intoxicating
directly
are not
Jus
forcefully puts
you
“If
it:
controlling,
tice Holmes
of course. But
furnish a
* * * want a certain
with all strong analogy.
result
The activities of
Board
naturally express
your
you
your
type
wish
which
heart
fell within the
have been re
away
sweep
opposition”.5
all
garded
religious
es
law and
as
Methodist Church
way of
A
century
limitation,
includes
life well as
a
half.
Religion
a
as
a
if
upon
upon
granted
nature of
world and any,
general
the deduction
beliefs
the admonitions to
be
the word
“Doers of
terms of
bodies is for
only” (James 1:22)
Congress
Congress
make and
and not hearers
has since
nations,
therefore, and teach all
Such
ye
made it in the 1934statute.
limitation
“Go
* * *”
28:19)
imposed by legislation,
(Matthew
having
are as old as not
been
upon
grounded
dissenting opinion
employed
From bis
Abrams
might,
States, 1919,
upon charity,
of times
250 U.S.
v. United
givers)
17, 22,
(contrary
minds of
S.Ct.
Ill 299, 300, L.Ed. 10 S.Ct. U.S. administrative officer not for a court or impose it. super Ap- by saying, appears I began Tax The decision of the Board of quite peals erogation. willing I concede am is reversed. “religious” within trust much the word as CLARK, “charitable” statute. Judge (dissenting). Circuit is the word My my col distinguished difference with I brethern their my think learned buttress is, think, leagues more fundamental. as I unnecessarily. to me a view This seems employ language2 These statutes pity happen to believe that since giv generous background legal history; selected, especial however beauti- buttress encouraged both enforcement internally form, unsound. ful in outward *4 back of that exemption. An examination say them, that As I understand dis alia the identical ground inter reveals religious because at bar is trust of the case reason, For that agreement here.3 involved particular people what includes am cor exact4 and analogy I believe the way think to life. ethical- of That surprised its omission respondingly confusing seems to me to be sanctions Courts5 opinions United States of things with the But it sanctified. whatever parties and, perhaps, that because of important seem to me is because litigation. to this this is what has seemed United States Court. Mr. Field Any Justice extended of of the Statute discussion said : incorporation Elizabeth and of theory preamble6 and ‘religion’ “The term of Creator, pedantic.7 American one’s views of his would be The relations his by they impose problem augmentation analogy.8 obligations and to the of rever- character, plain any being from Eliza ence for his and and of that emanation currently Beason, days bethan obedience to his will.” Davis v. conclusive.9 1 Hopkins, History potent poor people; of Reli and for main- Cf. The some p. 2; gions, Bough, Frazer, of and The tenance mariners, sick and maimed soldiers Golden schools, learning, Ed., 3rd i. 222. schools of free 2 universities; The Federal estates tax allows de and scholars in some for re- pair bridges, havens, causeways, ports, for of duction for “to or the use of any operated churches, highways; corporation organized and sea-banks and some exclusively orphans, religious, charitable, preferment scien for education and of tific, purposes”, relief, literary, some for or stock or educational towards or main- Int.Rev.Code, 812(d), correction, Int. 26 U.S.C.A. tenance for of § houses some Rev.Code, 812(d); 303(a) marriages poor sup- maids, § of § some portation, young Revenue Act 26 U.S.C.A. Int. aid of trades- page 234; 403(a) men, Rev.Acts, persons decayed, § handicraftsmen redemption 1918, 42 of 1921 and Stat. Revenue Acts and others for prisoners relief or captives, 40 Stat. 1098. and for aid ease by 3 any poor concerning pay- I understand to be conceded inhabitants This majority. fifteens, setting ments of out of soldiers Trust—Purpose— 4 Eliz., Charitable and other 4 taxes.” 43 c. Stat. Trusts — Agitation Repeal (1601). Exist- Political ing Daws, 7 Halsbnry’s England, Daw Re- 4 California 4 Daws 2d Southern Ed., Charities, p. 107; (note). 3 on Trusts view 418 Scott Commissioner, History 5 348.2, Cir., 2 42 F.2d v. charitable trusts § Slee ; England, 348.3, 400* Deubuseher v. Com 72 Charitable Trusts A.D.R. 998; Cir., Zollmann, missioner, States; 2 54 F.2d Vander the United American 360; Chapter Commissioner, Cir., I, Charities, 1 93 F.2d Daw of Statute of bilt v. Montgomery States, Chapter Elizabeth, II, v. United 63 Ct.Cl. American Devel- Colony opment. 588; Welch, Trust Co. v. D. Old 45; Weyl 8 C., F.Supp. Halsbury’s cf. Commis 25 Daws of above 811; Cir., Trusts, sioner, cited, p. 122; 48 F.2d Gimbel v. 3 Scott on above 780; Cir., Commissioner, cited, The Statute Charitable Uses; Estate, Zollmann, N. American Moore’s Misc. Daw Chari- re Chapter Mertens, ties, cited, IV, In above Is A Paul and Federal What Y.S. through 191, 192, Taxation, Charity, §§ 29.20 §§ come by Trusts, Chapter II, Professor Restatement is discussed This case Topic 3, 368b, chapter his Charitable in 3 Scott purposes; 3 Scott headed nature of charitable Charitable cited, Changes pur What law. “ * * * aged, im- charitable. for relief some however, Constitution, addition, operating 1 of scope any under Article exact been which plain. is not have stated: fact, They have, found “char liberal. promote of this Board is to synonymous with itable” to be voluntary from all intoxi- total abstinence whatever benefit social interest and narcotics, promote cants observance community.10 changes the community, enforcement of all constitutional maybe century, with the statutory sup- visions enactments foot”, there with the been “Chancellor’s press liquor traffic in nar- traffic and the complete uniformity Pro of decision. drugs, speedy cotic enact- and the authors fessors Zollmann and Scott legislation throughout ment have of the Restatement of Trusts furnish ours). (italics world.” Section concern ed detailed enumerations.11 The phrase Temper- last the Board type here is with that of charitable explicit Constitution is so ance’s Halsbury Lord is described fully corroborating ac- need not examine its particular promulgation doctrines “the any tivities nor be niceties troubled principles”12 Scott as Professor purpose.14 dominant and servient “the of beliefs doct dissemination choice, therefore, is between two con- rines”.13 flicting agreed lines authorities. *5 bequest claimed The deduction is on a popularity15 par- that the wisdom or of the pious pious daughter the will of the of a money given ticular cause for which the father. The denominational cloak of that So, is not for the courts. causes that even piety was the Methodist Church whose irreconcilable conflict anti- are such as bishop. leading flock had been a father by experi- vivisection and research medical torch, wishing No doubt hand his animals; upon living mentation and the testatrix willed a considerable to the sum by by peace disarmament of Prohibition, Temperance, Board of Public war, ap- preparedness have been of the Methodist Church. Morals very proved.16 in the field of by in 1908 This Board was authorized the principal disagreement. case there has been body lawmaking of the Methodist Whatever has been said in favor tem- Thereafter, 1917, Church. and in it was in- many decry perance, of total ab- virtue corporated under Certificate read: a quotation prov- stinence. Counsel’s erb, mocker, strong a drink is “Wine is temperance by “To the cause raging”17 might answered a means; every legitimate im- Dialogues. to Plato’s narcotics; proper drugs to ren- judgment as in der aid to such causes Kg' &í¡ Hat rov ofvév ye, cotxev, & mv ¿5 A6. SWaiv \oy°S trustees, the board of tend advance of the SeSoaQai. qiijotv ixt 11 1 tcdv piavapev ¡ia;p Tva av6pu>*a>v o Sé ^ welfare.” Incor- Certificate viTv tip* f|[uov Xeyopevos tpappaxov ext pipo',v vouvavviov at-
poration, Para. 3. XTipeoiG jiév evexa Sé bcboaOal,ocuparon Syeíag S0Ú5 1932, date, pertinent And it was ve Hat íaxé05. ligion; Relief of What ficial Advancement vancement ernmental or et YI, Benevolence, seq. 3 Scott Promotion tion, Trusts, above are charitable. § 11 Zollmann, 10 374f, Education; seq. 2 Restatement of Relief of Chapter VIII, Municipal Purposes; cited, Purposes Promotion of other Community purposes; above Poverty; Trusts, Chapter community; municipal purposes; health; cited, poverty; American Law of education; Promotion of Are religion; cited, Chapter § above V, Advancement Charitable; 368, Trusts, § Religion, Chapter § 373 et Topic 370 et What cited, purposes § § Advancement VII, Educa Restatement 371 et 372 et above Health; 3 Scott on 3, Charities, seq. purposes § seq. § 369 et § bene cited, Gov 368, Re seq. seq. Ad Plowden v. v. 1 Ch. § London Anti-Vivisection Ch. 1 Ch. 240. pose ; 373, cited, cited, 15 [14] 13 12 Halsbury’s 374L; London 501, Old 3 Scott on Lord Hanworth 4 ; Governmental Beneficial § 374L. Restatement p. Scott, § Testament, 374, compare Restatement Spiritualistic Alliance, approved Lawrence, Re Promotion to the Laws of Hummeltenberg, Trusts, Trusts, Re Proverbs, in Re Foveaux, Community. Re Society, Municipal above above of Other Grove-Grady, Hood, above 1 Ch. 557. xx. 1. Cross v. (1895) cited, cited, Beatty (1931) above above cited, Pur- Pur- § § moting temperance. The Council held cer tion to ties, it was clear that wording ance reforms’. From the England and anee Council of the Christian Churches of promotion sidered the court has objects and a consideration of is a *6 442. Council was to itical exposition: Council of Christian vation of the liberty ** recognize touching religion marriage, objects. Equity ful means a Society Limited, known Lord volves tion itable if Bury, Plato, Laws, establishment proposed In the By Original: Wales Inland because it is object Parker. The learned objects case a to advocate secure say education, position judicial expression abolition change discussion of a trust the attainment of a trust for (136 of which the court in The Commissioners Revenue v. The change change Wales was a Plato, Laws, no means bar, legislative sabbath, public benefit, temperance L.T.Rep. 27). gift.” obtain of a trust illegal, [1917] always gift view, the doctrine has received objects or promote in the was church, p. Í56).18 Churches the first alteration to secure the Bowman always refused a Jto Appeal attainment been Book trust is not char- judging dealing law, law.19 was first con purely political law take united as the seculariza- everyone thereof other temper factually and therefore tests, The their by any will of England but because II, purpose, Lord Cases charitable with the Temper- The best p. whether the dis- Secular invalid, or will activi cases of the Scott obser- their said: is at pro law- akin pol- law ac in- (1 Judges notated and in notes suaded 222, 223. have been perance as Charitable perance reform turned touch empt from the Temperance v. Wilkinson fore party he considered party ject law. Whether these unwise; temperance as the Council’s purposes only. gard to itable ciple laid direct Such and dividends a tain income tax on come of Commissioners of Inland It is true that “The case stated to determine Council had been Council was obtaining Commissioners of Inland Revenue riot income-producing held that a lines purpose. He could entirely on the Council, decision of exempted and had been question down collected persons whether taxes.” The Promotion Massachusetts20 the American facts, their Council of bring ((1898) Council was quite independent of formed income of a the income various law could not constituted and did §§ Mr. Justice alone, consider English established whether, the case within effecting Re from tax. ground they were Mr. changes were Scowcroft; Ormrod Professor applied investments, Ch. legislative activities wholly immaterial. England and Wales Justice Purpose, as Law country only 374.5, 374.6, Revenue 638). brethren. The charity not, having re have been mainly with the exempted from whether the if of the Council primary obj changes in the reviews.21 income would subsidiary ob called a for charitable the income of Rowlatt for charitable promotion of Reports substantially pursued on Rowlatt He there object 171 L.T. of Tem- political and ex- wise or interest applied char prin tem- per in 3 An held ect, in story implied “Athenian: 951; "Validity government, The other A.L.R. given that wine was revenge, testamentary man out of trust wo- and in mad; order to 720; rights, make him but our men’s 28 A.L.R. Gift to present doctrine, contrary, is, sale, on the manufacture, hibit or minimize given wine balm, intoxicating liquor him as a and in use valid chari- implant modesty order to soul, 1361; trust, in the table Trusts— A.L.R. strength body.” health and Bequest in the Trans Charitable Procure Use— Dialogues lation : Jowett, Plato, Change Existing University Laws, pp. 449, 450. Pennsylvania (note); Law Review 19 Halsbury’s Bartlett, Laws of Effect Charitable cited, p. Changes Law, 16 California Law passing upon Organ- Corporation the trusts of the Review Linton philanthropic family Purposes Jackson A Boston. ized Political Chari- 21Validity pro Michigan Organization, trust table Law Re- system mote in laws or or methods view FIELD, numerically BECK v. WINGS believe the inferior de Inc. superior pre logically cisions and so No. 7668. fer England to follow and Massachusetts.22 promulgation group in that of causes Appeals, Circuit Court of Third Circuit. usually stages. called in three the State23 is June particular studied, may may may cause advocated, advocacy or finally that proponents plenary extend to a of a form. The “way living” strongly be lieve that righteousness its wisdom and its wish to bind all dissidents. just point at this divide. simplest judges give rea They emphasize son for position. their uncertainty. additional Ultimate benefit generally lies prophecy. in the field of depends upon merits the cause itself. accomplishment
The relation between compulsion problematical. even more two, think, I suggest equally per as I suasive, if rather more subtle considera earlier, have, tions. The courts as I said paraded neutrality. “bigA somewhat their espouse queerest hearted” donor could things might and the fact that he she24 minority be a one made difference. It no consistent, then, hardly turn around approve compulsion of minorities. government. Some of it essential
minority in favor of murder must be re strained. Let the state establish own policy on such matters without *7 among population. volunteers thermore, And fur compose let those who the voice state, legislative the members of its body, subject do so without being to even permissible “lobbying”. say “permissible” only obj because the courts have ected to the type.25 Undoubtedly, secret influence how ever, there a faint of harm in odor money present only one side of any proposition. paraphrase, may To place Lord on the side of the heaviest therefore, money-bags.26 Although, object, may assuredly he refrain by way encouraging of offer —either state’s enforcement or in
subvention.
selves.” Foot’s 317. 31 Beav. rant she is. Behold [23] Fairchild, Massachusetts; “Joanna “I shall enter on no encomium woman”, Resolution, January 26, Webster, Southcote, cf. General Thornton v. her, “Madam she needs Second Sociology, p. a foolish judge Blavatsky, Howe, (1862) none. There Speech igno your up p. Textile Mills Securities ruary 6, Foundress ment”, University Charity Cy Voltaire, Commissioner of Internal Revenue v. — Wills— Law Review Letter to M. le Pres Theosophical Society Doctrine, Theosophical Corp., Cir., Riche, 17 Boston (note). Move- As A Feb